50175 v2 H WO L A K N U L E O T 0 9 T E R DB N A N A R P R 2 0 E R N E IW Y A I R VE IA CA SA E N S FN N IL T T ME T E P R TO S P R V D N W O E A IN A P O E E DN A A L N IGD T N O B E IN IC ME YR GO R A IA IN L N O MA IN O G NZ TO A IF R TO WO L B N L N IG2 0 R D A K E DN 0 9 P w ron pee tt ) o (o eP it rsnain R N AS FA Ç I O TG Ê P RU U S SA O EP Ñ L THE WORLD BANK ANNUAL REPORT 2009 (CD-ROM contents) IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS IBRD FINANCIAL STATEMENTS AND INTERNAL CONTROL REPORTS IDA MANAGEMENT'S DISCUSSION AND ANALYSIS IDA FINANCIAL STATEMENTS AND INTERNAL CONTROL REPORTS NEW OPERATIONS APPROVED INCOME BY REGION LENDING DATA ORGANIZATIONAL INFORMATION WORLD BANK LENDING 2009 (PowerPoint presentation) Letter of Transmittal This Annual Report, which covers the period from July 1, 2008, to June 30, 2009, has been prepared by the Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)--collectively known as the World Bank--in accordance with the respective bylaws of the two institutions. Robert B. Zoellick, President of IBRD and IDA, and Chairman of the Board of Executive Directors, has submitted this report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors. Annual reports for the International Finance Corporation, the Multilateral Investment Guarantee Agency, and the International Centre for Settlement of Investment Disputes are published separately. Executive Directors Alternates E. Whitney Debevoise (Vacant) Toru Shikibu Masato Kanda Michael Hofmann Ruediger Von Kleist Susanna Moorehead Stewart James Ambroise Fayolle Frederick Jeske-Schonhoven Konstantin Huber Gino Alzetta Rudolf Treffers Claudiu Doltu Jose A. Rojas Marta Garcia Jauregui Samy Watson Ishmael Lightbourne Carolina Renteria Rogerio Studart Giovanni Majnoni Nuno Mota Pinto James Hagan Do-Hyeong Kim Pulok Chatterji Kazi M. Aminul Islam Toga McIntosh Hassan Ahmed Taha Svein Aass Jens Haarlov Sid Ahmed Dib Javed Talat Michel Mordasini Michal Krupinski Merza H. Hasan Ayman Alkaffas Zou Jiayi Yang Yingming Abdulrahman M. Almofadhi Abdulhamid Alkhalifa Alexey Kvasov Eugene Miagkov Sun Vithespongse Irfa Ampri Dante Contreras Felix Alberto Camarasa Louis Philippe Ong Seng Agapito Mendes Dias As of June 30, 2009 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2009 Section 1: Overview 3 Section 2: Basis of Reporting 5 Section 3: Development Activities 8 Loans 9 Derivatives 13 Guarantees 14 Grants 14 Other Activities 14 Section 4: Investment Activities 15 Section 5: Funding Resources 17 Equity 17 Borrowings 20 Section 6: Financial Risk Management 21 Governance Structure 21 Managing Risk-Bearing Capacity 22 Credit Risk 23 Market Risk 26 Liquidity Risk 28 Operational Risk 28 Section 7: Critical Accounting Policies 30 Section 8: Results of Operations 31 Section 9: Governance 33 Section 10: Reconciliation of Prior Year Fair Value Financial Statements to Reported Basis 36 Glossary of Terms 38 IBRD'S MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 1 LIST OF BOXES, TABLES AND FIGURES Boxes 1 Selected Financial Data 4 2 Lending Operations Principles 10 3 Treatment of Overdue Payments 25 Tables 1 Condensed Fair Value Balance Sheets at June 30, 2009 and 2008 7 2 Condensed Fair Value Statements of Income for the years ended June 30, 2009 and 2008 7 3 Summary of Currency Translation Adjustments 8 4 Lending Status at June 30, 2009 and 2008 9 5 Currently Available Loan Terms 11 6 Loan Terms for Previously Available Products 12 7 Loan Charge Waivers 13 8 Guarantee Exposure 14 9 Contractual Cash Obligations 17 10 Liquid Asset Portfolio and LTIP Returns and Average Balances 17 11 Equity Capital 18 12 Capital Subscriptions of DAC Members of OECD Countries 20 13 Funding Operations Indicators 20 14 Credit Exposure, Net of Collateral Held, by Counterparty Rating 26 15 Loan and Borrowing Portfolios 27 16 Net Income (Loss) 32 17 Net Noninterest Expense 33 18 Condensed Fair Value Balance Sheet at June 30, 2008 37 19 Condensed Fair Value Statement of Income for the year ended June 30, 2008 37 Figures 1 Commitments including Guarantee Facilities by Region 9 2 IBRD Lending Commitments 10 3 Loan Portfolio by Loan Terms 13 4 Liquid Asset Portfolio Composition 16 5 Equity-to-Loans Ratio 18 6 Medium- and Long-term Funding Raised Excluding Derivatives by Currency 20 7a Effect of Derivatives on Interest Rate Structures on the Borrowing Portfolio - June 30, 2009 21 7b Effect of Derivatives on Currency Composition on the Borrowing Portfolio - June 30, 2009 21 8 Top Eight Country Exposures at June 30, 2009 24 9 Relative Currency Composition of Significant Balance Sheet Components--Fair Value Basis at June 30, 2009 and 2008 29 10 Six-Month LIBOR Interest Rates U.S. Dollar 31 11 IBRD's U.S. Dollar Funding Curve 33 Throughout Management's Discussion and Analysis, terms in boldface type are defined in the Glossary of Terms on page 38. The Management Discussion and Analysis contains forward looking statements which may be identified by such terms as "anticipates", "believes", "expects", "intends" or words of similar meaning. Such statements involve a number of assumptions and estimates that are based on current expectations, which are subject to risks and uncertainties beyond IBRD's control. Consequently, actual future results could differ materially from those currently anticipated. 2 THE WORLD BANK ANNUAL REPORT 2009 1. OVERVIEW of its loans, the fluctuations captured in the cumulative translation adjustment for the purposes Structure and Operations of financial statement reporting do not significantly The International Bank for Reconstruction and impact IBRD's risk-bearing capacity. Development (IBRD) is an international Economic Environment organization established in 1945 and is owned by its member countries. IBRD's main goals are promoting FY 2009 was characterized by turmoil in the global sustainable economic development and reducing financial markets and the related credit crisis. The poverty in its developing member countries. It impact of these developments on IBRD's risk pursues these goals primarily by providing loans, bearing capacity and operations is discussed below: guarantees and related technical assistance for Capital Adequacy: As of June 30, 2009, IBRD's projects and for programs for economic reform. capital adequacy position remained strong in the IBRD's ability to intermediate funds from face of the on-going financial markets turmoil, as international capital markets for lending to its indicated by the equity-to-loans ratio1 (see Table developing member countries is an important 11), which remained above the target risk coverage element in achieving its development goals. IBRD's range of 23 to 27 percent under the Strategic financial objective is not to maximize profit, but to Capital Adequacy Framework. In addition, IBRD earn adequate net income to ensure its financial remains well-capitalized and supported by adequate strength and to sustain its development activities. liquidity levels which enabled it to meet increased Box 1 presents selected financial data for the last lending requirements in FY 2009. five fiscal years. Lending Operations: IBRD has seen a significant The financial strength of IBRD is based on the increase in its lending in FY 2009, as reflected in the support it receives from its shareholders and on its increase in commitments and net disbursements of financial policies and practices. Shareholder support $19,443 million and $10,473 million, respectively, for IBRD is reflected in the capital backing it has compared to FY 2008. The substantial increase in received from its members and in the record of its the commitments was largely driven by an increase borrowing members in meeting their debt-service in demand for IBRD's loans as a result of the current obligations to it. IBRD's financial policies and financial crisis. The majority of the increase in practices have led it to build reserves, to diversify its commitments was to borrowing countries in the funding sources, to hold a large portfolio of liquid Latin America and Caribbean region and the Europe investments, and to limit a variety of risks, including and Central Asia region. credit, market and liquidity risks. Investment Activities: IBRD's liquid asset portfolio IBRD's principal assets are its loans to borrowing experienced positive returns for the year. Included in member countries. During FY 2009, due to higher these returns where net mark-to-market losses of 24 projected debt funding costs, IBRD increased the basis points due to the market conditions spread over LIBOR on all new IBRD Flexible experienced in FY 2009. Should conditions worsen, Loans (IFL) with a fixed spread and also introduced IBRD could experience lower investment returns, differential pricing depending on the average resulting in a reduction in its operating income in maturity of loans with fixed spread terms. (see future periods. Given the deterioration in equity Section 3, Development Activities ­ Contractual markets globally, IBRD's pension and other Terms of Loans including Tables 5 and 6 for loan postretirement benefits assets have experienced a pricing details). lower return than expected, resulting in higher post To raise funds, IBRD issues debt securities in a employment benefits costs in FY 2010 and beyond. variety of currencies to both institutional and retail Net Loan Income: Due to the lower short-term investors. Proceeds from the debt issuance, together interest rate environment, IBRD has experienced a with IBRD's equity, are used to fund its lending and decrease in loan income, net of funding costs, as investment activities, as well as general operations. compared to FY 2008. In the event of a sustained IBRD holds its assets and liabilities primarily in lower short-term interest rate environment, IBRD U.S. dollars, euro and Japanese yen. IBRD mitigates could experience lower operating income in future its exposure to exchange rate risks by matching the periods. currencies of its equity with those of its assets. However, the reported levels of its assets, liabilities, income and expenses in the financial statements are affected by exchange rate movements in all the currencies in which IBRD transacts compared to IBRD's reporting currency, the U.S. dollar. Since 1 The equity-to-loans ratio refers to the equity-to-loans, IBRD matches the currencies of its equity with those guarantees and long-term investment asset ratio. IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 3 Box 1: Selected Financial Data As of or for the Years Ended June 30 In millions of U.S. dollars, except ratio and return data in percentages Lending 2009 2008 2007 2006 2005 a Commitments to member countries 32,911 13,468 12,829 14,135 13,611 b Gross Disbursements 18,564 10,490 11,055 11,883 9,722 b Net Disbursements 8,344 (2,129) (6,193) (1,741) (5,131) Reported Basis 2009 2008 2007 2006 2005 Loans Income 3,835 5,497 5,467 4,864 4,155 Provision for Losses on Loans and Guarantees (increase) decrease (284) 684 405 724 502 Investment Income 603 1,066 1,281 1,107 627 Borrowing Expenses (2,739) (4,017) (4,519) (3,987) (3,037) Net Noninterest Expense (1,087) (969) (971) (968) (927) c Operating Income 572 2,271 1,659 1,740 1,320 Board of Governors-Approved Transfers (738) (740) (957) (650) (642) Fair value adjustment on non-trading portfolios, net 3,280 (40) (842) (3,479) 2,511 Net Income (Loss) 3,114 1,491 (140) (2,389) 3,189 Net Return on Average Earning Assets Based on Operating Income 0.45 1.87 1.34 1.34 0.96 Based on Net Income 2.38 1.23 (0.11) (1.84) 2.32 Return on Equity Based on Operating Income 1.53 5.96 4.64 5.05 3.90 Based on Net Income 8.01 3.73 (0.37) (6.84) 9.26 d Equity-to-Loans Ratio 34.53 37.62 35.05 32.96 31.45 Total Assets 275,420 233,311 207,601 211,982 221,609 Loans Outstanding 105,698 99,050 97,805 103,004 104,401 e Accumulated Provision for Loan Losses (1,632) (1,370) (1,932) (2,296) (3,009) f Borrowings Outstanding 110,040 87,402 87,460 95,491 100,898 Total Equity 40,037 41,548 39,796 36,474 38,588 Fair Value Basis 2009 2008 2007 2006 2005 Net (Loss) Income (225) 1,135 900 640 402 Net Income Before Board of Governors-Approved Transfers 513 1,875 1,857 1,290 1,044 g h Net Return on Average Earning Assets 0.40 1.52 1.49 0.98 0.74 g h Return on Equity 1.41 4.93 5.21 3.74 3.04 Equity-to-Loans Ratio 35.26 36.71 34.47 32.44 30.83 Unrestricted Cash and Investments 38,579 23,103 22,258 24,929 26,435 Net Loans Outstanding 101,918 98,392 96,144 101,102 104,057 f Borrowings Outstanding 110,022 89,946 89,484 95,258 105,691 Total Equity 38,316 40,128 38,483 37,590 36,943 a. Commitments are net of cancellations and include guarantee commitments and guarantee facilities. b. Amounts include transactions with the International Finance Corporation (IFC) and capitalized front-end fees. c. Operating income is defined as Income before fair value adjustment on non-trading portfolios, net and Board of Governors-Approved Transfers. d Ratios are presented using usable equity and before applying the effects of fair value adjustments on non-trading portfolios, net and Board of Governors- Approved Transfers. e. Amount excludes accumulated provision for losses on guarantees and effective and undisbursed deferred drawdown option. f. Borrowings outstanding, excluding derivatives, net of premium/discount. g. Ratios exclude Board of Governors-Approved transfers. h. Ratios have been adjusted to exclude Board of Governors-Approved Transfers. Financial Results nonaccrual loan portfolio in FY 2008 and lower loan margin in FY 2009. For the purposes of this document, Operating Income is defined as income before fair value FY 2009 was the first full year of the equity duration adjustment on non-trading portfolios, net and Board extension strategy. For FY 2009, this strategy of Governors-Approved Transfers. FY 2009 generated $246 million in net interest income which Operating Income was $572 million; $1,699 million is reflected in operating income and unrealized lower than that in FY 2008 primarily due to the mark-to-market gains of $1,687 million which are impact of the positive developments in the 4 THE WORLD BANK ANNUAL REPORT 2009 included in the fair value adjustment on non-trading Standards No. 157, Fair Value Measurements (FAS portfolios, net. 157). In the context of assessing changes in IBRD's The combined effect of the adoption of FAS 157 and operating environment, it is management's practice FAS 159 was to reduce opening retained earnings as to recommend each year the allocation of net income of July 1, 2008, by $2,566 million. (Refer to the to augment reserves, waivers of loan charges to Notes to the Financial Statements, Note O ­ Fair benefit eligible borrowers, and allocation of net Value of Financial Instruments.) income to support developmental activities. Management Reporting On July 10, 2009, IBRD's Board of Governors IBRD is a financial intermediary, borrowing approved a $55 million transfer from Surplus for the funds in international capital markets for Trust Fund for Gaza and West Bank. lending to its member countries. IBRD's On August 5, 2009, the Executive Directors funding operations are designed to meet a approved the following allocations from FY 2009 major organizational objective of providing low net income: $36 million to the Long-Term Income cost funds to borrowing members. Portfolio adjustment account, $25 million to the In implementing its risk management and Pension Reserve, and $11 million to the restricted funding strategies, IBRD makes extensive use retained earnings. In addition, the Executive of derivatives. Directors recommended to IBRD's Board of Governors the transfer of $783.3 million to Because of the asymmetry created in the International Development Association (IDA) of financial statements from fair valuing the which $500 million from FY 2009 unallocated net derivatives and borrowings portfolio, while income and $283.3 million from Surplus. The carrying the corresponding loans at amortized Executive Directors also approved waivers of loan cost less a loan loss provision, management charges for FY 2010 for all eligible borrowers with believes that reported net income does not eligible loans. capture the true economic income of IBRD. Therefore, for management reporting purposes, 2. BASIS OF REPORTING IBRD uses fair value financial statements, Financial Statement Reporting which present the effect of all financial assets and liabilities including the loans portfolio at IBRD prepares its financial statements in conformity fair value. Table 1 presents all major financial with accounting principles generally accepted in the asset and liability portfolios. United States of America (U.S. GAAP), referred to in this document as the "reported basis". In prior years the management reporting basis was referred to as "current value". However, effective Certain reclassifications of the prior years' reported July 1, 2008, IBRD modified its valuation of the figures have been made to conform with the current loans portfolio to be consistent with FAS 157. years' presentation. IBRD's loans portfolio valuation model was Accounting Developments enhanced to incorporate CDS spreads for each borrower. Recovery levels were modified to Effective July 1, 2008, utilizing an election available incorporate IBRD's expected recovery rates. As a under Statement of Financial Accounting Standards result, as of July 1, 2008, the fair value basis of No. 159, The Fair Value Option for Financial Assets reporting for the loans portfolio was $1,451 million and Financial Liabilities (FAS 159), IBRD fair lower than the amount reported at June 30, 2008 on values all of the debt instruments in its borrowings a current value basis. There were no other portfolio. As a result of this election, all of the differences between the fair value and current value instruments in the investments, borrowings and reporting bases as of that date. asset/liability management portfolios are reported at fair value, with changes in fair value reported in The current market environment has seen large earnings. However, IBRD still reports all of its volatility in CDS spreads on sovereign debt. The loans at amortized cost (except for loans with CDS spreads provides a market indicator of the fair embedded derivatives2 which are reported at fair value of the portfolio at a point in time; however, the value). In conjunction with this change, IBRD also associated volatility does not provide a good basis implemented Statement of Financial Accounting for making income allocation decisions, which are based on a longer term view of the adequacy of 2 IBRD's risk bearing capacity. In accordance with the Statement of Financial Accounting Standards No. 155, Accounting for Certain Hybrid Financial Income allocation and distribution decisions are Instruments, hybrid financial instruments, with embedded based on reported income, excluding the impact derivatives that otherwise would require bifurcation, can be carried at fair value. of the fair value adjustments associated with IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 5 financial instruments (other than trading Investments Portfolio investments measured at fair value), Board of Governors-Approved Transfers, temporarily For the investments portfolio, no additional fair restricted income due to externally financed value adjustment is necessary, since the investment outputs and adjustments to the pension reserve. securities and related financial instruments held in Additionally, when making decisions on IBRD's trading portfolio are carried and reported at income allocation and distribution, fair value under both the reported and fair value management monitors the fair value balance bases. sheet, the results from the stress test, and Borrowings Portfolio considers projections of the equity-to-loans ratio as indicators of IBRD's financial health For the borrowings portfolio, except for the within an overall Strategic Capital Adequacy transition adjustment reflecting the adoption of Framework. Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Fair Value Basis Hedging Activities (FAS 133) on July 1, 2000, no The Condensed Fair Value Balance Sheets in Table additional adjustment is necessary, since the debt 1 present IBRD's estimates of the fair value of its instruments and associated derivatives held in financial assets and liabilities, taking into account IBRD's borrowings portfolio are carried and interest rate, currency and credit risks. The current reported at fair value under both the reported and year's Condensed Fair Value Balance Sheet is fair value bases. presented with a reconciliation to the reported basis. Fair Value Statements of Income The prior year's Condensed Fair Value Balance Sheet is presented, with a reconciliation to the In FY 2009, net loss on a Fair Value basis was $225 reported basis, in Table 18 in Section 10. The prior million, as compared to FY 2008 net income of year's Condensed Fair Value Statement of Income is $1,135 million. The main factors contributing to the presented, with reconciliation to the reported basis, decrease in net income on a fair value basis are in Table 19 in Section 10. discussed below. Fair Value Balance Sheets Income from Loans Loans Portfolio Income from loans decreased by $1,662 million in FY 2009 compared to FY 2008. This was primarily All of IBRD's loans are made to, or guaranteed by, due to a decline in the short-term interest rates in FY countries that are members of IBRD. In addition, 2009, particularly U.S. dollar (see Figure 10), as IBRD may also make loans to IFC, an affiliated well as the impact of the positive developments in organization, without any guarantee. IBRD does not the nonaccrual loan portfolio in FY 2008. currently sell its loans, nor does management believe there is a market for loans comparable to those made Income from Investments by IBRD. Income from investments decreased by $463 million in FY 2009 compared to FY 2008, due to lower At June 30, 2009, the fair value of loans, as shown interest income consistent with the interest rate in Table 1, was $1,739 million lower than the environment (see Figure 10). IBRD primarily holds reported basis, reflecting the incremental effects on short-term U.S. dollar fixed income investments and fair value of incorporating prevailing CDS spreads other assets hedged into U.S. dollars with an average and interest rates over the reported basis where the duration of less than three months. outstanding balance is reduced by the loan loss provisioning. 6 THE WORLD BANK ANNUAL REPORT 2009 Table 1: Condensed Fair Value Balance Sheets at June 30, 2009 and 2008 In millions of U.S. dollars June 30, 2009 June 30, 2008 Additional Reported Fair Value Fair Value Fair Value Basis Adjustments Basis Basis Due from Banks $ 3,044 $ 3,044 $ 890 Investments 41,045 41,045 26,598 Receivable from Derivatives Investments 18,467 18,467 5,857 Client Operations $19,559 19,559 20,269 Borrowings 82,793 82,793 76,098 Other 2,246 2,246 609 Net Loans Outstanding 103,657 $(1,739) 101,918 98,392 a Other Assets 4,609 4,609 5,722 Total Assets $275,420 $(1,739) $273,681 $234,435 Borrowings $110,040 $(18)b $110,022 $ 89,946 Payable for Derivatives Investments 18,923 18,923 6,309 Client Operations 19,551 19,551 20,263 Borrowings 76,321 76,321 69,152 Other 847 847 1,007 Other Liabilities 9,701 9,701 7,630 Total Liabilities 235,383 (18) 235,365 194,307 Paid in Capital Stock 11,491 11,491 11,486 Retained Earnings and Other Equity 28,546 (1,721) 26,825 28,642 Total Equity 40,037 (1,721) 38,316 40,128 Total Liabilities and Equity $275,420 $(1,739) $273,681 $234,435 a. Effective July 1, 2009, IBRD modified its loans valuation approach for consistency with FAS 157. Had the model been in placed as of June 30, 2008, the fair value of loans would have been $96,941 million, instead of $98,392. b. Amount represents transition adjustment reflecting the adoption of FAS 133. Table 2: Condensed Fair Value Statements of Income for the years ended June 30, 2009 and 2008 In millions of U.S. dollars FY 2009 FY 2008 Fair Value Fair Value Reported Adjustments Comprehensive Comprehensive Basis to Fair Value Basis a Basis a Income from Loans $3,835 $3,835 $5,497 Income from Investments, net b 603 603 1,066 Other Income 599 599 300 Total Income 5,037 5,037 6,863 Borrowing Expenses 2,739 2,739 4,017 Administrative Expenses including contributions to Special Programs 1,441 1,441 1,258 Provision for Losses on Loans and Guarantees 284 $ (284) - - Other Expenses 1 1 1 Total Expenses 4,465 (284) 4,181 5,276 Operating Income 572 284 856 1,587 Board of Governors-Approved Transfers (738) (738) (740) Fair Value Adjustment on Non-Trading Portfolios, net 3,280 3,280 (443) Fair Value Adjustment on Loans (1,738) (1,738) 983 Changes to Other Comprehensive Income (1,885) (1,885) (252) Net Income (Loss) $3,114 $(3,339) $(225) $1,135 a. Comprehensive basis comprises net income on a reported basis as well as the components of other comprehensive income as reported in the financial statements. b. Unrealized gains(losses) on derivatives in the investment trading portfolio are included in Income from Investments, net. IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 7 Borrowing Expenses Changes to Other Comprehensive Income Borrowing expenses decreased by $1,278 million in FY 2009 compared to FY 2008 primarily due to the Changes to other comprehensive income for FY decrease in the short-term interest rates, particularly 2009 were a reduction in income of $1,885, a the U.S. dollar (see Figure 10). With approximately decrease of $1,633 million from June 30, 2008. This two-thirds of borrowings based on short-term U.S. decrease was primarily due to the negative currency dollar interest rates, the decrease in U.S. dollar six- translation adjustment of $1,080 million between the month LIBOR in FY 2009 resulted in lower two periods. The negative currency translation borrowing costs. adjustments in FY 2009 were due to the depreciation of the euro (10.59%), slightly offset by the Fair Value Adjustment on Non-Trading appreciation of the Japanese yen (12.95%) against Portfolios, net the U.S. dollar in FY 2009. Table 3 provides a The fair value adjustment on non-trading portfolios, summary of currency translation adjustments by net consists of the fair value adjustments on portfolio. The loans portfolio contributed negative borrowings, loans with embedded derivatives, and $1,657 million towards this decrease. The euro and derivatives other than those in the investments the Japanese yen accounted for approximately 18% portfolio. The fair value adjustment on loans is and 2% of the total loans portfolio, and 92% of total reported on a separate line in the Condensed Fair non-U.S. dollar denominated loans at June 30, 2009. Value Statement of Income. The borrowings portfolio accounted for positive $887 million. The euro and the Japanese yen During FY 2009, IBRD experienced net unrealized accounted for approximately 15% and 2% of the gains of $3,280 million primarily due to the total borrowing portfolio, and 92% of total non-U.S. following factors: dollar denominated borrowings at June 30, 2009. $1,687 million gains from the asset/liability Table 3: Summary of Currency Translation a management portfolio primarily due to gains Adjustments In millions of U.S. dollars from the interest rate swaps due to lower 2009 2008 interest rates (see Figure 11 in Section 8) Loans $(1,657) $ 3,391 related to the equity duration extension Borrowings 887 (2,380) strategy implemented in FY 2008; and Net Other Assets and Liabilities 444 (257) Total $(326) $ 754 $1,624 million of gains on the borrowing a. Currency translation adjustments are on a fair value portfolio reflecting the widening of IBRD's basis. credit spreads, partially offset by the effect of lower interest rates. In comparison, in FY 2008 the impact of exchange rate changes on IBRD's net assets resulted in a During FY 2008, the effect of fair value was a net positive currency translation adjustment was due to unrealized loss of $443 million as a result of the appreciation of the euro (16.9%) and Japanese declining interest rates particularly in the U.S. yen (13.6%) against the U.S. dollar. dollar. Changes to other comprehensive income also consist Fair Value Adjustments on Loans of the transition adjustment upon adoption of FAS The fair value adjustment on loans, including the 133, and pension related items as prescribed by reversal of reported basis provision on loan losses Statement of Financial Accounting Standards No. for FY 2009, was a charge of $1,454 million. This 158, Employers Accounting for Defined Benefit, adjustment reflects changes in both interest rates and Pension and Postretirement Plans. credit risk. The change in the fair value adjustment for loans was primarily driven by the widening of 3. DEVELOPMENT ACTIVITIES CDS spreads, partially offset by fair value gains due IBRD offers loans, derivatives, and guarantees to its to the decline in interest rates. In contrast, the borrowing member countries to help meet their `current value' adjustment in FY 2008 was a credit development needs. It also provides technical of $983 million primarily due to mark-to-market assistance, advisory and other services to support gains from the decrease in reference interest rates. poverty reduction in these countries. 8 THE WORLD BANK ANNUAL REPORT 2009 Loans During the five year period from FY 2005 to FY From its establishment through June 30, 2009, IBRD 2009, Latin America and the Caribbean region accounted for the largest share of commitments. had approved loans, net of cancellations, totaling $422,435 million to borrowers in 135 countries. A Under IBRD's Articles of Agreement (the Articles), summary of cumulative lending is presented in as applied, the total amount outstanding of direct Table 4. loans made by IBRD, including participation in loans and callable guarantees may not exceed the Table 4: Lending Status at June 30, 2009 and 2008 In millions of U.S. dollars statutory lending limit. At June 30, 2009, 2009 2008 outstanding loans and callable guarantees totaled a Cumulative Approvals $422,435 $391,104 $105,741 million, equal to 49% of the statutory b Cumulative Repayments $270,972 $260,914 lending limit of $217,856 million at June 30, 2009. a. Net of cancellations b. Multicurrency pool loan repayments are included at IBRD's lending operations have conformed exchange rates in effect on the date of original disburse- generally to five principles derived from its Articles. ment. All other amounts are based on U.S. dollar These principles, taken together, seek to ensure that equivalents at the time of repayment by borrowers. IBRD loans are made to member countries for financially and economically sound purposes to At June 30, 2009, the total volume of outstanding which those countries have assigned high priority, loans was $105,698 million, $6,648 million higher and that funds lent are utilized as intended. The five than the $99,050 million of outstanding loans at principles are described in Box 2. Within the scope June 30, 2008. This increase was primarily due to permitted by the Articles, application of these positive net disbursements of $8,344 million, principles must be developed and adjusted in light of partially offset by negative currency translation experience and changing conditions. adjustment of $1,689 million owing to the depreciation of the euro against the U.S. dollar in Lending Cycle FY 2009. Undisbursed balances at June 30, 2009 The process of identifying and appraising a project, totaled $51,125 million, reflecting an increase of and approving and disbursing a loan, often extends $12,949 million from June 30, 2008. over several years. However, on numerous occasions IBRD has shortened the preparation and approval During FY 2009, new loans, guarantee commitments cycle in response to emergency situations such as and guarantee facilities to member countries were natural disasters. $32,911 million ($13,468 million in FY 2008). This significant increase in demand was driven by the Generally, the appraisal of projects is carried out by global financial turmoil. IBRD's operational staff (economists, engineers, financial analysts, and other sector and country Figure 1: Commitments including Guarantee specialists). With certain exceptions3, each loan Facilities by Region must be approved by IBRD's Executive Directors. 16,000 Loan disbursements are subject to the fulfillment of 14,000 conditions set out in the loan agreement. During In millions of U.S. dollars 12,000 implementation of IBRD-supported operations, 10,000 experienced IBRD staff review progress, monitor 8,000 compliance with IBRD policies and assist in resolving any problems that may arise. The 6,000 Independent Evaluation Group, an IBRD unit whose 4,000 director reports to the Executive Directors rather 2,000 than to the President, evaluates the extent to which 0 FY05 FY06 FY07 FY08 FY09 operations have met their major objectives. Africa East Asia and Pacific Europe and Central Asia Latin America and the Caribbean Middle East and North Africa South Asia 3 For Adaptable Program Loans (APLs), the Board approves all first-phase APLs and delegates to Management the approval of subsequent phases subject to agreed procedures. Learning and Innovation Loans are loans of $5 million or less approved by Management. IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 9 Box 2: Lending Operations Principles (i) IBRD makes loans to governments, governmental authorities or private enterprises in the territories of member countries. A loan that is not made directly to the member in whose territories the project is located must be guaranteed as to principal, interest and other charges by the member or its central bank or a comparable agency of the member acceptable to IBRD. A guarantee by the member itself has been obtained in all such cases to date. (ii) IBRD's loans are designed to promote the use of resources for productive purposes in its member countries. Investment projects financed by IBRD loans are required to meet IBRD's standards for technical, economic, financial, institutional and environmental soundness. Specific provisions apply to development policy lending financed by IBRD loans, including the treatment of the macroeconomic framework, poverty and social impact, environment, forests and other natural resources. (iii) In making loans, IBRD must act prudently and pay due regard to the prospects of repayment. Decisions to make loans are based upon, among other things, studies by IBRD of a member country's economic structure, including assessments of its resources and ability to generate sufficient foreign exchange to meet debt-service obligations. (iv) IBRD must be satisfied that in the prevailing market conditions (taking into account the member's overall external financing requirements), the borrower would be unable to obtain financing under conditions which, in the opinion of IBRD, are reasonable for the borrower. However, this does not preclude lending to members who may have access to international credit markets. It is the intention of IBRD to promote private investment, not to compete with it. (v) The use of loan proceeds is supervised. IBRD makes arrangements intended to ensure that funds loaned are used only for authorized purposes and, where relevant, with due attention to considerations of cost-effectiveness. This policy is enforced primarily by requiring borrowers (a) to submit documentation establishing, to IBRD's satisfaction, that the expenditures financed with the proceeds of loans are made in conformity with the applicable lending agreements and (b) to maximize competition in the procurement of goods and services by using, wherever possible, international competitive bidding or, when it is not appropriate, other procedures that ensure maximum economy and efficiency. In addition, under pilot programs approved by the Executive Directors, IBRD considers the use of borrower country procurement, and environmental and social safeguard systems in selected operations where these systems are assessed by IBRD as being equivalent to IBRD's systems and where the borrower's policies and procedures, implementation practices, track record, fiduciary and safeguard risks and capacity are considered acceptable to IBRD. Lending Instruments In FY 2009, new IBRD commitments to investment lending and development policy lending were 53% IBRD lending generally falls into one of two (FY 2008 ­ 71%) and 47% (FY 2008 ­ 29%), categories: investment or development policy respectively. The increase in development policy lending (previously referred to as adjustment lending in FY 2009 reflects the needs of borrowing lending). Investment lending is generally used to countries for rapidly disbursing loans during the finance goods, works, and services in support of global financial turmoil. economic and social development projects in a broad range of sectors. In contrast, development Contractual Terms of Loans policy lending is generally provided in exchange for commitments by borrowers to implement social, Currently Available Loan Terms structural, and institutional reforms. The majority of As of June 30, 2009, IBRD offers the IBRD Flexible IBRD loans are for investment projects or programs. Loan (IFL), that allows borrowers to customize the Figure 2 shows the percentage of IBRD loans repayment terms to meet their debt management or approved for investment and development policy project needs and also includes options to manage lending over the past seven years. the currency and/or interest rate risk over the life of Figure 2: IBRD Lending Commitments the loan. Percent IFL has the following two basic types of loan terms: 100% variable-spread terms and fixed-spread terms. Each type of loan may be denominated in the currency or 75% currencies chosen by the borrower provided it is a Investm ent currency in which IBRD can efficiently 50% intermediate. Variable-spread terms have a variable spread over LIBOR that is adjusted every six 25% Development months and fixed-spread terms have a fixed spread P olicy over LIBOR that is fixed for the life of the loan. 0% FY03 FY04 FY05 FY06 FY07 FY08 FY09 10 THE WORLD BANK ANNUAL REPORT 2009 Table 5: Currently Available Loan Terms Basis Points IBRD Flexible Loan (IFL) Special Development Fixed Spread Terms Variable Spread Terms Policy Loans Final Maturity All Maturities 30 years 5 years Reference Market Rate Six-month LIBOR Six-month LIBOR Six-month LIBOR Spread Contractual Lending Spread 30 30 400 a Market Risk Premium 10-15 - - Weighted average Projected funding spread spread to LIBOR of debt Funding Cost Margin c Six-month LIBOR to LIBOR allocated to Variable Spread Term Loans Charges b Front-end fee 25 25 100 Late service charge on principal payments received after 30 days of due date 50 50 - a. For loans with a maturity greater than 14 years, 15 basis points is charged. b. There are no waivers on interest and front-end fee under the current pricing terms. c. Projected funding spread to LIBOR is based on the average repayment maturity of the loan. During FY 2009, IBRD increased the spread over Loans with a Deferred Drawdown Option LIBOR on all new IFLs with a fixed spread. The A Deferred Drawdown Option (DDO) for use with increase in the fixed spread reflects the extraordinary IBRD development policy loans gives borrowers the market conditions during the year, which resulted in option of deferring the loan's disbursement for up to an increase in IBRD's projected cost of borrowing at three years, which may be renewed for an additional longer maturities. In addition, IBRD for the first period of up to three years under the enhanced DDO time introduced differential pricing dependent on the for development loans. The catastrophic risk DDO average maturity of loans. The projected funding may be renewed up to four times. The pricing of spread to LIBOR is measured by the average loans with a DDO comprises a front-end fee of 25 repayment maturity of the loan at commitment. This basis points, payable at effectiveness, and a enables IBRD to price the loan based on its contractual lending spread of 30 basis points over projected funding cost for each maturity tier. The IBRD's cost of funding. During the FY 2009, loans new pricing terms are summarized in Table 5. with DDO approved totaled $4,810 million (FY Local Currency Financing 2008 ­ $1,051 million). As of June 30, 2009, the outstanding amounts relating to loans with DDO IBRD offers its borrowers products to convert or totaled $1,773 million ($200 million ­ June 30, swap their IBRD loans into their domestic 2008). currencies to reduce their foreign currency exposure with respect to projects or programs that do not Loan Terms for Previously Available Products generate foreign currency revenues. These local In previous years, IBRD offered loans with a variety currency loans carry fixed spread terms. The balance of other contractual terms including: multicurrency of such loans outstanding at June 30, 2009 was pool loans and fixed-rate single currency loans. $1,172 million ($392 million ­ June 30, 2008). Table 6 summarizes the contractual terms for IBRD also has a Local Currency Loan Facility variable-rate multicurrency and single-currency pool Agreement with IFC, which is capped at $300 loans, fixed-rate single-currency loans, variable million, aimed at increasing the usability of local spread loans and fixed spread loans. currency paid-in capital. Under this agreement, IBRD lends local currencies of its member The currency composition of multicurrency pool countries, funded from paid-in capital, to IFC. These loans is determined on the basis of a pool, which currencies are subsequently used by IFC to finance provides a currency composition that is the same for projects in those member countries. Loan all loans in the pool. Pursuant to a policy established commitments under this facility are subject to by the Executive Directors, and subject to their consents of the respective IBRD member countries periodic review, at least 90% of the U.S. dollar whose currency is involved. At June 30, 2009, loans equivalent value of the pool is in a fixed ratio of one outstanding equivalent to $50 million had been U.S. dollar to 125 Japanese yen to one euro. made under this facility. IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 11 Table 6: Loan Terms for Previously Available Products Basis Points Variable rate Variable rate single Fixed rate single a b Variable Spread Fixed Spread Loans multicurrency pool currency pool loans currency Loans Loans (1993-2008) (2000-2008) loans (1982-2001) (1996-1998) (1995-1999) Weighted average Weighted average Cost Base Six month LIBOR Six month LIBOR cost of allocated debt cost of allocated debt LIBOR Spread Contractual Lending c c Spread 30 30 - - - 75 (post-98 loans) 75 75 (post-98 loans) 50 75 (post-98 loans) 50 (pre-98 loans) - 50 (pre-98 loans) 50 (pre-98 loans) e Market Risk Premium - 5 - - 0-10 Weighted average spread to LIBOR of Funding Cost Margin - - debt allocated to Projected funding IBRD's funding VSLs spread to LIBOR spread to LIBOR Charges Commitment charge on f undisbursed balances 75 75 75 75 75 Front-end fee on effective loans 100 (post-98 loans) 100 100 (post-98 loans) - 100 (post-98 loans) g Eligible for Waivers d d Interest Yes Yes Yes Yes Yes Commitment Yes Yes Yes Yes Yes Front-end fee Yes Yes No No No based on original Final Maturity 15-20 years 15-25 years 15-20 years loan agreement 12-20 years based on original Grace period 3-5 years 3-8 years 3-5 years loan agreement 3 years a. Converted from variable-rate multicurrency pool loans. b. Cost base and spread are fixed on rate-fixing date for amounts disbursed during the preceding six months. c. Apply to loans signed between May 16, 2007 and February 12, 2008 under the new loan pricing terms. Those loans had a contractual interest spread of 30 basis points, a front-end fee of 25 basis points and no commitment charge. d. Loans converted from variable-rate multi-currency pool and variable rate U.S. dollar pool loan to composite LIBOR + 100 basis points or fixed rate equivalent thereof are not eligible for interest waivers. e. The market risk premium compensates IBRD for additional funding risk associated with this product. f. The commitment charge is 85 basis points for the first four years and 75 basis points thereafter for loans signed on or before July 19, 2006, to compensate IBRD for additional funding and refinancing risk associated with this product. All loans which are signed on or after July 20, 2006 have a flat commitment charge of 75 basis points. g. Waivers of a portion of charges and interest are determined annually, see Table 7 for details. The lending rate formulation for loans with single currency include amounts relating to the conversions for pool terms is the same as that for multicurrency pool loans. borrowers' requests received as of that date but not Single-currency pool loans are held in U.S. dollars, executed. Japanese yen, and euro. Any fixed-rate multicurrency pool loans that were During FY 2006, IBRD's Executive Directors approved converted to single currency pools continued to management's proposal to convert the variable rate multi- carry their fixed rate. currency pool and variable rate U.S. dollar pool loan terms Fixed-rate single currency loans carry lending rates to composite LIBOR + 100 basis points or the fixed rate fixed on semi-annual rate fixing dates for amounts equivalent thereof (at the borrower's choice), subject to the disbursed during the preceding six months. For the borrowers consent to certain amendments to their loan interim period from the date each disbursement is agreements. This proposal was designed to adjust the made until its rate fixing date, interest accrues at the applicable lending rates which were rising above the rate applicable to variable-spread loans. market rates in a manner not envisioned at the time that borrowers signed their loan agreements. These modified Figure 3 presents a breakdown of IBRD's loan loan terms were offered to the borrowers from July 2006 portfolio by loan product. For more information, see through June 30, 2009 and applied on interest rate reset the Notes to Financial Statements-Note D-Loans and dates occurring on or after January 1, 2007. Loans that Guarantees. were amended to these new terms are not eligible for interest waivers. At June 30, 2009, 51% of the outstanding balance of variable rate multi-currency pool and variable rate U.S. dollar loans had been modified. This does not 12 THE WORLD BANK ANNUAL REPORT 2009 Figure 3: Loan Portfolio by Loan Terms In millions of U.S. dollars Loans Outstanding June 30, 2009 June 30, 2008 Variable-Rate Multicurrency Pool Single Currency Pool Variable-Rate Loans Loans Multicurrency Pool Single Currency Pool Fixed-Rate Single $4,390 $1,368 Special Development Loans Loans Fixed-Rate Single Currency Terms a $7,001 $4,459 (4%) (1%) Policy Loans c Currency Loans a Special Development $2,321 (7%) (5%) Other Fixed Rate $1,869 $3,415 Policy Loans c (2%) Loans b (2%) (3%) $1,469 $3,404 (2%) (3%) Other Fixed Rate Loans b $1,390 (1%) Variable-Spread Fixed-Spread Terms Terms Fixed-Spread Loans $48,448 Variable-Spread $44,298 $38,147 (46%) Loans (42%) (39%) $42,769 (43%) Total loans outstanding: $105,698 Total loans outstanding: $99,050 Undisbursed Balances June 30, 2009 June 30, 2008 Variable-Rate Variable-Rate Fixed-Rate Single Multicurrency Pool Multicurrency Pool Currency Loans Loans Loans $6 $34 $44 Varible-Spread Fixed-Spread Loans (*%) (*%) (*%) Loans $19,026 Fixed-Spread Loans $19,100 (50%) 22,359 (50%) (44%) Variable-Spread Loans $28,732 (56%) Total undisbursed balances: $51,125 Total undisbursed balances: $38,176 a. Includes fixed-rate single currency loans for which the rate had not been fixed at fiscal year-end. b. Includes loans issued prior to 1980, loans to IFC, and currency pool loans and U.S. dollar single currency pool loans converted to fixed rate equivalent of composite LIBOR + 100 basis points. c. Includes loans with non-standard terms. Waivers Table 7: Loan Charge Waivers Basis points Waivers of a portion of charges and interest owed by Interest Period all eligible borrowers are determined annually and Commencing have been in effect since FY 1992. Waivers apply to FY 2009 FY 2008 Commitment charge waivers 50 50 loans signed before May 16, 2007 and those loans Interest waivers a signed between May 16, 2007 and September 27, Pre-98 loans 5 5 2007, for which the borrowers elected not to convert Post-98 loans 25 25 to the new terms effective September 27, 2007. Average eligibility 99.8% 99.7% Front-end fee waivers 100 100 Eligibility for the partial waiver of interest is limited to borrowers that have made full payments of a. On loans to eligible borrowers. principal, interest and other charges within 30 calendar days of the due dates during the preceding Derivatives six months, on all their loans. Waivers of a portion IBRD also offers derivative products to borrowers, of the commitment charge owed on the undisbursed IDA and non-affiliated organizations as part of portion of loans are also determined annually and financial intermediation services. have been in effect since FY 1990. All borrowers receive the commitment charge waiver on their Borrowers: These products respond to borrowers' eligible loans. Table 7 presents a breakdown of needs for access to better risk management tools. IBRD's loan charge waivers. Further details are These derivative products include currency and included in the Notes to Financial Statements-Note interest rate swaps, and interest rate caps and D-Loans and Guarantees. collars. IBRD passes through its market cost of the IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 13 instrument to the borrower, and charges a principal payments on loans to the government or its transaction fee comparable to the conversion fee agencies. charged on the fixed-spread loans. These Policy-based guarantees: When partial credit instruments may be executed either under a master guarantees are used in support of agreed structural, derivatives agreement, which substantially conforms institutional and social policies and reforms, they are to industry standards, or under individually considered policy-based guarantees. Eligibility for negotiated transactions. IBRD development policy lending is a necessary Affiliated Organizations: IBRD executed a number condition for eligibility for policy-based guarantees. of currency forward transactions with IDA. Enclave guarantees: These partial risk guarantees Concurrently, IBRD entered into offsetting are offered in exceptional cases for loans for transactions with market counterparties. foreign-exchange generating projects in a member Non-affiliated Organizations: IBRD and the country usually eligible only for credits from IDA. International Finance Facility for Immunisation Fees charged for enclave guarantees are higher than (IFFIm), a AAA-rated non-affiliated organization, those charged for non-enclave guarantees. The with whom IBRD has a master derivatives commitment of enclave guarantees is limited to an agreement and a treasury management contract, have aggregate guaranteed amount of $300 million. As of entered into a number of currency swaps and June 30, 2009 commitments made under enclave interest rate swaps. Concurrently, IBRD entered guarantees were $30 million. into offsetting swap transactions with market Other Instruments: As discussed in Other counterparties. IBRD charges an intermediation fee Activities, IBRD has also committed to pay for these interest rate swaps and currency swaps. shortfalls associated with the Advance Market IBRD has applied all its normal commercial credit Commitment for Vaccines against Pneumococcal risk policies to these transactions. Diseases. Further details on derivatives for clients are IBRD's exposure at June 30, 2009 on its guarantees provided in the Notes to Financial Statements-Note (measured by discounting each guaranteed amount D-Loans and Guarantees, and Note F-Derivatives from its first call date) is detailed in Table 8. For Instruments. additional information see the Notes to Financial Guarantees Statements-Note D-Loans and Guarantees. IBRD offers guarantees on loans from private Table 8: Guarantee Exposure In millions of U.S. dollars investors for projects in countries eligible to borrow FY 2009 FY 2008 FY 2007 from IBRD. These guarantees can also be offered on Partial risk a $233 $274 $270 securities issued by entities eligible for IBRD loans, Partial credit 122 444 538 and in exceptional cases offered in countries only Policy based 50 49 79 eligible to borrow from IDA. IBRD applies the same Other Instruments 1,256 - - Total $1,661 $767 $887 country creditworthiness and project evaluation criteria to guarantees as it applies to loans. a. Includes enclave guarantees totaling $16.2 million. IBRD guarantees can be customized to suit varying Grants country and project circumstances, and may be IBRD also supports development activities by provided directly or via facilities. They can be making grants to various recipients through the targeted to mitigate specific risks or general risks Development Grant Facility and through Board of relating to political, regulatory and government Governors-approved transfers. performance, which the private sector is not normally in a position to absorb or manage. Each Other Activities guarantee requires the counter-guarantee of the In addition to its financial operations, IBRD is also member government. involved in the following other activities: IBRD generally provides the following types of Consultation: IBRD provides technical assistance to guarantees: its member countries, both in connection with, and Partial risk guarantees: These cover debt-service independently of, lending operations. There is a defaults on a loan that result from non-performance growing demand from borrowers for strategic of government obligations. advice, knowledge transfer, and capacity building. Such assistance includes assigning qualified Partial credit guarantees: These are used for public professionals to survey developmental opportunities sector projects when there is a need to extend loan in member countries, analyzing their fiscal, maturities and guarantee specified interest or economic and developmental environment, assisting member countries in devising coordinated 14 THE WORLD BANK ANNUAL REPORT 2009 development programs, appraising projects suitable 4. INVESTMENT ACTIVITIES for investment and assisting member countries in improving their asset and liability management IBRD manages its investments in two portfolios: a techniques. liquid asset portfolio and a long-term income portfolio. Research and Training: To assist its developing member countries, IBRD-through the World Bank Liquid Asset Portfolio Institute and its partners-provides courses and other training activities related to economic policy IBRD's liquid assets are held principally in highly- development and administration for governments rated fixed income securities. These securities and organizations that work closely with IBRD. include obligations of governments and other official entities, time deposits and other Trust Fund Administration: IBRD, alone or jointly unconditional obligations of banks and financial with IDA, administers on behalf of donors, funds institutions, currency and interest rate swaps restricted for specific uses. These funds are held in (including currency forward contracts), asset- trust and are not included in the assets of IBRD. See backed securities (including mortgage-backed the Notes to Financial Statements-Note J- securities), and futures, options and swaptions Management of External Funds and Other Services. contracts. Investment Management: IBRD offers investment Liquidity risk arises in the general funding of management services to several types of external IBRD's activities and in the management of its institutions, including central banks of member financial positions. It includes the risk of being countries. One objective of providing the services to unable to fund its portfolio of assets at appropriate central banks is to assist them in developing maturities and rates and the risk of being unable to portfolio management skills. These managed funds liquidate a position in a timely manner at a are not included in the assets of IBRD. See the reasonable price. The objective of liquidity Notes to Financial Statements-Note J-Management management is to ensure the availability of of External Funds and Other Services. sufficient cash flows to meet all of IBRD's financial Externally Financed Outputs (EFOs): IBRD offers commitments. donors the ability to contribute to IBRD's projects The primary objective for IBRD in the management and programs. Contributions received must be of liquid assets is to protect the principal amount of utilized for the purposes specified by the donors and these investments. In addition, IBRD seeks to are therefore considered restricted until applied by achieve a reasonable return on the liquid asset IBRD for the donor-specified purposes. portfolio using prudent asset and risk management Advance Market Commitment (AMC) for Vaccines techniques. The General Investment Authorization against Pneumococcal Diseases: AMC is a multi- for IBRD approved by the Executive Directors lateral initiative. Its principal goal is to accelerate provides the basic authority under which the liquid the creation of a market and sustainable production assets of IBRD can be invested. Further, all capacity for pneumococcal vaccines for developing investment activities are conducted in accordance countries, by financing the incremental capital cost with a more detailed set of Investment Guidelines. associated with the development and production of The Investment Guidelines are approved by the qualifying vaccines. The $1.5 billion of AMC donor Chief Financial Officer and implemented by the pledged assets is funded by six donors. IBRD is Treasurer. These Investment Guidelines set out providing the financial platform for the AMC by detailed trading and operational rules including holding donor pledged assets as an intermediary providing criteria for eligible instruments for agent and passing them on to GAVI Alliance when investment, establishing risk parameters relative to the conditions of the AMC are met. In addition, benchmarks, such as an overall stop-loss limit and should a donor fail to pay or delay in paying any duration deviation, specifying concentration limits amounts coming due, IBRD has committed to on counterparties and instrument classes, as well as paying from its own funds any amounts due and establishing clear lines of responsibility for risk payable by the donor, to the extent there is a monitoring and compliance. shortfall in total donor funds received. For further Under IBRD's liquidity management guidelines, details on AMC see the notes to Financial aggregate liquid asset holdings are kept at or above a Statements-Note J-Management of External Funds specified prudential minimum in order to safeguard and Other Services. against cash flow interruptions. That minimum is equal to the highest consecutive six months of expected debt service obligations plus one-half of approved net loan disbursements (if positive) as projected for the relevant fiscal year. The FY 2010 IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 15 prudential minimum liquidity level has been set at consistent to the pre-funding activity discussed $20 billion, an increase of $1 billion from that set previously. for FY 2009. In general, the size of the liquid asset IBRD's liquid asset portfolio is largely composed of portfolio should not exceed 150% of the prudential assets denominated in and hedged into U.S. dollars minimum liquidity level. From time to time, IBRD with net exposure to short-term interest rates. The may however hold liquid assets over the specified debt funding these liquid assets also shares similar maximum level to provide flexibility in timing its currency and duration profiles. This is a direct borrowing transactions and to meet working capital consequence of IBRD's exchange rate and interest needs. At June 30, 2009 the liquid asset portfolio rate risk management policies (see Section 6- was 193% of the prudential minimum liquidity level Financial Risk Management), combined with primarily due to pre-funding of anticipated large appropriate investment benchmarks. In addition to loan disbursements in FY 2010. monitoring gross investment returns compared to Liquid assets may be held in three distinct sub- their benchmarks, IBRD also monitors overall portfolios: stable; operational; and discretionary, investment earnings net of funding costs (see each with different risk profiles and performance Section 8-Results of Operations). benchmarks. Contractual Obligations The stable portfolio is principally an investment In the normal course of business, IBRD enters into portfolio holding the prudential minimum level of various contractual obligations that may require liquidity, which is set at the beginning of each fiscal future cash payments. Table 9 summarizes IBRD's year. Investment of up to 20% of the stable portfolio significant contractual cash obligations, by may be contracted out to external managers. remaining maturity, at June 30, 2009. Debt includes Separate investment guidelines which conform to all borrowings excluding derivatives, but does not IBRD's overall Investment Guidelines are provided include any adjustment for unamortized premiums, to each external manager. discounts or effects of fair value adjustments The operational portfolio provides working capital (additional information can be found in the Notes to for IBRD's day-to-day cash flow requirements. Financial Statements-Note E- Borrowings). Operating lease expenditures primarily represent The discretionary portfolio, when used, provides future cash payments for real estate-related flexibility for the execution of IBRD's borrowing obligations and equipment. Other long-term program and can be used to take advantage of liabilities include accrued liabilities for staff attractive market opportunities. compensation and benefits. Operating leases, Figure 4 represents IBRD's liquid asset portfolio contractual purchases and capital expenditures, and size and structure at the end of FY 2009 and FY other long term obligations include amounts which 2008, excluding investment assets associated with will be shared with IDA, IFC and MIGA in certain other post-employment benefits. accordance with cost sharing and service arrangements (additional information can be found At June 30, 2009, the aggregate size of the IBRD in the Notes to Financial Statements-Note I- liquid asset portfolio was $36,762 million, reflecting Administrative Expenses, Contributions to Special an increase of $14,022 million from June 30, 2008, Programs, and Other Income). Figure 4: Liquid Asset Portfolio Composition In millions of U.S. dollars June 30, 2009 June 30, 2008 Stable Portfolio Stable Portfolio $16,714 $19,428 74% 53% Operational Operational Portfolio Portfolio $17,334 $6,026 47% 26% Total: $36,762 Total: $22,740 16 THE WORLD BANK ANNUAL REPORT 2009 Table 9: Contractual Cash Obligations In millions of U.S. dollars Payments due by period Less than 1 More than Total year 1-3 years 3-5 years 5 years Debt-principal only $110,095 $31,138 $27,582 $10,593 $40,782 Operating leases 595 59 99 82 355 Contractual purchases and capital expenditures 59 46 13 - - Other long-term liabilities 378 90 69 79 140 Total $111,127 $31,333 $27,763 $10,754 $41,277 Table 10: Liquid Asset Portfolio and LTIP Returns and Average Balances In millions of U.S. dollars Average Balances Financial Return (%) FY 2009 FY 2008 FY 2009 FY 2008 IBRD Overall Portfolio $29,994 $22,635 1.73 4.15 Liquid Asset Portfolio Stable 19,127 16,385 2.03 4.19 Operational 10,416 4,462 1.02 3.55 a Discretionary - 1,788 - 5.36 b LTIP 451 - 12.10 - a. Effective November 30, 2007, the holdings in the Discretionary portfolio were transferred into the Operational portfolio. The FY2008 return for the Discretionary portfolio was therefore a short period return that has been annualized. b. LTIP was implemented in November 28, 2008; therefore, the FY2009 return for LTIP has been annualized. Excluded from Table 9 are a number of obligations The returns and average balances of IBRD's to be settled in cash. These obligations are presented investments portfolios in FY 2009 compared to FY in IBRD's balance sheet and include undisbursed 2008 are presented in Table 10. These returns loans; short-term borrowings; payable for currency exclude investment assets funding certain other and interest rate swaps; payable for investment postemployment benefits. The lower returns in FY securities purchased, cash received under agency 2009 were due mainly to lower average short-term arrangements, and payable for transfers approved by interest rates in FY 2009 compared to FY 2008 (see the Board of Governors. Figure 10). Long-Term Income Portfolio IBRD enters into derivative transactions to manage its investments portfolio. The main purposes of these During FY 2009, IBRD started implementing the derivative instruments are to enhance the return, and Long-Term Income Portfolio (LTIP). The objective manage the overall duration, of the portfolio. of the LTIP program is to increase IBRD's income over the long-term by investing part of its capital in 5. FUNDING RESOURCES a diversified portfolio of risk assets, including listed Equity equity securities. LTIP is intended to be a long-term multicurrency portfolio, swapped back into U.S. Total shareholders' equity, as reported in IBRD's dollars. As of June 30, 2009, the market value of the balance sheet at June 30, 2009, was $40,037 million portfolio is $1,061 million, reflecting $61 million of compared to $41,548 million at June 30, 2008. The unrealized capital gains to IBRD and is comprised of $1,511 million decrease from FY 2008 primarily 62% developed market public equities and 38% reflects the $2,566 million negative impact of developed market fixed income securities. cumulative effect of adoption of FAS 159 and $1,581 million charge to other comprehensive As of June 30, 2009, $1 billion of assets had been income related to net actuarial losses on benefit invested in the LTIP portfolio. Originally the plans, partially offset by the net income for the year Executive Directors approved management's of $3,114 million. proposal for a $3 billion portfolio to be implemented over two to three years. In response to the global IBRD's equity base plays a critical role in securing financial turmoil and the resulting increase in loan its financial objectives. By enabling IBRD to absorb commitments, management has decided to risk out of its own resources, its equity base protects temporarily limit the funding of the LTIP portfolio shareholders from a possible call on callable capital. at $1 billion. The adequacy of IBRD's equity capital is judged on the basis of its ability to generate future net income sufficient to absorb potential risks and support IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 17 normal loan growth, without reliance on additional Figure 5: Equity-to-Loans Ratio shareholder capital. 40.0% For management purposes, IBRD closely monitors equity as defined and utilized in the equity-to-loans 38.0% ratio. Table 11 presents the composition of this measure at June 30, 2009 and 2008, respectively. 36.0% The equity-to-loans ratio is a summary statistic that IBRD uses as one measure of the adequacy of its 34.0% risk-bearing capacity. IBRD also uses a stress test as a measure of income-generating capacity and an 32.0% input to the assessment of capital adequacy. 30.0% As presented in Figure 5, IBRD's equity-to-loans Jun-06 Jun-07 Jun-08 Jun-09 ratio decreased during FY 2009, on both a reported basis (excluding cumulative translation adjustments and fair value adjustment on non-trading portfolio, net) and a Fair Value basis. The decrease in equity- to-loans ratio on a reported basis to 34.53% at June 30, 2009 from 37.62% at June 30, 2008 was due primarily to the increase in lending. Table 11: Equity Capital In millions of U.S. dollars June 30, 2009 June 30, 2008 Usable Capital Paid-in Capital $11,491 $11,486 Restricted Paid-in Capital (1,979) (2,443) Net Payable for Maintenance of Value 371 853 Total Usable Capital 9,883 9,896 Special Reserve 293 293 a General Reserve 25,670 25,670 b Cumulative Translation Adjustment 457 1,029 c Equity used in Equity-to-Loans Ratio $36,303 $36,888 Fair Value Adjustments 151 (479) Equity used in Equity-to-Loans Ratio-Fair Value Basis $36,454 $36,409 Loans Outstanding, Present Value of Guarantees and LTIP assets, net of Relevant Accumulated Provisions (including DDOs) and Deferred Loan Income $105,145 $98,053 Fair Value of Loans outstanding, Present Value of Guarantees and LTIP assets, d net of Provision for Guarantees $103,393 $99,177 b Equity-to-Loans Ratio-Reported Basis 34.53% 37.62% Equity-to-Loans Ratio-Fair Value Basis 35.26% 36.71% a. The June 30, 2008 amount includes proposed transfers to the General Reserve out of FY 2008 net income. No transfers to the General Reserve are proposed in FY 2009. b. Excluding cumulative translation amounts associated with fair value adjustment on non-trading portfolios, net. c. Before the effects of fair value adjustment on non-trading portfolios, net and Board of Governors-Approved Transfers. d. Prior year amount is net of Accumulated Provision for Losses on Loans and Deferred Loan Income under the previous current value methodology.. 18 THE WORLD BANK ANNUAL REPORT 2009 Capital Payment on any such call may be made, at the option of the particular member, either in gold, Shareholder support for IBRD is reflected in the in U.S. dollars or in the currency required to capital backing it has received from its members. At discharge the obligations of IBRD for which the June 30, 2009, the authorized capital of IBRD was call is made. $190,811 million, of which $189,918 million had been subscribed. Of the subscribed capital, $11,491 (v) $26,493 million of IBRD's capital is to be called million had been paid-in and $178,427 million was only when required to meet obligations of IBRD callable. Of the paid-in capital, $9,883 million was for funds borrowed or on loans guaranteed by it, available for lending and $1,608 million was not pursuant to resolutions of IBRD's Board of available for lending. The terms of payment of Governors (though such conditions are not IBRD's capital and the restrictions on its use that are required by the Articles). Of this amount, 10% derived from the Articles and from resolutions of would be payable in gold or U.S. dollars and IBRD's Board of Governors are as follows: 90% in the national currencies of the subscribing members. While these resolutions Paid-in Capital are not legally binding on future Boards of (i) $3,223 million of IBRD's capital was initially Governors, they do record an understanding paid in gold or U.S. dollars or was converted among members that this amount will not be from the currency of the subscribing members called for use by IBRD in its lending activities into U.S. dollars. This amount may, under the or for administrative purposes. No call has ever Articles, be freely used by IBRD in its opera- been made on IBRD's callable capital. Any calls tions. on unpaid subscriptions are required to be (ii) $8,234 million of IBRD's capital was paid in the uniform, but the obligations of the members of national currencies of the subscribing members. IBRD to make payment on such calls are Under the Articles this amount is subject to independent of each other. If the amount maintenance of value obligations and may be received on a call is insufficient to meet the used for funding loans only with the consent of obligations of IBRD for which the call is made, the member whose currency is involved, or used IBRD has the right and is bound to make further for administrative expenses without the need for calls until the amounts received are sufficient to consent of the member whose currency is meet such obligations. However, no member involved. In addition, these national currencies may be required on any such call or calls to pay may be used by IBRD following a decision by more than the unpaid balance of its capital the Board of Executive Directors to invest or subscription. lend in that currency, or swap the national At June 30, 2009, $103,604 million (58.1%) of the currency into another currency for investment or uncalled capital was callable from the member lending purposes, provided it has the consent of countries of IBRD that are also members of the the member whose currency is involved. In Development Assistance Committee (DAC) of the accordance with such consents, $5,704 million Organization for Economic Cooperation and of this amount was being used in IBRD's Development (OECD). This amount exceeded lending and investment operations at June 30, IBRD's outstanding borrowings including swaps at 2009. June 30, 2009. Table 12 sets out the capital (iii) $34 million of IBRD's capital was converted to subscriptions of those countries and the callable U.S. dollars from the currency of the amounts. subscribing members by providing U.S. dollar The United States is IBRD's largest shareholder. denominated nonnegotiable, non-interest Under the Bretton Woods Agreements Act, the Par bearing demand notes, encashable in the Value Modification Act and other U.S. legislation, currency of the subscribing member. This the Secretary of the U.S. Treasury is permitted to amount may, under the terms of the note, be pay up to $7,663 million of the uncalled portion of encashed for administrative expenses or, after the subscription of the United States, if it were all subscribed capital has been called, IBRD called by IBRD, without any requirement of further will have the right to encash the note to meet its congressional action. The balance of the uncalled obligations. portion of the U.S. subscription, $22,303 million, Callable Capital has been authorized by the U.S. Congress but not appropriated. Further action by the U.S. Congress (iv) $151,934 million of IBRD's capital may, under would be required to enable the Secretary of the the Articles, be called only when required to Treasury to pay any portion of this balance. The meet obligations of IBRD for funds borrowed or General Counsel of the U.S. Treasury has rendered on loans guaranteed by it. This amount is thus an opinion that the entire uncalled portion of the not available for use by IBRD in making loans. IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 19 U.S. subscription is an obligation backed by the full Figure 6: Medium- and Long-term Funding Raised Excluding Derivatives by Currency faith and credit of the United States, notwithstanding In millions of U.S. dollars equivalent that congressional appropriations have not been obtained with respect to certain portions of the FY 2009 subscription. For a further discussion of capital stock, restricted currencies, maintenance of value South African and membership refer to the Notes to Financial Rands Statements-Note A-Summary of Significant $2,397 Accounting and Related Policies and Note B-Capital (6%) Others Stock, Restricted Currencies, Maintenance of Value $6,306 and Membership. (14%) Table 12: Capital Subscriptions of DAC Members of OECD Countries Euro In millions of U.S. dollars $4,114 U.S Dollars Total Capital Uncalled Portion (9%) $31,514 a Member Country Subscription of Subscription (71%) United States $ 31,965 $ 29,966 Japan 15,321 14,377 Germany 8,734 8,191 FY 2008 France 8,372 7,851 United Kingdom 8,372 7,832 Canada 5,404 5,069 Italy 5,404 5,069 Australian New Netherlands 4,283 4,018 Dollars Zealand Belgium 3,496 3,281 South African U.S Dollars $1,446 Dollars Spain 3,377 3,171 Rands $6,228 (8%) $1,349 Switzerland 3,210 3,012 (33%) $2,486 (7%) Australia 2,951 2,770 (13%) Sweden 1,806 1,696 Denmark 1,623 1,525 Austria 1,335 1,254 Norway 1,204 1,132 Japanese Finland 1,033 971 Others Yen New Zealand 873 821 Portugal 659 620 $4,140 Euro $2,666 Ireland 636 599 (22%) $776 (14%) Greece 203 189 (4%) Luxembourg 199 190 Total $110,460 $103,604 a. See details regarding the capital subscriptions of all Funding Operations members of IBRD at June 30, 2009 in Financial Statements-Statement of Subscriptions to Capital In FY 2009, medium- and long-term debt raised Stock and Voting Power. directly in financial markets by IBRD amounted to $44,331 million compared to $19,091 million in FY 2008. Table 13 summarizes IBRD's funding Borrowings operations for FY 2009 and FY2008. Source of Funding Table 13: Funding Operations Indicators FY 2009 FY 2008 IBRD diversifies its sources of funding by offering Total Medium- and Long-term its securities to institutional and retail investors Borrowings (USD million) $44,331 $19,091 around the world, both through global offerings and a Average Maturity (years) 3.16 2.40 by way of bond issues designed to meet the needs of Number of Transactions 374 750 specific markets or types of investors. Under its Number of Currencies 19 19 a. Average maturity to first call date. Articles, IBRD may borrow only with the approval of the member in whose markets the funds are raised and the member in whose currency the borrowing is denominated, and only if each such member agrees that the proceeds may be exchanged for the currency of any other member without restriction. Medium- and long-term funding raised excluding derivatives by currency for FY 2009, as compared to FY 2008, is shown in Figure 6. 20 THE WORLD BANK ANNUAL REPORT 2009 Funding raised in any given year is used for IBRD's Interest rate swaps and currency swaps are also general operations, including loan disbursements, used for asset/liability management purposes to refinancing of maturing debt and prefunding for match the pool of liabilities as closely as possible to future lending activities. IBRD determines its the interest rate and currency characteristics of funding requirements based on a 3-year rolling liquid assets and loans. However, during FY 2008, horizon and funds one third of the projected amount IBRD entered into a number of interest rate swaps in the current fiscal year. In FY 2009, IBRD as part of a strategy involving the extension of its funding increased significantly to fulfill larger loan equity duration aimed at managing the interest rate commitments by member countries due to the global sensitivity of its operating income. financial crisis. A more detailed analysis of borrowings outstanding IBRD strategically repurchases calls its debt to is provided in the Notes to Financial Statements- reduce the cost of borrowings, reduce exposure to Note E-Borrowings. refunding requirements in a particular year, or to meet other operational or strategic needs. During FY 6. FINANCIAL RISK MANAGEMENT 2009, IBRD repurchased or called $2,902 million of its outstanding borrowings ($4,376 million in FY IBRD assumes various kinds of risk in the process 2008). of providing development banking services. Its activities can give rise to four major types of risk: Use of Derivatives credit risk; market risk (interest rate and exchange Generally, new funding is initially swapped into rate); liquidity risk; and operational risk. The major floating-rate U.S. dollars, with conversion to other inherent risk to IBRD is country credit risk, or loan currencies or fixed-rate funding being carried out portfolio risk. subsequently in accordance with loan funding Governance Structure requirements. Figures 7a and 7b illustrate the effect of derivatives on both the interest rate structure and A Risk Management governance structure supports currency composition of the borrowings portfolio at Senior Management in their oversight function, June 30, 2009. IBRD does not enter into derivatives particularly in the coordination of different aspects for speculative purposes in the borrowings portfolio. of risk management, and in connection with risks that cut across functional areas. Figure 7a: Effect of Derivatives on Interest Rate Structures on the Borrowing Portfolio--June 30, 2009 Borrowing excluding derivatives Borrowing including derivatives Floating 77% Floating 28% Fixed Fixed 72% 23% Figure 7b: Effect of Derivatives on Currency Composition on the Borrowing Portfolio--June 30, 2009 Borrowing excluding derivatives Borrowings including derivatives JPY JPY EUR 2% EUR 13% 15% 13% Others 1% Others USD 28% 46% USD 82% IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 21 For financial risk management, there is a Finance President, Corporate Finance and Risk Management. Committee chaired by the Chief Financial Officer. The Corporate Finance Department works with The Finance Committee makes recommendations IBRD's financial managers, who are responsible for and, where appropriate to the topic, takes decisions the day-to-day management of these risks, to in the areas of financial policy, the adequacy and establish and document processes that facilitate, allocation of risk capital, and oversight of financial control and monitor risk. These processes are built reporting. Three Subcommittees that report to the on a foundation of initial identification and Finance Committee are the Strategy, Performance measurement of risks by each of the business units. and Risk Subcommittee, the Credit Risk Under the direction of the Finance Committee, Subcommittee and the Finance Initiatives policies and procedures for measuring and managing Subcommittee. such risks are formulated, approved and communicated throughout IBRD. Senior managers The Strategy, Performance and Risk Subcommittee represented on the Committee are responsible for develops and monitors the policies under which maintaining sound credit assessments, addressing market and commercial credit risks faced by IBRD transaction and product risk issues, providing an are measured, reported and managed. The independent review function and monitoring the Subcommittee also monitors compliance with loans, investments and borrowings portfolios. policies governing commercial credit exposure and currency management. Specific areas of activity The primary responsibility for the management of include reviewing and endorsing guidelines for operational risk in IBRD's financial operations limiting balance sheet and market risks, the use of resides with each of IBRD's managers. These derivative instruments, investing activities, and individuals are responsible for identifying monitoring matches between assets and their operational risks and establishing, maintaining and funding. In addition, the Subcommittee meets monitoring appropriate internal controls in their quarterly to formally review current and proposed respective areas using an operational risk business strategy and risk limits/policies, along with management framework. business results, and financial risk profile to This framework requires each business unit to facilitate alignment between business and risk document operational risks and controls, assess the management. The Credit Risk Subcommittee likelihood and impact of operational risks and monitors the measurement and reporting of country evaluate the design and operating effectiveness of credit risk and reviews the impact on the provision existing controls using guidelines established by for losses on loans and guarantees of any changes in IBRD. An independent operational risk control unit exposure, risk ratings of borrowing member supports this process by undertaking periodic countries, or movements between the accrual and reviews, performing quality assurance testing and nonaccrual portfolios. The Finance Initiatives reporting exceptions. Subcommittee reviews the financial, organizational and implications of implementing new initiatives The processes and procedures by which IBRD that may impact IBRD. manages its risk profile continually evolve as its activities change in response to market, credit, Country credit risk, the primary risk faced by IBRD, product, operational and other developments. The is identified, measured and monitored by the Credit Executive Directors, particularly the Audit Risk Department, led by the Chief Credit Officer Committee members, periodically review trends in who reports to the Vice-President, Corporate IBRD's risk profiles and performance, as well as any Finance and Risk Management. This unit is significant developments in risk management independent from IBRD's operational business units. policies and controls. Moreover, in order to further protect the independence of the unit, individual country credit Managing Risk-Bearing Capacity risk ratings are not shared with the Executive The risk-bearing capacity of IBRD is the adequacy Directors and are not made public. In addition to of its capital to absorb credit shocks and still be able continuously reviewing the creditworthiness of to lend for development purposes without the need IBRD's borrowers, this department is responsible for additional shareholder support. The Executive for assessing loan portfolio risk, determining the Directors review IBRD's risk-bearing capacity adequacy of provisions for losses on loans and based on a variety of metrics, including a framework guarantees, and monitoring borrowers that are of stress testing and simpler measures such as the vulnerable to crises in the near term. equity-to-loans ratio, to assess capital adequacy. Market risks, liquidity risks and counterparty credit The equity-to-loans ratio is guided by the Strategic risks in IBRD's financial operations are identified, Capital Adequacy Framework with a target risk measured and monitored by the Corporate Finance coverage range for the equity-to-loans ratio of 23 Department, which also reports to the Vice- to 27 percent. 22 THE WORLD BANK ANNUAL REPORT 2009 The risk that a significant portion of its loan Credit Risk portfolio may go into extended arrears is the most significant risk faced by IBRD, and almost all of Country Credit Risk IBRD's equity capital is held against this risk. Credit Country credit risk is the risk of loss due to a risk is measured in terms of both probable and country not meeting its contractual obligations. unexpected losses from protracted payments arrears. IBRD's Credit Risk Department continuously Probable losses are covered by IBRD's accumulated reviews the credit risk of its borrowing member provision for losses on loans and guarantees, and countries. These reviews are taken into account in unexpected losses are covered by income-generating determining IBRD's overall country programs and capacity and equity. lending operations, used to estimate the appropriate The framework of stress testing provides a basis for level of provisions for losses on loans and evaluating whether IBRD has sufficient financial guarantees, and used to assess the adequacy of capacity to be able to (i) absorb the income loss due IBRD's income-generating capacity and risk-bearing to a credit shock, and (ii) generate sufficient income capital. In keeping with standard practice, probable to support loan growth in the following years. The losses inherent in the portfolio due to country credit first requirement on the degree of shock absorption risk are covered by the accumulated provision for is designed to reduce the probability of having to losses on loans and guarantees, while unexpected rely on additional shareholder support (in terms of losses due to country credit risk are covered by additional paid-in capital or a call on callable income-generating capacity and risk-bearing capital. capital). This is intended both to protect Portfolio concentration risk, which arises when a shareholders and to support IBRD's credit standing, small group of borrowers account for a large share which reduces borrowing costs and correspondingly, of loans outstanding, is a key concern for IBRD and lending rates for borrowers. The second requirement is carefully managed, in part, through an exposure on loan growth reflects the view that as a limit for loans outstanding plus the present value of development institution, IBRD needs to play a guarantees to a single borrowing country. Under the positive role in a crisis by maintaining the capacity current guidelines, IBRD's exposure to a single to continue lending to assist recovery in borrowing borrowing country is restricted to the lower of an member countries. One of the credit shock events Equitable Access Limit or the Single Borrower used in the stress testing framework is an estimate of Limit. The Equitable Access Limit is equal to 10% the amount of the loan portfolio that could enter of IBRD's subscribed capital, reserves and nonaccrual status (payment arrears in excess of six unallocated surplus. The Single Borrower Limit is months) in the next three years at an appropriate established by assessing its impact on the overall confidence level. portfolio risk relative to risk-bearing capacity, as IBRD strives to immunize its risk-bearing capacity measured by the level of usable equity. The Single from fluctuations in exchange rates by matching the Borrower Limit is determined by the Executive currency composition of its equity capital with that Directors each year at the time they consider the of its loan portfolio, with the intent of protecting the adequacy of IBRD's reserves and the allocation of its equity-to-loans ratio from exchange rate net income from the preceding fiscal year. For FY movements. 2009, the Single Borrower Limit was $15.5 billion and the Equitable Access Limit at June 30, 2009 was The sensitivity of IBRD's operating income to short- $21.8 billion. As depicted in Figure 8, IBRD's term interest rate movements arises primarily due to largest exposure (including the present value of the nature of asset the equity funds. The sensitivity guarantees) to a single borrowing country was $12.7 of IBRD's operating income to changes in market billion at June 30, 2009. interest rates has been increasing as borrowers have chosen to borrow from IBRD primarily on floating For FY 2010, the Single Borrower Limit has been rate terms since the introduction of LIBOR-based set at $16.5 billion, an increase of $1 billion over the loans. As a result, IBRD's operating income has limit at June 30, 2009. become more volatile and vulnerable to low short- Since the current exposure data presented are at a term interest rates. Against this backdrop, in FY point in time, evaluating these exposures relative to 2008, IBRD implemented a program that extended the limit requires consideration of the repayment the duration of its equity by entering into a number profiles of existing loans, as well as disbursement of interest rate swaps as a means of stabilizing profiles and projected new loans and guarantees. operating income by restoring a greater exposure to long-term interest rates. IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 23 Figure 8: Top Eight Country Exposures at June 30, losses inherent in both the accrual and nonaccrual 2009 portfolios. The methodology for determining the In billions of U.S. dollars accumulated provision for losses on loans and 18 guarantees is discussed in Section 7, Critical Exposure Limit ($15.5 billion) 16 Accounting Policies. 14 IBRD's provision for losses on loans and guarantees 12 covers probable credit losses from protracted 10 arrears. The Credit Risk Subcommittee reviews the 8 allowance for losses on loans and guarantees at least 6 quarterly and, if necessary, adjustments are made to 4 the provision. In addition, the Audit Committee is 2 apprised by management at least twice a year on the 0 accumulated provision for losses on loans and guarantees. Columbia Turkey India Mexico China Indonesia Brazil Argentina Treatment of Protracted Arrears In 1991, the Executive Directors adopted a policy to assist members with protracted arrears to IBRD to Under certain circumstances, IBRD would be able to mobilize sufficient resources to clear their arrears continue to lend to a borrower that was reaching the and to support a sustainable growth-oriented single borrower exposure limit by entering into an adjustment program over the medium term. This arrangement that would prevent its net exposure policy is conditional on members agreeing to from exceeding the limit. Any such arrangement implement certain requirements including an would need to be approved in advance by IBRD's acceptable structural adjustment program, adopting a Executive Directors. As of June 30, 2009 IBRD had financing plan to clear all arrears to IBRD and other entered into one such arrangement with China. As of multilateral creditors, and continuing to service their this date, China had not reached the single borrower obligations to IBRD and other multilateral creditors exposure limit and therefore, activation of this on time. arrangement was not required. It is IBRD's practice not to reschedule interest or Overdue and Non-performing Loans principal payments on its loans or participate in debt When a borrower fails to make payment on any rescheduling agreements with respect to its loans. principal, interest or other charges due to IBRD, During FY 1996 and FY 2002, exceptions were IBRD has an option to suspend disbursements made to that practice with regard to Bosnia and immediately on all loans. IBRD's current policy Herzegovina (BiH) and Serbia and Montenegro, however, is to exercise this option through a formerly the Federal Republic of Yugoslavia, based graduated approach as summarized in Box 3. These on criteria approved by the Executive Directors in policies also apply to those member countries who connection with the financial assistance package for are eligible to borrow from both IBRD and IDA, and BiH in 1996. See the Notes to Financial Statements- whose payments on IDA credits may become Note A-Summary of Significant Accounting and overdue. For borrowers with IBRD loans who Related Policies, for additional information. become overdue in their debt service payments on Commercial Credit Risk IDA credits, IBRD also applies the treatment described in Box 3. Commercial credit risk is the risk of loss due to a counterparty not honoring its contractual See Notes to Financial Statements-Note D-Loans obligations. and Guarantees for a summary of countries with loans or guarantees in nonaccrual status at June 30, IBRD's commercial credit risk is concentrated in 2009. investments in debt instruments issued by sovereign governments, agencies, banks and corporate entities. Accumulated Provision for Losses on Loans and The majority of these investments are in AAA and Guarantees AA rated instruments. IBRD maintains an accumulated provision for losses on loans and guarantees to recognize the probable 24 THE WORLD BANK ANNUAL REPORT 2009 Box 3: Treatment of Overdue Payments Where the borrower is the member country, no new loans to the member Overdue by 30 days country, or to any other borrower in the country, will be presented to the Board of Executive Directors for approval, nor will any previously approved loan be signed, until payments for all amounts 30 days overdue or longer have been received. Where the borrower is not the member country, no new loans to that borrower will be signed or approved. In either case, the borrower will lose its eligibility for any waiver of interest charges in effect at that time for loans signed before May 16, 2007, and those loans signed between May 16, 2007 and September 27, 2007 if the borrowers elected not to convert the terms of their loans to the pricing terms effective September 27, 2007. For loans with the pricing terms applicable from May 16, 2007, an overdue interest penalty will be charged at a rate of 50 basis points on overdue principal. In addition to the provisions cited above for payments overdue by 30 days, Overdue by 45 days to avoid proceeding further on the notification process leading to suspension of disbursements, the country as borrower or guarantor and all borrowers in the country must pay not only all payments overdue by 30 days or more, but also all payments due regardless of the number of days since they have fallen due. Where the borrower is not the member country, no new loans to, or guaranteed by, the member country, will be signed or approved. Additionally, all borrowers in the country will lose eligibility for any waivers of interest in effect at the time. In addition to the suspension of approval for new loans and signing of Overdue by 60 days previously approved loans, disbursements on all loans to or guaranteed by the member country are suspended until all overdue amounts have been paid. This policy applies even when the borrower is not the member country. Under exceptional circumstances, disbursements could be made to a member country upon approval by the Executive Directors. All loans made to or guaranteed by a member of IBRD are placed in Overdue by more than six nonaccrual status, unless IBRD determines that the overdue amount will be months collected in the immediate future. Unpaid interest and other charges not yet paid on loans outstanding are deducted from the income of the current period. To the extent that these payments are received, they are included in income. At the time of arrears clearance, a decision is made on the restoration of accrual status on a case by case basis; in certain cases that decision may be deferred until after a suitable period of payment performance has passed. In the normal course of its business, IBRD utilizes involves evaluating counterparty creditworthiness, various derivatives and foreign exchange financial assigning credit limits and determining the risk instruments to reduce funding costs through its profile of specific transactions. Credit limits are borrowing activities and to meet the financial needs calculated and monitored on the basis of potential of its borrowers, to generate income through its exposures taking into consideration current market investment activities and to manage its exposure to values, estimates of potential future movements in fluctuations in interest and currency rates. those values and collateral agreements with counterparties. If there is a collateral agreement with The effective management of credit risk is vital to the counterparty to reduce credit risk, then the the success of IBRD's funding, investment and asset/ amount of collateral obtained is based on the credit liability management activities. The monitoring and rating of the counterparty. managing of these risks is a continuous process due to changing market environments. For foreign exchange and derivative products, IBRD treats the credit risk exposure as the replacement IBRD controls the counterparty credit risk arising cost. This is also referred to as replacement risk or from investments, derivatives and foreign exchange the mark-to-market exposure amount. While transactions through its credit approval process, the notional principal is the most commonly used use of collateral agreements and risk limits, and volume measure in the derivative and foreign monitoring procedures. The credit approval process IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 25 exchange markets, it is not a measure of credit or Table 14 provides details of IBRD's estimated credit market risk. exposure on its investments and swaps net of collateral held, by counterparty rating category. Mark-to-market exposure is a measure, at a point in time, of the value of a financial instruments or The increase in credit exposure reflects an increase derivative in the open market. When the mark-to- in the size of the IBRD investment program due to a market is positive, it indicates the counterparty owes large increase in held liquidity as a result of the IBRD and, therefore, creates an exposure for IBRD. market financial crisis offset by a significant When the mark-to-market is negative, IBRD owes decrease in IBRD's net swap exposure. Increases in the counterparty and does not have replacement risk. the held portfolio size are reflected largely in the Under the mark-to-market collateral arrangements, increase in holdings of sovereign and sovereign- when IBRD is in a net receivable position, guaranteed securities. In addition, the credit counterparties are required to post collateral with composition of the portfolio has changed due to IBRD to mitigate its credit risk exposure to these significant ratings downgrades across all categories counterparties. Collateral posted is in the form of of IBRD's investment counterparts accompanied by certain approved highly liquid investment securities an increase in "AA"-rated sovereign investments. or cash. Where IBRD is permitted to repledge After the effects of exposure netting arrangements collateral received in the form of liquid investment across multiple transactions with a single securities in connection with swap agreements, the counterpart, the credit exposure from swaps cash proceeds are subsequently invested in money increased from $7,312 million at June 30, 2008 to market and other liquid financial instruments under $8,339 million at June 30, 2009. The swap credit terms substantially equivalent to those set forth in exposure of $8,339 million is offset by collateral of IBRD's Investment Guidelines, and are included $7,209 million which results in a total net swap under Investments - Trading on the Balance Sheet. exposure of $1,130 million. When IBRD has more than one transaction Market Risk outstanding with a counterparty, and the parties have IBRD faces risks which result from market entered into a master derivatives agreement which movements, primarily changes in interest and contains legally enforceable close-out netting exchange rates. In comparison to country credit risk, provisions, the "net" mark-to-market exposure IBRD's exposure to market risks is small. IBRD has represents the netting of the positive and negative an integrated asset/liability management framework exposures with the same counterparty. If this net to flexibly assess and hedge market risks associated mark-to-market is negative, then IBRD's exposure to with the characteristics of the products in IBRD's the counterparty is considered to be zero. For the portfolios. contractual value, notional amounts and related credit risk exposure amounts by instrument, see the Notes to Financial Statements-Note G-Credit Risk. Table 14: Credit Exposure, Net of Collateral Held, by Counterparty Ratinga In millions of U.S. dollars At June 30, 2009 At June 30, 2008 Investments Total Exposure Agencies, on Total Exposure Counterparty Banks & Net Swap Investments % of on Investments Rating Sovereigns Corporates Exposure and Swaps Total and Swaps % of Total AAA $ 3,800 $ 4,827 $ 82 $ 8,709 21 $ 7,923 30 AA 11,462 13,273 907 25,642 63 16,131 61 A 783 5,768 141 6,692 16 2,381 9 BBB - 4 - 4 * 3 * BB - - - - - 1 * Total $16,045 $23,872 $1,130 $41,047 100 $26,439 100 a. Excludes (a) $640 million of equity securities for the IBRD LTIP account and (b) exposures due to swaps executed with IBRD clients including (i) borrowing member countries ($89 million swap exposure) and (ii) the International Finance Facility for Immunization ($66 million). Swaps with the Caribbean Catastrophe Risk Insurance Facility and for IDA intermediation have no current exposure. * Denotes less than 0.5%. 26 THE WORLD BANK ANNUAL REPORT 2009 Table 15: Loan and Borrowing Portfolios In millions of U.S. dollars At June 30, 2009 At June 30, 2008 Face Contractual Fair Value Face Contractual Fair Value Value Yield Adjustments Value Yield Adjustments a b c Loans $105,711 2.84% $(3,556) $99,050 4.23% $1,124 Variable-Rate Multicurrency Pool Loans 4,390 6.47 267 7,001 6.58 726 Single Currency Pool Loans 1,368 6.03 71 4,459 6.73 189 d Variable-Spread Loans 44,298 1.92 (1,791) 42,769 3.43 (15) Fixed-Rate Single Currency Loans 2,321 5.82 93 3,415 5.92 97 e Special Development Policy Loans 1,469 2.35 11 1,869 3.65 (1) Fixed-Spread Loans 48,461 3.04 (2,219) 38,147 4.25 89 f Other Fixed Rate Loans 3,404 4.04 12 1,390 4.81 39 Borrowings Allocation (including g derivatives) $105,617 2.05% $573 $83,533 3.51% $1,207 Variable-Rate Multicurrency Pools 5,103 7.09 1,626 6,119 7.06 1,746 Single Currency Pools 2,097 3.98 137 2,490 6.17 158 Variable-Spread 26,059 1.27 (476) 24,162 2.92 (62) Fixed-Rate Single Currency 814 5.44 84 1,989 6.77 73 Special Development Policy 1,592 1.25 (8) 2,013 2.73 1 Fixed-Spread 29,474 2.62 (867) 22,261 3.61 (104) h Other Debt 40,478 1.24 77 24,499 2.58 (605) a. Contractual yield is presented before the application of interest waivers. b. Fair Value adjustment of negative $3,556 million is before the reported basis effects of loan loss provision and deferred loan income. After the effects of these reversals the additional fair value adjustment on the fair value balance is a negative $1,739 million. c. June 30, 2008 amounts are presented on a current value methodology; under the new methodology adopted by IBRD on July 1, 2008, the fair value adjustment would have been negative $1,878 million before the reported basis effects of loan loss provision and deferred loan income. After the effects of these reversals the additional fair value adjustment on the fair value balance would have been negative $1,451 million. d. Includes fixed-rate single currency loans for which the rate had not yet been fixed at fiscal year-end. e. Includes loans with non-standard terms as described in Contractual Terms of Loans. f Includes currency pool loans and U.S. dollar single currency pool loans converted to fixed rate equivalent of composite LIBOR + 100 basis points. g. Carrying amounts and contractual yields are on a basis which includes accrued interest and any unamortized amounts, but does not include the effects of fair value. h. Includes amounts not yet allocated at June 30, 2009 and June 30, 2008. Asset/Liability Management liabilities as well as to adjust the duration of its equity. The objective of asset/liability management for IBRD is to ensure adequate funding for each loan Interest Rate Risk product and liquid asset at the most attractive There are two main sources of potential interest rate available cost, and to manage the currency risk to IBRD. The first is the interest rate sensitivity composition, maturity profile and interest rate associated with the net spread between the rate sensitivity characteristics of the portfolio of IBRD earns on its assets and the cost of borrowings, liabilities supporting each lending product and liquid which fund those assets. The second is the interest asset in accordance with the particular requirements rate sensitivity of the income earned from funding a for that product or liquid asset and within prescribed portion of IBRD assets with equity. In general, risk parameters. The Fair Value information is used lower nominal interest rates result in lower lending in the asset/liability management process. Table 15 rates which, in turn, reduce the nominal earnings on details the Fair Value information of each group of IBRD's equity. In addition, as the loan portfolio has loan and debt products. shifted from pool loans to LIBOR-based loans in Use of Derivatives recent years, the sensitivity of IBRD's operating income to changes in market interest rates has As part of its asset/liability management process, increased. This has caused IBRD to implement an IBRD employs derivatives to manage and align the equity duration extension strategy during FY 2008 characteristics of its assets and liabilities. IBRD uses aimed at reducing the interest rate sensitivity of its derivative instruments to adjust the interest rate operating income going forward. repricing characteristics of specific balance sheet assets and liabilities, or groups of assets and The borrowing cost pass-through formulation liabilities with similar repricing characteristics, and incorporated in the lending rates charged on most of to modify the currency composition of net assets and IBRD's existing loans has traditionally helped limit the interest rate sensitivity of the net spread earnings IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 27 on its loan portfolio. At June 30, 2009, such cost Interest rate risk also arises from a variety of other pass-through loans accounted for 49% of the factors, including differences in the timing between outstanding loan portfolio (55% at June 30, 2008). the contractual maturity or repricing of IBRD's All cost pass-through loans, including single assets, liabilities and derivative financial currency and multicurrency pool loans as well as instruments. On floating rate assets and liabilities, variable-spread loans, pose residual interest rate risk, IBRD is exposed to timing mismatches between the given the lag inherent in the lending rate calculation. re-set dates on its floating rate receivables and payables. To mitigate its exposure to these timing Another potential risk arises because the cost pass- mismatches, IBRD has executed some overlay through currency pool products have traditionally interest rate swaps. been funded with a large share of medium- and long-term fixed-rate debt, to provide the borrowers During FY 2008, IBRD implemented an equity with a reasonably stable interest basis. Given that duration extension strategy. This strategy seeks to the cumulative impact of interest rate changes over increase the duration of IBRD's equity to reduce time has resulted in a decline in the level of interest income volatility and stabilize operating income by rates, the cost of these historical fixed-rate taking a greater exposure to long-term interest rates. borrowings in the multicurrency pool and the single This strategy is designed to reduce the sensitivity of currency pools is currently considerably higher than IBRD's operating income to changes in short-term IBRD's new borrowing costs. The amount of debt market interest rates, which has been increasing as allocated to the multicurrency debt pool will exceed more borrowers have chosen primarily floating rate the balance of the multicurrency loan pool in FY terms since the introduction of LIBOR-based loans. 2012 and FY 2014. The debt which funds these Exchange Rate Risk loans has maturities that extend beyond those of the loans. This debt overhang presents a risk of loss to In order to minimize exchange rate risk in a IBRD because the debt carries fixed interest rates. multicurrency environment, IBRD matches its borrowing obligations in any one currency (after Over-funding of the multicurrency loan pool will swap activities) with assets in the same currency, as reach a maximum of approximately $2.3 billion in prescribed by the Articles. In addition, IBRD's FY 2017. Strategies for managing this risk include policy is to minimize the exchange rate sensitivity of changing the interest rate characteristics of the over- its equity-to-loans ratio. It carries out this policy by funded portion of the debt from fixed to floating undertaking currency conversions periodically to rates beyond FY 2008 through the use of forward- align the currency composition of its equity to that starting swaps. IBRD began executing these of its outstanding loans. This policy is designed to forward-starting swaps in FY 2000 and as of June minimize the impact of exchange rate fluctuations 30, 2009, the overhang was within acceptable on the equity-to-loans ratio, thereby preserving guidelines. Should the amount of debt overhang IBRD's ability to better absorb unexpected losses remain at the currently projected levels, IBRD does from arrears of loan repayments regardless of the not anticipate executing additional forward-starting market environment. swaps. This is subject to there being no significant prepayments of the multicurrency loan pool that Figure 9 presents the currency composition of would generate further debt overhang, which may significant balance sheet components (net of swaps) need to be swapped to floating-rate liabilities. at June 30, 2009 and June 30, 2008. Interest rate risk on non-cost pass-through products, Liquidity Risk which accounted for 51% of the loan portfolio at Liquidity risk arises from the general funding needs June 30, 2009 (45% at June 30, 2008), is managed of IBRD's activities and in the management of its by using interest rate swaps to closely align the assets and liabilities. For a discussion on how rate sensitivity characteristics of the loan portfolio liquidity is managed, refer to Section 4-Investment with those of their underlying funding, except for Activities. the component affected by IBRD's equity duration extension strategy. As the portfolio of fixed-spread Operational Risk loans increases, the proportion of non-cost pass- Operational risk is the potential for loss resulting though products will grow. from inadequate or failed internal processes or The interest rate risk on IBRD's liquid asset systems, human factors, or external events, and portfolio, which includes the risk that the value of includes business disruption and system failure, assets in the liquid portfolio will fluctuate due to transaction processing failures and failures in changes in market interest rates, is managed within execution of legal, fiduciary and agency specified duration-mismatch limits and is further responsibilities. IBRD, like all financial institutions, limited by stop-loss limits. is exposed to many types of operational risks. 28 THE WORLD BANK ANNUAL REPORT 2009 Figure 9: Relative Currency Composition of Significant Balance Sheet Components--Fair Value Basis For all currencies at June 30, 2009 1% 2% Others 2% 1% 2% 2% JPY 1% 3% 13% 1% EUR 10% 4% 55% 24% USD 60% 19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Assets Liabilities & Equity Loans 71% Borrowings & Other 74% Investments & Other 29% Equity 26% 100% 100% For all currencies at June 30, 2008 1% 2% Others 2% 1% 3% JPY 1% 2% 14% 1% EUR 10% 5% 62% 17% USD 56% 23% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Assets Liabilities & Equity Loans 80% Borrowings & Other 69% Investments & Other 20% Equity 31% 100% 100% IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 29 IBRD attempts to mitigate operational risk by Disclosure Controls and Procedures maintaining a system of internal control that is Disclosure controls and procedures are those designed to keep that risk at appropriate levels in processes which are designed to ensure that view of the financial strength of IBRD and the information required to be disclosed is accumulated characteristics of the activities and markets in which and communicated to management, as appropriate to IBRD operates. allow timely decisions regarding required disclosure The operational risk management framework used by IBRD. Management has undertaken an by IBRD is based on a Board-approved Integrated evaluation of the effectiveness of such controls and Risk Management Framework and involves the procedures. Based on that evaluation, the President following core steps: and the Chief Financial Officer have concluded that these controls and procedures were effective as of · Key operational risks are identified June 30, 2009. annually and documented using a combination of tools including business 7. CRITICAL ACCOUNTING POLICIES process review and risk assessments. The Notes to IBRD's financial statements contain a · Operational risks are assessed based on summary of IBRD's significant accounting policies. likelihood of occurrence and the resulting The following is a description of those accounting financial impact using probability and policies which involve significant management severity parameters. judgments that are difficult, complex or subjective and relate to matters that are inherently uncertain. · Controls that mitigate operational risks are evaluated using a combination of processes Provision for Losses on Loans and including self assessments, independent Guarantees walk through tests of processes, compliance IBRD's accumulated provision for losses on loans testing by IBRD's internal audit and guarantees reflects the probable losses inherent department, quality assurance testing by in its nonaccrual and accrual portfolios. There are management, project reviews undertaken several steps required to determine the appropriate by the Independent Evaluation Group and level of provisions for each portfolio. First, the total annual internal representation letters from loan portfolio is segregated into the accrual and business unit managers. nonaccrual portfolios. In both portfolios, the · The results of the work undertaken to exposure for each country (defined as loans evaluate risks and operational effectiveness outstanding plus the present value of guarantees) is of internal controls are reported to the then assigned a credit risk rating. With respect to Audit Committee. loans in the accrual portfolio, these loans are grouped according to the assigned risk rating. Loans Internal Control Over Financial Reporting in the non-accrual portfolio are individually assigned Management makes an annual assertion whether, as the highest risk rating. Each risk rating is mapped to of June 30 of each fiscal year, its system of internal an expected default frequency using IBRD's credit control over its external financial reporting has met migration matrix. The provision required is the criteria for effective internal control over calculated by multiplying the outstanding exposure, external financial reporting as described in COSO. by the expected default frequency (probability of Concurrently, IBRD's external auditors have default to IBRD) and by the assumed severity of the provided an attestation report that management's loss given default. For loans that are carried at fair assertion regarding the effectiveness of internal value, the credit risk assessment is incorporated in control over external financial reporting is fairly the determination of fair value. stated in all material respects. The determination of a borrower's risk rating is Management has carried out an evaluation of based on both quantitative and qualitative analyses internal control over external financial reporting for of various factors, which include political risk, the purpose of determining if there were any external debt and liquidity, fiscal policy and public changes made in internal controls during the fiscal debt burden, balance of payments risks, economic year covered by this report, that had materially structure and growth prospects, monetary and affected, or would be reasonably likely to materially exchange rate policy, financial sector risks and affect IBRD's internal control over external financial corporate sector debt and other vulnerabilities. reporting. As of June 30, 2009 no such significant IBRD periodically reviews such factors and changes had occurred. reassesses the adequacy of the accumulated provision for losses on loans and guarantees accordingly. Actual losses may differ from expected 30 THE WORLD BANK ANNUAL REPORT 2009 losses due to unforeseen changes in any of the on financial market interest rates, past experience, factors that affect borrowers' creditworthiness. and management's best estimate of future benefit changes and economic conditions. For further The accumulated provision for loan losses is details, please refer to Notes to Financial separately reported in the balance sheet as a Statements-Note K-Pension and Other deduction from IBRD's total loans. The accumulated Postretirement Benefits. provision for losses on guarantees is included in other liabilities. Increases or decreases in the 8. RESULTS OF OPERATIONS accumulated provision for losses on loans and In FY 2009, operating income decreased by $1,699 guarantees are reported in the Statement of Income million from $2,271 million in FY 2008 to $572 as provision for losses on loans and guarantees. million, primarily due to an increase of $284 million Additional information on IBRD's provisioning in provision for losses on loans and guarantees in policy and the status of nonaccrual loans can be FY 2009, compared to a release of $684 million in found in the Notes to Financial Statements-Note A- FY 2008. Summary of Significant Accounting and Related Net income on a reported basis was $3,114 million policies and Note D-Loans and Guarantees. in FY 2009, compared to a $1,491 million in FY Fair Value of Financial Instruments 2008, an increase of $1,623 million. This was When possible, fair values are determined by quoted primarily due to higher net unrealized gains of market prices. If quoted market prices are not $3,280 million due to IBRD's fair value adjustments available, then fair values are based on discounted on non-trading portfolios, net in FY 2009 compared cash flow models using market estimates of cash to net unrealized losses of $40 million in FY 2008. flows and discount rates. Some financial assets and For more details refer to Fair Value Adjustment on liabilities use valuation techniques which require Non-Trading Portfolios, net, discussed later in this significant unobservable inputs. These inputs require section. management to make assumptions and judgments. Interest Rate Environment All the financial models used for input to IBRD's During FY 2009, short-term interest rates for the financial statements are subject to both internal and U.S. dollar were lower than those in FY 2008. periodic external verification and review by Figure 10 illustrates these general trends for the six- qualified personnel. These models use market month LIBOR U.S dollar rates. sourced inputs, such as interest rates, exchange rates and volatilities. Selection of these inputs may Figure 10: Six-Month LIBOR Interest Rates U.S. Dollar involve some judgment. Imprecision in estimating 6.0 these factors, and changes in assumptions, can impact net income and IBRD's financial position as reported in the financial statements. 5.0 IBRD believes its estimates of fair value are Percent reasonable given its processes for obtaining external 4.0 prices and parameters, ensuring that valuation models are reviewed and validated both internally 3.0 and externally, and applying its approach consistently from period to period. 2.0 FY 2008 FY 2009 Pension and Other Postretirement Benefits 1.0 IBRD participates, along with IFC and MIGA, in Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun pension and postretirement benefit plans that cover substantially all of their staff members. All costs, Operating Income assets and liabilities associated with the plans are IBRD's Operating Income is broadly comprised of a allocated between IBRD, IFC and MIGA based net spread on interest-earning assets, plus the upon their employees' respective participation in the contribution of equity, other loan income, the plans. Costs allocated to IBRD are subsequently increase to or release from the provision for losses shared between IBRD and IDA based on an agreed on loans and guarantees, and administrative cost sharing ratio. The underlying actuarial expenses. Table 16 shows a breakdown of income, assumptions used to determine the projected benefit net of funding costs, on a reported basis. obligations, accumulated benefit obligations and funded status associated with these plans are based IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 31 Table 16: Net Income (Loss) In millions of U.S. dollars FY 2009 FY 2008 FY 2007 Loan interest income, net of funding costs Debt funded $501 $ 549 $ 415 Equity funded 1,137 1,642 1,717 Net interest income 1,638 2,191 2,132 Other loan income 12 306 20 Provision for losses on loans and guarantees ­ (increase) decrease (284) 684 405 Investment income, net of funding costs (14) 49 77 LTIP Income 61 - - Other Interest Income (Loss) 246 10 (4) Net Non-interest expense (1,087) (969) (971) Operating Income 572 2,271 1,659 Board of Governors-Approved Transfers (738) (740) (957) Fair Value Adjustment on Non-Trading Portfolios, net 3,280 (40) (842) Net Income (Loss) - Reported Basis $3,114 $1,491 $ (140) FY 2009 versus FY 2008 FY 2008 versus FY 2007 The decrease of $1,699 million in Operating Income The increase of $612 million in Operating Income is is explained by the following factors. explained by the following factors. · A $968 million reduction in income · A $286 million increase in other loan relating to the provision for losses on loans income, of which $269 million is associated and guarantees. During FY 2009, there was with Liberia's and Côte d'Ivoire's a $284 million increase in the provision for clearance of all overdue interest and losses on loans and guarantees due charges to IBRD. primarily to the impact of changes in the · A $279 million increase in the release of credit quality of the accrual portfolio. provision for losses on loans and During FY 2008, there was a $684 million guarantees. During FY 2008, there was a release of provision for losses on loans, $684 million release of provision for losses primarily due to the positive impact of on loans and guarantees compared to a developments in the nonaccrual portfolio. release of $405 million during FY 2007. · A $553 million reduction in loan interest The release of provision in FY 2008 income, net of funding costs, was primarily primarily reflects the impact of due to a decrease of $505 million from developments in the nonaccrual portfolio equity funded loans, due to the lower short- while that in FY 2007 reflects the impact of term interest rates, particularly U.S. dollar a combination of changes in the six month LIBOR, between the two years creditworthiness of the loan portfolio, (see Figure 10). This was partially offset changes in the volume of loans and by a $236 million increase in other interest guarantees outstanding, net of translation income from the equity duration extension adjustments and the annual update of the swaps. expected default frequencies (probabilities of default to IBRD). · A $294 million decrease in other loan income, of which $269 million is associated · A $59 million increase in loan interest with Liberia's and Côte d'Ivoire's income, net of funding costs, as a result of clearance of all overdue interest and higher loan spreads on the debt-funded charges to IBRD in FY 2008. portion of the pool loans associated with interest rate reset lag in a decreasing short- · A $63 million decrease in investment term interest rate environment. income, net of funding costs, mainly due to the widening of the credit spreads in global The above increases were partially offset by bond markets. · A $28 million decrease in investment income, net of funding costs, mainly due to the widening of the credit spreads in global bond markets. 32 THE WORLD BANK ANNUAL REPORT 2009 Table 17: Net Noninterest Expense In millions of U.S. dollars FY 2009 FY 2008 FY 2007 Gross Administrative Expenses Staff Costs $ 589 $ 538 $ 492 Operational Travel 108 110 101 Consultant Fees 131 116 98 Pension and other postretirement benefits 65 (12) 50 Contributions to Special Programs 197 176 171 Communications and IT 82 80 77 Contractual Services 94 83 68 Equipment and Buildings 149 138 143 Other Expenses 26 29 36 Total Gross Administrative Expenses 1,441 1,258 1,236 Less: Contribution to Special Programs 197 176 171 Total Net Administrative Expenses 1,244 1,082 1,065 Contribution to Special Programs 197 176 171 Service Fee Revenues (295) (272) (261) Externally Funded Outputs Income (28) (11) - Net Other Income (31) (6) (4) Total Net Noninterest Expense $1,087 $ 969 $ 971 Net Noninterest Expense weakening of the U.S dollar against other currencies, and significant change in basis spreads. The main components of net noninterest expense are presented in Table 17. Figure 11: IBRD's U.S. Dollar Funding Curve FY 2009 versus FY 2008 7 Net noninterest expense increased by $118 million primarily due to a $77 million increase in pension 6 and other post retirement benefits and a $51 million 5 increase in staff costs. Percent 4 FY 2008 versus FY 2007 3 06/30/2009 Net noninterest expense decreased by $2 million 2 06/30/2008 06/30/2007 primarily due to a $62 million decrease in pension 1 06/30/2006 and other postretirement benefits expenses and an 0 increase of $22 million of service fee revenue and 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 15Y 20Y 30Y 3M 6M EFO income, partially offset by a $79 million increase in staff costs, consultants fees and contractual services. 9. GOVERNANCE Fair Value Adjustment on Non-Trading General Governance Portfolios, net Management Changes During FY 2009, IBRD experienced net unrealized gains of $3,280 million, primarily due to gains from Ms. Anne-Marie Leroy was appointed as Senior the asset/liability management portfolio and from Vice President and Group General Counsel of the the borrowings portfolio (see Figure 11, IBRD's World Bank effective March 9, 2009. U.S. Dollar Funding Curve). For a detailed analysis, Board Membership refer to Fair Value Adjustment on Non-Trading Portfolios, net, included in Section 2. During FY In accordance with its Articles of Agreement, 2008, IBRD experienced net unrealized losses of members of IBRD's Executive Directors are $40 million resulting from a combination of factors appointed or elected by their member governments. with offsetting implications, namely: lower interest These Executive Directors are neither officers nor rates in U.S. dollar, Japanese yen and British pound staff of IBRD. The President is the only but higher rates in several other currencies such as management member of the Board of Executive euro, Australian dollar and South African rand; Directors, serving as a non-voting member and as tightened credit spreads at the near-end but widened Chairman of the Board. credit spreads beyond 7-years; significant IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 33 The Executive Directors have established several Board the appointment of the external auditor, as Committees including: well as monitoring the independence of the external auditor and meeting with it in executive session. The · Committee on Development Effectiveness Audit Committee participates in oversight of the · Audit Committee internal audit function, including reviewing the responsibilities, staffing and the effectiveness of · Budget Committee internal audit. The Committee also reviews the · Personnel Committee annual internal audit plan and meets with the Auditor General in executive session. In the · Ethics Committee execution of its role, the Committee discusses with · Committee on Governance and management, the external auditors, and the internal Administrative Matters auditors, financial issues and policies which have a bearing on the institution's financial position and The Executive Directors and their Committees risk-bearing capacity. The Audit Committee function in continuous session at the principal monitors the evolution of developments in corporate offices of IBRD, as business requires. Each governance and the role of audit committees on an Committee's terms of reference establishes its ongoing basis and updated its terms of reference in respective roles and responsibilities. As Committees July 2009. do not vote on issues, their role is primarily to serve the full Board of Executive Directors in discharging Communications its responsibilities. The Audit Committee communicates regularly with Audit Committee the full Board through distribution of the following: Membership · The minutes of its meetings. The Audit Committee consists of eight members of · Reports of the Audit Committee prepared the Board of Executive Directors. Membership on by the Chairman, which document the Committee is determined by the Board of discussions held. These Reports are Executive Directors, based upon nominations by the distributed to the Executive Directors, Chairman of the Board, following informal Alternates, World Bank Group Senior consultation with the Executive Directors. In Management and Vice Presidents of IBRD. addition, membership of the Committee is expected · "Statement(s) of the Chairman" and to reflect the economic and geographic diversity of statements issued by other members of the IBRD's member countries and a balanced Committee. representation between borrowing and non- borrowing member countries. Some or all of the · The Annual Report to the Board of responsibilities of individual committee members Executive Directors, which provides an are performed by their alternates or advisors. overview of the main issues addressed by Generally, Committee members are appointed for a the Committee over the year. two year term; reappointment to a second term, The Audit Committee's communications with the when possible, is desirable for continuity. Audit external auditor are described in the Auditor Committee meetings are generally open to any Independence section. member of the Board who may wish to attend, and non-Committee members of the Board may Executive Sessions participate in the discussion. In addition, the Members of the Committee may convene in Chairman of the Audit Committee may speak in that executive session at any time, without management capacity at meetings of the Board of Executive present. Under the Committee's terms of reference, it Directors, with respect to discussions held in the meets separately in executive session with the Audit Committee. external and internal auditors. Key Responsibilities Access to Resources and to Management The Audit Committee is appointed by the Board to Throughout the year, the Audit Committee receives assist it in the oversight and assessment of IBRD's a large volume of information, which supports the finances and accounting, including the effectiveness preparation of the financial statements. The Audit of financial policies, the integrity of financial Committee meets both formally and informally statements, the system of internal controls regarding throughout the year to discuss financial and finance, accounting and ethics (including fraud and accounting matters. Executive Directors have corruption), and financial and operational risks. The complete access to management. The Audit Audit Committee also has the responsibility for Committee reviews and discusses with management reviewing the performance and recommending to the the quarterly and annual financial statements. The 34 THE WORLD BANK ANNUAL REPORT 2009 Committee also reviews with the external auditor the management and oversees related outreach, financial statements prior to their publication and training and communication initiatives. EBC recommends them for approval to the Board of also handles allegations of staff misconduct not Executive Directors. involving significant fraud and corruption. The Audit Committee has the capacity, under · The Integrity Vice Presidency (INT) is charged exceptional circumstances, to obtain advice and with investigating allegations of significant assistance from outside legal, accounting or other fraud and corruption both within the World advisors as deemed appropriate. Bank Group and in Bank-funded projects worldwide. It also trains and educates staff and Code of Conduct and Business Conduct clients in detecting and reporting fraud and Infrastructure corruption. Staff members ethical obligations to the institution are embodied in its Core Values and Principles of · Both EBC and INT report directly to the Staff Employment. In support of this commitment, President of the World Bank Group. Staff from the institution has in place a Code of Professional these units include professionals from a broad Ethics, entitled Living our Values (the Code). The range of disciplines including trainers, financial Code applies to all staff worldwide and is available analysts, researchers, investigators, lawyers, on IBRD's website, www.worldbank.org. prosecutors, forensic accountants, and staff with World Bank Group operational experience. Orientation training for new staff and other ethics These units maintain comprehensive websites to training, attended by approximately 3,000 staff provide guidance on how to handle concerns. annually, promote awareness and familiarize staff with the Code. The World Bank Group has both an Ethics HelpLine and a Fraud and Corruption hotline, overseen by The World Bank Group is currently finalizing an EBC and INT respectively. These resources are updated Code, which is expected to be rolled out in referenced in the Code, and are run by an outside the first quarter of FY 2010 as the "Code of firm staffed by trained specialists. This third-party Conduct." An e-learning module on the updated service offers numerous methods of communication Code is also in the final design phases, with rollout in addition to a toll free service in countries where planned for the second quarter of FY 2010. This access to telecommunications may be limited. These training will be for certification, and staff, including phone services can accept calls in multiple consultants, will be required to complete an languages. Other reporting channels include: acknowledgment that they will abide by the tenets of phone, mail, email (EBC maintains a Lotus Notes the Code. service account called Ethics_HelpLine), anonymously, or through confidential submission In addition to the Code, the business conduct through the units' respective websites. Callers may obligations of staff are articulated in the Staff also visit the offices in person. Manual (Principles of Staff Employment, Staff Rules), Administrative Manual and other guidelines. IBRD has in place procedures for the receipt, The Principles and Staff Rules require that all staff retention and handling of recommendations and avoid or properly manage conflicts of interest. concerns identified during accounting, internal control and auditing processes. Further the Code, rules and policies, guidance for staff is also provided through programs, training The World Bank Group's Staff Rules clarify and materials, and other resources. Managers are codify the obligations of staff in reporting suspected responsible for ensuring that internal systems, fraud, corruption or other misconduct that may policies, and procedures are consistently aligned threaten the operations or governance of the World with the World Bank Group's business conduct Bank Group. Additionally, these rules offer framework. In accordance with the Staff Rules, protection from retaliation. In FY 2008, the senior managers must complete a confidential institution implemented strengthened whistleblower financial disclosure instrument with the Office of protections. Ethics and Business Conduct. The following World Bank Group units assist in Auditor Independence communicating business conduct expectations to The Board of Executive Directors adopted a set of staff : principles applicable to the appointment of the · The Office of Ethics and Business Conduct external auditor for IBRD. Key features of those (EBC) works to ensure that staff are aware of principles include: their business conduct-related obligations. It · Prohibition of the external auditor from the provides insight on ethics trends to senior provision of all non audit-related services. IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 35 · All audit-related services must be pre- IBRD's auditors follow the communication approved on a case-by-case basis by the requirements with audit committees set out under Board of Executive Directors, upon recom- U.S. generally accepted auditing standards. In mendation of the Audit Committee. keeping with these standards, significant formal communications include: · Mandatory rebidding of the external audit contract every five years. · Quarterly and annual financial statement reporting. · Prohibition of any firm serving as external auditors for more than two consecutive · Annual appointment of the external audi- five-year terms. tors. · Mandatory rotation of the senior partner · Presentation of the external audit plan. after five years. · Presentation of control recommendations · An evaluation of the performance of the and discussion of the COSO attestation and external auditor at the mid-point of the five report. year term. · Presentation of a statement regarding inde- External auditors are appointed to a five-year term pendence. of service. This is subject to annual reappointment In addition to Committee meetings, individual based on the recommendation of the Audit members of the Audit Committee have independent Committee and approval of a resolution by the access to the external auditor. Executive Directors. In FY 2009 in connection with the mandatory rebidding process, KPMG began a 10. RECONCILIATION OF PRIOR YEAR FAIR five-year term as IBRD's external auditor. VALUE FINANCIAL STATEMENTS TO REPORTED BASIS As a standard practice, the external auditor is present as an observer at virtually all Audit Committee IBRD's Condensed Fair Value Balance Sheet at June meetings and is frequently asked to present its 30, 2008 is presented, with a reconciliation to the perspective on issues. In addition, the Audit reported basis, in Table 18 below. Similarly, IBRD's Committee meets periodically with the external Condensed Fair Value Statement of Income for the auditor in private session without management year ended June 30, 2008 is presented, with a present. Communication between the external reconciliation to the reported basis, in Table 19. auditor and the Audit Committee is ongoing, as frequently as is deemed necessary by either party. 36 THE WORLD BANK ANNUAL REPORT 2009 Table 18: Condensed Fair Value Balance Sheet at June 30, 2008 In millions of U.S. dollars June 30, 2008 Additional Fair Value Fair Value Reported Basis Adjustments Basis Due from Banks $ 890 $ 890 Investments 26,598 26,598 a Net Loans Outstanding 97,268 $1,124 98,392 Receivable from Derivatives Investments 5,857 5,857 Client Operations 20,269 20,269 Borrowings 76,098 76,098 Others 609 609 Other Assets 5,722 5,722 Total Assets $233,311 $1,124 $234,435 Borrowings $87,402 $2,544 $ 89,946 Payable for Derivatives Investments 6,309 6,309 Client Operations 20,263 20,263 Borrowings 69,152 69,152 Others 1,007 1,007 Other Liabilities 7,630 7,630 Total Liabilities 191,763 $2,544 194,307 Paid in Capital Stock 11,486 11,486 Retained Earnings and Other Equity 30,062 (1,420) 28,642 Total Equity 41,548 (1,420) 40,128 Total Liabilities and Equity $233,311 $1,124 $234,435 a Effective July 1, 2009, IBRD modified its loans valuation approach for consistency with FAS 157. Had the model been in placed as of June 30, 2008, the fair value of loans would have been $96,941 million, instead of $98,392. Table 19: Condensed Fair Value Statement of Income for the year ended June 30, 2008 a In millions of U.S. dollars FY 2008 Reported Fair Value Comprehensive Adjustments to Comprehensive b Basis Fair Value Basis Income from Loans $5,497 $5,497 c Income from Investments, net 1,066 1,066 Other Income 300 300 Total Income 6,863 6,863 Borrowing Expenses 4,017 4,017 Administrative Expenses including contributions to Special Programs 1,258 1,258 Release of Provision for Losses on Loans and Guarantees (684) $684 - Other Expenses 1 1 Total Expenses 4,592 684 5,276 Operating Income 2,271 (684) 1,587 Board of Governors-Approved Transfers (740) (740) d Fair Value Adjustment on Non-Trading Portfolios, net (40) (403) (443) Fair Value Adjustment on Loans 983 983 Currency Translation Adjustment and Other Adjustments (252) (252) Net (Loss) Income $1,491 $(356) $1,135 a. Amounts have been reclassified to conform with the current year's presentation. b. Comprehensive basis comprises net income on a reported basis as well as the components of other comprehensive income as reported in the financial statements. c. Unrealized gains on derivatives in the investment trading portfolio are included in Income from Investments, net. d. As of June 30, 2008, a fair value adjustment was necessary because non-hybrid debt instruments were carried at amortized cost. IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 37 differing character, based on an underlying notional Glossary of Terms principal amount for a specified time. Asset-backed Securities: Asset-backed securities are LIBOR: London interbank offered rate. instruments whose cash flow is based on the cash flows of a pool of underlying assets managed by a trust. Maintenance of Value: Agreements with members COSO: Committee of Sponsoring Organizations of the provide for the maintenance of the value, from the time of Treadway Commission. COSO was formed in 1985 to subscription, of certain restricted currencies. Additional sponsor the National Commission on Fraudulent Financial payments to (or from) IBRD are required in the event the Reporting, an independent private-sector initiative which par value of the currency is reduced (or increased) to a studied the causal factors that can lead to fraudulent significant extent, in the opinion of IBRD. financial reporting. In 1992, COSO issued its Internal Net Disbursements: Loan disbursements net of repay- Control-Integrated Framework, which provided a common ments and prepayments. definition of internal control and guidance on judging its effectiveness. Post-98 loans: Loans for which the invitation to negotiate was issued on or after July 31, 1998 and that were signed Credit Default Swaps (CDS): A derivatives contract that before May 16, 2007 or which were signed between May provides protection against deteriorating credit quality and 16, 2007 and September 27, 2007 and for which the would allow one party to receive payment in the event of a borrowers elected not to convert the terms of their loans to default or specified credit event by a third party. the terms for the new loans introduced on September 27, Currency Swaps (including Currency Forward 2007. Contracts): Currency swaps are agreements between two parties to exchange cash flows denominated in different Pre-98 loans: Loans for which the invitation to negotiate currencies at one or more certain times in the future. The was issued prior to July 31, 1998. cash flows are based on a predetermined formula Options: Options are contracts that allow the holder of the reflecting rates of interest and an exchange of principal. option the right, but not the obligation, to purchase or sell Duration: Duration provides an indication of the interest a financial instrument at a specified price within a rate sensitivity of a fixed income security to changes in its specified period of time from or to the seller of the option. underlying yield. The purchaser of an option pays a premium at the outset to the seller of the option, who then bears the risk of an Equity-to-Loans Ratio: This ratio is the sum of usable unfavorable change in the price of the financial instrument capital plus the special and general reserves, cumulative underlying the option. translation adjustment (excluding amounts associated with fair value adjustment on non-trading portfolios, net) and Repurchase and Resale Agreements and Securities the proposed transfer from unallocated net income to Loans: Repurchase agreements are contracts under which general reserves (where there are firm estimates available) a party sells securities and simultaneously agrees to divided by the sum of loans outstanding, the present value repurchase the same securities at a specified future date at of guarantees, net of the accumulated provision for losses a fixed price. The reverse of this transaction is called a on loans, effective and undisbursed DDOs and guarantees, resale agreement. A resale agreement involves the deferred loan income and Long-Term Income Portfolio purchase of securities with a simultaneous agreement to assets. sell back the same securities at a stated price on a stated date. Securities loans are contracts under which securities Failed Trades: Failed trades are securities transactions are lent for a specified period of time at a fixed price. that do not settle on the contractual settlement date. Return on Equity: This return is computed as net income Forward Starting Swaps: A forward starting swap is an divided by the average equity balance during the year. agreement under which the cash flow exchanges of the underlying interest rate swaps would begin to take effect Risk-bearing Capacity: The ability to absorb risks in the from a specified future date. balance sheet while continuing normal operations without having to call on callable capital. Futures: Futures are contracts for delivery of securities or money market instruments in which the seller agrees to Short Sales: Short sales are sales of securities not held in make delivery at a specified future date of a specified the seller's portfolio at the time of the sale. The seller must instrument at a specified price or yield. Futures contracts purchase the security at a later date and bears the risk that are traded on U.S. and international regulated exchanges. the market value of the security will move adversely between the time of the sale and the time the security must Government and Agency Obligations: These obligations be delivered. include marketable bonds, notes and other obligations Strategic Capital Adequacy Framework: Evaluates issued by governments. IBRD's capital adequacy as measured by stress test and Hedging: Hedging is a risk management technique of appropriate long term equity-to-loan target range. This entering into offsetting commitments to eliminate or target equity-to-loans range provides a background minimize the impact of adverse movements in value or framework in the context of annual net income allocation cash flow of the underlying instrument or economic decisions, as well as in the assessment of the initiatives for condition. the use of capital. The capital adequacy framework has been approved by the Executive Directors. Interest Rate Swaps: Interest rate swaps are agreements involving the exchange of periodic interest payments of 38 THE WORLD BANK ANNUAL REPORT 2009 Statutory Lending Limit: Under IBRD's Articles of Swaptions: A swaption is an option which gives the Agreement, as applied, the total amount outstanding of holder the right to enter into an Interest Rate Swap or loans, participations in loans, and callable guarantees may Currency Swap at a future date. not exceed the sum of subscribed capital, reserves and surplus. Time Deposits: Time deposits include certificates of deposit, bankers' acceptances, and other obligations issued or unconditionally guaranteed by banks and other financial institutions. IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2009 39 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT FINANCIAL STATEMENTS AND INTERNAL CONTROL REPORTS JUNE 30, 2009 Management's Report Regarding Effectiveness of Internal Controls Over External Financial Reporting 42 Independent Auditors' Report on Management's Assertion Regarding Effectiveness of Internal Controls Over External Financial Reporting 44 Independent Auditors' Report 45 Balance Sheet 46 Statement of Income 48 Statement of Comprehensive Income 49 Statement of Changes in Retained Earnings 49 Statement of Cash Flows 50 Summary Statement of Loans 52 Statement of Subscriptions to Capital Stock and Voting Power 55 Notes to Financial Statements 59 IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 41 MANAGEMENT'S REPORT REGARDING EFFECTIVENESS OF INTERNAL CONTROLS OVER EXTERNAL FINANCIAL REPORTING 42 THE WORLD BANK ANNUAL REPORT 2009 IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 43 INDEPENDENT AUDITORS' REPORT ON MANAGEMENT'S ASSERTION REGARDING EFFECTIVENESS OF INTERNAL CONTROLS OVER EXTERNAL FINANCIAL REPORTING 44 THE WORLD BANK ANNUAL REPORT 2009 INDEPENDENT AUDITOR'S REPORT IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 45 BALANCE SHEET June 30, 2009 and June 30, 2008 Expressed in millions of U.S. dollars 2009 2008 Assets Due from Banks Unrestricted currencies $2,380 $ 122 Currencies subject to restrictions--Note B 664 768 3,044 890 Investments-Trading (including securities transferred under repurchase or securities lending agreements of $30 million-June 30, 2009; $203 million-- June 30, 2008)--Notes C and G 41,012 25,213 Securities Purchased Under Resale Agreements--Note C 33 1,385 Nonnegotiable, Noninterest-bearing Demand Obligations on Account of Subscribed Capital 1,202 1,554 Derivative Assets Investments--Notes C, F, G, and O 18,467 5,857 Client operations--Notes F, G and O 19,559 20,269 Borrowings--Notes E, F, G and O 82,793 76,098 Others--Notes F, G, and O 2,246 609 123,065 102,833 Receivable to Maintain Value of Currency Holdings on Account of Subscribed Capital 176 22 Other Receivables Receivable from investment securities traded--Note C 95 11 Accrued income on loans 889 1,073 984 1,084 Loans Outstanding (Summary Statement of Loans, Notes D, G and O) Total loans 156,823 137,226 Less undisbursed balance 51,125 38,176 Loans outstanding (including loans at fair value of $78--June 30, 2009; $102 million---June 30, 2008) 105,698 99,050 Less: Accumulated provision for loan losses 1,632 1,370 Deferred loan income 409 412 Net loans outstanding 103,657 97,268 Other Assets Assets under retirement benefits plans--Note K 325 1,853 Premises and equipment (net) 625 608 Miscellaneous--Note I 1,297 601 2,247 3,062 Total assets $275,420 $233,311 46 WORLD BANK ANNUAL REPORT 2009 2009 2008 Liabilities Borrowings--Notes E, G, and O Borrowings at fair value $110,040 $ 13,208 Borrowings at amortized cost -- 74,194 110,040 87,402 Securities Sold Under Repurchase Agreements, Securities Lent under Securities Lending Agreements, and Payable for Cash Collateral Received--Note C 2,323 3,147 Derivative Liabilities Investments--Notes C, F, G and O 18,923 6,309 Client operations--Notes F, G and O 19,551 20,263 Borrowings--Notes E,F, G and O 76,321 69,152 Others--Notes F, G and O 847 1,007 115,642 96,731 Payable to Maintain Value of Currency Holdings on Account of Subscribed Capital 57 257 Other Liabilities Payable for investment securities purchased--Note C 2,457 30 Accrued charges on borrowings 1,495 1,739 Liabilities under retirement benefits plans--Note K 662 598 Accounts payable and miscellaneous liabilities--Notes D and I 2,707 1,859 7,321 4,226 Total liabilities 235,383 191,763 Equity Capital Stock (Statement of Subscriptions to Capital Stock and Voting Power, Note B) Authorized capital 1,581,724 shares--June 30, 2009, and June 30, 2008) Subscribed capital (1,574,315 shares--June 30, 2009, 1,573,349 shares-- June 30, 2008) 189,918 189,801 Less uncalled portion of subscriptions 178,427 178,315 Paid-in capital 11,491 11,486 Deferred Amounts to Maintain Value of Currency Holdings--Note B 359 487 Retained Earnings (Statement of Changes in Retained Earnings, Note H) 29,870 29,322 Accumulated Other Comprehensive Income Note--M (1,683) 253 Total equity 40,037 41,548 Total liabilities and equity $275,420 $233,311 The Notes to Financial Statements are an integral part of these Statements. IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 47 STATEMENT OF INCOME For the fiscal years ended June 30, 2009, June 30, 2008 and June 30, 2007 Expressed in millions of U.S. dollars 2009 2008 2007 Income Loans--Notes D and L Interest $3,789 $5,426 $5,391 Commitment charges 46 71 76 Investments, net--Trading--Notes C, F and O Interest 625 1,140 1,259 Net (losses) gains (22) (74) 22 Other--Notes I and J 599 300 264 Total income 5,037 6,863 7,012 Expenses Borrowings--Note E Interest 2,664 3,934 4,427 Amortization of issuance and other borrowing costs 75 83 92 Administrative--Notes I, J, and K 1,244 1,082 1,066 Contributions to special programs--Note I 197 176 171 Provision for losses on loans and guarantees, increase (decrease)--Note D 284 (684) (405) Other 1 1 2 Total expenses 4,465 4,592 5,353 Income before fair value adjustment on non-trading portfolios, net and Board of Governors-approved transfers 572 2,271 1,659 Fair value adjustment on non-trading portfolios, net--Notes F, N, and O 3,280 (40) (842) Board of Governors-approved transfers--Note H (738) (740) (957) Net income (loss) $3,114 $1,491 $ (140) The Notes to Financial Statements are an integral part of these Statements. 48 THE W ORLD BANK ANNUAL REPORT 2009 STATEMENT OF COMPREHENSIVE INCOME For the fiscal years ended June 30, 2009, June 30, 2008 and June 30, 2007 Expressed in millions of U.S. dollars 2009 2008 2007 Net income (loss) $3,114 $ 1,491 $(140) Other comprehensive (loss) income--Note M Reclassification to net income: FAS 133 transition adjustment 11 (20) (32) Net actuarial losses on benefit plans (1,581) (1,021) -- Prior service credit on benefit plans, net -- 1 -- Currency translation adjustments (366) 792 313 Total other comprehensive (loss) income (1,936) (248) 281 Comprehensive income $1,178 $ 1,243 $ 141 STATEMENT OF CHANGES IN RETAINED EARNINGS For the fiscal years ended June 30, 2009, June 30, 2008, and June 30, 2007 Expressed in millions of U.S. dollars 2009 2008 2007 Retained earnings at beginning of the fiscal year $29,322 $27,831 $24,782 Adjustments to beginning balance: Cumulative effect of adoption of FAS 159--Note O (2,566) -- -- Cumulative effect of adoption of FAS 155 -- -- 3,189 Net income (loss) for the fiscal year 3,114 1,491 (140) Retained earnings at end of the fiscal year $29,870 $29,322 $27,831 The Notes to Financial Statements are an integral part of these Statements. IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 49 STATEMENT OF CASH FLOWS For the fiscal years ended June 30, 2009, June 30, 2008 and June 30, 2007 Expressed in millions of U.S. dollars 2009 2008 2007 Cash flows from investing activities Loans Disbursements $(18,529) $(10,478) $(11,040) Principal repayments 9,988 10,960 10,894 Principal prepayments 232 1,659 6,354 Loan origination fees received 24 6 6 Net cash (used in) provided by investing activities (8,285) 2,147 6,214 Cash flows from financing activities Medium and long-term borrowings New issues 39,092 15,526 10,209 Retirements (18,653) (23,799) (18,546) Net short-term borrowings 1,543 3,229 (2,709) Net derivatives-Borrowings 133 1,767 1,263 Net derivatives-Other assets / liabilities (1) 51 (145) New capital subscriptions 5 -- -- Net maintenance of value settlements 77 94 79 Net cash provided by (used in) financing activities 22,196 (3,132) (9,849) Cash flows from operating activities Net income (loss) 3,114 1,491 (140) Adjustment to reconcile net income (loss) to net cash provided by operating activities Fair value adjustment on non-trading portfolios, net (3,280) 40 842 Depreciation and amortization 920 1,046 1,017 Provision for losses on loans and guarantees, increase (decrease) 284 (684) (405) Changes in: Investments-Trading (16,367) (1,339) 2,943 Net investment securities traded/purchased-Trading 2,286 (567) 7 Net derivatives-Investments 832 (556) (340) Net securities purchased/sold under resale/repurchase agreements and payable for cash collateral received 561 1,851 61 Accrued income on loans 138 312 (58) Miscellaneous assets 794 587 (198) Payable for Board of Governors-approved transfers -- (70) (206) Accrued charges on borrowings (227) (410) (6) Accounts payable and miscellaneous liabilities (701) (689) 91 Net cash (used in) provided by operating activities (11,646) 1,012 3,608 Effect of exchange rate changes on unrestricted cash (7) 9 6 Net increase (decrease) in unrestricted cash 2,258 36 (21) Unrestricted cash at beginning of the fiscal year 122 86 107 Unrestricted cash at end of the fiscal year $2,380 $ 122 $ 86 50 THE W ORLD BANK ANNUAL REPORT 2009 Expressed in millions of U.S. dollars 2009 2008 2007 Supplemental disclosure (Decrease) increase in ending balances resulting from exchange rate fluctuations Loans outstanding $(1,689) $ 3,374 $ 994 Investments-Trading (569) 821 325 Borrowings (3,611) 5,090 4,096 Derivatives-Investments 828 (619) (294) Derivatives-Borrowings (2,900) (2,891) (3,473) Capitalized loan origination fees included in total loans 36 12 15 Interest paid on borrowings 2,528 4,025 3,648 The Notes to Financial Statements are an integral part of these Statements. IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 51 SUMMARY STATEMENT OF LOANS June 30, 2009 Expressed in millions of U.S. dollars Loans approved Undisbursed Percentage of but not yet balance of Loans total loans a b Borrower or guarantor Total loans effective effective loans outstanding outstanding Albania $58 $8 $29 $21 0.02% Algeria 21 - 11 10 0.01 Argentina 8,913 1,070 2,642 5,201 4.92 Armenia 54 - 25 29 0.03 Azerbaijan 1,765 957 694 114 0.11 Barbados 48 - 33 15 0.01 Belarus 272 125 103 44 0.04 Belize 18 - - 18 0.02 Bolivia * - - * * Bosnia and Herzegovina 449 24 - 425 0.40 Botswana 236 236 - - - Brazil 15,459 2,211 2,598 10,650 10.08 Bulgaria 1,747 56 173 1,518 1.44 Cameroon 32 - - 32 0.03 Chile 311 30 71 210 0.20 China 18,850 2,448 3,771 12,631 11.95 Colombia 7,380 150 1,308 5,922 5.60 Costa Rica 741 573 129 39 0.04 Côte d'Ivoire 77 - - 77 0.07 Croatia 1,957 119 614 1,224 1.16 Dominica 1 - - 1 * Dominican Republic 659 28 197 434 0.41 Ecuador 599 - 24 575 0.54 Egypt, Arab Republic of 3,342 1,135 382 1,825 1.73 El Salvador 869 - 280 589 0.56 Estonia 21 - - 21 0.02 Fiji 1 - - 1 * Gabon 49 - 31 18 0.02 Georgia 70 - 52 18 0.02 Grenada 16 - 4 12 0.01 Guatemala 1,323 85 257 981 0.93 Hungary 65 - - 65 0.06 India 12,702 580 4,254 7,868 7.44 Indonesia 10,514 2,675 1,245 6,594 6.24 Iran, Islamic Republic of 1,274 - 505 769 0.73 Jamaica 500 - 87 413 0.39 Jordan 1,028 85 135 808 0.76 Kazakhstan 2,903 2,125 302 476 0.45 Korea, Republic of 1,481 - - 1,481 1.40 Latvia 49 - - 49 0.05 Lebanon 434 70 46 318 0.30 Lesotho 3 - - 3 * Lithuania 25 - - 25 0.02 Macedonia, former Yugoslav Republic of 478 54 180 244 0.23 Malaysia 60 - - 60 0.06 Mauritius 225 - 17 208 0.20 Mexico 8,505 1,726 284 6,495 6.14 Moldova 118 - - 118 0.11 Montenegro 300 16 25 259 0.25 Morocco 2,867 141 287 2,439 2.31 Namibia 15 7 - 8 0.01 Nigeria 157 - - 157 0.15 Pakistan 2,160 - 324 1,836 1.74 Panama 613 80 174 359 0.34 52 THE WORLD BANK ANNUAL REPORT 2009 Expressed in millions of U.S. dollars Loans approved Undisbursed Percentage of but not yet balance of Loans total loans a b Borrower or guarantor Total loans effective effective loans outstanding outstanding Papua New Guinea $155 $- $2 $153 0.14% Paraguay 478 211 72 195 0.18 Peru 4,133 675 831 2,627 2.49 Philippines 3,497 118 789 2,590 2.45 Poland 4,730 1,412 246 3,072 2.91 Romania 3,632 - 1,176 2,456 2.32 Russian Federation 4,250 200 550 3,500 3.31 Serbia 2,515 15 265 2,235 2.11 Slovak Republic 234 - 3 231 0.22 Slovenia 16 - - 16 0.02 South Africa 24 - - 24 0.02 St. Kitts and Nevis 14 - 1 13 0.01 St. Lucia 22 - 2 20 0.02 St. Vincent and the Grenadines 10 - 7 3 * Swaziland 11 - - 11 0.01 Thailand 84 - 19 65 0.06 Trinidad and Tobago 29 - 5 24 0.02 Tunisia 1,927 342 319 1,266 1.20 Turkey 12,998 1,371 3,003 8,624 8.16 Turkmenistan 14 - - 14 0.01 Ukraine 4,196 400 833 2,963 2.80 Uruguay 1,213 - 130 1,083 1.02 Uzbekistan 316 - 21 295 0.28 Zimbabwe 460 - * 460 0.44 c Subtotal $156,772 $21,558 $29,567 $105,647 99.95 d International Finance Corporation 51 - - 51 0.05 Total-June 30, 2009 $156,823 $21,558 $29,567 $105,698 100% Total-June 30, 2008 $137,226 $11,779 $26,397 $99,050 *Indicates amount less than $0.5 million or less than 0.005 percent. NOTES a. Loans totaling $8,567 million ($6,985 --June 30, 2008) have been approved by IBRD, but the related agreements have not been signed. Loan agreements totaling $12,991 million ($4,794 million--June 30, 2008) have been signed, but the loans do not become effective and disbursements thereunder do not start until the borrowers and guarantors, if any, take certain actions and furnish certain documents to IBRD. b. Of the undisbursed balance, IBRD has entered into irrevocable commitments to disburse $362 million ($517 million--June 30, 2008). c. May differ from the sum of individual figures shown due to rounding. d. Loans outstanding to the International Finance Corporation have a weighted average interest rate of 4.05% and a weighted average maturity of 5.09 years. These loans are not eligible for IBRD's interest waivers. The Notes to Financial Statements are an integral part of these Statements. IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 53 STATEMENT OF SUBSCRIPTIONS TO CAPITAL STOCK AND VOTING POWER June 30, 2009 Expressed in millions of U.S. dollars Subscriptions Voting Power Amounts Number Percentage of Total Amounts subject of Percentage a a, b Member Shares total amounts paid in to call votes of total Afghanistan 300 0.02% $36.2 $3.6 $32.6 550 0.03% Albania 830 0.05 100.1 3.6 96.5 1,080 0.07 Algeria 9,252 0.59 1,116.1 67.1 1,049.0 9,502 0.59 Angola 2,676 0.17 322.8 17.5 305.4 2,926 0.18 Antigua and Barbuda 520 0.03 62.7 1.3 61.5 770 0.05 Argentina 17,911 1.14 2,160.7 132.2 2,028.4 18,161 1.12 Armenia 1,139 0.07 137.4 5.9 131.5 1,389 0.09 Australia 24,464 1.55 2,951.2 181.8 2,769.5 24,714 1.52 Austria 11,063 0.70 1,334.6 80.7 1,253.9 11,313 0.70 Azerbaijan 1,646 0.10 198.6 9.7 188.8 1,896 0.12 Bahamas, The 1,071 0.07 129.2 5.4 123.8 1,321 0.08 Bahrain 1,103 0.07 133.1 5.7 127.4 1,353 0.08 Bangladesh 4,854 0.31 585.6 33.9 551.6 5,104 0.31 Barbados 948 0.06 114.4 4.5 109.9 1,198 0.07 Belarus 3,323 0.21 400.9 22.3 378.5 3,573 0.22 Belgium 28,983 1.84 3,496.4 215.8 3,280.6 29,233 1.80 Belize 586 0.04 70.7 1.8 68.9 836 0.05 Benin 868 0.06 104.7 3.9 100.8 1,118 0.07 Bhutan 479 0.03 57.8 1.0 56.8 729 0.04 Bolivia 1,785 0.11 215.3 10.8 204.5 2,035 0.13 Bosnia and Herzegovina 549 0.04 66.2 5.8 60.4 799 0.05 Botswana 615 0.04 74.2 2.0 72.2 865 0.05 Brazil 33,287 2.11 4,015.6 245.5 3,770.1 33,537 2.07 Brunei Darussalam 2,373 0.15 286.3 15.2 271.1 2,623 0.16 Bulgaria 5,215 0.33 629.1 36.5 592.6 5,465 0.34 Burkina Faso 868 0.06 104.7 3.9 100.8 1,118 0.07 Burundi 716 0.05 86.4 3.0 83.4 966 0.06 Cambodia 214 0.01 25.8 2.6 23.2 464 0.03 Cameroon 1,527 0.10 184.2 9.0 175.2 1,777 0.11 Canada 44,795 2.85 5,403.8 334.9 5,068.9 45,045 2.78 Cape Verde 508 0.03 61.3 1.2 60.1 758 0.05 Central African Republic 862 0.05 104.0 3.9 100.1 1,112 0.07 Chad 862 0.05 104.0 3.9 100.1 1,112 0.07 Chile 6,931 0.44 836.1 49.6 786.6 7,181 0.44 China 44,799 2.85 5,404.3 335.0 5,069.3 45,049 2.78 Colombia 6,352 0.40 766.3 45.2 721.1 6,602 0.41 Comoros 282 0.02 34.0 0.3 33.7 532 0.03 Congo, Democratic Republic of 2,643 0.17 318.8 25.4 293.5 2,893 0.18 Congo, Republic of 927 0.06 111.8 4.3 107.5 1,177 0.07 Costa Rica 233 0.01 28.1 1.9 26.2 483 0.03 Côte d'Ivoire 2,516 0.16 303.5 16.4 287.1 2,766 0.17 Croatia 2,293 0.15 276.6 17.3 259.3 2,543 0.16 Cyprus 1,461 0.09 176.2 8.4 167.9 1,711 0.11 Czech Republic 6,308 0.40 761.0 45.9 715.0 6,558 0.40 Denmark 13,451 0.85 1,622.7 97.8 1,524.9 13,701 0.85 Djibouti 559 0.04 67.4 1.6 65.9 809 0.05 Dominica 504 0.03 60.8 1.1 59.7 754 0.05 Dominican Republic 2,092 0.13 252.4 13.1 239.3 2,342 0.14 Ecuador 2,771 0.18 334.3 18.2 316.1 3,021 0.19 Egypt, Arab Republic of 7,108 0.45 857.5 50.9 806.6 7,358 0.45 IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 55 STATEMENT OF SUBSCRIPTIONS TO CAPITAL STOCK AND VOTING POWER (continued) June 30, 2009 Expressed in millions of U.S. dollars Subscriptions Voting Power Amounts Number Percentage of Total Amounts subject of Percentage a a, b Member Shares total amounts paid in to call votes of total El Salvador 141 0.01% $17.0 $1.7 $15.3 391 0.02% Equatorial Guinea 715 0.05 86.3 2.7 83.5 965 0.06 Eritrea 593 0.04 71.5 1.8 69.7 843 0.05 Estonia 923 0.06 111.3 4.3 107.1 1,173 0.07 Ethiopia 978 0.06 118.0 4.7 113.3 1,228 0.08 Fiji 987 0.06 119.1 4.8 114.3 1,237 0.08 Finland 8,560 0.54 1,032.6 61.9 970.8 8,810 0.54 France 69,397 4.41 8,371.7 520.4 7,851.3 69,647 4.30 Gabon 987 0.06 119.1 5.1 113.9 1,237 0.08 Gambia, The 543 0.03 65.5 1.5 64.0 793 0.05 Georgia 1,584 0.10 191.1 9.3 181.8 1,834 0.11 Germany 72,399 4.60 8,733.9 542.9 8,190.9 72,649 4.48 Ghana 1,525 0.10 184.0 12.7 171.2 1,775 0.11 Greece 1,684 0.11 203.1 14.1 189.1 1,934 0.12 Grenada 531 0.03 64.1 1.4 62.7 781 0.05 Guatemala 2,001 0.13 241.4 12.4 229.0 2,251 0.14 Guinea 1,292 0.08 155.9 7.1 148.8 1,542 0.10 Guinea-Bissau 540 0.03 65.1 1.4 63.7 790 0.05 Guyana 1,058 0.07 127.6 5.3 122.3 1,308 0.08 Haiti 1,067 0.07 128.7 5.4 123.3 1,317 0.08 Honduras 641 0.04 77.3 2.3 75.0 891 0.05 Hungary 8,050 0.51 971.1 58.0 913.1 8,300 0.51 Iceland 1,258 0.08 151.8 6.8 144.9 1,508 0.09 India 44,795 2.85 5,403.8 333.7 5,070.1 45,045 2.78 Indonesia 14,981 0.95 1,807.2 110.3 1,697.0 15,231 0.94 Iran, Islamic Republic of 23,686 1.50 2,857.4 175.8 2,681.5 23,936 1.48 Iraq 2,808 0.18 338.7 27.1 311.6 3,058 0.19 Ireland 5,271 0.33 635.9 37.1 598.8 5,521 0.34 Israel 4,750 0.30 573.0 33.2 539.8 5,000 0.31 Italy 44,795 2.85 5,403.8 334.8 5,069.0 45,045 2.78 Jamaica 2,578 0.16 311.0 16.8 294.2 2,828 0.17 Japan 127,000 8.07 15,320.6 944.0 14,376.7 127,250 7.85 Jordan 1,388 0.09 167.4 7.8 159.6 1,638 0.10 Kazakhstan 2,985 0.19 360.1 19.8 340.3 3,235 0.20 Kenya 2,461 0.16 296.9 15.9 281.0 2,711 0.17 Kiribati 465 0.03 56.1 0.9 55.2 715 0.04 Korea, Republic of 15,817 1.00 1,908.1 114.5 1,793.5 16,067 0.99 C Kosovo, Republic of 966 0.06 116.5 5.2 111.4 1,216 0.08 Kuwait 13,280 0.84 1,602.0 97.4 1,504.6 13,530 0.83 Kyrgyz Republic 1,107 0.07 133.5 5.7 127.9 1,357 0.08 Lao People's Democratic Republic 178 0.01 21.5 1.5 20.0 428 0.03 Latvia 1,384 0.09 167.0 7.8 159.2 1,634 0.10 Lebanon 340 0.02 41.0 1.1 39.9 590 0.04 Lesotho 663 0.04 80.0 2.3 77.6 913 0.06 Liberia 463 0.03 55.9 2.6 53.3 713 0.04 Libya 7,840 0.50 945.8 57.0 888.8 8,090 0.50 Lithuania 1,507 0.10 181.8 8.7 173.1 1,757 0.11 Luxembourg 1,652 0.11 199.3 9.8 189.5 1,902 0.12 Macedonia, former Yugoslav Republic of 427 0.03 51.5 3.2 48.3 677 0.04 Madagascar 1,422 0.09 171.5 8.1 163.5 1,672 0.10 Malawi 1,094 0.07 132.0 5.6 126.4 1,344 0.08 56 THE WORLD BANK ANNUAL REPORT 2009 STATEMENT OF SUBSCRIPTIONS TO CAPITAL STOCK AND VOTING POWER June 30, 2009 Expressed in millions of U.S. dollars Subscriptions Voting Power Amounts Number Percentage of Total Amounts subject of Percentage a a, b Member Shares total amounts paid in to call votes of total Malaysia 8,244 0.52% $994.5 $59.5 $935.0 8,494 0.52% Maldives 469 0.03 56.6 0.9 55.7 719 0.04 Mali 1,162 0.07 140.2 6.1 134.1 1,412 0.09 Malta 1,074 0.07 129.6 5.4 124.1 1,324 0.08 Marshall Islands 469 0.03 56.6 0.9 55.7 719 0.04 Mauritania 900 0.06 108.6 4.1 104.4 1,150 0.07 Mauritius 1,242 0.08 149.8 6.7 143.1 1,492 0.09 Mexico 18,804 1.19 2,268.4 139.0 2,129.4 19,054 1.18 Micronesia, Federated States of 479 0.03 57.8 1.0 56.8 729 0.05 Moldova 1,368 0.09 165.0 7.6 157.4 1,618 0.10 Mongolia 466 0.03 56.2 2.3 53.9 716 0.04 Montenegro 688 0.04 83.0 3.2 79.83 938 0.06 Morocco 4,973 0.32 599.9 34.8 565.1 5,223 0.32 Mozambique 930 0.06 112.2 4.8 107.4 1,180 0.07 Myanmar 2,484 0.16 299.7 16.1 283.6 2,734 0.17 Namibia 1,523 0.10 183.7 8.8 174.9 1,773 0.11 Nepal 968 0.06 116.8 4.6 112.1 1,218 0.08 Netherlands 35,503 2.26 4,282.9 264.8 4,018.1 35,753 2.21 New Zealand 7,236 0.46 872.9 51.9 821.0 7,486 0.46 Nicaragua 608 0.04 73.3 2.1 71.3 858 0.05 Niger 852 0.05 102.8 3.8 99.0 1,102 0.07 Nigeria 12,655 0.80 1,526.6 92.7 1,433.9 12,905 0.80 Norway 9,982 0.63 1,204.2 72.6 1,131.6 10,232 0.63 Oman 1,561 0.10 188.3 9.1 179.2 1,811 0.11 Pakistan 9,339 0.59 1,126.6 67.8 1,058.9 9,589 0.59 Palau 16 * 1.9 0.2 1.8 266 0.02 Panama 385 0.02 46.4 3.2 43.2 635 0.04 Papua New Guinea 1,294 0.08 156.1 7.1 149.0 1,544 0.10 Paraguay 1,229 0.08 148.3 6.6 141.6 1,479 0.09 Peru 5,331 0.34 643.1 37.5 605.6 5,581 0.34 Philippines 6,844 0.43 825.6 48.9 776.7 7,094 0.44 Poland 10,908 0.69 1,315.9 79.6 1,236.3 11,158 0.69 Portugal 5,460 0.35 658.7 38.5 620.2 5,710 0.35 Qatar 1,096 0.07 132.2 9.0 123.3 1,346 0.08 Romania 4,011 0.25 483.9 30.5 453.4 4,261 0.26 Russian Federation 44,795 2.85 5,403.8 333.9 5,070.0 45,045 2.78 Rwanda 1,046 0.07 126.2 5.2 120.9 1,296 0.08 St. Kitts and Nevis 275 0.02 33.2 0.3 32.9 525 0.03 St. Lucia 552 0.04 66.6 1.5 65.1 802 0.05 St. Vincent and the Grenadines 278 0.02 33.5 0.3 33.2 528 0.03 Samoa 531 0.03 64.1 1.4 62.7 781 0.05 San Marino 595 0.04 71.8 2.5 69.3 845 0.05 São Tomé and Principe 495 0.03 59.7 1.1 58.6 745 0.05 Saudi Arabia 44,795 2.85 5,403.8 335.0 5,068.9 45,045 2.78 Senegal 2,072 0.13 250.0 13.0 237.0 2,322 0.14 Serbia 2,846 0.18 343.3 21.5 321.9 3,096 0.19 Seychelles 263 0.02 31.7 0.2 31.6 513 0.03 Sierra Leone 718 0.05 86.6 3.0 83.6 968 0.06 Singapore 320 0.02 38.6 3.9 34.7 570 0.04 Slovak Republic 3,216 0.20 388.0 23.0 365.0 3,466 0.21 IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 57 STATEMENT OF SUBSCRIPTIONS TO CAPITAL STOCK AND VOTING POWER (continued) June 30, 2009 Expressed in millions of U.S. dollars Subscriptions Voting Power Amounts Number Percentage of Total Amounts subject of Percentage a a, b Member Shares total amounts paid in to call votes of total Slovenia 1,261 0.08% $152.1 $9.5 $142.6 1,511 0.09% Solomon Islands 513 0.03 61.9 1.2 60.7 763 0.05 Somalia 552 0.04 66.6 3.3 63.3 802 0.05 South Africa 13,462 0.86 1,624.0 98.8 1,525.2 13,712 0.85 Spain 27,997 1.78 3,377.4 206.8 3,170.6 28,247 1.74 Sri Lanka 3,817 0.24 460.5 26.1 434.3 4,067 0.25 Sudan 850 0.05 102.5 7.2 95.3 1,100 0.07 Suriname 412 0.03 49.7 2.0 47.7 662 0.04 Swaziland 440 0.03 53.1 2.0 51.1 690 0.04 Sweden 14,974 0.95 1,806.4 110.2 1,696.2 15,224 0.94 Switzerland 26,606 1.69 3,209.6 197.2 3,012.4 26,856 1.66 Syrian Arab Republic 2,202 0.14 265.6 14.0 251.7 2,452 0.15 Tajikistan 1,060 0.07 127.9 5.3 122.5 1,310 0.08 Tanzania 1,295 0.08 156.2 10.0 146.2 1,545 0.10 Thailand 6,349 0.40 765.9 45.2 720.7 6,599 0.41 Timor-Leste 517 0.03 62.4 1.9 60.4 767 0.05 Togo 1,105 0.07 133.3 5.7 127.6 1,355 0.08 Tonga 494 0.03 59.6 1.1 58.5 744 0.05 Trinidad and Tobago 2,664 0.17 321.4 17.6 303.7 2,914 0.18 Tunisia 719 0.05 86.7 5.7 81.1 969 0.06 Turkey 8,328 0.53 1,004.6 59.8 944.8 8,578 0.53 Turkmenistan 526 0.03 63.5 2.9 60.5 776 0.05 Uganda 617 0.04 74.4 4.4 70.1 867 0.05 Ukraine 10,908 0.69 1,315.9 79.3 1,236.6 11,158 0.69 United Arab Emirates 2,385 0.15 287.7 22.6 265.1 2,635 0.16 United Kingdom 69,397 4.41 8,371.7 539.5 7,832.2 69,647 4.30 United States 264,969 16.83 31,964.5 1,998.4 29,966.2 265,219 16.36 Uruguay 2,812 0.18 339.2 18.6 320.7 3,062 0.19 Uzbekistan 2,493 0.16 300.7 16.1 284.7 2,743 0.17 Vanuatu 586 0.04 70.7 1.8 68.9 836 0.05 Venezuela, República Bolivariana de 20,361 1.29 2,456.2 150.8 2,305.5 20,611 1.27 Vietnam 968 0.06 116.8 8.1 108.7 1,218 0.08 Yemen, Republic of 2,212 0.14 266.8 14.0 252.8 2,462 0.15 Zambia 2,810 0.18 339.0 20.0 319.0 3,060 0.19 Zimbabwe 3,325 0.21 401.1 22.4 378.7 3,575 0.22 b Total-June 30, 2009 1,574,315 100.0% $189,918 $11,491 $178,427 1,620,815 100.00% b Total-June 30, 2008 1,573,349 $189,801 $11,486 $178,315 1,619,599 * Indicates amounts less than 0.005 percent. NOTES a. See Notes to Financial Statements--Note B. b. May differ from the sum of individual figures shown due to rounding. c. Republic of Kosovo became the 186th member of IBRD on June 29, 2009. The Notes to Financial Statements are an integral part of these Statements. 58 THE WORLD BANK ANNUAL REPORT 2009 NOTES TO FINANCIAL STATEMENTS PURPOSE AND AFFILIATED these estimates. Significant judgments have been ORGANIZATIONS used in the valuation of certain financial instruments, the determination of the adequacy of The International Bank for Reconstruction and the accumulated provision for losses on loans and Development (IBRD) is an international guarantees, the determination of net periodic cost organization which commenced operations in 1946. from pension and other postretirement benefits The principal purpose of IBRD is to promote plans, and the present value of benefit obligations. sustainable economic development and reduce poverty in its member countries, primarily by Certain reclassifications of the prior years' providing loans, guarantees and related technical information have been made to conform with the assistance for specific projects and for programs of current year's presentation. economic reform in developing member countries. On August 5, 2009, the Executive Directors The activities of IBRD are complemented by those approved these financial statements for issue, which of three affiliated organizations, the International was also the date through which IBRD's Development Association (IDA), the International management evaluated subsequent events. Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). Each of Translation of Currencies: IBRD's financial these organizations is legally and financially statements are expressed in terms of U.S. dollars for independent from IBRD, with separate assets and the purpose of summarizing IBRD's financial liabilities, and IBRD is not liable for their respective position and the results of its operations for the obligations. Transactions with these affiliated convenience of its members and other interested organizations are disclosed in the notes that follow. parties. IDA's main goal is to reduce poverty through promoting sustainable economic development in the IBRD is an international organization which less developed countries, who are members of IDA, conducts its operations in the currencies of all of its by extending grants, development credits, members. IBRD's resources are derived from its guarantees and related technical assistance. IFC's capital, borrowings, and accumulated earnings in purpose is to encourage the growth of productive those various currencies. IBRD has a number of private enterprises in its member countries through general policies aimed at minimizing exchange rate loans and equity investments in such enterprises risk in a multicurrency environment. IBRD matches without a member's guarantee. MIGA was its borrowing obligations in any one currency (after established to encourage the flow of investments for swaps) with assets in the same currency, as productive purposes between member countries and, prescribed by its Articles of Agreement. In addition, in particular, to developing member countries by IBRD periodically undertakes currency conversions providing guarantees against noncommercial risks to more closely match the currencies underlying its for foreign investment in its developing member Equity with those of the net loans outstanding. countries. Assets and liabilities are translated at market IBRD is immune from taxation pursuant to Article exchange rates in effect at the end of the period. VII, Section 9, Immunities from Taxation, of IBRD's Income and expenses are translated at either the Articles of Agreement. market exchange rates in effect on the dates on which they are recognized or at an average of the market exchange rates in effect during each month. Translation adjustments are reflected in NOTE A--SUMMARY OF SIGNIFICANT Accumulated Other Comprehensive Income. ACCOUNTING AND RELATED POLICIES Valuation of Capital Stock: In the Articles of IBRD's financial statements are prepared in Agreement, the capital stock of IBRD is expressed conformity with the accounting principles generally in terms of "U.S. dollars of the weight and fineness accepted in the United States of America (U.S. in effect on July 1, 1944" (1944 dollars). Following GAAP). the abolition of gold as a common denominator of the monetary system and the repeal of the provision The preparation of financial statements in of the U.S. law defining the par value of the U.S. conformity with U.S. GAAP requires management dollar in terms of gold, the pre-existing basis for to make estimates and assumptions that affect the translating 1944 dollars into current dollars or into reported amounts of assets and liabilities and any other currency was eliminated. The Executive disclosure of contingent assets and liabilities at the Directors of IBRD have decided, until such time as date of the financial statements and the reported the relevant provisions of the Articles of Agreement amounts of income and expenses during the are amended, that the words "U.S. dollars of the reporting period. Actual results could differ from weight and fineness in effect on July 1, 1944" in IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 59 Article II, Section 2(a) of the Articles of Agreement agencies, and other official entities. The allocation of IBRD are interpreted to mean the Special of such commissions to the Special Reserve was Drawing Right (SDR) introduced by the discontinued in 1964 with respect to subsequent International Monetary Fund, as valued in terms of loans and no further additions are being made to it. U.S. dollars immediately before the introduction of The General Reserve consists of earnings from prior the basket method of valuing the SDR on July 1, fiscal years which, in the judgment of the Executive 1974, such value being $1.20635 for one SDR (1974 Directors, should be retained in IBRD's operations. SDR). The Pension Reserve consists of the difference Maintenance of Value: Article II, Section 9 of between the cumulative actual funding of the Staff the Articles of Agreement provides for maintenance Retirement Plan (SRP) and other postretirement of the value (MOV), at the time of subscription, of benefits plans, and the cumulative accounting restricted currencies. Maintenance of value amounts income or expense for these plans, from prior fiscal are determined by measuring the foreign exchange years. This Pension Reserve is reduced when value of a member's currency against the standard of pension accounting expenses exceed the actual value of IBRD capital based on the 1974 SDR. funding of these plans. Members are required to make payments to IBRD if their currencies depreciate significantly relative to Surplus consists of earnings from prior fiscal years the standard of value. Furthermore, the Executive which are retained by IBRD until a further decision Directors have adopted a policy of reimbursing is made on their disposition or the conditions of members whose currencies appreciate significantly transfer for specified uses have been met. in terms of the standard of value. The Cumulative FAS 133 Adjustments consist of the The net receivable or payable MOV amounts effects associated with the application of FAS 133a relating to restricted currencies out on loan, from prior years. This amount includes the one-time invested, swapped, or loaned to the member by cumulative effect of the adoption of FAS 133, the IBRD or through IFC, and amounts that have been reclassification and amortization of the transition reclassified from receivables for those countries that adjustments, the unrealized gains or losses on non- have been in arrears for two years or more, are trading derivatives, and the cumulative effect of the included as a component of Equity under Deferred adoption of FAS 155. Amounts to Maintain Value of Currency Holdings. Restricted Retained Earnings consist of For restricted currencies used in IBRD's lending and contributions or income from prior years which are investing operations, these MOV amounts are shown temporarily restricted. as a component of Equity since MOV becomes effective only as such currencies are repaid to IBRD. Unallocated Net Income (Loss) consists of the Transfers Approved by the Board of current fiscal year's net income (loss) adjusted for Governors: In accordance with IBRD's Articles of Board of Governors-approved transfers, and the Agreement, as interpreted by the Executive equivalent amount for transfers funded from Directors, the Board of Governors may exercise its Surplus. reserved power to approve transfers to other entities Loans: All of IBRD's loans are made to or for development purposes. These transfers, referred guaranteed by members, except loans to IFC. The to as "Board of Governors-approved transfers", are majority of IBRD's loans have repayment reported as expenses when incurred, upon approval. obligations based on specific currencies. IBRD also Retained Earnings: Retained Earnings consist of holds multicurrency loans which have repayment allocated amounts (Special Reserve, General obligations in various currencies determined on the Reserve, Pension Reserve, Surplus, Cumulative FAS basis of a currency pooling system. 133 Adjustments and Restricted Retained Earnings) Any loan origination fees incorporated in a loan's and Unallocated Net Income. terms are deferred and recognized over the life of the The Special Reserve consists of loan commissions loan as an adjustment of yield. However, set aside pursuant to Article IV, Section 6 of the incremental direct costs associated with originating Articles of Agreement, which are to be held in liquid loans are expensed as incurred, as such amounts are assets. These assets may be used only for the considered insignificant. The unamortized balance purpose of meeting liabilities of IBRD on its borrowings and guarantees in the event of defaults a For the purpose of this document, FAS 133 refers to the on loans made, participated in, or guaranteed by Statement of Financial Accounting Standards (FAS) No. 133, IBRD. The Special Reserve assets are included Accounting for Derivative Instruments and Hedging Activities, under Investments-- Trading, and comprise as amended by subsequent Standards. FAS 155 refers to the obligations of the United States Government, its Statement of Financial Accounting Standards (FAS) No. 155, Accounting For Certain Hybrid Financial Instruments. 60 THE WORLD BANK ANNUAL REPORT 2009 of loan origination fees is included as a reduction of to be particularly high at the time of arrears Loans Outstanding on the balance sheet, and the clearance, the member's loans may not loan origination fee amortization is included in automatically emerge from nonaccrual status, even Interest under Income from Loans on the Statement though the member's eligibility for new loans may of Income. have been restored. In such instances, a decision on the restoration of accrual status is made on a case- It is IBRD's practice not to reschedule interest or by-case basis after a suitable period of payment principal payments on its loans or participate in debt performance has passed from the time of arrears rescheduling agreements with respect to its loans. clearance. Exceptions were made to this practice during fiscal Loans are carried at amortized cost except those years 1996 and 2002 with regard to Bosnia and which contain embedded derivatives that require Herzegovina (BiH) and Serbia and Montenegro bifurcation, which IBRD has elected to measure at (SaM), formerly the Federal Republic of fair value. Yugoslavia, respectively, in connection with their succession to membership of the former Socialist Guarantees: IBRD generally provides guarantees Federal Republic of Yugoslavia (SFRY). These of loans undertaken for, or securities issued in exceptions were based on criteria approved by the support of, projects located within a member country Executive Directors in fiscal year 1996 which limit eligible for IBRD loans, as well as loans undertaken eligibility for such treatment to a country: (a) that or securities issued by entities eligible for IBRD has emerged from a current or former member of development policy lending. These financial IBRD; (b) that is assuming responsibility for a share guarantees are commitments issued by IBRD to of the debt of such member; (c) that, because of a guarantee payment performance by a borrower to a major armed conflict in its territory involving third party. extensive destruction of physical assets, has limited Guarantees are regarded as outstanding when the creditworthiness for servicing the debt it is underlying financial obligation of the borrower is assuming; and (d) for which rescheduling/ incurred, and called when a guaranteed party refinancing would result in a significant demands payment under the guarantee. IBRD would improvement in its repayment capacity, if be required to perform under its guarantees if the appropriate supporting measures are taken. This payments guaranteed were not made by the debtor treatment was based on a precedent established in and the guaranteed party called the guarantee by 1975 after Bangladesh became independent from demanding payment from IBRD in accordance with Pakistan. IBRD does not believe that any other the terms of the guarantee. In the event that a borrowers with loans in nonaccrual status currently guarantee is called, IBRD has the contractual right meet these eligibility criteria. to require payment from the member country that When modifications are made to the terms of has provided the counter guarantee to IBRD on existing loans, IBRD performs an evaluation to demand, or as IBRD may otherwise direct. determine the required accounting treatment, IBRD records the fair value of the obligation to including whether the modifications would result in stand ready, and a corresponding asset in the the affected loans being accounted for as new loans, financial statements. or as a continuation of the existing loans. Guarantee fee income received is deferred and It is the policy of IBRD to place in nonaccrual status amortized over the life of the guarantee. all loans made to or guaranteed by a member of IBRD if principal, interest, or other charges with IBRD records a contingent liability for the probable respect to any such loan are overdue by more than losses related to guarantees outstanding. This six months, unless IBRD management determines provision, as well as the unamortized balance of the that the overdue amount will be collected in the deferred guarantee fee income, and the unamortized immediate future. In addition, if development credits balance of the obligation to stand ready, are included made by IDA to a member government are placed in in Accounts payable and miscellaneous liabilities on nonaccrual status, all loans made to or guaranteed by the Balance Sheet. that member government will also be placed in nonaccrual status by IBRD. On the date a member's Accumulated Provision for Losses on Loans loans are placed into nonaccrual status, unpaid and Guarantees: Delays in receiving loan interest and other charges accrued on loans payments result in present value losses to IBRD outstanding to the member are deducted from the since it does not charge fees or additional interest on income of the current period. Interest and other any overdue interest or loan charges. These present charges on nonaccruing loans are included in value losses are equal to the difference between the income only to the extent that payments have been present value of payments of interest and charges received by IBRD. If collectibility risk is considered made according to the related loan's contractual IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 61 terms and the present value of its expected future These derivatives are carried at fair value. From cash flows. IBRD has not written off any of its time to time, IBRD enters into forward contracts for loans. the sale or purchase of investment securities; these Management determines the appropriate level of transactions are recorded at the time of commitment. accumulated provisions for losses on loans and IBRD may require collateral in the form of approved guarantees. IBRD's accumulated provision for losses liquid securities from individual counterparties or on loans and guarantees reflects the probable losses cash in order to mitigate its credit exposure to these inherent in its nonaccrual and accrual portfolios. counterparties. For collateral received in the form of There are several steps required to determine the cash from counterparties, IBRD records the cash and appropriate level of provisions for each portfolio. a corresponding obligation to return the cash. First, the total loan portfolio is segregated into the Collateral received in the form of liquid securities is accrual and nonaccrual portfolios. In both portfolios, only recorded on IBRD's Balance Sheet to the extent the exposure for each country (defined as loans that it has been transferred under securities lending outstanding, deferred drawdown options and the agreements in return for cash. IBRD does not present value of guarantees) is then assigned a credit currently offset the fair value amounts recognized risk rating. With respect to countries with loans in for derivative instruments that have been executed the accrual portfolio, these loans are grouped with the same counterparty under master netting according to the assigned borrower risk rating. Each agreements; as a result, the fair value amounts risk rating is mapped to an expected default recognized for the obligation to return cash frequency using IBRD's credit migration matrix. The collateral received from counterparties are not offset provision required is calculated by multiplying the with the fair value amounts recognized for these outstanding exposure, by the expected default derivative instruments. frequency (probability of default to IBRD) and by the assumed severity of the loss given default. Securities Purchased Under Resale Agreements and Securities Sold Under The determination of borrowers' ratings is based on Repurchase Agreements and Payable for Cash both quantitative and qualitative analyses of various Collateral Received: Securities purchased under factors. IBRD periodically reviews these factors and resale agreements, securities lent under securities reassesses the adequacy of the accumulated lending agreements, and securities sold under provision for losses on loans and guarantees repurchase agreements are recorded at face value accordingly. Adjustments to the accumulated which represents fair value. IBRD receives provision are recorded as a charge or addition to securities purchased under resale agreements, income. monitors the fair value of the securities and, if For loans that are reported at fair value the necessary, closes out transactions and enters into provisions for losses on loans is included in the fair new repriced transactions. The securities transferred value amount of these loans, as the determination of to IBRD under the repurchase and security lending the fair values takes credit risk into consideration. arrangements and the securities transferred to counterparties under the resale agreements have not Statement of Cash Flows: For the purpose of met the accounting criteria for treatment as a sale. IBRD's Statement of Cash Flows, cash is defined as Therefore, securities transferred under repurchase the amount of unrestricted currencies Due from agreements and security lending arrangements are Banks. retained as assets on IBRD's Balance Sheet, and Investments: Investment securities are classified securities received under resale agreements are not based on management's intention on the date of recorded on IBRD's Balance Sheet. purchase, their nature, and IBRD's policies Nonnegotiable, Noninterest-bearing Demand governing the level and use of such investments. At Obligations on Account of Subscribed Capital: June 30, 2009 and June 30, 2008, all investment Payments on some of these instruments are due to securities were held in a trading portfolio. IBRD upon demand and are thus carried and Investment securities and related financial reported at face value as assets on the Balance Sheet. instruments held in IBRD's trading portfolio are Others are due to IBRD on demand but only after carried and reported at fair value. The first-in first- the Bank's callable subscribed capital has been out (FIFO) method is used to determine the cost of entirely called pursuant to Article IV, Section 2 (a) securities sold in computing the realized gains and of the Articles of Agreement. These are carried and losses on these instruments. Unrealized gains and reported at face value as a reduction to equity. All losses for investment securities and related financial demand obligations are held in bank accounts which instruments held in the trading portfolio are included bear IBRD's name. in income. Derivative instruments are used in liquidity management to enhance investment returns. 62 THE WORLD BANK ANNUAL REPORT 2009 Premises and Equipment: Premises and Balance Sheet at fair value with changes in fair equipment, including leasehold improvements, are values accounted for through the Statement of carried at cost less accumulated depreciation and Income. amortization. IBRD computes depreciation and Valuation of Financial Instruments: Effective amortization using the straight-line method over the July 1, 2008, IBRD adopted Financial Accounting estimated useful lives of the owned assets, which Standards Board's (FASB's) Statement of Financial range between two and fifty years. For leasehold Accounting Standards No. 157, Fair Value improvements, depreciation and amortization is Measurements (FAS 157) which defines fair value, computed over the lesser of the remaining term of establishes a consistent framework for measuring the leased facility or the estimated economic life of fair value, establishes a fair value hierarchy based on the improvement. the quality of inputs used to measure fair value and Maintenance and repairs are charged to expense as expands disclosure requirements about fair value incurred, while major improvements are capitalized measurements. and amortized over the estimated useful life. IBRD has an established and documented process Borrowings: To ensure funds are available for for determining fair values. Fair value is based upon lending and liquidity purposes, IBRD borrows in the quoted market prices, where available. Financial worldwide capital markets offering its securities to instruments for which quoted market prices are not private and governmental buyers. IBRD issues debt readily available are valued based on discounted instruments of varying maturities denominated in cash flow models. These models primarily use various currencies with both fixed and adjustable market-based or independently-sourced market interest rates. parameters such as yield curves, interest rates, volatilities, foreign exchange rates and credit curves. Effective July 1, 2008, IBRD fair values all its Selection of these inputs may involve some financial instruments in the borrowing portfolio with judgment. To ensure that the valuations are the changes in fair values accounted for through the appropriate where internally-developed models are Statement of Income. Prior to July 1, 2008, IBRD used, IBRD has various controls in place, which applied fair value measurement to certain qualifying include both internal and periodic external debt instruments in its borrowings portfolio which verification and review. were hybrid financial instruments, with the changes in fair value reported in net income, as allowed Summarized below are the techniques applied in under Statement of Financial Accounting Standards determining the fair values of financial instruments. No. 155, Accounting for Certain Hybrid Financial Investment securities Instruments (FAS 155). All other borrowings were reported on the Balance Sheet at amortized cost. As of June 30, 2009 and June 30, 2008, all of Issuance costs associated with a bond offering were IBRD's investment securities were held in a trading deferred and amortized over the period during which portfolio. Where available, quoted market prices are the bond was outstanding. For presentation used to determine the fair value of trading securities. purposes amortization of discounts and premiums is Examples include some government securities, included in Interest under Borrowing Expenses on mutual funds, futures and exchange-traded equity the Statement of Income. securities. For instruments for which market quotations are not available, fair values are IBRD uses derivatives in its borrowing and liability determined using model-based valuation techniques, management activities. In the borrowing portfolio, whether internally-generated or vendor-supplied, derivatives are used to take advantage of cost saving that includes the standard discounted cash flow opportunities in non-target currencies in various method using market observable inputs such as yield capital markets. These derivatives are used to curves, credit spreads, and prepayment speeds. modify the interest rate and/or currency Unless quoted prices are available, money market characteristics of the borrowing portfolio, and are instruments are reported at face value which carried at fair value in accordance with FAS 133. approximates fair value. The interest component of these derivatives is recognized as an adjustment to the borrowing cost Securities Purchased under Resale Agreements and over the life of the derivative contract and included Securities Sold under Agreements to Repurchase in Interest under Borrowing Expenses on the Securities purchased under resale agreements and Statement of Income. securities sold under agreements to repurchase, are Accounting for Derivatives: IBRD complies with reported at face value which approximates fair the derivative accounting requirements of FAS 133. value. FAS 133 requires that derivative instruments, as defined by these standards, be recorded on the IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 63 Discount notes and plain vanilla bonds significant to the fair value measurement of the instrument in its entirety. Thus, a Level 3 fair value Discount notes and non-structured bonds are valued measurement of the instrument may include inputs using the standard discounted cash flow method that are observable (Levels 2) and unobservable which relies on market observable inputs such as (Level 3). Additionally, FAS 157 requires that the yield curves, foreign exchange rates, basis spreads valuation techniques used to measure fair value and funding spreads. maximize the use of observable inputs and minimize Structured bonds the use of unobservable inputs. Structured bonds issued by IBRD have coupon or Financial assets and liabilities recorded at fair value repayment terms linked to the level or the on the Balance Sheet are categorized based on the performance of interest rates, foreign exchange inputs to the valuation techniques as follows: rates, equity indices or commodities. The fair value of the structured bonds is derived using the Level 1: Financial assets and liabilities whose values discounted cash flow method based on estimated are based on unadjusted quoted prices for future pay-offs determined by applicable models and identical assets or liabilities in active computation of embedded optionality such as caps, markets. floors and calls. A wide range of industry standard Level 2: Financial assets and liabilities whose values models such as one factor Hull-White, Libor Market are based on quoted prices for similar assets Model and Black-Scholes are used depending on the or liabilities in active markets; quoted specific structure. These models incorporate market prices for identical or similar assets or observable inputs, such as yield curves, foreign liabilities in markets that are not active; or exchange rates, basis spreads, funding spreads, pricing models for which all significant swaption volatilities, equity index volatilities and inputs are observable, either directly or equity indices. indirectly for substantially the full term of Derivative contracts the asset or liability. Derivative contracts include currency forward Level 3: Financial assets and liabilities whose values contracts, plain vanilla swaps and callable swaps are based on prices or valuation techniques linked to interest rates, foreign exchange rates, and that require inputs that are both equity indices. Plain vanilla swaps are valued using unobservable and significant to the overall the standard discounted cash flow methods using fair value measurement. market observable inputs such as yield curves, foreign exchange rates and basis spreads. For Accounting for Grant Expenses: IBRD structured swaps, valuation models and inputs recognizes an expense for grants, such as similar to the ones applicable to structured notes Contributions to Special Programs, and Board of valuation apply. Governors-approved transfers, when incurred. Loans Donor Receivables: Donors' conditional promises to give are not recognized until the conditions to As of June 30, 2009 and June 30, 2008, there was which they are subject are substantially met and the only one loan with an embedded derivative, which is promise to give is considered unconditional. fair valued on a matrix basis against the related Donors' unconditional promises to give are bond. recognized upon receipt as income, unless the donor Fair Value Hierarchy specifies a third party beneficiary. In those cases IBRD is deemed to be acting as an intermediary FAS 157 establishes a three-level fair value agent and assets held on behalf of the specified hierarchy under which financial instruments are beneficiaries are recognized with corresponding categorized based on the priority of the inputs to the liabilities. If the contributions that IBRD receives valuation technique. The fair value hierarchy gives can only be used for purposes specified by the the highest priority to quoted prices in active donor, the proceeds are considered restricted until markets for identical assets or liabilities (Level 1), applied by IBRD for the donor-specified purposes. the next highest priority to observable market-based Donors' promises to give which are expected to be inputs or inputs that are corroborated by market data collected within one year are recorded at face value, (Level 2) and the lowest priority to unobservable while promises expected to be collected over a inputs that are not corroborated by market data period greater than one year are recorded initially at (Level 3). When the inputs used to measure fair fair value, with subsequent measurement on an value fall within different levels of the hierarchy, the amortized cost basis. level within which the fair value measurement is categorized is based on the lowest level input that is 64 THE WORLD BANK ANNUAL REPORT 2009 Accounting and Reporting Developments In December 2008, IBRD implemented FASB Staff On June 30, 2007, IBRD adopted Statement of Position (FSP) FAS 140-4 and FIN 46(R)-8, Financial Accounting Standards No. 158, Disclosures by Public Entities (Enterprises) about Employers' Accounting for Defined Benefit Pension Transfers of Financial Assets and Interests in and Other Postretirement Plans (FAS158), which Variable Interest Entities. The FSP increases amended certain provisions of FAS 87, FAS 88, disclosure requirements for public companies and is FAS 106 and FAS 132(R). As required by FAS 158, effective for reporting periods (interim and annual) IBRD recognized on the Balance Sheet the funded that ended after December 15, 2008. The application status of its defined benefit postretirement plans, of this FSP did not have a material impact on measured as the difference between the fair value of IBRD's June 30, 2009 financial statements. the plan assets and the benefit obligation. In December 2008, FASB issued FSP FAS 132(R)- Additionally, IBRD recognized actuarial gains or 1, Employers' Disclosures about Postretirement losses and prior service costs or credits that arose Benefit Plan Assets. This FSP amends FAS 132 (R), during the period as part of Other Comprehensive Employers' Disclosures about Pensions and Other Income and has recognized a portion of these as Postretirement Benefits, to provide additional components of net periodic benefit cost based upon guidance on an employer's disclosures about plan the current amortization and recognition assets of a defined benefit pension or other requirements of FAS 87 and FAS 106. FAS 158 also postretirement plan. Among other things, this FSP eliminated the provisions of FAS 87 and FAS 106 requires employers to annually disclose information that allowed plan assets and obligations to be about fair value measurements of plan assets that are measured as of a date not more than three months similar to the disclosures about fair value prior to the reporting entity's balance sheet date. measurements required by FAS 157. This FSP is IBRD uses a June 30 measurement date for its first applicable to IBRD's annual financial pension and other post retirement benefit plans. statements for the fiscal year ending June 30, 2010 Therefore, this change had no effect on IBRD's and will result in additional disclosures being made financial statements. in IBRD's financial statements. Effective July 1, 2008, IBRD adopted FAS 157. Effective March 31, 2009, IBRD adopted FASB's FAS 157 defines fair value, establishes a consistent Statement of Financial Accounting Standards framework for measuring fair value and expands No.161, Disclosures about Derivative Instruments disclosure requirements about fair value and Hedging Activities - an amendment of FASB measurements. FAS 157 also requires that the Statement No. 133 (FAS 161). FAS 161 requires valuation techniques used to measure fair value enhanced disclosures about derivative instruments maximize the use of observable inputs and minimize and hedging activities (see Note F--Derivative the use of unobservable inputs. Instruments). In conjunction with the adoption of FAS 157, IBRD In April 2009, the FASB issued Staff Position (FSP) adopted FASB's Statement of Financial Accounting FAS 157-4, Determining Fair Value When the Standards No. 159, The Fair Value Option for Volume and Level of Activity for the Asset or Financial Assets and Financial Liabilities (FAS Liability Have Significantly Decreased and 159) effective July 1, 2008. FAS 159 provides an Identifying Transactions That Are Not Orderly. This option for most financial assets and financial FSP provides guidance for estimating fair value in liabilities to be reported at fair value with changes in accordance with FAS 157 when the volume and fair value reported in earnings. Under FAS 159's level of activity for the asset or liability have transition provisions, IBRD has elected to report at significantly decreased and on the process for fair value all financial instruments in the borrowings identifying circumstances that a transaction is not portfolio previously reported at amortized cost. The orderly. The FSP is applicable prospectively to the financial impact of IBRD's adoption of FAS 159 is financial statements for interim and annual reporting discussed further in Note O--Fair Value of periods ending after June 15, 2009. The application Financial Instruments. After the initial adoption, the of this FSP did not have a material impact on election is made at the acquisition of a financial IBRD's June 30, 2009 financial statements. asset, or a financial liability and is irrevocable. IBRD's policy from July 1, 2008 onwards is to In May 2009, the FASB issued Statement of designate all new financial instruments in the Financial Accounting Standards No. 165, borrowings portfolio at fair value with changes Subsequent Events (FAS 165). This standard recognized in earnings. Additionally, any other new establishes principles and requirements for financial instruments having embedded derivatives evaluating and reporting subsequent events. In that require bifurcation may also be designated at particular, it sets forth; the period after the balance fair value on an instrument-by-instrument basis. sheet date during which management shall evaluate events or transactions that may occur for potential IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 65 recognition or disclosure in the financial statements; of Agreement also state that the former member has the circumstances under which an entity shall continuing obligations to IBRD after withdrawal. recognize events or transactions occurring after the Specifically, the former member remains fully liable balance sheet date in its financial statements; and the for its entire capital subscription, including both the disclosures related to events or transactions previously paid-in portion and the callable portion, occurring after the balance sheet date. The so long as any part of the loans or guarantees application of this standard resulted in additional contracted before it ceased to be a member are disclosures in IBRD's June 30, 2009 financial outstanding. statements. On June 29, 2009 The Republic of Kosovo became In June 2009, the FASB issued Statement of the 186th member of IBRD. Financial Accounting Standards No. 166, Currencies Subject to Restrictions: A portion of Accounting for Transfers of Financial Assets--an capital subscriptions paid in to IBRD has been paid amendment of FASB Statement No.140 (FAS 166). in the local currencies of the members. These This standard addresses the information that a amounts, referred to as restricted currencies, are reporting entity provides in its financial reports usable by IBRD in its lending and investing about transfers of financial assets including; the operations, only with the consent of the respective effects of a transfer on its financial position, members, and for administrative expenses. financial performance, and cash flows; and a transferor's continuing involvement in transferred Deferred Amounts To Maintain the Value of assets. This standard is effective for IBRD's interim Currency Holdings and annual reporting periods beginning July 1, 2010. The following table summarizes the deferred IBRD is currently assessing the impact of this amounts to maintain the value of currency holdings standard on its financial statements. classified as a component of equity: In June 2009, the FASB issued Statement of In millions of U.S. dollars Financial Accounting Standards No. 167, Payable (Receivable) 2009 2008 Net Deferred MOV payable $660 $764 Amendments to FASB Interpretation No.46(R) (FAS MOV receivable in arrears (171) (147) 167). This standard amends certain requirements of Deferred demand obligations (130) (130) FASB Interpretation No. 46 (revised December $359 $487 2003), Consolidation of Variable Interest Entities relating, to enterprises involved with variable Net deferred MOV payable relates to restricted interest entities. This standard is effective for currencies invested, swapped, or loaned to members IBRD's interim and annual reporting periods by IBRD or through IFC. These amounts become beginning July 1, 2010. IBRD is currently assessing payable by IBRD on the same terms as other MOV the impact of this standard on its financial obligations on cash receipt of the settlement from statements. these instruments. MOV receivable in arrears represents receivables for countries that have NOTE B--CAPITAL STOCK, RESTRICTED amounts outstanding for two years or more. CURRENCIES, MAINTENANCE OF VALUE, Although these amounts are used to reduce equity, AND MEMBERSHIP IBRD still considers these MOV in arrears as obligations due from the members concerned. Capital Stock: At June 30, 2009, IBRD's capital Deferred demand obligations relate to notes that are comprised 1,581,724 authorized shares (1,581,724 due on demand only after IBRD's callable capital shares--June 30, 2008), of which 1,574,315 shares has been entirely called pursuant to Article IV, (1,573,349 shares--June 30, 2008) had been Section 2 (a) of the Articles of Agreement. subscribed. Each share has a par value of 0.1 million 1974 SDRs, valued at the rate of $1.20635 per 1974 NOTE C--INVESTMENTS SDR. Of the subscribed capital, $11,491 million As part of its overall portfolio management strategy, ($11,486 million--June 30, 2008) has been paid in, IBRD invests in government and agency obligations, and the remaining $178,427 million ($178,315 time deposits, corporate and asset-backed securities, million--June 30, 2008) is subject to call only when repurchase agreements, securities loans, resale required to meet the obligations of IBRD created by agreements and related financial derivatives borrowing or guaranteeing loans. including futures, currency swaps (including Under IBRD's Articles of Agreement, in the event a currency forward contracts), interest rate swaps, member withdraws from IBRD, the withdrawing options and swaptions. member is entitled to receive the value of its shares For equity securities, IBRD may invest in any payable to the extent the member does not have any marketable equity security provided that the security outstanding obligations to IBRD. IBRD's Articles is included in the Russell 3000 Index or MSCI 66 THE WORLD BANK ANNUAL REPORT 2009 World, ex-US Index, or similar indices, as well as Time deposits include certificates of deposit, any other securities or financial instruments bankers' acceptances and other obligations issued or (including commingled or mutual funds and unconditionally guaranteed by banks or other Exchange Traded Funds) that are typically used by financial institutions. IBRD may only invest in time asset management firms or other financial deposits issued or guaranteed by financial institutions in portfolios that seek to track all or part institutions whose senior debt securities are rated at of these indices. least A-. For government and agency obligations, IBRD may With respect to futures and options, IBRD generally only invest in obligations issued or unconditionally closes out most open positions prior to expiration. guaranteed by governments of countries with a Futures are settled on a daily basis. For options, minimum credit rating of AA-; however, if such IBRD only invests in exchange-traded options. obligations are denominated in the home currency of IBRD does not write uncovered option contracts as the issuer, no rating is required. IBRD may only part of its investment portfolio strategy. invest in obligations issued by an agency or As of June 30, 2009 there were $2 million of short instrumentality of a government of a member sales included in Payable for investment securities country, a multilateral organization or any other purchased on the Balance Sheet (none as of June 30, official entity other than the government of a 2008). member country, with a minimum credit rating of AA-. For corporate and asset-backed securities, For the fiscal year ended June 30, 2009, IBRD had IBRD may only invest in securities with a AAA included $64 million of unrealized losses in income credit rating. (unrealized gains of $99 million--June 30, 2008 and unrealized gains of $24 million--June 30, 2007). A summary of IBRD's trading portfolio at June 30, 2009 and June 30, 2008, is as follows: In millions of U.S. dollars 2009 2008 Carrying Value Carrying Value Investments--Trading Equity securities $ 640 $ -- Government and agency obligations 21,234 10,891 Time deposits 15,201 8,866 Asset-backed securities 3,937 5,456 Total $41,012 $25,213 The following table summarizes the currency composition of IBRD's trading portfolio at June 30, 2009 and June 30, 2008: In millions of U.S. dollars equivalent 2009 2008 Average Average Repricing Repricing Currency Carrying Value (years)a Carrying Value (years)a Euro $ 7,630 1.03 $ 4,074 1.34 Japanese yen 11,905 0.69 475 7.63 U.S. dollars 18,995 0.83 18,779 0.98 Others 2,482 0.87 1,885 1.67 Total $41,012 0.83 $25,213 1.21 a. The average repricing represents the remaining period to the contractual repricing or maturity date, whichever is earlier. This indicates the average length of time for which interest rates are fixed. IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 67 IBRD manages its investments on a net portfolio basis. The following table summarizes IBRD's net portfolio position as of June 30, 2009 and June 30, 2008: In millions of U.S. dollars Carrying Value 2009 2008 Investments--Trading $41,012 $25,213 Securities purchased under resale agreements 33 1,385 Securities sold under repurchase agreements, securities lent under securities lending agreements, and payable for cash collateral received (2,323) (3,147) Derivative assets Currency forward contracts 11,946 1,666 Currency swaps 6,438 4,174 Interest rate swaps 83 17 Total 18,467 5,857 Derivative liabilities Currency forward contracts (12,096) (1,703) Currency swaps (6,702) (4,530) Interest rate swaps (125) (76) Total (18,923) (6,309) a Cash held in investment portfolio 2,306 28 Receivable from investment securities traded 95 11 Payable for investment securities purchased (2,457) (30) Net Investment Portfolio $38,210 $23,008 a. This amount is included in Unrestricted Currencies under Due from Banks on the Balance Sheet. The following table summarizes the currency composition of IBRD's net investment portfolio after the impact of derivatives at June 30, 2009 and June 30 2008: In millions of U.S. dollars equivalent 2009 2008 Average Average Repricing Repricing a a Currency Carrying Value (years) Carrying Value (years) U.S. dollars $35,013 0.25 $21,725 0.12 Others 3,197 0.54 1,283 0.04 Total $38,210 0.27 $23,008 0.11 a. The average repricing represents the remaining period to the contractual repricing or maturity date, whichever is earlier. This indicates the average length of time for which interest rates are fixed. Collateral Arrangements accounted for as sales as the accounting criteria for IBRD may engage in securities lending and the treatment as a sale have not been met. These securities must be available to meet IBRD's repurchases, against adequate collateral, as well as securities borrowing and reverse repurchases obligation to counterparties. The following is a (resales) of government and agency obligations, and summary of the carrying amount of the securities transferred under repurchase or securities lending corporate and asset-backed securities. Transfers of securities by IBRD to counterparties are not agreements, and the related liabilities: In millions of U.S. dollars June 30, 2009 June 30, 2008 Financial Statement Presentation Securities transferred under repurchase Included under Investments-Trading on the $30 $203 or securities lending agreements Balance Sheet Included under Securities Sold Under Liabilities relating to securities transferred Repurchase Agreements, Securities Lent Under under repurchase or securities lending $31 $202 Securities Lending Agreements, and Payable agreements for Cash Collateral Received, on the Balance Sheet. 68 THE WORLD BANK ANNUAL REPORT 2009 IBRD receives collateral in connection with resale purchases and sales, the securities received are not agreements as well as swap agreements. This recorded on IBRD's Balance Sheet as the collateral serves to mitigate IBRD's exposure to accounting criteria for treatment as a sale have not credit risk. been met. As of June 30, 2009, IBRD had received securities with a fair value of $34 million ($1,439 In the case of resale agreements, IBRD receives million--June 30, 2008). None of these securities collateral in the form of liquid securities and is had been transferred under repurchase or security permitted to repledge these securities. While these lending agreements as of that date ($107 million-- transactions are legally considered to be true June 30, 2008). The following is a summary of the collateral received by IBRD as of June 30, 2009 and June 30, 2008. In millions of U.S. dollars June 30, 2009 June 30, 2008 Collateral received Cash $2,292 $ 12 Securities 5,405 5,926 Total collateral received $7,697 $5,938 Collateral permitted to be repledged $7,697 $5,938 Amount of collateral repledged -- 3,455 The $3,455 million of collateral repledged by IBRD the Balance Sheet. The obligation to return this cash as of June 30, 2008 was transferred under securities collateral received is included under Securities Sold lending agreements and IBRD received collateral in Under Repurchase Agreements, Securities Lent the form of liquid securities and cash. The cash Under Securities Lending Agreements, and Payable collateral received was subsequently invested in for Cash Collateral Received on the Balance Sheet. money market and other liquid financial instruments, which are included under Investments--Trading and Securities Purchased Under Resale Agreements on IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 69 NOTE D--LOANS AND GUARANTEES and fixed spread terms. At June 30, 2009 loans with variable spread terms and fixed spread terms, (including IBRD's loan portfolio includes loans with multicurrency special development policy loans), were available for new terms, single currency pool terms, variable spread terms commitments under the IBRD Flexible Loan (IFL). A summary of IBRD's outstanding loans by currency and by interest rate characteristics (fixed or adjustable) at June 30, 2009 and June 30, 2008 follows: In millions of U.S. dollars equivalent 2009 Euro Japanese yen U.S. dollars Others Loans Outstanding Fixed Adjust. Fixed Adjust. Fixed Adjust. Fixed Adjust. Fixed Adjust. Total a Multicurrency terms Amount $ 577 $1,442 $527 $1,324 $ 431 $ 1,326 $169 $ 299 $1,704 $ 4,391 $ 6,095 Weighted average b rate (%) 4.18 6.41 4.09 6.41 4.52 6.59 4.05 6.41 4.23 6.47 5.84 Average Maturity (years) 2.73 2.15 2.75 2.16 2.58 1.66 3.48 2.17 2.77 2.01 2.22 Single currency pool terms Amount $ -- $481 $ -- $2 $1,700 $885 $ -- $-- $1,700 $ 1,368 $ 3,068 Weighted average b rate (%) -- 5.91 -- 1.23 3.85 6.10 -- -- 3.85 6.03 4.82 Average Maturity (years) -- 1.66 -- 0.55 1.96 1.58 -- -- 1.96 1.61 1.80 Variable-spread terms Amount $ 125 $5,047 $ -- $ 168 $2,196 $40,504 $ -- $47 $2,321 $45,766 $48,087 Weighted average b rate (%) 4.63 1.90 -- 0.97 5.89 1.91 -- 1.41 5.82 1.90 2.09 Average Maturity (years) 1.61 6.51 -- 3.83 1.63 5.33 -- 12.13 1.63 5.46 5.28 c Fixed-spread terms Amount $3,464 $8,171 $ 21 $ 300 $13,339 $21,693 $468 $992 $17,292 $31,156 $48,448 Weighted average b rate (%) 5.04 2.44 2.29 1.30 4.35 2.04 7.58 4.98 4.58 2.23 3.07 Average maturity (years) 8.72 9.22 7.51 9.78 7.48 8.42 12.23 15.04 7.86 8.85 8.50 Loans Outstanding Amount $4,166 $15,141 $548 $1,794 $17,666 $64,408 $637 $1,338 $23,017 $82,681 $105,698 Weighted average b rate (%) 4.91 2.75 4.03 5.04 4.50 2.11 6.66 5.17 4.62 2.34 2.84 Average Maturity (years) 7.68 7.41 2.94 3.59 6.10 6.24 9.96 12.06 6.42 6.49 6.48 Loans Outstanding $105,698 Less accumulated provision for loan losses and deferred loan income 2,041 Net loans outstanding $103,657 Note: For footnotes see following page. 70 THE WORLD BANK ANNUAL REPORT 2009 In millions of U.S. dollars equivalent 2008 Euro Japanese yen U.S. dollars Others Loans Outstanding Fixed Adjust. Fixed Adjust. Fixed Adjust. Fixed Adjust. Fixed Adjust. Total a Multicurrency terms Amount $ 458 $2,666 $333 $1,962 $ 317 $ 1,964 $119 $409 $1,227 $ 7,001 $ 8,228 Weighted average b rate (%) 4.84 6.57 4.74 6.57 5.29 6.62 4.41 6.57 4.89 6.58 6.33 Average Maturity (years) 2.12 2.64 2.16 2.64 1.95 2.26 3.85 2.64 2.26 2.53 2.49 Single currency pool terms Amount $ -- $ 845 $ -- $ 4 $ 163 $3,610 $-- $ -- $ 163 $ 4,459 $ 4,622 Weighted average b rate (%) -- 5.41 -- 1.13 4.21 7.04 -- -- 4.21 6.73 6.64 Average Maturity (years) -- 1.84 -- 0.92 3.04 2.04 -- -- 3.04 2.00 2.04 Variable-spread terms Amount $ 220 $4,381 $ -- $ 150 $3,195 $40,106 $-- $ 1 $3,415 $44,638 $48,053 Weighted average b rate (%) 4.86 5.05 -- 1.17 5.99 3.27 -- 3.01 5.92 3.44 3.61 Average Maturity (years) 1.84 4.89 -- 4.08 1.95 5.09 -- 0.98 1.94 5.07 4.84 d Fixed-spread terms Amount $4,515 $6,002 $ 15 $ 234 $6,179 $20,834 $281 $ 87 $10,990 $27,157 $38,147 Weighted average b rate (%) 5.16 5.27 2.35 1.53 5.28 3.43 7.43 8.33 5.28 3.83 4.25 Average maturity (years) 9.30 7.47 8.37 10.84 5.91 7.21 6.13 6.81 7.31 7.30 7.30 Loans Outstanding Amount $5,193 $13,894 $348 $2,350 $9,854 $66,514 $400 $497 $15,795 $83,255 $99,050 Weighted average b rate (%) 5.12 5.46 4.64 5.72 5.50 3.62 6.53 6.87 5.38 4.01 4.23 Average Maturity (years) 8.35 5.39 2.43 3.55 4.45 5.51 5.45 3.37 5.71 5.42 5.47 Loans Outstanding $99,050 Less accumulated provision for loan losses and deferred loan income 1,782 Net loans outstanding $97,268 a. Includes loans issued prior to 1980, and loans to IFC, in addition to multicurrency pool loans. b. Excludes effects of any waivers of loan interest. c. Includes loans at fair value of $78 million d. Includes loans at fair value of $102 million. IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 71 The maturity structure of IBRD's loans at June 30, 2009 and June 30, 2008 is as follows: In millions of U.S. dollars 2009 July 1, 2009 through July 1, 2010 through July 1, 2014 through Terms/Rate Type June 30, 2010 June 30, 2014 June 30, 2019 Thereafter Total Multicurrency terms Fixed $ 488 $ 997 $ 133 $ 86 $ 1,704 Adjustable 1,519 2,625 247 -- 4,391 Single currency pool terms Fixed 582 1,037 81 -- 1,700 Adjustable 544 804 20 -- 1,368 Variable-spread terms Fixed 897 1,406 18 -- 2,321 Adjustable 4,789 19,898 15,199 5,880 45,766 a Fixed-spread terms Fixed 1,025 4,740 7,199 4,328 17,292 Adjustable 1,092 9,148 10,293 10,623 31,156 All Loans Fixed 2,992 8,180 7,431 4,414 23,017 Adjustable 7,944 32,475 25,759 16,503 82,681 Total loans outstanding $10,936 $40,655 $33,190 $20,917 $105,698 a. Includes loans at fair value of $78 million. In millions of U.S. dollars 2008 July 1, 2008 through July 1, 2009 through July 1, 2013 through Terms/Rate Type June 30, 2009 June 30, 2013 June 30, 2018 Thereafter Total Multicurrency terms Fixed $ 370 $ 742 $ 115 $ -- $ 1,227 Adjustable 2,033 4,160 708 100 7,001 Single currency pool terms Fixed 28 99 36 -- 163 Adjustable 1,479 2,747 233 -- 4,459 Variable-spread terms Fixed 1,081 2,216 118 -- 3,415 Adjustable 4,486 20,071 15,870 4,211 44,638 a Fixed-spread terms Fixed 330 3,351 5,124 2,185 10,990 Adjustable 790 8,542 11,275 6,550 27,157 All Loans Fixed 1,809 6,408 5,393 2,185 15,795 Adjustable 8,788 35,520 28,086 10,861 83,255 Total loans outstanding $10,597 $41,928 $33,479 $13,046 $99,050 a. Includes loans at fair value of $102 million. 72 THE WORLD BANK ANNUAL REPORT 2009 Waivers of Loan Charges of interest on loans, a portion of the commitment Loans signed before May 16, 2007 are eligible for charge on undisbursed balances and a portion of the front-end fee charged on all eligible loans and are waivers of a portion of loan charges. Loans signed between May 16, 2007 and September 27, 2007 and approved annually by the Executive Directors of for which the borrowers elected not to convert the IBRD. loans to the terms effective September 27, 2007, are also eligible for waivers. Waivers include a portion The reduction in net income for the fiscal years ended June 30, 2009, June 30, 2008 and June 30, 2007 resulting from waivers of loan charges, is summarized below: In millions of U.S. dollars 2009 2008 2007 Interest waivers $166 $165 $152 Commitment charge waivers 89 122 132 Front-end fee waivers 13 9 9 Total $268 $296 $293 Guarantees At June 30, 2009, liabilities related to IBRD's obligations under guarantees of $29 million ($13 IBRD has provided partial guarantees of loans million--June 30, 2008), have been included in syndicated by other financial institutions for Accounts payable and miscellaneous liabilities on projects. In addition, IBRD has provided partial the Balance Sheet. These include the accumulated guarantees of securities issued by an entity eligible provision for guarantee losses of $5 million ($6 for IBRD loans, or in support of programs also million--June 30, 2008). financed by IBRD through regular loans. IBRD's partial guarantees of such securities are included in During the fiscal years ended June 30, 2009 and the guarantees amount mentioned below. June 30, 2008, no guarantees provided by IBRD were called. Guarantees of $1,713 million were outstanding at June 30, 2009 ($788 million--June 30, 2008). This Overdue Amounts amount represents the maximum potential amount of At June 30, 2009, there were no principal or interest undiscounted future payments that IBRD could be amounts on loans in accrual status, which were required to make under these guarantees, and is not overdue by more than three months. The following included in the Balance Sheet. These guarantees tables provide a summary of selected financial have original maturities ranging between 6 months information related to loans in nonaccrual status as and 17 years, and expire in decreasing amounts of and for the fiscal years ended June 30, 2009, June through 2024. 30, 2008 and June 30, 2007: In millions of U.S. dollars 2009 2008 Recorded investment in nonaccrual loans a $460 $464 Accumulated provision for loan losses on nonaccrual loans 230 232 b Average recorded investment in nonaccrual loans for the fiscal year 459 875 Overdue amounts of nonaccrual loans: 565 492 Principal 352 313 Interest and charges 213 179 a. A loan loss provision has been recorded against each of the loans in the nonaccrual portfolio. b. In the fiscal year 2007, the average recorded investment in nonaccrual loans was $1,057 million. In millions of U.S. dollars 2009 2008 2007 Interest income recognized on loans in nonaccrual status at end of fiscal year $-- $-- $-- Interest income not recognized as a result of loans being in nonaccrual status $34 $16 $55 IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 73 Information relating to the sole borrowing member with loans or guarantees in nonaccrual status at June 30, 2009 follows: In millions of U.S. dollars Principal, Interest Principal and Charges Borrower outstanding overdue Nonaccrual since Zimbabwe $460 $565 October 2000 During the fiscal year ended June 30, 2009 there Accumulated Provision for Losses on Loans, were no loans placed in non accrual status or Guarantees and Deferred Drawdown Options restored to accrual status. IBRD has always eventually collected all contractual On April 2, 2008 Côte d'Ivoire cleared all of its principal and interest on its loans. However, IBRD overdue principal, interest and charges due to IBRD. suffers losses resulting from the difference between The impact of this event on income from loans for the discounted present value of payments for interest the year ended June 30, 2008 was $90 million of and charges according to the related loan's which $75 million represents income that would contractual terms and the actual cash flows. Certain have been accrued in previous fiscal years had these borrowers have found it difficult to make timely loans not been in nonaccrual status. payments for protracted periods, resulting in their On December 5, 2007, Liberia cleared all of its loans being placed in nonaccrual status. Several outstanding loan principal, interest and charges due borrowers have emerged from nonaccrual status to IBRD. The impact of this event on income from after a period of time by bringing up-to-date all loans for the fiscal year ended June 30, 2008 was principal payments and all overdue service $179 million, of which $176 million represented payments, including interest and other charges. To income that would have been accrued in previous recognize the probable losses inherent in its loan and fiscal years had these loans not been in nonaccrual guarantee portfolio, IBRD maintains an accumulated status. provision for losses on loans, guarantees and deferred drawdown options. Changes to the accumulated provision for losses on loans and guarantees for the fiscal years ended June 30, 2009, June 30, 2008 and June 30, 2007 are summarized below: In millions of U.S. dollars June 30, 2009 June 30, 2008 June 30, 2007 Accumulated provision for losses on loans, guarantees and deferred drawdown options (DDO), beginning of the fiscal year $1,376 $1,942 $2,307 Net increase (decrease) in provision 284 (684) (405) Translation adjustment (18) 118 40 Accumulated provision for losses on loans, guarantees and DDO, end of the fiscal year $1,642 $1,376 $1,942 Composed of: Accumulated provision for loan losses $1,632 $1,370 $1,932 Accumulated provision for guarantee losses 5 6 10 Accumulated provision for deferred drawdown options 5 -- -- Total $1,642 $1,376 $1,942 Reported as Follows Balance Sheet Statement of Income Allowance for Losses on: Loans Accumulated provision for loan losses Provision for losses on loans and guarantees, increase (decrease) Guarantees Accounts payable and miscellaneous liabilities Provision for losses on loans and guarantees, increase (decrease) Deferred drawdown option Accounts payable and miscellaneous liabilities Provision for losses on loans and guarantees, increase (decrease) 74 THE WORLD BANK ANNUAL REPORT 2009 IBRD has endorsed a multilateral initiative for Local Currency Lending to IFC addressing the debt problems of a group of IBRD has a Local Currency Loan Facility countries, identified as heavily indebted poor Agreement with IFC which is capped at $300 countries (HIPC), to ensure that the reform efforts of million. At June 30, 2009, the loan balance under these countries will not be put at risk by this facility amounted to $50 million at an interest unsustainable external debt burdens. Under this rate of 3.96%. This loan is not eligible for interest initiative, creditors are to provide debt relief for waivers. those countries that have demonstrated good policy performance over an extended period to bring their debt burdens to sustainable levels. In addition, on March 28, 2006, the Executive Directors of IDA approved IDA's participation in the Multilateral NOTE E--BORROWINGS Debt Relief Initiative (MDRI). The objective of the MDRI is to provide additional debt relief support to Providing liquidity and minimizing the cost of funds HIPC countries. In determining the adequacy of the are key objectives to IBRD's overall borrowing accumulated provision for losses on loans and strategy. IBRD uses swaps in its borrowing strategy guarantees, IBRD has taken the situation of these to lower the overall cost of its borrowings. IBRD countries into consideration, although IBRD has not initiates swap transactions with a list of authorized entered into any commitments to provide debt relief counterparties all of which are rated single A or under these initiatives. above. Credit limits have been established for each counterparty. The following table summarizes IBRD's borrowings portfolio at June 30, 2009 and June 30, 2008: In millions of U.S. dollars 2009 2008 Net Fair value Net Fair value Unamortized adjustment, Unamortized adjustment, Principal at (Discount) losses Principal at (Discount) (gains) a a Face Value Premium (gains) Total Face Value Premium losses Total Borrowings $110,095 $(955) $900 $110,040 $90,980 $(1,071) $(2,219) $87,690 Currency Swap Agreements (Net) (4,504) 355 (35) (4,184) (7,719) 539 1,719 (5,461) Interest Rate Swap b, c Agreements (Net) (569) (77) (1,643) (2,289) (735) 87 (837) (1,485) $105,022 $(677) $(778) $103,567 $82,526 $ (445) $(1,337) $80,744 a. This refers to "Fair value adjustment on non-trading portfolios, net". b. The negative $569 million at June 30, 2009 (negative $735 million-June 30, 2008) represents the net unamortized discount on zero coupon trades. c. The net unamortized discount of $77 million at June 30, 2009 (net unamortized premium of $87 million at June 30, 2008), represents the unamortized premium on non zero coupon trades. IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 75 The following tables summarize IBRD's borrowings portfolio by currency and product at June 30, 2009 and June 30, 2008: Borrowings, Currency Swap Agreements and Interest Rate Swap Agreements at June 30, 2009 In millions of U.S. dollars equivalent Currency Interest rate a Borrowings swap agreements swap agreements Net currency obligations Notional Average Amount Average amount Average Amount Average b b b b c Currency/ WAC maturity payable WAC maturity payable WAC maturity payable WAC maturity Rate type Amount (%) (years) (receivable) (%) (years) (receivable) (%) (years) (receivable) (%) (years) Euro Fixed $ 11,399 5.08 7.13 $ 1,824 7.69 5.64 $ 2,654 4.89 12.17 $ 15,877 5.35 7.80 (5,879) 5.42 4.99 (5,862) 4.21 8.34 (11,741) 4.82 6.66 Adjustable 2,390 5.85 4.60 10,901 1.66 3.68 5,616 1.83 8.47 18,907 2.24 5.22 (5,200) 4.40 6.66 (2,654) 2.00 12.17 (7,854) 3.59 8.52 Japanese yen Fixed 1,688 4.89 5.76 1,230 4.52 2.95 16 1.77 14.06 2,934 4.72 4.63 (1,085) 4.47 4.40 (436) 1.83 3.29 (1,521) 3.71 4.08 Adjustable 12,926 2.23 22.63 1,842 1.42 18.09 394 0.75 3.34 15,162 2.09 21.58 (14,182) 2.08 22.87 (16) 0.87 14.06 (14,198) 2.08 22.86 U. S. dollars Fixed 38,090 3.65 4.70 2,237 3.58 2.03 17,532 4.23 10.11 57,859 3.82 6.24 (1,743) 9.83 3.29 (35,647) 3.53 4.72 (37,390) 3.82 4.65 Adjustable 12,400 1.08 1.86 50,943 1.22 8.60 56,075 1.34 4.17 119,418 1.26 5.82 (15,783) 1.31 7.14 (38,241) 1.43 6.40 (54,024) 1.40 6.62 Others Fixed 29,494 6.51 4.08 4,351 6.86 5.77 152 7.44 13.31 33,997 6.56 4.34 (33,670) 6.53 4.28 (9) 9.49 1.24 (33,679) 6.53 4.28 Adjustable 1,708 2.82 3.51 1,417 5.52 24.51 9 6.44 1.24 3,134 4.05 13.00 (1,707) 2.81 3.51 (152) 4.77 13.31 (1,859) 2.97 4.31 d Total Fixed 80,671 4.92 4.84 9,642 5.96 4.52 20,354 4.34 10.41 110,667 4.91 5.83 (42,377) 6.46 4.34 (41,954) 3.61 5.21 (84,331) 5.04 4.77 Adjustable 29,424 2.07 11.30 65,103 1.39 8.39 62,094 1.38 4.55 156,621 1.52 7.42 (36,872) 2.11 12.95 (41,063) 1.48 6.80 (77,935) 1.78 9.71 Principal at face value $110,095 $ (4,504) $ (569) $105,022 2.06 6.17 a. Excludes forward-starting swaps (mechanism for managing debt overhang in currency pool products) of $7,772 million and other unsettled forward trades of $3,141 million. b. WAC refers to weighted average cost. c. At June 30, 2009, the average repricing period of the net currency obligations for adjustable rate borrowings was less than three months. d. May differ from the sum of individual figures due to rounding. 76 THE WORLD BANK ANNUAL REPORT 2009 Borrowings, Currency Swap Agreements and Interest Rate Swap Agreements at June 30, 2008 In millions of U.S. dollars equivalent Currency Interest rate a Borrowings swap agreementsswap agreements Net currency obligations Notional Average Amount Average amount Average Amount Average b b b b c Currency/ WAC maturity payable WAC maturity payable WAC maturity payable WAC maturity Rate type Amount (%) (years) (receivable) (%) (years) (receivable) (%) (years) (receivable) (%) (years) Euro Fixed $ 8,141 5.60 6.03 $ 1,530 7.64 6.66 $ 3,249 5.02 9.85 $ 12,920 5.70 7.07 (6,928) 5.28 5.45 (730) 5.18 5.21 (7,658) 5.27 5.43 Adjustable 3,939 4.44 5.77 10,467 4.57 4.23 688 4.90 5.07 15,094 4.55 4.67 (4,678) 4.50 5.82 (3,249) 5.17 9.85 (7,927) 4.77 7.47 Japanese yen Fixed 1,939 5.04 5.39 1,086 4.52 3.91 10 1.85 15.04 3,035 4.84 4.89 (1,383) 4.80 3.98 (337) 1.81 4.54 (1,720) 4.21 4.09 Adjustable 11,729 3.90 23.50 1,502 2.03 18.72 337 0.99 4.54 13,568 3.62 22.50 (12,711) 3.70 23.58 (10) 0.95 15.04 (12,721) 3.70 23.57 U. S. dollars Fixed 28,131 4.73 4.48 962 9.85 4.20 12,339 4.88 7.52 41,432 4.89 5.38 (1,535) 8.82 3.00 (26,914) 4.62 5.16 (28,449) 4.85 5.04 Adjustable 1,920 4.24 4.58 51,021 2.73 8.85 27,404 2.94 5.10 80,345 2.84 7.47 (12,297) 2.84 6.26 (13,522) 3.47 7.53 (25,819) 3.17 6.92 Others Fixed 34,503 6.91 4.37 3,920 6.12 6.73 10 9.50 2.24 38,433 6.83 4.61 (38,371) 6.80 4.62 (38,371) 6.80 4.62 Adjustable 678 9.20 9.12 273 * * (10) 10.47 2.24 941 6.52 6.55 (577) 9.19 9.11 (577) 9.19 9.11 d Total Fixed 72,714 5.87 4.62 7,498 6.68 5.98 15,608 4.91 8.00 95,820 5.78 5.28 (48,217) 6.59 4.67 (27,981) 4.60 5.15 (76,198) 5.86 4.85 Adjustable 18,266 4.25 17.15 63,263 3.01 8.28 28,419 2.96 5.10 109,948 3.20 8.93 (30,263) 3.58 13.52 (16,781) 3.80 7.98 (47,044) 3.66 11.55 Principal at face value $90,980 $ (7,719) $ (735) $ 82,526 3.48 6.98 a. Excludes forward-starting swaps of $9,306 million (mechanism for managing debt overhang in currency pool products). b. WAC refers to weighted average cost. c. At June 30, 2008, the average repricing period of the net currency obligations for adjustable rate borrowings was less than four months. d. May differ from the sum of individual figures due to rounding. * Indicates WAC of less than 0.01% or average maturity of less than 0.01 years. The maturity structure of IBRD's borrowings outstanding at June 30, 2009 and June 30, 2008 is as follows: In millions of U.S. dollars In millions of U.S. dollars Period 2009 Period 2008 July 1, 2009 through June 30, 2010 $ 31,138 July 1, 2008 through June 30, 2009 $25,573 July 1, 2010 through June 30, 2014 27,582 July 1, 2009 through June 30, 2013 29,004 July 1, 2014 through June 30, 2019 10,593 July 1, 2013 through June 30, 2018 14,750 Thereafter 40,782 Thereafter 21,653 Total $110,095 Total $90,980 IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 77 qualifying hedging relationships. Rather, all NOTE F-- DERIVATIVE INSTRUMENTS derivative instruments, as defined by FAS 133, have IBRD uses derivative instruments in its investments been marked to fair value and all changes in fair and borrowings portfolios, and for asset/liability value have been recognized in net income. While management purposes. It also offers derivatives IBRD believes that its hedging strategies achieve its intermediation services to clients. In applying FAS objectives, the application of FAS 133 qualifying 133 for the purposes of financial statement hedge criteria would not appropriately reflect reporting, IBRD has elected not to designate any IBRD's risk management strategies The following table summarizes IBRD's use of derivatives in its various financial portfolios: Portfolio Derivative instruments used Purpose / Risk being managed Risk management purposes: Currency swaps, interest rate Investments Enhance returns in target currencies swaps, currency forwards Currency swaps, Interest rate Reduce borrowings costs and manage repricing risks between Borrowings swaps, Structured swaps loans and borrowings Other assets / Currency swaps, Interest rate Manage currency risk as well as extend the duration of IBRD's liabilities swaps equity Other purposes: Client operations Currency swaps, Interest rate Assist clients in managing their interest rate and currency risks swaps IBRD is not required to post collateral under its AAA credit rating. If the credit-risk related derivative agreements as long as it maintains a AAA contingent features underlying these agreements credit rating. The aggregate fair value of all were triggered to the extent that IBRD would be derivative instruments with credit-risk related required to post collateral on June 30, 2009, the contingent features that are in a liability position on amount of collateral that would need to be posted June 30, 2009 is $724 million. IBRD has not posted would be $184 million. any collateral with these counterparties due to its The following tables provide information on the fair value amounts and the location of the derivative instruments on the Balance Sheet, as well as contract value/notional amounts of those derivative instruments as of June 30, 2009 and June 30, 2008: Fair value amounts of derivative instruments on the Balance Sheet In millions of U.S. dollars Derivative assets at Fair Value Derivative liabilities at Fair Value Balance Sheet June 30, June 30, Balance Sheet June 30, June 30, Location 2009 2008 Location 2009 2008 Derivatives not designated as hedging instruments under FAS 133 Options and Futures ­ Investment ­ Trading Other assets $ 1 $ 12 Other liabilities $ -- $ -- Interest rate swaps Derivative Derivative assets at Fair liabilities at Value 5,579 2,045 Fair Value 1,911 1,021 Currency swaps (including currency forward Derivative Derivative contracts and structured assets at Fair liabilities at swaps) Value 117,486 100,788 Fair Value 113,731 95,710 Total Derivatives $123,066 $102,845 $115,642 $96,731 78 THE WORLD BANK ANNUAL REPORT 2009 Contract value/notional amounts of the derivative instruments: In millions of U.S. dollars June 30, 2009 June 30, 2008 Type of contract Investments--Trading Interest rate swaps Notional principal $ 9,389 $ 6,392 Exchange traded Options and Futures Notional long position 636 8,610 Notional short position 65 5,000 Borrowing portfolio Interest rate swaps Notional principal 93,930 54,068 Client operations Interest rate swaps Notional principal 5,588 2,972 Other derivatives Interest rate swaps Notional principal $33,800 $39,885 The following table provides information on the location and amount of gains and losses on non-trading derivatives and their location on the Statement of Income during the fiscal years ended June 30, 2009 and June 30, 2008: In millions of U.S. dollars Fiscal Year ended June 30 Income Statement Location Gains (Losses) 2009 2008 Derivatives not designated as hedging instruments under FAS 133, and not held in a a trading portfolio Interest rate swaps Fair value adjustment on non-trading portfolios, net $2,143 $424 Currency swaps (including currency forward Fair value adjustment on non-trading contracts and structured swaps) portfolios, net 2,219 (1,506) Total $4,362 $(1,082) a. For alternative disclosures about trading derivatives see the following table All of the instruments in IBRD's investment availability of sufficient cashflows to meet all of portfolio are held for trading purposes. IBRD's IBRD's financial commitments. In addition, IBRD investment portfolio is primarily held for liquidity uses derivatives as part of its liquidity management management purposes, and beginning in the second to enhance investment returns. Within the Long quarter of the fiscal year ending June 30, 2009, a Term Income Portfolio (LTIP), IBRD holds highly portion of the portfolio is held for long term income rated fixed income securities as well as listed equity generation purposes. Within the liquidity portfolio, securities and derivatives. The primary objective of IBRD holds highly rated fixed income securities as holding this portfolio is to enhance returns over the well as derivatives. The primary objective of long term. holding this portfolio is to protect the principal amount of these investments and thereby ensure the IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 79 The following table provides information on the location and amount of gains and losses on the Investments ­ trading related derivatives and their location on the Statement of Income during the fiscal years ended June 30, 2009 and June 30, 2008: In millions of U.S. dollars Fiscal Year ended June 30 a Income Statement Location Investments, net-trading , (losses) gains 2009 2008 Type of instrument Fixed income $(68) $(74) Equity 46 -- Total $(22) $(74) a. Amounts associated with each type of instrument includes realized and unrealized gains and losses on both derivative instruments and non-derivative instruments Derivatives for Client Operations Non-Affiliated Organizations: IBRD has a master derivatives agreement with the International Finance Included in Derivative Assets and Derivative Facility for Immunisation (IFFIm), a AAA-rated Liabilities on the Balance Sheet are derivatives with organization, under which several transactions have Borrowing Countries, Non-Affiliated and Affiliated been executed. Organizations. Affiliated Organizations: These are derivative Borrowing Countries: These are currency and contracts executed between IBRD and IDA, under a interest rate swap transactions executed between financial intermediation agreement allowing IBRD IBRD and its borrowers under master derivatives to intermediate derivative contracts on behalf of agreements. IDA. The following table provides additional details of IBRD's Derivatives for Client Operations at June 30, 2009 and June 30, 2008 is presented below: In millions of U.S. dollars equivalent 2009 Currency swap agreements Interest rate swap agreements Net Derivative Asset/Liability Notional Amount Average Amount Average Amount Average Receivable Maturity Receivable Maturity Receivable Maturity (payable) (years) (payable) (years) (payable) (years) U.S. dollars $ 5,116 5.92 $ 5,171 3.00 $ 10,287 4.45 (5,136) 5.93 (5,171) 3.00 (10,307) 4.46 (20) ­ (20) Other 15,720 4.15 417 4.94 16,137 4.17 (15,696) 4.14 (417) 4.94 (16,113) 4.16 24 ­ 24 Total Receivable 20,836 4.58 5,588 3.15 26,424 4.28 (Payable) (20,832) 4.58 (5,588) 3.15 (26,420) 4.28 Net unrealized (losses) gainsa (110) 114 4 Total $ (106) $ 114 $ 8 For footnotes see the table below. 80 THE WORLD BANK ANNUAL REPORT 2009 In millions of U.S. dollars equivalent 2008 Currency swap agreements Interest rate swap agreements Net Derivative Asset/Liability Notional Amount Average Amount Average Amount Average Receivable Maturity Receivable Maturity Receivable Maturity (payable) (years) (payable) (years) (payable) (years) U.S. dollars $ 4,465 6.15 $ 2,545 3.05 $ 7,010 5.02 (4,487) 6.16 (2,545) 3.05 (7,032) 5.03 (22) ­ (22) Other 18,459 4.30 427 5.81 18,886 4.33 (18,430) 4.29 (427) 5.81 (18,857) 4.32 29 ­ 29 Total Receivable 22,924 4.66 2,972 3.44 25,896 4.52 (Payable) (22,917) 4.66 (2,972) 3.44 (25,889) 4.52 Fair value adjustment, gains (losses)a * (2) (1) Total $ 8 $ (2) $ 6 a. This refers to "fair value adjustment on non-trading portfolios, net". * Indicates amount less than $0.5 million. Other Derivatives strategy, approved by the Board in December 2008, with the objective of reducing the interest rate As part of asset/liability management, IBRD has sensitivity of IBRD's operating income, using a 10- entered into currency and interest rate swap year ladder repricing profile. The following table agreements. These primarily comprise interest rate provides additional details of IBRD's other swaps executed during the fiscal year 2008 in asset/liability derivatives at June 30, 2009 and June connection with IBRD's equity duration extension 30, 2008: In millions of U.S. dollars equivalent 2009 Currency swap agreements Interest rate swap agreements Net Derivative Asset/Liability Amount Average Notional Amount Average Amount Average Receivable Maturity Receivable Maturity Receivable Maturity (payable) (years) (payable) (years) (payable) (years) U.S. dollars $ -- -- $26,124 5.67 $26,124 5.67 (707) 6.69 (26,124) 5.67 (26,831) 5.69 Other 778 6.74 7,676 6.99 8,454 6.96 -- -- (7,676) 6.99 (7,676) 6.99 Total Receivable 778 6.74 33,800 5.97 34,578 5.98 (Payable) (707) 6.69 (33,800) 5.97 (34,507) 5.98 Fair value adjustment, gainsa 21 1,307 1,328 Total $ 92 $ 1,307 $ 1,399 a. This refers to "fair value adjustment on non-trading portfolios, net". IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 81 In millions of U.S. dollars equivalent 2008 Currency swap agreements Interest rate swap agreements Net Derivative Asset/Liability Amount Average Notional Amount Average Amount Average Receivable Maturity Receivable Maturity Receivable Maturity (payable) (years) (payable) (years) (payable) (years) U.S. dollars $ -- -- $ 30,287 5.94 $ 30,287 5.94 (561) 9.44 (30,287) 5.94 (30,848) 6.01 Other 558 9.44 9,598 8.30 10,156 8.37 -- -- (9,598) 8.30 (9,598) 8.30 Total Receivable 558 9.44 39,885 6.51 40,443 6.55 (Payable) (561) 9.44 (39,885) 6.51 (40,446) 6.55 Fair value adjustment, gains (losses)a 5 (400) (395) Total $ 2 $ (400) $ (398) a. This refers to "fair value adjustment on non-trading portfolios, net". NOTE G--CREDIT RISK IBRD limits trading to a list of authorized dealers and counterparties. Credit risk is controlled through Country Credit Risk: This risk includes potential application of eligibility criteria and volume limits losses arising from protracted arrears on payments for transactions with individual counterparties and from borrowers for loans, guarantees or related through the use of mark-to-market collateral derivatives. IBRD manages country credit risk arrangements for swap transactions. IBRD may through individual country exposure limits require collateral in the form of cash or other according to creditworthiness. These exposure limits approved liquid securities from individual are tied to performance on macroeconomic and counterparties in order to mitigate its credit structural policies. In addition, IBRD establishes exposure. For details of the collateral received in absolute limits on the share of outstanding loans to connection with swap agreements see Note C-- any individual borrower. The country credit risk is Investments. further managed by financial incentives such as loan terms that give borrowers self-interest in IBRD's IBRD has entered into master derivatives continued strong intermediation capacity. agreements which contain legally enforceable close- Collectability risk is covered by the accumulated out netting provisions. These agreements may provision for losses on loans and guarantees. IBRD further reduce the gross credit risk exposure related also uses a simulation model to assess the adequacy to the swaps shown below. Credit risk with financial of its equity including reserves in case a major assets subject to a master derivatives arrangement is borrower, or group of borrowers, stops servicing its further reduced under these agreements to the extent loans for an extended period of time. that payments and receipts with the counterparty are netted at settlement. The reduction in exposure as a Commercial Credit Risk: For the purpose of risk result of these netting provisions can vary as management, IBRD is party to a variety of financial additional transactions are entered into under these instruments, certain of which involve elements of agreements. The extent of the reduction in exposure credit risk. Credit risk exposure represents the may therefore change substantially within a short maximum potential loss due to possible period of time following the balance sheet date. nonperformance by obligors and counterparties under the terms of the contracts. For all securities, 82 THE WORLD BANK ANNUAL REPORT 2009 The credit risk exposure, as applicable, of these financial instruments at June 30, 2009 and June 30, 2008 are given below: In millions of U.S. dollars CREDIT RISK EXPOSURE 2009 2008 INTEREST RATES SWAPS Investments ­ trading portfolioa $ 83 $ 25 Client operations 120 67 Borrowing portfolio 3,692 2,211 Other derivatives 1,609 81 CURRENCY SWAPS b Investments ­ trading portfolio $ 345 $ 137 Client operations 989 361 Borrowing portfolio 9,038 10,817 Other derivatives 90 21 a. Includes swaptions b. Includes currency forward contracts NOTE H--RETAINED EARNINGS, ALLOCATIONS AND TRANSFERS The changes in the components of Retained Earnings for each of the fiscal periods from June 30, 2006 to June 30, 2009, are summarized below: In millions of U.S. dollars Cumulative Unallocated Restricted Special General Pension FAS133 Net Income Retained Reserve Reserve Reserve Surplus Adjustments (Loss) Earnings Total As of June 30, 2006 $293 $22,912 $1,023 $360 $ 1,933 $(1,739) -- $24,782 Adjustment to beginning balance: Cumulative effect of adoption of FAS 155-Note N -- -- -- -- 3,189 -- -- 3,189 a Net income allocation -- 1,036 64 140 (3,479) 2,239 -- -- Board of Governors-approved b transfers funded from Surplus -- -- -- (457) -- 457 -- -- Net loss for the year -- -- -- -- -- (140) -- (140) As of June 30, 2007 $293 $23,948 $1,087 $ 43 $ 1,643 $ 817 -- $27,831 a Net income allocation -- 911 51 97 (843) (216) -- -- Board of Governors-approved b transfers funded from Surplus -- -- -- (140) -- 140 -- -- Net income for the year -- -- -- -- -- 1,491 -- 1,491 As of June 30, 2008 $293 $24,859 $1,138 $-- $800 $ 2,232 -- $29,322 Adjustment to beginning balance: Cumulative effect of adoption of FAS 159-Note O -- -- -- -- (2,566) -- -- (2,566) a Net income allocation -- 811 117 750 (39) (1,649) $10 -- Board of Governors-approved b transfers funded from Surplus -- -- -- (155) -- 155 -- -- Net income for the year -- -- -- -- -- 3,114 -- 3,114 As of June 30, 2009 $293 $25,670 $1,255 $595 $(1,805) $ 3,852 $10 $29,870 a. Amounts retained as Surplus from net income allocation are approved by the Board of Governors. b. A concurrent transfer is made from Surplus to Unallocated Net Income (Loss) for all transfers reported on the Statement of Income and authorized to be funded from Surplus. IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 83 IBRD makes net income allocation decisions on the amount to the Food Price Crisis Response Trust basis of reported net income, adjusted to exclude the Fund. fair value adjustment on non-trading portfolios, net, On October 13, 2008, IBRD's Board of Governors restricted externally-financed outputs income, approved the immediate transfer of $583 million to adjustments relating to the LTIP, and Board of IDA, an affiliated organization and the retention of Governors-Approved Transfers, and after $635 million as Surplus from the net income earned considering the allocation to the pension reserve. in the fiscal year ended June 30, 2008. Additionally, On August 7, 2008, the Executive Directors IBRD's Board of Governors approved the transfer of approved the allocation of $811 million of the net $40 million from Surplus, by way of grant, to the income earned in the fiscal year ended June 30, 2008 Kosovo Sustainable Employment Development to the General Reserve and $117 million to the Trust Fund. Pension Reserve. Subsequent event: On July 10, 2009, IBRD's Board On September 9, 2008, IBRD's Board of Governors of Governors approved the immediate transfer of approved the retention of $115 million as Surplus $55 million from Surplus to the Trust Fund for Gaza from the net income earned in the fiscal year ended and West Bank. June 30, 2008, and the immediate transfer of that There were no amounts payable for the transfers approved by the Board of Governors at June 30, 2009 and June 30, 2008.Transfers approved during the fiscal years ended June 30, 2009, June 30, 2008 and June 30, 2007, are included in the following table. In millions of U.S. dollars Fiscal Years Ended June 30, Transfers funded from: 2009 2008 2007 Unallocated Net Income: International Development Association $583 $600 $500 583 600 500 Surplus: International Development Association -- -- 300 Trust Fund for Gaza and West Bank -- 55 50 Low-Income Countries Under Stress (LICUS) Implementation Trust Fund -- -- 30 Trust Fund for Lebanon -- -- 70 Caribbean Catastrophe Risk Insurance Facility Trust Fund -- -- 10 Food Price Crisis Response Trust Fund 115 85 -- Kosovo Sustainable Development Trust Fund 40 -- -- Residual amount received upon closure of the Trust Fund for the Federal Republic of Yugoslavia -- -- (3) 155 140 457 Total $738 $740 $957 NOTE I--ADMINISTRATIVE EXPENSES, reflects the administrative costs of service delivery CONTRIBUTIONS TO SPECIAL PROGRAMS, to countries that are eligible for lending from IBRD AND OTHER INCOME and IDA. Administrative expenses for the fiscal year ended Contributions to special programs represent grants June 30, 2009 are net of the share of administrative for agricultural research, and other developmental expenses allocated to IDA of $975 million ($888 activities. million--June 30, 2008, and $976 million--June 30, Other income primarily consists of service fee 2007). The administrative expenses allocated to IDA revenue and net income from asset/liability are net of fees received for joint administration of derivatives. For the fiscal year ended June 30, 2009, certain external funds by IBRD and IDA (Note J-- net income from asset/liability derivatives totaled Management of External Funds and Other Services). $246 million (net of $10 million --June 30, 2008). The allocation of expenses between IBRD and IDA is based on an agreed cost sharing formula that 84 THE WORLD BANK ANNUAL REPORT 2009 For the fiscal years ended June 30, 2009, June 30, 2008 and June 30, 2007, the amount of fee revenue associated with administrative services is as follows: In millions of U.S. dollars 2009 2008 2007 Service fee revenue $295 $272 $261 Included in these amounts are the following: Fees charged to IFC 69 56 45 Fees charged to MIGA 8 8 8 At June 30, 2009 and June 30, 2008, IBRD had the following (payables to) receivables from its affiliated organizations with regard to administrative services and pension and other postretirement benefits. In millions of U.S. dollars 2009 2008 Pension and Other Pension and Other Administrative Postretirement Administrative Postretirement Services Benefits Total Services Benefits Total IDA $316 $(1,109) $ (793) $ 340 $(1,091) $ (751) IFC 22 (520) (498) 27 (493) (466) MIGA 3 (30) (27) 2 (27) (25) $341 $(1,659) $(1,318) $369 $(1,611) $(1,242) The (payables) receivables balances to (from) these affiliated organizations are reported in the Balance Sheet as follows: Reported as: Receivable for Administrative Services Other Assets ­ Miscellaneous Payable for Pension and Other Postretirement Benefits Accounts payable and miscellaneous liabilities In addition, IBRD also had amounts receivable from exercise spending authority to meet the objectives and payable to IDA in connection with derivative and comply with terms stipulated in the agreements. transactions relating to the swap intermediation IBRD-executed trust funds involve IBRD execution services provided by IBRD to IDA. See Note F-- of activities as described in relevant administration Derivative Instruments for more details. agreements with donors which define the terms and NOTE J--MANAGEMENT OF EXTERNAL conditions for use of the funds. Spending authority FUNDS AND OTHER SERVICES is exercised by IBRD, subject to any restrictions contained in the administration agreements. The Trust Funds executing agency services provided by IBRD vary IBRD, alone or jointly with one or more of its and include for example, activity preparation, affiliated organizations, administers on behalf of analytical and advisory activities and project-related donors, including members, their agencies and other activities, including procurement of goods and entities, funds restricted for specific uses in services. accordance with administration agreements with donors. Specified uses could include, for example, In some trust funds, execution is allocated between co-financing of IBRD lending projects, debt Recipient-executed and IBRD-executed portions. reduction operations, technical assistance including Decisions on assignment of funding resources feasibility studies and project preparation, global between the two types of execution may be made on and regional programs, and research and training an ongoing basis; therefore the execution of a programs. These funds are held in trust with IBRD portion of these available resources may not yet be and/or IDA, and are held in a separate investment assigned. portfolio which is not commingled with IBRD's IBRD also acts as intermediary to provide specific funds, nor are they included in the assets of IBRD. administrative or financial services with a limited Trust fund execution may be carried out in one of fiduciary or operational role. These arrangements two ways: Recipient-executed or IBRD-executed. include, for example, administration of debt service trust funds, financial intermediation and other more Recipient-executed trust funds involve activities specialized limited funds management roles. Funds carried out by a recipient third-party "executing are held and disbursed in accordance with agency". IBRD enters into agreements with and instructions from donors or, in some cases, external disburses funds to those recipients, who then governance structure or body operating on behalf of donors. IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 85 The cash and investment assets held in trust by IBRD as administrator and trustee at June 30, 2009 and June 30, 2008 are summarized below: In millions of U.S dollars Total fiduciary assets 2009 2008 IBRD-executed $ 466 $ 409 Recipient-executed 1,365 1,322 Financial intermediary funds 11,345 8,981 a Execution not yet assigned 2,634 2,510 Total $15,810 $13,222 a. These represent assets held in trust for which the agreement as to use and the type of execution is to be finalized jointly by the donors and IBRD. During the fiscal year ended June 30, 2009, IBRD, Other Services as an executing agency, disbursed $209 million Donors to the Advance Market Commitment for ($184 million--June 30, 2008) of trust fund program Pneumococcal Vaccines Initiative (AMC) have funds. provided IBRD with commitments to give $1.5 During the fiscal year ended June 30, 2009, IBRD billion over a ten year period, with GAVI Alliance recognized $23 million ($21 million--June 30, 2008 (GAVI) as the named beneficiary. Some of these and $17 million--June 30, 2007) as fees for grants are payable on specified due dates and are administering trust funds. These fees have been classified as unconditional while others are payable recorded as Other Income. Fees collected by trust on demand when needed and are classified as funds from donor contributions but not yet earned by conditional for accounting purposes. As of June 30, IBRD totaling $61 million at June 30, 2009 ($71 2009, the unconditional assets comprise $212 million--June 30, 2008) are included in Other million in cash and investments, and receivables at a Assets (Miscellaneous) and in Accounts payable and net carrying value of $550 million. These assets miscellaneous liabilities, correspondingly, on the along with the corresponding liabilities are included Balance Sheet. in the IBRD's Balance Sheet. The assets will be drawn down by GAVI in accordance with the terms Investment Management Services of the AMC which require that the funds be used to IBRD offers treasury and investment management make payments for qualifying vaccines. In addition, services to affiliated and non-affiliated should a donor fail to pay, IBRD has committed to organizations. Under these arrangements, IBRD is pay the shortfall. For this commitment, IBRD will responsible for managing investment account assets charge an annual 30 basis point premium on on behalf of these institutions, and in return receives outstanding grant payments not yet paid by AMC a quarterly fee based on the average value of the donors. IBRD will also charge an annual service fee portfolios. based on the related administrative and financial management costs incurred to support the program. In addition, IBRD offers asset management and IBRD will be entitled to collect fees charged from technical advisory services to central banks of investment income earned on AMC - related member countries, under the Reserves Advisory and investment assets, to the extent earnings have Management Program, for capacity building and accumulated. Should fees charged exceed other development purposes and receives a fee for investment income earned, one donor has agreed to these services. pay IBRD up to $13 million of any deficit. The fee income from all of these investment Donor Receivables are reported in Other Assets - management activities in the amount of $18 million Miscellaneous, with the corresponding payables ($14 million --June 30, 2008) is included in service reflected in Accounts payable and miscellaneous fee revenues described in Note I--Administrative liabilities. Fee income recognized from these Expenses, Contributions to Special Programs, and arrangements is included in Other Income. Amounts Other Income. recorded for the non-contingent and contingent At June 30, 2009, the assets managed under these obligations arising from IBRD's obligation to pay in agreements had a value of $20,054 million ($17,767 the event of a donor default are included in Note million--June 30, 2008). These funds are not D--Loans and Guarantees. included in the assets of IBRD. 86 THE WORLD BANK ANNUAL REPORT 2009 NOTE K--PENSION AND OTHER The amounts presented below reflect IBRD's POSTRETIREMENT BENEFITS respective share of the costs, assets and liabilities of the plans. IBRD, IFC and MIGA participate in a defined benefit SRP, a Retired Staff Benefits Plan (RSBP) All costs, assets and liabilities associated with these and a Post-Employment Benefits Plan (PEBP) that plans are allocated between IBRD, IFC, and MIGA cover substantially all of their staff members. based upon their employees' respective participation in the plans. Costs allocated to IBRD are then shared The SRP provides regular pension benefits and between IBRD and IDA based on an agreed cost includes a cash balance plan. The RSBP provides sharing ratio. IDA, IFC and MIGA reimburse IBRD certain health and life insurance benefits to eligible for their proportionate share of any contributions retirees. The PEBP provides certain pension benefits made to these plans by IBRD. Contributions to these administered outside the SRP. plans are calculated as a percentage of salary. IBRD uses a June 30 measurement date for its pension and other postretirement benefit plans. The following table summarizes the benefit costs associated with the SRP, RSBP, and PEBP for IBRD and IDA for the fiscal years ended June 30, 2009, June 30, 2008, and June 30, 2007: In millions of U.S. dollars SRP RSBP PEBP 2009 2008 2007 2009 2008 2007 2009 2008 2007 Benefit Cost Service cost $ 264 $ 258 $ 261 $ 44 $ 38 $ 36 $15 $14 $13 Interest cost 697 611 596 104 82 82 28 15 15 Expected return on plan assets (948) (943) (823) (115) (112) (94) -- -- -- Amortization of prior 7 7 7 (2) (2) (2) * * * service cost (credit) Amortization of unrecognized -- -- -- 21 4 17 20 3 4 net loss Net periodic pension cost $ 20 $ (67) $ 41 $52 $ 10 $39 $64 $32 $32 (income) of which: IBRD's share $ 10 $ (32) $ 18 $ 25 $ 5 $17 $31 $15 $14 IDA's share $ 10 $ (35) $ 23 $ 27 $ 5 $22 $33 $17 $18 *Indicates amount less than $0.5 million IDA's share of the net periodic pension income/cost The following table summarizes the projected is included as a payable to/receivable from IDA in benefit obligations, fair value of plan assets, and Accounts payable and miscellaneous liabilities on funded status associated with the SRP, RSBP, and the Balance Sheet. PEBP for IBRD and IDA for the fiscal years ended June 30, 2009, and June 30, 2008. Since the assets The expenses for the SRP, RSBP and PEBP are for the PEBP are not held in an irrevocable trust included in Administrative Expenses. For the fiscal separate from the assets of IBRD, they do not years ended June 30, 2009, June 30, 2008, and June qualify for off-balance sheet accounting and are 30, 2007, expenses (income) for these plans of $34 therefore included in IBRD's investment portfolio. million, $3 million and $16 million, respectively, The assets of the PEBP are invested in fixed income were allocated to IFC, and $(1) million, $(2) million instruments. and $0.1 million, respectively, were allocated to MIGA. IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 87 In millions of U.S. dollars SRP RSBP PEBP 2009 2008 2009 2008 2009 2008 Projected Benefit Obligations Beginning of year $10,561 $ 9,998 $1,558 $1,338 $ 436 $ 249 Service cost 264 258 44 38 15 14 Interest cost 697 611 104 82 28 15 Participant contributions 74 72 13 12 * 1 Retiree drug subsidy received n.a. n.a. 1 2 n.a. n.a. Plan amendment 5 3 -- -- 1 * Benefits paid (445) (426) (54) (46) (19) (22) Actuarial (gain) loss (1,549) 45 (233) 132 (66) 179 End of year 9,607 10,561 1,433 1,558 395 436 Fair value of plan assets Beginning of year 12,414 12,307 1,396 1,352 Participant contributions 74 72 13 12 Actual return on assets (2,162) 360 (244) 24 Employer contributions 51 101 55 54 Benefits paid (445) (426) (54) (46) End of year 9,932 12,414 1,166 1,396 Funded status $ 325 $ 1,853 $ (267) $ (162) $(395) $(436) Accumulated Benefit Obligations $ 8,003 $ 8,673 $1,433 $1,558 $ 356 $ 402 *Indicates amount less than $0.5 million The $325 million overfunded status relating to SRP Pension and other postretirement benefits at June 30, 2009 ($1,853 million--June 30, 2008) is attributable to IDA of $1,659 million ($1,611 included in Assets under retirement benefits plans million--June 30, 2008) is included in Accounts on theBalance Sheet. The $267 million and $395 payable and miscellaneous liabilities on the Balance million underfunded status relating to RSBP and Sheet (see Note I--Administrative Expenses, PEBP, respectively are reported under Liabilities Contributions to Special Program, and Other under retirement benefits plans on the Balance Income). Sheet. The following tables present the amounts included in Accumulated Other Comprehensive Income relating to FAS 158 application: Amounts included in Accumulated Other Comprehensive Income in fiscal year ended June 30, 2009: In millions of U.S. dollars SRP RSBP PEBP Total Net actuarial loss $1,863 $495 $137 $2,495 Prior service cost (credit) 42 (2) 3 43 Net amount recognized in Accumulated Other Comprehensive Income $1,905 $493 $140 $2,538 Amounts included in Accumulated Other Comprehensive Income in fiscal year ended June 30, 2008: In millions of U.S. dollars SRP RSBP PEBP Total Net actuarial loss $301 $390 $223 $914 Prior service cost (credit) 44 (4) 3 43 Net amount recognized in Accumulated Other Comprehensive Income $345 $386 $226 $957 88 THE WORLD BANK ANNUAL REPORT 2009 The estimated amounts that will be amortized from Accumulated Other Comprehensive Income into net periodic benefit cost in the fiscal year ending June 30, 2010 are as follows: In millions of U.S. dollars SRP RSBP PEBP Total Net actuarial loss $68 $29 $11 $108 Prior service cost (credit) 7 (2) 1 6 Amount estimated to be amortized into net periodic benefit cost $75 $27 $12 $114 Assumptions bond yield, and risk premium/spread (as The actuarial assumptions used are based on appropriate). Other asset class returns are derived financial market interest rates, past experience, and from their relationship to equity and bond markets. management's best estimate of future benefit The expected long-term rate of return for the RSBP changes and economic conditions. Changes in these is computed using procedures similar to those used assumptions will impact future benefit costs and for the SRP. The discount rate used in determining obligations. the benefit obligation is selected by reference to the year-end AAA and AA corporate bonds. The expected long-term rate of return for the SRP assets is a weighted average of the expected long- Actuarial gains and losses occur when actual results term (10 years or more) returns for the various asset are different from expected results. Amortization of classes, weighted by the portfolio allocation. Asset these unrecognized gains and losses will be included class returns are developed using a forward-looking in income if, at the beginning of the fiscal year, they building block approach and are not strictly based on exceed 10 percent of the greater of the projected historical returns. Equity returns are generally benefit obligation or the market-related value of plan developed as the sum of expected inflation, expected assets. If required, the unrecognized gains and losses real earnings growth and expected long-term are amortized over the expected average remaining dividend yield. Bond returns are generally service lives of the employee group. developed as the sum of expected inflation, real The following tables present the weighted-average assumptions used in determining the projected benefit obligations and the net periodic pension costs for the fiscal years ended June 30, 2009, June 30, 2008, and June 30, 2007: Weighted average assumptions used to determine projected benefit obligation In percent SRP RSBP PEBP 2009 2008 2007 2009 2008 2007 2009 2008 2007 Discount rate 7.00 6.75 6.25 7.00 6.75 6.25 7.00 6.75 6.25 Rate of compensation increase 6.70 7.00 6.50 6.70 7.00 6.50 Health care growth rates - at end of fiscal year 7.00 7.25 6.80 Ultimate health care growth rate 4.75 5.50 4.75 Year in which ultimate rate is reached 2017 2016 2012 Weighted average assumptions used to determine net periodic pension cost In percent SRP RSBP PEBP 2009 2008 2007 2009 2008 2007 2009 2008 2007 Discount rate 6.75 6.25 6.50 6.75 6.25 6.50 6.75 6.25 6.50 Expected return on plan assets 7.75 7.75 7.75 8.25 8.25 8.25 Rate of compensation increase 7.00 6.50 6.80 7.00 6.50 6.80 Health care growth rates - at end of fiscal year 7.25 6.80 7.60 Ultimate health care growth rate 5.50 4.75 5.00 Year in which ultimate rate is reached 2016 2012 2012 IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 89 The medical cost trend rate can significantly affect the reported postretirement benefit income or costs and benefit obligations for the RSBP. The following table shows the effects of a one-percentage-point change in the assumed healthcare cost trend rate: In millions of U.S. dollars One percentage point One percentage point increase decrease Effect on total service and interest cost $ 36 $ (27) Effect on postretirement benefit obligation 267 (211) Investment Strategy Finance Committee approved an interim strategic The investment policy for the SRP and the RSBP is asset allocation (reflected in the table below) for the to optimize the risk-return relationship as RSBP based on the asset allocation as of December appropriate to the respective plan's needs and goals, 2008, pending resumption of work on a detailed using a global diversified portfolio of various asset strategic asset allocation review after market classes. Specifically, the long-term asset allocation conditions stabilize in the wake of the recent global is based on an analysis that incorporates expected financial crisis. Plan assets are managed by external returns by asset class as well as volatilities and investment managers and monitored by IBRD's correlations across asset classes and the liability pension and endowments department. The pension profile of the respective plans, especially in the case plan assets are invested in diversified portfolios of of the SRP. This analysis also provides estimates of public equity, fixed income, and alternative potential future contributions and future asset and investments. liability balances. In February 2009 the Pension The following table presents the asset allocation at June 30, 2009 and June 30, 2008 and the respective target allocation by asset category for the SRP and RSRP: In percent SRP RSBP Target % of Plan Assets Target % of Plan Assets Allocation Allocation Asset Class 2009 (%) 2009 2008 2009 (%) 2009 2008 Fixed Income 26 37 33 32 34 30 Public Equity 14 16 23 24 23 27 Alternative Investments 60 47 44 44 43 43 Total 100 100 100 100 100 100 Alternative Investments include: Private Equity 15% 17.3% 14.8% 22% 23% 20% Real Estate 12.5 7.5 7.3 6 6 6.1 Hedge Funds & Active Overlay 25 18.4 18.5 16.5 14 16.9 Timber 2.5 0.4 0.2 n.a n.a n.a Infrastructure 2.5 0.7 0.5 n.a n.a n.a Commodities 2.5 2.7 2.6 n.a n.a n.a Estimated Future Benefits Payments The following table shows the benefit payments expected to be paid in each of the next five years and subsequent five years. The expected benefit payments are based on the same assumptions used to measure the benefit obligation at June 30, 2009: In millions of U.S. dollars SRP RSBP PEBP Before Medicare Medicare Part D Part D Subsidy Subsidy July 1, 2009 - June 30, 2010 $ 505 $ 44 $1 $ 28 July 1, 2010 - June 30, 2011 537 49 1 30 July 1, 2011 - June 30, 2012 567 54 1 32 July 1, 2012 - June 30, 2013 594 59 1 33 July 1, 2013 - June 30, 2014 624 64 1 36 July 1, 2014 - June 30, 2019 3,516 409 8 210 Expected Contributions assets and liabilities of the SRP and RSBP. The best estimate of the amount of contributions expected to IBRD's contribution to the SRP and RSBP varies from year to year, as determined by the Pension be paid to the SRP and RSBP for IBRD and IDA Finance Committee, which bases its judgement on during the fiscal year beginning July 1, 2009 is $149 million and $54 million, respectively. the results of annual actuarial valuations of the 90 THE WORLD BANK ANNUAL REPORT 2009 NOTE L--SEGMENT REPORTING For the fiscal year ended June 30, 2009, loans to two countries generated in excess of 10 percent of loan Based on an evaluation of IBRD's operations, income; this amounted to $394 million and $398 management has determined that IBRD has only one million respectively. Loan income comprises reportable segment since IBRD does not manage its interest, commitment fees, loan origination fees and operations by allocating resources based on a prepayment premia, net of waivers. determination of the contribution to net income from individual borrowers. The following table presents IBRD's loan outstanding balances and associated loan income, by geographic region, as of and for the fiscal years ended June 30, 2009 and June 30, 2008: In millions of U.S. dollars 2009 2008 Region Loan Income Loans Outstanding Loan Income Loans Outstanding Africa $ 25 $ 997 $ 317 $ 1,169 East Asia and Pacific 855 23,574 1,296 23,447 Europe and Central Asia 1,061 28,057 1,386 26,669 Latin America and the Caribbean 1,317 35,880 1,681 31,010 Middle East and North Africa 291 7,435 373 7,509 South Asia 284 9,704 441 9,192 a Other 2 51 3 54 Total $3,835 $105,698 $5,497 $99,050 a. Represents loans to IFC, an affiliated organization. NOTE M--COMPREHENSIVE INCOME cumulative effects of a change in accounting principle related to the implementation of FAS 133, Comprehensive income consists of net income and currency translation adjustments, pension-related other gains and losses affecting equity that, under items, and net income. These items are presented in U.S. GAAP, are excluded from net income. For the Statement of Comprehensive Income. IBRD, comprehensive income comprises the The following tables present the changes in Accumulated Other Comprehensive Income for the fiscal years ended June 30, 2009, June 30, 2008, and June 30, 2007: In millions of U.S. dollars 2009 Cumulative Total Effect of Unrecognized Unrecognized Accumulated Cumulative Change in Net Actuarial Prior Service Other Translation Accounting Loss on Costs on Comprehensive a a Adjustment Principle Reclassification Benefit Plans Benefit Plans Income Balance, beginning of the fiscal year $1,226 $500 $(516) $ (914) $(43) $ 253 Changes from period activity (366) -- 11 (1,581) (*) (1,936) Balance, end of the fiscal year $ 860 $500 $(505) $(2,495) $(43) $(1,683) a. The Cumulative effect of change in accounting principle and subsequent reclassification to net income relates to the adoption of FAS 133 on July 1, 2000. * Indicates amount less than $0.5 million In millions of U.S. dollars 2008 Cumulative Unrecognized Unrecognized Total Effect of Net Actuarial Prior Service Accumulated Cumulative Change in Gain (Loss) (Costs) Credit Other Translation Accounting on Benefit on Benefit Comprehensive a a Adjustment Principle Reclassification Plans Plans Income Balance, beginning of the fiscal year $ 434 $500 $(496) $ 107 $(44) $ 501 Changes from period activity 792 -- (20) (1,021) 1 (248) Balance, end of the fiscal year $1,226 $500 $(516) $ (914) $(43) $ 253 a. The Cumulative effect of change in accounting principle and subsequent reclassification to net income relates to the adoption of FAS 133 on July 1, 2000. IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 91 In millions of U.S. dollars 2007 Cumulative Total Effect of Unrecognized Unrecognized Accumulated Cumulative Change in Net Actuarial Prior Service Other Translation Accounting Gain on Costs on Comprehensive a a Adjustment Principle Reclassification Benefit Plans Benefit Plans Income Balance, beginning of the fiscal year $121 $500 $(464) $ -- $ -- $157 Changes from period activity 313 -- (32) -- -- 281 Adjustment to initially apply FAS158-Note K -- -- -- 107 (44) 63 Balance, end of the fiscal year $434 $500 $(496) $107 $(44) $501 a. The Cumulative effect of change in accounting principle and subsequent reclassification to net income relates to the adoption of FAS 133 on July 1, 2000. NOTE N--FAIR VALUE ADJUSTMENTS ON reclassified into earnings in the same period or NON-TRADING PORTFOLIOS, NET periods in which the hedged forecasted transactions affect earnings. On July 1, 2000, IBRD adopted FAS 133. This standard requires that derivative instruments, as Any gains or losses on those borrowings for which a defined by FAS 133, be recorded on the balance fair value exposure was being hedged prior to sheet at fair value. IBRD has not defined any adoption of FAS 133 were recorded in income at the qualifying hedging relationships under this standard. time of implementation, and were offset by the fair value adjustments on the related derivative Prior to the adoption of FAS 133, the derivative instruments. The fair value adjustments on those instruments in the borrowing portfolio were bonds are being amortized into earnings over the recorded using synthetic accounting. The derivative remaining lives of the related bonds, through the instruments in the investment portfolio were, and Fair value adjustment on non-trading portfolios, net continue to be, recorded at fair value in accordance in the Statement of Income. with the requirements of Statement of Financial Accounting Standards No. 115, Accounting for Effective July 1, 2008, IBRD carries all financial Certain Investments in Debt and Equity Securities. instruments in its borrowings portfolio at fair value, with changes in fair values accounted for through Upon adoption of FAS 133, $500 million was earnings. Prior to this date, only qualifying hybrid reported in other comprehensive income debt instruments in the borrowings portfolio were representing the difference between the carrying carried at fair value. value and the fair value of those derivatives that were hedging a cash flow exposure prior to the initial application of FAS 133. This amount is being The following table reflects the components of the fair value adjustment on non-trading portfolios, net for the fiscal years ended June 30, 2009, June 30, 2008, and June 30, 2007. In millions of U.S. dollars 2009 2008 2007 Fair value adjustments ­ gains (losses): Borrowings $(1,068) $ 1,042 $(975) Non-trading derivatives 4,362 (1,082) 133 Loan (14) * -- Total $ 3,280 $ (40) $(842) * Indicates amount less than $0.5 million During the fiscal year ended June 30, 2009, IBRD the debt issued and outstanding as of June 30, 2009 experienced deterioration in its credit spreads as a was a net gain of $2,852 million, determined using result of the current financial crisis. The estimated observable changes in IBRD's credit spreads. financial effect of this deterioration on the fair value of 92 THE WORLD BANK ANNUAL REPORT 2009 NOTE O ­ FAIR VALUE OF FINANCIAL INSTRUMENTS FAS 157 Disclosures The following table presents IBRD's fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of June 30, 2009: In millions of U.S. dollars Fair Value Measurements on a Recurring Basis As of June 30, 2009 Level 1 Level 2 Level 3 Total Assets: Investments ­ Trading Equity securities $ 640 $ -- $ -- $ 640 Government and agency obligations 1,635 19,599 -- 21,234 Time deposits 802 14,399 -- 15,201 Asset-backed securities -- 3,828 109 3,937 Securities Purchased Under Resale Agreements 33 -- -- 33 Loans Outstanding -- -- 78 78 Derivative Assets Investments -- 18,467 -- 18,467 Client Operations -- 19,559 -- 19,559 Borrowings -- 68,281 14,512 82,793 Other assets / liabilities -- 2,246 -- 2,246 Total assets at fair value $3,110 $146,379 $14,699 $164,188 Liabilities: Borrowings $ -- $ 98,969 $11,071 $110,040 Securities Sold Under Repurchase Agreements and a Securities Lent Under Security Lending Agreements 31 -- -- 31 Derivative Liabilities Investments -- 18,923 -- 18,923 Client Operations -- 19,551 -- 19,551 Borrowings -- 61,808 14,513 76,321 Other assets / liabilities -- 847 -- 847 Total liabilities at fair value $ 31 $200,098 $25,584 $225,713 a. Excludes $2,292 million relating to payable for cash collateral received. The following tables provide a summary of changes in the fair value of IBRD's Level 3 financial assets and liabilities during the fiscal year ended June 30, 2009: In millions of U.S. dollars Investments ­ Trading Asset Government backed and Agency Derivatives, Securities Obligations Total Loans net Borrowings Beginning of the fiscal year $ 14 $ 26 $ 40 $102 $(246) $(11,378) Total realized/unrealized gains or (losses) in: Net income (11) 5 (6) (8) (216) 979 Other comprehensive income -- -- -- (16) 546 (646) Purchases, issuance and settlements, net (16) -- (16) -- 240 354 Transfers in (out), net 122 (31) 91 -- (325) (380) End of the fiscal year $109 $-- $109 $ 78 $ (1) $(11,071) IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 93 The following tables provide information on the unrealized gains or losses included in income for the fiscal year ended June 30, 2009, relating to IBRD's Level 3 financial instruments still held at June 30, 2009, as well as where those amounts are included in the Statement of Income. In millions of U.S. dollars Fiscal Year Ended June 30, 2009 Investments ­ Derivatives, Unrealized (Losses) Gains Trading Loans net Borrowings Income Investments, net ­ Trading $5 $-- $ -- $ -- Fair value adjustment on non-trading portfolios, net -- 14 (480) 1,126 Total $5 $14 $(480) $1,126 As of June 30, 2009, IBRD had no assets or Fair value adjustment on non-trading portfolios, net liabilities measured at fair value on a non-recurring in the Statement of Income. basis. Prior to June 30 2008, IBRD fair valued about 18% Fair Value Option (FAS 159) of its borrowings portfolio and its entire derivatives portfolio. Commencing July 1, 2008, to eliminate On July 1, 2008, under FAS 159, IBRD elected the the differences in the various measurement bases of fair value option for all of its debt instruments in the the instruments in the borrowing portfolio, IBRD borrowings portfolio, resulting in the reporting at elected to fair value all the remaining debt fair value of all financial instruments in the instruments in the portfolio. The objective of this borrowings portfolio previously reported at election was to report the entire portfolio on the amortized cost, and a write-off of unamortized debt same measurement basis, thereby eliminating the issuance costs. As a result of the adoption of FAS mixed-attribute approach and better reflecting the 159, IBRD recorded a transition adjustment of overall economic position and result of the portfolio. $2,566 million as a decrease to the opening balance of retained earnings. After the initial adoption, the Interest expense relating to the debt instruments election is made at the acquisition of a financial carried at fair value is being measured on an asset, or a financial liability and it is irrevocable. effective yield basis and is reported as part of the Borrowings expenses in the Statement of Income. During the fiscal year ended June 30, 2009, net losses totaling $1,068 million, relating to the borrowings measured at fair value are included in The following table presents information about the financial instruments for which IBRD elected the fair value option and for which a transition adjustment was recorded as of July 1, 2008: In millions of U.S. dollars Transition Adjustment to Carrying Carrying Value Retained Earnings Value After Prior to Adoption (Loss) Adoption Borrowings - previously reported at amortized cost, net $(74,194) $(2,566) $(76,760) Cumulative-effect of the adoption of the Fair Value Option $(2,566) The following table presents the difference between the aggregate fair value and aggregate contractual principal balance of long-term borrowings: In millions of U.S. dollars Fair Value at Principal Amount June 30, 2009 Due Upon Maturity Difference Borrowings $110,040 $110,095 $(55) 94 THE WORLD BANK ANNUAL REPORT 2009 NOTE P--FAIR VALUE DISCLOSURES The Balance Sheets below present IBRD's estimates of fair value of its assets and liabilities along with their respective carrying amounts as of June 30, 2009 and June 30, 2008. In millions of U.S. dollars 2009 2008 Carrying Carrying Value Fair Value Value Fair Value* Due from Banks $ 3,044 $ 3,044 $ 890 $ 890 Investments 41,045 41,045 26,598 26,598 Net Loans Outstanding 103,657 101,918 97,268 98,392 Derivative Assets Investments 18,467 18,467 5,857 5,857 Client operations 19,559 19,559 20,269 20,269 Borrowings 82,793 82,793 76,098 76,098 Other Asset/Liability 2,246 2,246 609 609 Other Assets 4,609 4,609 5,722 5,722 Total Assets $275,420 $273,681 $233,311 $234,435 Borrowings $110,040 $110,022 $87,402 $89,946 Derivative Liabilities Investments 18,923 18,923 6,309 6,309 Client operations 19,551 19,551 20,263 20,263 Borrowings 76,321 76,321 69,152 69,152 Other Asset/Liability 847 847 1,007 1,007 Other Liabilities 9,701 9,701 7,630 7,630 Total Liabilities 235,383 235,365 191,763 194,307 Paid in Capital Stock 11,491 11,491 11,486 11,486 Retained Earnings and Other Equity 28,546 26,825 30,062 28,642 Total Equity 40,037 38,316 41,548 40,128 Total Liabilities and Equity $275,420 $273,681 $233,311 $234,435 * Except for loans not reported at fair value, which as at June 30, 2008 were on an estimated value (current value) basis. Valuation Methods and Assumptions its valuation model for loans to incorporate Credit Default Swap spreads for each borrower. Basis Due from Banks adjustments are applied to market recovery levels to The carrying amount of unrestricted and restricted reflect IBRD's recovery experience. currencies is considered a reasonable estimate of the Derivatives Receivable and Derivatives Payable fair value of these positions. Certain derivatives, as defined by FAS 133, are Investments recorded in the balance sheet at estimated fair value. IBRD's investment securities and related financial The fair value is estimated using a discounted cash instruments held in the trading portfolio are carried and flow method representing the estimated cost of reported at fair value. Therefore, for the investment replacing these contracts on that date. (See Note A-- portfolio, no additional adjustment is necessary. Fair Summary of Significant Accounting and Related value is based on market quotations. Instruments for Policies). which market quotations are not readily available have been valued using market-based methodologies and Borrowings market information. (See Note A--Summary of The fair value of borrowings is predominantly based on Significant Accounting and Related Policies). discounted cash flow techniques using appropriate market yield curves. Net Loans Outstanding All of IBRD's loans are made to or guaranteed by Other Assets and Other Liabilities countries that are members of IBRD, except for those These amounts are generally short-term in nature. loans made to IFC. IBRD does not currently sell its Therefore, the carrying value is a reasonable estimate loans. of fair value. The fair value of loans is based on a discounted cash flow method. Effective July 1, 2008, IBRD modified IBRD FINANCIAL STATEMENTS: JUNE 30, 2009 95 INTERNATIONAL DEVELOPMENT ASSOCIATION MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2009 Section 1: OVERVIEW Section 2: FINANCIAL RESULTS 2.1 Current Economic Conditions 2.2 Net Income (Loss) 2.3 Financing Operations Section 3: DEVELOPMENT ACTIVITIES 3.1 Eligibility Criteria 3.2 Financing Principles 3.3 Financing Cycles 3.4 Financing Categories 3.5 IDA's Policies for Poverty Reduction Section 4: PRODUCTS AND PROGRAMS 4.1 Development Credits 4.2 Development Grants 4.3 Partial Risk Guarantees 4.4 Heavily Indebted Poor Countries (HIPC) Debt Initiative 4.5 Multilateral Debt Relief Initiative (MDRI) 4.6 Financial Crisis Response Fast Track Facility Section 5: FINANCIAL RESOURCES 5.1 Commitment Authority Framework 5.2 Donor Resources 5.3 Internal Resources 5.4 IBRD Transfers 5.5 IFC Grants 5.6 Other Transfers 5.7 Fifteenth Replenishment of IDA's Resources (IDA15) Section 6 ALLOCATION OF RESOURCES 6.1 Performance Based Allocation System 6.2 Country Performance Rating 6.3 Grant Allocations and Debt Cancellation 6.4 Exceptions 6.5 IDA15 Policy Framework Section 7 MANAGEMENT OF LIQUID ASSET HOLDINGS 7.1 Investment Policy Objectives 7.2 Minimum Liquidity Levels 7.3 General Investment Authorization 7.4 Liquidity Tranching Section 8: FINANCIAL RISK MANAGEMENT 8.1 Governance Structure 8.2 Managing Risk Bearing Capacity 8.3 Credit Risk 8.4 Market Risk 8.5 Operational Risk IDA Management's Discussion and Analysis: June 30, 2009 97 Section 9: CRITICAL ACCOUNTING POLICIES 9.1 Valuation of Financial Instruments 9.2 Provision for HIPC Debt Initiative and MDRI 9.3 Provision for Losses on Development Credits and Guarantees 9.4 Pension and Other Postretirement Benefits Section 10: GOVERNANCE 10.1 General Governance 10.2 Audit Committee 10.3 Code of Conduct and Business Conduct Infrastructure 10.4 Auditor Independence LIST OF BOXES, TABLES AND CHARTS Boxes 1 Financing Principles 102 2 IDA 15 Policy Framework 111 3 Treatment of Overdue Payments 114 Tables 1 Condensed Statement of Income 100 2 Financing Summary and Selected Financial Data 101 3 Commitment Charges on Credits 104 4 Summary of Repayment Terms by Eligibility Criteria for Development Credits 105 5 Status of Countries under Enhanced HIPC Framework 106 6 IDA Investment Credit Exposure, Net of Collateral Held, By Counterparty Rating 115 Charts 1 Commitments of Credits and Grants by Regions 102 2 Share of Lending Categories 103 3 IDA15 Commitment Authority by Source of Funds 109 4 IDA's Performance Based Allocation System 110 Throughout Management's Discussion and Analysis, terms in boldface type are defined in the Glossary of Terms on page 121. The Management Discussion and Analysis contains forward looking statements which may be identified by such terms as "anticipates", "believes", "expects", "intends" or words of similar meaning. Such statements involve a number of assumptions and estimates that are based on current expectations, which are subject to risks and uncertainties beyond IDA's control. Consequently, actual future results could differ materially from those currently anticipated. 98 The World Bank Annual Report 2009 Section 1: OVERVIEW Cash inflows consist of four primary components: (i) encashment of contributions provided by donor International Development Association (IDA) is an countries; (ii) transfers from IBRD's net income and international organization established in 1960 and is grants from IFC's retained earnings; (iii) credit owned by its member countries. Since its inception reflows, including principal repayments and income IDA has played a pivotal role in the global aid from development credits and guarantees; and (iv) architecture and is the largest multilateral channel for investment income on liquid assets. Cash outflows providing concessional financing to the world's have two primary components: (i) disbursements of poorest countries in their efforts to boost economic approved credits and grants; and (ii) payments to growth, lower poverty and improve the living IBRD for IDA's allocated share of the combined conditions of people. Given its poverty focus, IDA administrative expenses. directs a large share of its resources to countries where people earn less than two dollars a day. IDA faces timing mismatches between cash receipts from donors and borrowers and disbursements of IDA pursues these goals by providing concessional new credits and grants. To manage these timing development credits, grants and guarantees to its mismatches between cash inflows and outflows and borrowing member countries to help meet their to ensure optimal use of development resources, development needs. It also participates in programs IDA employs a number of financial practices, and initiatives including debt relief, and provides namely: technical assistance and other advisory services to support poverty reduction. Donor funds are encashed over time so as to match the nine-year average disbursement Member contributions, internal resources (see profile of development credits and grants. Section 5.3 Internal Resources), and transfers from affiliated organizations, fund IDA's lending and Provision of incentives to donors for early grant making operations. As a result IDA does not encashments. borrow from the capital markets. Expected principal repayments on disbursed Commitment Authority and Cash Flows and outstanding credits are considered as a IDA is a revolving concessional financing window source of commitment authority. with regular three-year replenishments by donors. Projected future investment income is The resources available to IDA for funding its grant committed at the beginning of each financing, lending and guarantee activities constitute replenishment period. its commitment authority, which is measured in Special Drawing Rights (SDRs). As commitments Total income from credits and guarantees is for development credits and grants are approved expected to cover administrative expenses in during the three year replenishment period, the a given year. commitment authority is drawn down. These Use of various hedging strategies to committed funds are then disbursed over an extended minimize currency mismatches of cashflows. period, averaging nine years. Basis of Reporting The Fifteenth Replenishment of IDA (IDA15) is the IDA's financial statements are prepared in current replenishment and runs from July 1, 2008 to conformity with the accounting principles generally June 30, 2011 with 45 donor governments accepted in the United States of America (U.S. contributing. The IDA15 commitment authority GAAP). framework is SDR 27.8 billion, of which SDR 16.5 billion is funded by new donor contributions, SDR Members' subscriptions and contributions are 4.1 billion from donors' compensation for recorded on the balance sheet since they confer an Multilateral Debt Relief Initiative (MDRI), SDR 4.8 equity participation in the net assets of IDA through billion from internal resources including a carryover voting rights. Subscriptions and contributions can from previous replenishments, and the remaining be used to fund development grants and the costs of SDR 2.4 billion from anticipated transfers from the providing debt relief under Heavily Indebted Poor International Bank for Reconstruction and Countries (HIPC) Debt Initiative and MDRI. Under Development (IBRD) and the International Finance U.S. GAAP, development grants and adjustments to Corporation (IFC). Of the total IDA15 commitment the accumulated provision for debt relief and losses authority framework, SDR 8.4 billion was on development credits and guarantees are recorded committed as of June 30, 2009. as a charge against or addition to income. This accounting under U.S. GAAP creates an IDA needs to have sufficient funds available to asymmetry in IDA's Statement of Income to the disburse approved development credits and grants. extent that subscriptions and contributions fund IDA Management's Discussion and Analysis: June 30, 2009 99 development grants and are used to bear the costs of during the economic crises and it does not borrow debt relief. This asymmetry has resulted in IDA from the capital markets. As a result, IDA's lending recording losses in its income statement over the capacity, as determined by its commitment years. These losses have had no impact on the authority Framework, has not been affected. financial and operational management of IDA at any 2.2 Net Income (Loss) point in time. IDA's financial and operational management is driven by: Table 1 Condensed Statement of Income provides a comparison of the main sources of income and its lending capacity as determined by the expenses for the two years under review. commitment authority of the particular replenishment effective at that time (see FY2009 net income reflects an increase of $2,133 Section 5 Financial Resources); and million over that of FY2008. The factors contributing to this increase are discussed below. having sufficient liquidity available on a timely basis in the amount needed to meet Income from development credits and guarantees in future cash flow requirements, including FY2009 declined by $120 million in comparison disbursements for credits, grants, and with FY2008. This was primarily due to credits administrative expenses (see Section 7 outstanding to three member countries being Management of Liquid Asset Holdings). restored to accrual status in FY2008, and the resultant recognition of income accreted in prior IDA uses currency forward contracts to hedge its years' being recognized in FY2008. In addition, exposure to any potential loss of value of commitment charges were reduced from 10 basis contributions in national currencies vis-à-vis the points in FY2008 to nil in FY2009. SDR pledged by donors at the start of the replenishment. The translation adjustment on the IDA's investment portfolio has a duration which is non-functional currencies of these forward contracts determined based on its liquidity management is reported in the income statement. However the strategy. The majority of the portfolio (Tranche 1) is economic offset, the change in value of donor invested to immunize contracted future net cashflow pledges, is not reported in IDA's financial requirements, which generally extend up to nine statements, since donor pledges do not meet the years at the start of a replenishment. The length of definition of assets. this duration position makes IDA's investment portfolio's mark-to-market value sensitive to Section 2: FINANCIAL RESULTS interest rate movements. IDA's investment 2.1 Current Economic Conditions gains/losses are economically offset by increases/decreases in the present value of IDA's IDA has had only limited exposure to the current future net cashflow requirements. market conditions since its liquidity portfolio had minimal exposure to asset classes which suffered Table 1 Condensed Statement of Income Expressed in millions of U.S. dollars FY 2009 FY 2008 Income Income from development credits and guarantees $801 $921 Net investment income 1,499 1,006 Transfers and grants from affiliated organizations and trust 1,037 1,104 Expenses Administrative expenses (975) (888) Development grants (2,575) (3,151) Release of provision for debt relief and for losses on credits and guarantees 1,236 773 Other expenses, net (45) ­ Items relating to hedging of donor contributions Non-functional currency translation adjustment gains 859 6 Net unrealized losses on non-trading derivatives 13 (54) Net Income (loss) $1,850 $(283) 100 The World Bank Annual Report 2009 During FY2009, there were significant downward The main driver of this increase was Nepal's shifts in U.S. dollar, euro and British pound sterling decision in February 2009 not to seek eligibility interest rates compared to FY2008, resulting in under the HIPC Debt Relief Initiative. significant mark-to-market gains which contributed The increase in non-functional currency translation to the increase in investment income of $493 million gains of $853 million reported during FY2009 was over the previous year. due to the impact of depreciation of national During FY2009, IDA received $583 million as currencies of donors against the U.S. dollar on transfers from IBRD and $450 million as grants from derivative liabilities relating to hedges of donor IFC. The grants from IFC are to be used as part of commitments. These hedges were entered into in IDA15 resources in furtherance of IFC's purposes. May 2008. During FY2008, IDA received $600 million from 2.3 Financing Operations IBRD and $500 million as grants from IFC. An additional amount of $4 million was received from A summary of the financing operations for the last trust funds in both years. three fiscal years is included in Table 2. Administrative expenses increased by $87 million Commitments of development credits and grants in over the prior year primarily due to increases in staff FY2009 increased by $2,806 (25%) million over costs including pension benefit costs. those in FY2008. In terms of regional focus, Africa and South Asia together account for 86% of the The $576 million decrease in grant expenses over the FY2009 commitments (see Chart 1). prior year was mainly due to the pre-arrears clearance grants to Liberia and Côte d'Ivoire in Net disbursements increased by $32 million over FY2008. the same period. In FY2008 net disbursements were higher than normal due to pre-arrears FY2009 saw an increase in the release of provision clearance grants to Liberia and Côte d'Ivoire in for debt relief and for losses on credits and FY2008. guarantees of $463 million compared to FY2008. Table 2: Financing Summary and Selected Financial Data In millions of U.S. dollars As of or for the fiscal years ended June 30 2009 2008 2007 Financing Commitments of credits, grants and a guarantees $14,041 $11,235 $11,867 Gross Disbursements 9,219 9,160 8,579 of which development grants 2,209 2,626 1,289 Net Disbursements including grants 7,010 6,978 6,826 Key Balance Sheet Data Total Assets $146,010 $149,849 $131,839 Development Credits outstanding 112,894 113,542 102,457 Net Investment Portfolio 21,287 19,053 17,469 Subscriptions and Contributions paid-in 150,085 142,416 136,091 a. FY2009 commitments of credits and grants include HIPC grants totaling $46 million. IDA Management's Discussion and Analysis: June 30, 2009 101 Chart 1: Commitments of Credits and Grants by the International Bank for Reconstruction and Regions Development (IBRD) and are referred to as "IDA USD M illions only" countries. The remaining fourteen are deemed 10,000 to have limited IBRD creditworthiness. These latter countries may receive both IDA and IBRD FY07 FY08 FY09 financing and are referred to as "blend" countries. 7,500 With a few exceptions, IDA's eligibility cutoff for FY2009 was a per capita Gross National Income 5,000 (GNI) in 2007 of $1,095 (the "operational cutoff"). The FY2010 operational cutoff has been set at $1,135. 2,500 3.2 Financing Principles 0 IDA's financing operations are required to conform AFR EAP ECA LCR MNA SAR to the general principles derived from its Articles. These principles (which are described in Box 1), Section 3: DEVELOPMENT ACTIVITIES taken together, seek to ensure that IDA financing is made to member countries for financially and 3.1 Eligibility criteria economically sound purposes to which those Two basic criteria govern a country's eligibility for countries have assigned high development priority, IDA resources: relative poverty defined as gross and that the financing is utilized as intended. Within national income (GNI) per capita below an the scope permitted by the Articles, application of established threshold (updated annually), and lack of these principles must be developed and adjusted in creditworthiness to borrow on market terms and light of experience and changing conditions. therefore, a need for concessional resources. Currently, seventy-nine countries are eligible to borrow from IDA. Of these, sixty-five are not considered sufficiently creditworthy to borrow from Box 1: Financing Principles (i) IDA may provide financing in the form of development credits, grants and guarantees directly to its members, public or private entities and regional or public international organizations. (ii) IDA's financing is designed to promote economic development, increase productivity and thus raise standards of living in its member countries. Investment projects financed by IDA are required to meet IDA's standards for technical, economic, financial, institutional and environmental soundness. Specific provisions apply to development policy financing, including the treatment of the macroeconomic framework, poverty and social impact, environment, forests and other natural resources. (iii) Decisions to approve financing are based upon, among other things, studies by IDA of a member country's economic structure, including assessments of its resources and ability to generate sufficient foreign exchange to meet debt-service obligations. (iv) IDA must be satisfied that in the prevailing market conditions (taking into account the member's overall external financing requirements), the borrower would be unable to obtain financing under conditions which, in the opinion of IDA, are reasonable for the borrower. This would include loans made by private sources or IBRD. (v) The use of financing proceeds is supervised. IDA makes arrangements intended to ensure that funds provided are used only for authorized purposes and, where relevant, with due attention to considerations of cost-effectiveness. This policy is enforced primarily by requiring borrowers (a) to submit documentation establishing, to IDA's satisfaction, that the expenditures financed with the proceeds of development credits or grants are made in conformity with the applicable financing agreements, and (b) to maximize competition in the procurement of goods and services by using, wherever possible, international competitive bidding procedures or, when it is not appropriate, other procedures that ensure maximum economy and efficiency. In addition, under pilot programs approved by the Executive Directors, IDA considers the use of borrower country procurement, and environmental and social safeguard systems in selected operations where these systems are assessed by IDA as being equivalent to IDA's systems and where the borrower's policies and procedures, implementation practices, track record, fiduciary and safeguard risks and capacity are considered acceptable to IDA. 102 The World Bank Annual Report 2009 3.3 Financing Cycles evolution of the country-based development model which recognizes recipient country governments as The process of identifying and appraising a project the most important stakeholder, brings a clearer and approving and disbursing the funds often extends focus on poverty reduction, emphasizes national over several years. After appraisal of a project by ownership of the development effort, and creates staff, with certain exceptions, IDA's Executive accountability for development results. Alignment Directors must approve each credit or grant. with the PRS is the cornerstone of IDA's support to Disbursements are subject to the fulfillment of the country-based development model and the conditions set out in the credit or grant agreement. Country Assistance Strategy (CAS) provides an During implementation of IDA supported operations, anchor for IDA's support at the country level. staff review progress, monitor compliance with IDA policies, and assist in resolving any problems that The CAS facilitates alignment with country may arise. An independent unit, the Independent priorities by taking into account national Evaluations Group, assesses the extent to which development programs as well as harmonization operations have met their major objectives, and these with other donors and World Bank Group activities, evaluations are reported directly to the Executive thereby maximizing impact. The CAS also makes it Directors. However, on numerous occasions, IDA possible for IDA's program to reconcile global has shortened the preparation and approval cycle in concerns and national priorities at the country level. response to emergency situations, such as natural Finally, IDA provides support for the strengthening disasters and financial crises. The establishment of of national capacities, including those for IDA Financial Crisis Response Fast-Track Facility environmental and social safeguards, as well as (see Section 4.6 Financial Crisis Response Fast public financial management and procurement. Track Facility) is an example. Section 4: PRODUCTS AND PROGRAMS 3.4 Financing Categories The financial terms of IDA's products are described IDA's financing falls into one of two categories ­ in detail below. investment lending or development policy lending. 4.1 Development Credits Investment lending is generally used to finance goods, works, and services in support of economic Currencies and social development projects in a broad range of Currently all development credits approved are sectors. In contrast, development policy lending denominated in SDRs. Before August 1, 1980, IDA provides quick disbursing credits or grants to credits were denominated in U.S. dollars. Principal members with external financing needs to support payments and service and commitment charges are structural reforms in a sector or the economy as a due in the currency specified in the Development whole. They support the policy and institutional Credit Agreement in an amount equivalent to the changes needed to create an environment conducive SDRs required under the agreement. to sustained and equitable growth. The share of investment lending has remained fairly consistent at Charges on development credits between 74% in FY2006 and 80% in FY2009 as illustrated in Chart 2. IDA's policy is to maintain its charges (service and commitment charges) at a level that will cover its Chart 2: Share of Lending Categories projected administrative expenses. Development Policy Service Charges. A service charge is levied on the Percentage Share Investment principal amount disbursed and outstanding on all 100% development credits, regardless of eligibility by 90% repayment terms, at the rate of 0.75 percent per 80% annum, to cover the administrative expenses of 70% IDA. 60% 50% Interest. Interest is charged only on hard-term 40% credits. The interest charged is more concessional 30% than the prevailing IBRD lending rate and is set at 20% 200 basis points below the equivalent IBRD lending 10% 0% rate in fixed-rate terms. The actual rate is FY2006 FY2007 FY2008 FY2009 determined on an annual basis, prior to the start of each fiscal year and applies for all hard-term IDA 3.5 IDA's Policies for Poverty Reduction credits approved during a fiscal year. For FY2009 the interest rate was 3.2 percent. For FY2010 the The Poverty Reduction Strategy (PRS) approach interest rate is set at 3.52 percent. followed by IDA is an important step in the IDA Management's Discussion and Analysis: June 30, 2009 103 Commitment Charge. A commitment charge is Commitment charges on the undisbursed balances payable on the undisbursed amount of the of grants are set annually by the Executive Directors development credit. The Executive Directors set the of IDA. From FY2003 through FY2010, IDA's commitment charge at the beginning of each fiscal commitment charge on the undisbursed balances of year. Commitment charges are set having regard to grants has been set at zero. the extent that service charges, adjusted to include Allocation of Grants income forgone from development credits forgiven under HIPC and MDRI, and income forgone as a Grants in IDA15 are available solely for IDA-only result of providing grant financing (instead of countries. The amount available for each country is development credits), cover administrative expenses. a function of the country's performance-based IDA For FY2010, IDA's Executive Directors have allocation (see Section 6 Allocations of retained the commitment charge at zero. Table 3 Resources), and its eligibility for grants is based on shows the history of IDA commitment charges on an assessment of the risk of debt distress. Countries undisbursed development credits. with low risk of debt distress receive 100 percent of their IDA allocation as development credits. Table 3: Commitment Charges on Credits Countries with medium risk of debt distress receive Commitment charge on 50 percent of their IDA allocation as development undisbursed development credits, and the other 50 percent as grants. Fiscal Year credits in basis points FY 2003 and prior 0 Countries with high risk of debt distress will receive FY 2004 50 100 percent of their allocation in the form of grants. FY 2005 35 FY 2006 30 During FY2009, the first year of IDA15, total grants FY 2007 20 approved were $2,575 million representing 18% of FY 2008 10 the total commitments of credits and grants of FY 2009 0 FY 2010 0 $14,041 million. Repayment Terms 4.3 Partial Risk Guarantees Development credits approved through June 30, In FY2009, IDA's Executive Directors approved the 1987 have a final maturity of 50 years including a mainstreaming of the guarantees program, thereby grace period of 10 years. IDA credits approved after ending the pilot status of the IDA guarantee that date also have a grace period of 10 years but the program. Management maintains a program ceiling final maturity and repayment schedule depend on for IDA guarantees for risk management purposes, whether the borrower is classified as IDA-only or initially set at $1.5 billion. blend. Table 4 provides a summary of the Instrument Type and Project Eligibility repayment terms of development credits based on eligibility. IDA offers partial risk guarantees to cover private lenders or investors through shareholder loans, 4.2 Development Grants against the risk of a government (or government- Commitment Authority for and funding of Grants. owned entity) failing to perform its contractual obligations with respect to a private project, and Only funds that are provided with specific grant where official agencies and the private market authorization may be used to finance IDA grants.1 currently offer insufficient insurance coverage. Beginning with the transfer out of IBRD's FY1997 net income, funds received from IBRD as net income Partial risk guarantees can cover a range of transfers have included explicit authority that the sovereign or parastatal risks, subject to specific funding could be used for grants. Recent obligations contractually agreed to by the replenishment resolutions have authorized the government for a specific project. The types of risks financing of grants from donor resources. In covered may vary, including but not limited to: (i) addition, all grants received from IFC's retained breach of contract; (ii) currency non-convertibility earnings have also included the explicit authorization and non-transferability; (iii) changes in law; and (iv) that IDA could use such funding for grants. expropriation and nationalization. 1 IDA's Articles of Agreement (Article V, Section 2(a)) state, "financing by the Association shall take the form of loans." IDA may provide financing in different form, such as grants and guarantees, only if the funds for such financing are accompanied by express advance authorization for such other form of financing. The restriction also applies to "funds derived therefrom as principal, interest or other charges," i.e. reflows. 104 The World Bank Annual Report 2009 Table 4: Summary of Repayment Terms by Eligibility Criteria for Development Credits Eligibility Criteria Repayment Terms Not considered sufficiently creditworthy to borrow from IBRD. For 40 years including a grace period IDA Only FY2009, "IDA-only" borrowers had a 2007 GNI per capita of of 10 years $1,095 or less (the `operational' cutoff) May receive both IDA and IBRD financing. Blend borrowers 35 years including a grace period Blend have limited IBRD creditworthiness and a per capita GNI of 10 years between $730 and $5,530 If a borrower's GNI per capita exceeds the operational cutoff for 20 years including a grace period Hardened Terms more than two consecutive years, IDA credits are extended on of 10 years hardened terms A blend country will be eligible for an additional window of IDA 35 years including a grace period Hard-terms lending at hard terms if its GNI per capita is below the of 10 years operational cutoff and if it has an active IBRD lending program. Eligibility will be determined annually In terms of project eligibility, guarantees are will take (for example whether it will be a cash available in selective cases in IDA-only countries settlement or converted into a credit to be repaid where an IBRD Enclave Guarantee2 is not applicable over time). and in blend countries which do not have access to Guarantees Exposure IBRD funding due to creditworthiness constraints. IDA's exposure on its guarantees (measured by Guarantee Pricing discounting each guaranteed amount from its first Standard charges consist of an annual guarantee fee call date) is $198 million at June 30, 2009 ($209 of 0.75 percent on IDA's maximum exposure3 under million at June 30, 2008). For additional the guarantee and an annual standby fee or information see the Notes to Financial Statements­ commitment charge which is set to match the level of Note D­Development Credits and Guarantees. commitment charges applicable for IDA credits at During the fiscal years ended June 30, 2009 and the time of guarantee approval. The guarantee fee June 30, 2008, no guarantees provided by IDA were and the standby fee are payable either periodically in called. installments or in a single upfront payment, on a present-value basis. In addition, IDA charges a one- 4.4 Heavily Indebted Poor Countries (HIPC) Debt time initiation fee of 0.15 percent or $100,000 Initiative (whichever is higher) and a processing fee of up to The HIPC Debt Initiative is a comprehensive 0.50 percent of the principal amount of the guarantee approach to reduce the external debt of the world's for all private sector borrowers. The processing fee poorest, most heavily indebted countries, and it is determined on a case-by-case basis and can either represented an important step forward in placing be waived or increased in exceptional cases. debt relief within an overall framework of poverty Counter-guarantee from the Government reduction. The countries that qualify for HIPC assistance are the poorest countries that are eligible When IDA issues a guarantee, it obtains a counter- for highly concessional assistance from IDA and guarantee from the host government. If the from the IMF's Poverty Reduction and Growth guarantee is called, IDA pays the project lenders. Facility. Without limiting its rights under the counter- guarantee (indemnity) agreement, IDA takes into Implementation mechanisms of the Enhanced HIPC account all relevant circumstances in deciding Framework include: (i) partial forgiveness of IDA whether or not to exercise its right to demand debt service as it comes due, and (ii) in the case of compensation from the host government under the countries with a substantial amount of outstanding counter-guarantee, and what form the compensation IBRD debt, partial refinancing by IDA resources (excluding transfers from IBRD) of outstanding IBRD debt. 2 IBRD Enclave Guarantees are partial risk guarantees structured for export-oriented commercial projects in IDA- only countries that generate foreign exchange. 3 IDA's maximum exposure to a borrower's risk under a guarantee is defined in a manner similar to disbursed credits, i.e., as the full value of the disbursed and outstanding balance under the guarantee financing. IDA Management's Discussion and Analysis: June 30, 2009 105 Table 5: Status of countries under Enhanced HIPC Framework Pre-Decision Point Eritrea, Somalia, Sudan, Union of the Comoros 4 countries Decision Point Afghanistan, Côte d'Ivoire, Chad, Democratic Republic of Congo, Guinea, Guinea-Bissau, Liberia, 9 countries Republic of Congo, Togo Completion Point Benin, Bolivia, Burkina Faso, Burundi, Cameroon, Central African Republic, Ethiopia, The Gambia, 26 countries Ghana, Guyana, Haiti, Honduras, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, São Tomé and Principe, Senegal, Sierra Leone, Tanzania, Uganda, Zambia The list of countries potentially eligible under the IDA provides in full for the estimated probable Enhanced HIPC Framework has been limited write-off of the principal component of debt relief whereby no new countries can be considered for to be delivered under the MDRI. As of June 30, eligibility. As of June 30, 2009, the status of all 2009 the accumulated provision for MDRI is $6,086 potentially eligible and current HIPCs according to million ($7,628 million, June 30, 2008). The stage reached under the Enhanced HIPC Framework decrease of $1,542 million was due to a is provided in Table 5. combination of Nepal's decision not to seek eligibility under the HIPC Debt Relief Initiative, As of June 30, 2009, the accumulated provision for credits being written off upon Burundi reaching its HIPC Debt Initiative stands at $3,251 million completion point and revisions of estimates due to ($4,215 million--June 30, 2008). The decrease of completion point dates being postponed for a $964 was due to a combination of providing debt number of countries. relief during the course of the year, Nepal's decision not to seek eligibility under the HIPC Debt Relief A list of development credits written off, by Initiative, credits being written off upon Burundi country, on an accumulated basis since reaching its completion point and revisions of implementation of the MDRI, commencing on July estimates due to completion Point dates being 1, 2006, is provided in the Notes to Financial postponed for a number of countries. Statements­Note D­Development Credits and Guarantees. 4.5 Multilateral Debt Relief Initiative (MDRI) 4.6 Financial Crisis Response Fast Track Facility The MDRI, approved by the Executive Directors in June 2006, provides additional debt relief through In December 2008, the Executive Directors 100 percent cancellation of eligible debt owed to approved the establishment of the IDA Financial IDA, the African Development Bank and the Crisis Response Fast-Track Facility through which International Monetary Fund by countries that reach a better response can be provided against the impact the HIPC completion point. The objectives of of the global financial crisis on IDA countries by MDRI are twofold: deepening debt relief to HIPCs fostering a more responsive analysis of pressing while safeguarding the long-term financial capacity needs of IDA borrowers, and a larger and faster of IDA and other participating multilateral response to those needs. The main parameters of institutions; and encouraging the best use of this fast track facility are: additional donor resources for development, by allocating them to low-income countries on the basis An initial $2 billion of IDA15 resources to be of policy performance. fast tracked from existing country allocations without any additional resources being Donors have agreed to compensate IDA on a dollar- provided under this Facility. for-dollar basis for forgone credit reflows due to debt cancellation under the MDRI. These resources are Front loading or acceleration of accounted for as subscriptions and contributions. As commitments is allowed up to 50 percent in of June 30, 2009, IDA has received donor cases where fast-tracked operations cause commitments to the MDRI in the amount of $32,390 annual country allocations to be exceeded. million at the agreed replenishment foreign IDA-only and blend countries that can exchange reference rates, representing 86% of the demonstrate a significant impact from the total financing requirements based on the updated crisis are eligible. cost estimates for the MDRI as of September 30, 2007. A summary by donor country of the IoCs Fast track procedures include shortened received under the MDRI resolution as of June 30, management review periods. 2009 is provided in Notes to Financial Statements ­ Incremental demand for IDA's resources in Note B ­ Members' Subscriptions and Contributions. response to the financial crisis has been limited to 106 The World Bank Annual Report 2009 date, but is expected to increase. As of June 30, terms, and translated into national currencies 2009, ten operations totaling $990 million and using an average exchange rate, agreed upon covering eight countries have been brought forward early in the replenishment process. for fast track processing. (b) Advance Contributions Scheme. To avoid Section 5: FINANCIAL RESOURCES disruption to IDA programs at the start of a new replenishment, donors can participate 5.1 Commitment Authority Framework in an advance contributions scheme. The The resources available to IDA for funding its advance contributions scheme allows IDA to lending activities constitute its commitment continue making new lending commitments authority. IDA finances its credit, guarantee and without waiting for the new replenishment grant commitments primarily from subscriptions and to become effective. The advance contributions from donor countries. Additional funds contribution scheme lapses once the new come from IDA's internal resources, including replenishment becomes effective. Donors reflows (repayments of principal on outstanding can choose not to participate in the Advance credits), investment income, and transfers by IBRD Contribution Scheme. out of its net income and grants as designations out (c) Replenishment Effectiveness. The effective of IFC retained earnings. Since IDA's lending is date of a replenishment occurs when IDA highly concessional, its resources are periodically receives Instruments of Commitment replenished, normally every three years. Since its (IoCs) from donors whose aggregate inception, IDA's resources have been replenished contributions account for not less than the fifteen times, complemented by an additional amount defined in the Replenishment replenishment agreed in 2006 for financing the Resolution. IDA15 became effective on MDRI. November 6, 2008, following the receipt of Starting from FY1989, the Executive Directors IoCs from donors above the minimum authorized IDA to make advance commitments threshold of SDR 9,696 million set in the against future reflows and other internal resources. IDA15 Replenishment Resolution. The Advance Commitment Scheme4 was established (d) Commitment Authority. Donor in recognition of the fact that credits disburse over contributions become available for several years and therefore cash in hand is not commitment in three equal tranches. The needed at the time of commitment.5 first tranche becomes available for 5.2 Donor Resources commitment upon the effectiveness of the advance contributions scheme or of the Replenishment Process replenishment. The second and third Donors normally replenish IDA's resources every tranches are subsequently released for three years. The regular replenishment process has commitment on the dates specified in the several steps: Replenishment Resolution. (a) Replenishment Discussions. These include (e) Payment of Contributions. Typically, meetings between IDA's management and contributions are made in cash or non- donor country representatives, called IDA interest bearing demand notes, on specified Deputies. Issues discussed include the size of dates in three equal annual installments. A the replenishment, relative burden-sharing discount may be provided for cash payments among donors, and the policy framework for based on an accelerated schedule rather than the replenishment. Discussions in IDA15 the standard replenishment schedule. The included the issues of IDA's role in the global amount of discount is calculated so that the aid architecture; IDA's effectiveness at the net present value of cash payments made country level; and IDA's support for fragile according to the revised schedule is equal to states. Contributions are negotiated in SDR the net present value of the cash payments under the encashment schedule agreed for 4 Credits, which disburse over several years, do not have to be the replenishment. fully cash funded at the time of their approval by the (f) Encashment. Donor contributions are drawn Executive Directors. This allows donor contributions to be encashed over several years and internal resources to be down, on an approximately pro rata basis committed in advance of their anticipated receipt. among donors, in accordance with the agreed 5 To determine the appropriate level of internal resources encashment schedule. during a replenishment period, long-term financial projections are used to manage IDA's cash flows on a going concern basis, under a set of underlying assumptions relating to future lending volumes and the level of future donor contributions. IDA Management's Discussion and Analysis: June 30, 2009 107 Members' Voting Rights effectiveness of the replenishment due to a delay in receipt of Instruments of Commitment (IoCs). IDA allocates votes to its members in two ways. Membership votes are allocated equally among 5.3 Internal Resources members, and subscription votes are allocated in IDA's internal resources include reflows (principal relation to a member's initial and subsequent repayments and income from charges less subscriptions and contributions. The key rules administrative expenses), investment income, the governing the voting rights system are as follows: stock of liquidity, and residual resources from past The voting power of each Part I member replenishments that become available to IDA reflects its share of total cumulative financial during the replenishment period. Repayments of contributions to IDA by all Part I members, outstanding credits constitute the largest component plus its original membership votes; of internal resources. Part II members can maintain their relative Risks Associated with Internal Resources voting power by making subscriptions at Under the Advance Commitment Scheme, IDA nominal cost6 and in national currency; and makes commitments against projected levels of Part II members providing IDA with internal resources over the disbursement period of additional resources "in usable form"7 receive these commitments. The level of reflows would be the same increase in voting power that Part I affected if borrowers were to fall behind in their members receive for their contributions. After debt service. Reflows are also affected by the donor negotiations for a replenishment are delivery of debt relief under HIPC and MDRI. completed, subscriptions are allocated to non- Furthermore, the level of investment income varies donor Part II members to provide them the with movements in market interest rates. It is opportunity to maintain their relative voting therefore essential to ensure that resources are power. available to fund disbursements when they are needed. To monitor this risk, IDA's management Both Part I and II members receive additional reviews the level of commitment authority membership votes when they make additional regularly and provides an annual report to IDA's subscriptions. The distribution of membership Executive Directors. votes helps smaller members and the Part II members as a group, to maintain their relative 5.4 IBRD Transfers voting power. Since 1964, IDA has received regular financial Risks Associated with Donor Resources support from IBRD in the form of annual direct transfers. By the end of FY2008 and coinciding IDA experiences foreign currency exposure due to with the end of IDA14, the total direct transfers currency mismatches between its disbursement received stood at $9,845 million. The IDA15 obligations for credits and grants denominated in financing framework includes an indicative amount SDR and donor contributions denominated in of IBRD transfers of $1,750 million. Dependent national currencies. Exchange rate fluctuations will first on IBRD fulfilling its reserve retention needs, it alter the SDR value of donor contributions from the is expected that this amount will be allocated in time of commitment by donors until the actual three installments during fiscal years 2009, 2010 encashment of these contributions. This currency and 2011. Each installment is required to be risk is addressed in Section 8.4 Market Risk. approved annually by IBRD's Board of Governors. Delays in the timing of encashment affect IDA's If approved each installment is expected to be liquidity. If encashment delays occur, IDA may drawn down immediately. During FY2009, IDA agree with the donor on a revised encashment received the first of these installments of $583 schedule that yields at least an equivalent value. million from IBRD, resulting in a cumulative direct Another risk is the potential for delays in declaring transfer of $10,428 million. In the context of the debt relief costs associated with the HIPC Debt Initiative, IBRD has provided additional resources to IDA through contributions to the Debt Relief 6 The nominal cost of one subscription vote was set at U.S.$ Trust Fund totaling $2,330 million as of June 30, 80 (1960 gold dollars) for the third replenishment, and U.S. 2009. $ 25 (current dollars) in the subsequent replenishments. The effective cost of a vote for Part I members has grown from 5.5 IFC Grants about $9,900 under the third replenishment to about $16,800 under the fifteenth replenishment. Starting in 2006, IFC designated $150 million out 7 Resources are deemed to be "in usable form" if they are of its retained earnings as a grant to IDA. The provided in "freely convertible currency" as defined in IDA15 financing framework includes an indicative Article 2, Section 2(f) of IDA's Articles of Agreement or in local currency available for financing in the donor country. amount of $1,750 million as grants to IDA. Of the 108 The World Bank Annual Report 2009 IDA15 indicative amount, IDA has already received Section 6 ALLOCATION OF RESOURCES $950 million, resulting in cumulative grants received 6.1 Performance Based Allocation System of $1,100 million as of June 30, 2009. The remaining $800 million is expected to be paid over FY2010 and A key concern for IDA is inequitable allocation of FY2011, subject to availability of funds and would resources to borrowers given that special priorities be paid immediately upon IDA and IFC signing the of poverty reduction may be in force during a respective grant agreements. The proceeds of these particular replenishment period. This risk of IFC grants must be used by IDA for sectors and inequitable allocation is managed by allocating themes which contribute significantly to private resources to borrowers based on a Performance sector growth and economic development in Based Allocation (PBA) system (see Chart 4). The countries that are members of both IFC and IDA. PBA system has evolved over time with modifications and enhancements being incorporated 5.6 Other Transfers at successive replenishments. The performance- Under agreements governing the administration of based allocations for all countries include a basic certain trust funds, IDA may receive surplus assets as allocation of SDR4.5 million per country per transfers upon the termination of these trust funds. In replenishment (or SDR1.5 million annually), addition, as development credits are repaid to trust which benefits small states in particular. funds, in certain cases the repaid funds are transferred to IDA. Receipts of these transfers are 6.2 Country Performance Rating reported as income in the period in which they are received. Given the small size and the unpredictable Under the PBA system individual country timing of these transfers, they have not been included allocations are derived substantially from Country as part of any replenishment resources. However, Performance Ratings (CPR), population and, to a these transfers have added to IDA's liquidity. Details lesser extent, GNI per capita. of these transfers by transferee are provided in the The Country Performance Ratings are assessed Notes to Financial Statements­Note H­Trust Fund annually using a weighted combination of three Administration elements: 5.7 Fifteenth Replenishment of IDA's Resources (a) Country Policy and Institutional Assessments (IDA15) (CPIA), conducted annually by IDA to assess IDA15 runs from July 1, 2008 to June 30, 2011. the quality of each country's policy and Chart 3 provides a breakdown of the principal institutions for fostering sustainable growth, sources making up the total lending envelope of SDR poverty reduction, and ability to effectively 27.8 billion under the IDA15 Commitment use development assistance. The CPIA Authority Framework. Out of this total, SDR 8.4 assesses each country's policy and billion (30%) was committed during the fiscal year institutional framework and consists of ended June 30, 2009, leaving SDR 19.4 billion for defined criteria grouped into four equally future commitments during FY2010 and FY2011. weighted clusters: (A) economic management; (B) structural policies; (C) Chart 3: IDA15 Commitment Authority by policies for social inclusion and equity; and Source of Funds (D) public sector management and IBRD Transfers institutions. and IFC Grants SDR 2.4 billion New Donor (b) The Annual Review of Portfolio Performance Contributions SDR 16.5 billion (ARPP), which captures the effectiveness of Donor 9% Compensation for IDA-financed projects and programs based MDRI on the percentage of actual IDA problem 15% SDR 4.1 billion projects in a given country. 59% 17% (c) The Governance rating is calculated based on Internal Resources a review of public sector management and (incl. carryover) institutions. SDR 4.8 billion 6.3 Grant Allocations and Debt Cancellation Before arriving at a country's final allocation, any Total Lending Envelope of SDR 27.8 billion grant allocations to that country are discounted. In addition, for those countries eligible for debt cancellation under the MDRI, the debt service due in the relevant fiscal year is netted out from that year's allocation. IDA Management's Discussion and Analysis: June 30, 2009 109 Chart 4: IDA's Performance Based Allocation System Country Policy & Annual Review of Institutional Governance Portfolio Assessments Rating Performance (CPIA) (ARPP) Country Population Performance GNI per Capita Rating Grant Allocations & IDA Exceptions Debt Cancellations Country Allocations 6.4 Exceptions Section 7: MANAGEMENT OF LIQUID ASSET HOLDINGS A number of specific exceptions to the PBA system have been agreed upon. These include: 7.1 Investment Policy Objectives Capped-blend countries with access, or IDA is not a market-based financial entity, and in potential access to IBRD loans receive less the absence of access to borrowed funds, IDA's than their allocation norms due to their primary objective in the management of its liquid broader financing options. assets is to ensure that funds will be available on a timely basis in the amount needed to meet future Countries emerging from severe conflict can, cash flow requirements, including disbursements for under certain conditions, be provided with credits, grants and administrative expenses. additional resources in support of their Consistent with the primary objective, IDA also recovery and in recognition of a period of seeks to maximize returns, subject to loss exceptional need. constraints, to generate investment income, which Additional allocations may be provided to can be added to IDA's internal resources. IDA countries in the aftermath of major 7.2 Minimum Liquidity Levels natural disasters, where the existing allocations would not allow for a sufficient IDA is authorized to borrow from the capital response. markets under its Articles of Agreement. However, IDA does not borrow as a matter of policy, other 6.5 IDA15 Policy Framework than for short-term cash management purposes. During the IDA15 period, IDA will be guided by the During the IDA15 period, fiscal year 2009 to 2011, policy framework outlined in Box 2. This policy IDA's minimum liquidity is set at 33 percent of a framework was agreed upon during the three-year annual moving average of gross replenishment discussions. disbursements. IDA's minimum liquidity is designed to meet both expected and unexpected demands. 110 The World Bank Annual Report 2009 Box 2: IDA15 Policy Framework A. Reinforcing IDA's pivotal role in the global aid architecture Scaling up regional projects especially those located in Sub-Saharan Africa Paying more attention to the interplay between vertical funds and the country based models. Mainstreaming climate change actions into its Country Assistance Strategies particularly in adaptation and access to clean energy. Continue strengthening the application of the Debt Sustainability Framework and its use as the primary basis for grant allocation during IDA 15. Continuing with the use of country-specific debt distress risk ratings in determining the mix of grants and credits for IDA-only countries. Accelerating efforts in building debt management capacity in IDA-eligible countries. Strengthening the tracking of progress on gender outcomes. B. Enhancing country-level effectiveness in ensuring progress towards the Millennium Development Goals Simplifying the Performance-Based Allocation formula and reducing volatility in allocating IDA resources. Updating the study of links between aid allocation and results, including the experience with Performance-Based Allocation and Country Policy and Institutional Assessment Ratings. Continue improvement with the Results Measurement System, which has strengthened focus on results at the country level. Strengthening statistical capacity in IDA countries. Accelerate progress in its implementation of the Paris Declaration on Aid Effectiveness, especially on harmonization and alignment. C. Strengthening effectiveness in fragile states Adaptation of Country Assistance Strategies to fragile and conflict-affected environments and developing better indicators on state-building and peace-building activities in fragile states. Strengthening financial assistance to post-conflict and re engaging countries by lengthening the duration of exceptional assistance. Continue calibrating IDA's financial assistance to post-conflict and re-engaging countries based on performance as measured by the Post-Conflict Performance Indicators. Based on an analysis of expected and unexpected 7.4 Liquidity Tranching demands, IDA's low case minimum liquidity Starting in FY2009, IDA's liquid assets are invested requirement has been estimated at around $3.5 in three separate tranches as described below. billion at present with the high case defined as 150 percent of the low case amount. Tranche 1 This tranche includes balances of accelerated encashment of donor 7.3 General Investment Authorization contributions and transfers and grants The General Investment Authorization for IDA from IBRD and IFC. The benchmark of approved by the Executive Directors provides the this tranche is designed to be duration basic authority under which the liquid assets of IDA neutral in comparison to the stream of can be invested. Further, all investment activities are future net cash outflows such that the conducted in accordance with a more detailed set of variation in investment earnings will be Investment Guidelines. The Investment Guidelines largely matched by equivalent changes are approved by the Chief Financial Officer and in the present value of contractual net implemented by the Treasurer. These Investment cash outflows of IDA. The duration is Guidelines set out detailed trading and operational periodically reviewed and reset at least rules including providing criteria for eligible annually to reflect the duration of the instruments for investment, establishing risk future net cash outflows as well as parameters relative to benchmarks, such as an overall prevailing market conditions. stop-loss limit and duration deviation, specifying Tranche 2 This is a medium term investment concentration limits on counterparties and instrument tranche and includes liquidity required to classes, as well as establishing clear lines of fund commitments of development responsibility for risk monitoring and compliance. credits and grants and a portion of the minimum liquidity. This tranche is IDA Management's Discussion and Analysis: June 30, 2009 111 managed in accordance with a return Subcommittee, the Credit Risk Subcommittee and maximization strategy subject to pre- the Finance Initiatives Subcommittee. specified risk constraints over a medium- The Strategy, Performance and Risk Subcommittee term (three year) investment horizon. The develops and monitors the policies under which duration and associated benchmarks of market and commercial credit risks faced by IDA this tranche are reviewed and adjusted are measured, reported and managed. The periodically as needed, in line with Subcommittee also monitors compliance with market conditions so as to conform to the policies governing commercial credit exposure and specified risk tolerance. currency management. Specific areas of activity Tranche 3 This is a short-term investment tranche include reviewing and endorsing guidelines for and includes liquidity needed for IDA's limiting balance sheet and market risks, the use of ongoing financial operations with an derivative instruments, investing activities, and investment horizon of less than one year. monitoring matches between assets and their The tranche is comprised primarily of funding. In addition, the Subcommittee meets working capital needed for the current quarterly to formally review current and proposed year and a portion of the minimum business strategy and risk limits/policies, along with liquidity. The paramount investment business results, and financial risk profile to objective of this tranche is to ensure facilitate alignment between business and risk liquidity and timely availability of the management. The Credit Risk Subcommittee investment balances when needed, with monitors the measurement and reporting of country investment returns being a secondary credit risk and reviews the impact on the provision consideration. The tranche is invested in for losses on development credits and guarantees of the form of overnight and very short-term any changes in exposure, risk ratings of borrowing cash investments. member countries, or movements between the accrual and nonaccrual portfolios. The Finance Prior to FY2009, the liquid assets were invested in Initiatives Subcommittee reviews the financial, two tranches. organizational and implementation implications of A reconciliation of the Net Investment Portfolio to new initiatives that may impact IDA. the line items appearing on the Balance Sheet is The IDA Resource Mobilization Department which provided in Note C­Investments of IDA's Financial reports to the Vice President of Concessional Statements. This note also provides the currency Finance and Global Partnerships, manages IDA composition of the Net Investment Portfolio, which replenishments. This department discusses policy shows that the investments are denominated in the and funding frameworks with donors, and allocates composite currencies of the SDR. IDA's Net concessional resources. Responsibility for financial Investment Portfolio combining all the three tranches management, including asset-liability management was $21,287 million at June 30, 2009 ($19,053 and the management of liquidity, currency and million--June 30, 2008). interest rate risks, also lies with this department. Section 8: FINANCIAL RISK MANAGEMENT Country credit risk, the primary risk faced by IDA, IDA assumes various kinds of risk in the process of is identified, measured and monitored by the Credit providing concessional financing. Its activities can Risk Department, led by the Chief Credit Officer give rise to four major types of risk: credit risk; who reports to the Vice-President, Corporate market risk (interest rate and exchange rate); Finance and Risk Management. This unit is liquidity risk; and operational risk. The major independent from IDA's operational business units. inherent risk to IDA is country credit risk. Moreover, in order to further protect the 8.1 Governance Structure independence of the unit, individual country credit risk ratings are not shared with the Executive A Risk Management governance structure supports Directors and are not made public. In addition, this Senior Management in their oversight function, department is responsible for determining the particularly in the coordination of different aspects of adequacy of provisions for losses on credits and risk management, and in connection with risks that guarantees and monitoring borrowers that are cut across functional areas. vulnerable to crises in the near term. The Finance Committee, chaired by the Chief Counterparty credit risks in IDA's financial Financial Officer, makes recommendations and, operations are identified, measured and monitored where appropriate takes decisions in the areas of by the Corporate Finance Department, which also financial policy and oversight of financial reporting. reports to the Vice-President, Corporate Finance The subcommittees that report to the Finance and Risk Management. The Corporate Finance Committee are the Strategy, Performance and Risk 112 The World Bank Annual Report 2009 Department works with IDA's financial managers, Capacity to commit to new financing of credits and who are responsible for the day-to-day management grants. of these risks, to establish and document processes IDA's capacity to commit to new financing of that facilitate, control and monitor risk. These credits and grants at any point in time is defined by processes are built on a foundation of initial the Commitment Authority Framework of the identification and measurement of risks by each of particular replenishment which is effective at that the business units. Under the direction of the Finance time. The risks to this lending capacity can arise Committee, policies and procedures for measuring from both donor and internal resources. These risks and managing such risks are formulated, approved are discussed in Section 5 Financial Resources. and communicated throughout IDA. Senior managers represented on the Committee are responsible for Sufficient liquidity to meet both expected and maintaining sound credit assessments, addressing unexpected demands transaction and product risk issues, providing an independent review function and monitoring the Based on estimates of liquidity demand (see Section development credits and investments. 7 Management of Liquid Asset Holdings) IDA's minimum liquidity requirement has been estimated The primary responsibility for the management of within a band of $3.5 billion to $5.25 billion. operational risk in IDA's financial operations resides During FY2009, the actual minimum liquidity and with each of IDA's managers. These individuals are the unrestricted currency balances due from banks responsible for identifying operational risks and did not fall below $3.5 billion. establishing, maintaining and monitoring appropriate internal controls in their respective areas using an 8.3 Credit Risk operational risk management framework. Country Credit Risk This framework requires each business unit to Country risk is the risk of loss due to a borrowing document operational risks and controls, assess the member country not meeting its contractual likelihood and impact of operational risks and payment obligations. The IDA Resource evaluate the design and operating effectiveness of Mobilization Department regularly reviews the existing controls using guidelines established by credit risk of its borrowing member countries in IDA. An independent operational risk control unit terms of the country's debt sustaining capacity, in supports this process by undertaking periodic conjunction with the Credit Risk Department. These reviews, performing quality assurance testing and reviews provide an input in determining the reporting exceptions. allocation of commitment authority resources for The processes and procedures by which IDA a borrowing member country as well as the manages its risk profile continually evolve as its composition of credits versus grants for new activities change in response to market, credit, operations. Section 4.2 Development Grants product, operational and other developments. The describes how funds are allocated for grants based Executive Directors, particularly the Audit on a country's risk of debt distress. Committee members, periodically review trends in Overdue and non-performing credits IDA's risk profiles and performance, as well as any significant developments in risk management When a borrower fails to make payment on any policies and controls. principal, interest or other charges, IDA has the contractual right to suspend disbursements 8.2 Managing Risk Bearing Capacity immediately on all credits and grants. IDA's current The risk bearing capacity of IDA falls under two policy however, is to exercise this right through a main categories. The first is the extent to which IDA graduated approach as summarized in Box 3. These can commit to new financing of credits, grants and policies also apply to those member countries who guarantees given its financial position at any point in are eligible to borrow from both IBRD and IDA, time. The second is whether IDA has sufficient and whose payments on IBRD loans may become liquidity to meet temporary demands due to expected overdue. For borrowers with IDA credits who volatility in cash inflows and outflows, and become overdue in their debt service payments on IBRD loans, IDA also applies the treatment unexpected net draw-downs of liquid resources, described in Box 3. For a summary of countries which would not be reversed over time. with credits or guarantees in nonaccrual status at June 30, 2009, see Notes to Financial Statements­ Note D­Development Credits and Guarantees IDA Management's Discussion and Analysis: June 30, 2009 113 Box 3: Treatment of Overdue Payments Overdue by 30 days Where the borrower is the member country, no new development credits or grants to the member country, or to any other borrower in the country, will be presented to the Board of Executive Directors for approval; nor will any previously approved credits or grants be signed, until payments for all amounts 30 days overdue or longer have been received. Where the borrower is not the member country, no new credits or grants to that borrower will be signed or approved. Overdue by 45 days In addition to the provisions cited above for payments overdue by 30 days, to avoid proceeding further on the notification process leading to suspension of disbursements, the country as borrower or guarantor and all borrowers in the country must pay not only all payments overdue by 30 days or more, but also all payments due regardless of the number of days since they have fallen due. Where the borrower is not the member country, no new development credits or grants to, or guaranteed by, the member country, will be signed or approved. Overdue by 60 days In addition to the suspension of approval for new development credits or grants and signing of previously approved credits or grants, disbursements on all grants or credits to or guaranteed by the member country are suspended until all overdue amounts have been paid. This policy applies even when the borrower is not the member country. Under exceptional circumstances, disbursements could be made to a member country upon approval by the Executive Directors. Overdue by more than All development credits made to or guaranteed by a member of IDA are placed in nonaccrual status, six months unless IDA determines that the overdue amount will be collected in the immediate future. Unpaid service charges and other charges not yet paid on development credits outstanding are deducted from the income of the current period. To the extent that these payments are received, they are included in income. At the time of arrears clearance, a decision is made on the restoration of accrual status on a case-by-case basis; in certain cases that decision may be deferred until after a suitable period of payment performance has passed. Accumulated Provision for HIPC Debt Initiative Management determines the appropriate level of and MDRI accumulated provision for losses on credits and guarantees after taking into consideration the The adequacy of the accumulated provision for debt expected relief under the HIPC Debt Initiative and relief for the HIPC Debt Initiative and MDRI is MDRI. This accumulated provision reflects the based on both quantitative and qualitative analyses of probable losses inherent in its nonaccrual and various factors, including estimates of decision and accrual portfolios. The methodology for completion point dates. IDA periodically reviews determining the accumulated provision for losses on these factors and reassesses the adequacy of the credits and guarantees is discussed in Section 9, accumulated provision for the HIPC Debt Initiative Critical Accounting Policies. and MDRI. Adjustments to the accumulated provision are recorded as a charge against or addition The Credit Risk Subcommittee reviews the to income. The methodology for determining the provision for losses on credits and guarantees at accumulated provision for losses under the HIPC least quarterly and, if necessary, adjustments are Debt Initiative and MDRI is discussed in Section 9, made to the provision. In addition, the Audit Critical Accounting Policies. Committee is apprised by management at least twice a year on the accumulated provision for losses Accumulated Provision for Losses on Development on credits and guarantees. Credits and Guarantees The accumulated provision for losses on both the Delays in receiving payments from development accrual and nonaccrual credit portfolio (excluding credits or guarantee premiums result in present value guarantees) decreased by $13 million from $1,253 losses to IDA since it does not charge fees or million at June 30, 2008 to $1,240 million at June additional service charges or interest on any overdue 30 2009. This decrease comprises translation service charges, interest or other charges. These adjustment of $42 million offset by an increase of present value losses are equal to the difference provision for losses on credits of $29 million. The between the present value of payments of service increase of provision for losses on credits was charges and other charges made according to the primarily due to changes in the volume and credit's contractual terms and the present value of its distribution of development credits outstanding, expected future cash flows. partially offset by the net impact of changes in the credit quality of the development credit portfolio, 114 The World Bank Annual Report 2009 and the annual update of the expected default Mark-to-market exposure is a measure, at a point in frequencies (probability of default to IDA). time, of the value of a derivative or foreign exchange contract in the market. When the mark-to- Commercial Credit Risk market is positive, it indicates the counterparty Commercial credit risk is the risk of loss due to a owes IDA and, therefore, creates an exposure for counterparty not honoring its contractual obligations. IDA. When the mark-to-market is negative, IDA IDA's commercial credit risk is concentrated in owes the counterparty and does not have investments in debt instruments issued by sovereign replacement risk. governments, agencies, banks and corporate entities. Table 6 provides details of IDA's estimated credit The majority of these investments are in AAA and exposure on its investments and swaps, net of AA rated instruments. collateral held, by counterparty rating category. The In the normal course of its business, IDA utilizes most important development during FY2009 has various derivatives and foreign exchange financial been the shift towards AAA rated counterparties, instruments, to generate income through its from 51% to 66%. This flight to quality during the investment activities and for asset/liability current turmoil in the financial markets was management purposes. Derivative and foreign achieved by moving from banks to high-grade exchange transactions also involve credit risk. The sovereigns, sovereign-guaranteed bank debt, and effective management of credit risk is vital to the agencies which offer implicit government success of IDA's investment and asset/liability guarantees. Other developments included management activities. The monitoring and downgrades of a small portion of the holdings of managing of these risks is a continuous process due asset-backed securities (ABS) due to mono-line to changing market environments. insurers being downgraded. As a result the ratings for a small portion went down to CCC at June 30, IDA controls the counterparty credit risk arising 2009. from investments, derivatives and asset/liability management activities through its credit approval 8.4 Market Risk process, and monitoring procedures. The credit IDA faces risks which result from market approval process involves evaluating counterparty movements, primarily changes in currency creditworthiness, assigning credit limits and exchange and interest rates. The manner in which determining the risk profile of specific transactions. these market risks impact IDA's finances and the Credit limits are calculated and monitored on the steps taken by IDA to counter them is described basis of potential exposures taking into consideration below. current market values and estimates of potential future movements in those values. Currency Risk IDA measures the credit risk exposure as the IDA faces currency risk exposure as a result of the replacement cost of the derivative or foreign currency mismatch between its commitments for exchange product. This is also referred to as development credits and grants, which are replacement risk or the mark-to-market exposure denominated in SDRs; donor contributions, which amount. While notional principal is the most are denominated in both national currencies and commonly used volume measure in the derivative SDRs; and the portion of IDA's internal resources and foreign exchange markets, it is not a measure of and expenditures that is denominated in U.S. credit or market risk. dollars. Table 6: IDA Investment Credit Exposure, Net of Collateral Held, By Counterparty Rating In millions of U.S. dollars At June 30, 2009 At June 30, 2008 Counterparty Agencies, ABS % of % of Rating Sovereigns and Banks Swaps Total Total Total Total AAA $12,368 $ 4,927 $375 $17,670 66 $14,591 51 AA 2,749 3,799 6,548 24 14,252 49 A 2,612 2,612 10 71 * BBB 5 5 * 3 * BB 1 1 * 3 * CCC 1 1 * Total $15,117 $11,345 $375 $26,837 100 $28,920 100 * Denotes less than 0.5%. IDA Management's Discussion and Analysis: June 30, 2009 115 IDA mitigates this risk by adjusting the currency independent compliance testing by IDA's composition of its liquid asset portfolio through internal audit department, quality assurance foreign exchange transactions. testing by management, project reviews undertaken by the Independent Evaluation Starting from May 2008, IDA extended its currency Group and annual internal representation risk management tools to include the use of currency letters from business unit managers. forward contracts to convert donors' encashments provided in national currencies into the four The results of the work undertaken to currencies of the SDR basket. IDA's transactions are evaluate risks and operational effectiveness of intermediated by IBRD for efficiency purposes, due internal controls are reported to the Audit to IBRD's established systems and collateral Committee. management processes. IDA Controls Review over Lending Operations Under this arrangement, IDA enters into foreign In FY2009, IDA completed a comprehensive and exchange forwards with IBRD, and IBRD independent review of internal controls over lending simultaneously enters into off-setting foreign operations to fulfill a commitment made to donors exchange forwards with market counterparts. For during the negotiations of IDA's fourteenth further details please see Notes to Financial replenishment. This review used the rigorous Statements-Note F­Derivative Instruments. Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework and IDA funds a portion of its credits with internal methodology, which establishes "a common resources, including investment income on its liquid definition of internal controls, standards, and criteria asset portfolio. Details of the investment objectives against which companies and organizations can of each of the three tranches of IDA's liquid assets assess their control systems." These control systems are provided in Section 7 ­ Management of Liquid ensure that funds are used efficiently and for their Asset Holdings. intended purpose, and include procurement 8.5 Operational Risk processes, supervision mechanisms and procedures and measures to prevent fraud and corruption. The Operational risk is the potential for loss resulting review was in-depth and extensive, and from inadequate or failed internal processes or encompassed three levels: (1) a management self- systems, human factors, or external events, and assessment of the control framework; (2) review by includes business disruption and system failure, the Internal Auditing Department (IAD); and (3) transaction processing failures and failures in independent evaluation by the Bank Group's execution of legal, fiduciary and agency Independent Evaluation Group (IEG). responsibilities. IDA, like all financial institutions, is exposed to many types of operational risks. The results of the IDA Controls Review have provided management and the Executive Directors IDA attempts to mitigate operational risk by with reasonable assurance that the three COSO maintaining a system of internal controls that is objectives of (i) reliable financial reporting, (ii) designed to keep that risk at appropriate levels in compliance with policies and procedures, and (iii) view of the financial strength of IDA and the the efficiency and effectiveness of operations, are characteristics of the activities and markets in which being achieved subject to a number of qualifications. IDA operates. These qualifications which do not impact the The operational risk management framework used reliability of internal controls over financial by IDA is based on the Integrated Risk Management reporting, relate to issues in lending operations. To Framework approved by the Board in January 2003 address these issues, management has adopted and and involves the following core steps: begun implementing a detailed action plan. An Key operational risks are identified annually independent Implementation Oversight Panel (IOP) and documented using a combination of tools has been established to monitor, oversee, and advise including business process review and risk the President and the Executive Directors on the assessments. implementation status and progress achieved. Operational risks are assessed based on Internal Controls Over External Financial likelihood of occurrence and the resulting Reporting financial impact using probability and Since FY1997, IDA's management has made an severity parameters. annual assertion that, as of June 30 of each fiscal Controls that mitigate operational risks are year, its system of internal control over its external evaluated using a combination of processes financial reporting has met the criteria for effective including self assessment workshops, internal control over external financial reporting as independent walk through tests of processes, described in the COSO framework. Concurrently 116 The World Bank Annual Report 2009 since FY1997, IDA's external auditors have and MDRI. Adjustments to the accumulated provided an attestation report that management's provision are recorded as a charge against or assertion regarding the effectiveness of internal addition to income. control over external financial reporting is fairly 9.3 Provision for Losses on Development Credits stated in all material respects. and Guarantees Management has carried out an evaluation of IDA's accumulated provision for losses on credits internal control over external financial reporting for and guarantees reflects the probable losses inherent the purpose of determining if there were any in its nonaccrual and accrual portfolios after taking changes made in internal controls during the fiscal into consideration the expected relief under the year covered by this report that had materially HIPC Debt Initiative and MDRI. The provision affected, or would be reasonably likely to materially required is a function of the expected default affect IDA's internal controls over external financial frequency and the assumed severity of the loss reporting. As of June 30, 2009 no such significant (given default) for each of the borrowers. changes had occurred. The expected default frequency has the borrower's Section 9: CRITICAL ACCOUNTING risk rating assigned to it. The determination of a POLICIES borrower's risk rating is based on both quantitative The Notes to IDA's financial statements contain a and qualitative analyses of various factors, which summary of IDA's significant accounting policies. include political risk, external debt and liquidity, The following is a description of those accounting fiscal policy and public debt burden, balance of policies, which involve significant management payments risks, economic structure and growth judgments that are difficult, complex or subjective prospects, monetary and exchange rate policy, and relate to matters that are inherently uncertain. financial sector risks and corporate sector debt and other vulnerabilities. IDA periodically reviews such 9.1 Valuation of Financial Instruments factors and reassesses the adequacy of the Derivative financial instruments and investment accumulated provision for losses on credits and securities are recorded in IDA's financial statements guarantees accordingly. Adjustments to the at fair value. Disclosures related to the fair value of accumulated provision are recorded as a charge these, and other financial instruments are included in against or addition to income. Actual losses may Note M ­ Fair Value of Financial Instruments. Fair differ from expected losses due to unforeseen value is based on market quotations when possible. changes in any of the factors that affect borrowers' Financial instruments for which market quotations creditworthiness. are not readily available have been valued based on discounted cash flow models using market estimates Additional information on IDA's provisioning policy of cash flows and discount rates. All the financial and the status of nonaccrual loans can be found in models used for input to IDA's financial statements the Notes to Financial Statements-Note A-Summary are subject to both internal and periodic external of Significant Accounting and Related Policies and verification and review by qualified personnel. Note D-Development Credits and Guarantees. These models use market sourced inputs, such as 9.4 Pension and Other Postretirement Benefits interest rates, exchange rates and volatilities. Selection of these inputs may involve some IBRD, IFC and MIGA participate in pension and judgment. Imprecision in estimating these factors, postretirement benefit plans that cover substantially and changes in assumptions, can impact net income all of their staff members. All costs, assets and and IDA's financial position as reported in the liabilities associated with the plans are allocated financial statements. IDA believes its estimates of between IBRD, IFC and MIGA based upon their fair value are reasonable given its processes for employees' respective participation in the plans. obtaining external prices and parameters, ensuring Costs allocated to IBRD are subsequently shared that valuation models are reviewed and validated between IBRD and IDA based on an agreed cost both internally and externally, and applying its sharing ratio. The underlying actuarial assumptions approach consistently from period to period. used to determine the projected benefit obligations, accumulated benefit obligations and funded status 9.2 Provision for HIPC Debt Initiative and MDRI associated with these plans are based on financial The adequacy of the accumulated provision for the market interest rates, past experience, and HIPC Debt Initiative and MDRI is based on both management's best estimate of future benefit quantitative and qualitative analyses of various changes and economic conditions. For further factors, including estimates of decision and details, please refer to Notes to Financial completion point dates. IDA periodically reviews Statements-Note L-Pension and Other these factors and reassesses the adequacy of the Postretirement Benefits. accumulated provision for the HIPC Debt Initiative IDA Management's Discussion and Analysis: June 30, 2009 117 Section 10: GOVERNANCE The Executive Directors and their Committees function in continuous session at the principal 10.1 General Governance offices of IDA, as business requires. Each IDA's decision-making structure consists of the Committee's terms of reference establishes its Board of Governors, the Executive Directors (the respective roles and responsibilities. As Committees Board) and the President and staff. The Board of do not vote on issues, their role is primarily to serve Governors is the highest decision-making authority. the Board of Executive Directors in discharging its The Board of Governors may delegate authority to responsibilities. the Board to exercise any of its powers, with the 10.2 Audit Committee exception of certain powers enumerated in IDA's Articles of Agreement (Article VI, Section 2(c)). Membership The Board is responsible for IDA's general The Audit Committee consists of eight members operations. It reviews and approves IDA's financial drawn from the Board. Membership on the policies and practices, including: Committee is determined by the Board, based upon nominations by the Chairman of the Board, financial products and programs, such as the following informal consultation with the Executive terms and conditions of development credits, Directors. In addition, membership of the grants and guarantees, and the provision and Committee is expected to reflect the economic and modalities of debt relief under the HIPC Debt geographic diversity of IDA's member countries and Initiative; and a balanced representation between borrowing and financial management policies, such as non-borrowing member countries. Generally, investment authority and policy, the method Committee members are appointed for a two year of apportioning administrative expenses term; reappointment to a second term, when between IDA and IBRD, and the use of IDA's possible, is desirable for continuity. Audit internal resources. Committee meetings are generally open to any member of the Board who may wish to attend, and The President is the Chairman of the Board and non-Committee members of the Board may chief of the operating staff of IDA. Under the participate in the discussion. In addition, the direction of the Board, the President conducts the Chairman of the Audit Committee may speak in that ordinary business of IDA and is responsible for the capacity at meetings of the Board, with respect to organization, appointment and dismissal of its discussions held in the Audit Committee. officers and staff. Key Responsibilities Management Changes The Audit Committee is appointed by the Board to During FY 2009, Ms. Anne-Marie Leroy was assist it in the oversight and assessment of IDA's appointed as Senior Vice President & World Bank finances and accounting, including the effectiveness Group General Counsel effective March 9, 2009. of financial policies, the integrity of financial Board Membership statements, the system of internal controls regarding finance, accounting and ethics (including fraud and In accordance with its Articles of Agreement, corruption), and financial and operational risks. The members of IDA's Executive Directors are appointed Audit Committee also has the responsibility for or elected by their member governments. These reviewing the performance and recommending to the Executive Directors are neither officers nor staff of Board the appointment of the external auditor, as IDA. The President is the only management member well as monitoring the independence of the external of the Board of Executive Directors, serving as a auditor and meeting with it in executive session. The non-voting member and as Chairman of the Board. Audit Committee participates in oversight of the The Executive Directors have established several internal audit function, including reviewing the Committees including: responsibilities, staffing and the effectiveness of Audit Committee internal audit. The Committee also reviews the annual internal audit plan and meets with the Budget Committee Auditor General in executive session. In the execution of its role, the Committee discusses with Committee on Development Effectiveness management, the external auditors, and the internal Committee on Governance and auditors, financial issues and policies which have a Administrative Matters bearing on IDA's financial position. The Audit Committee monitors the evolution of developments Ethics Committee in corporate governance and the role of audit Personnel Committee 118 The World Bank Annual Report 2009 committees on an ongoing basis and updated its institution has in place a Code of Professional terms of reference in July 2009. Ethics, entitled Living our Values. The Code applies to all staff worldwide and is available on the World Communications Bank's website, www.worldbank.org. The Audit Committee communicates regularly with Orientation training for new staff and other ethics the full Board through distribution of the following: training, attended by approximately 3,000 staff The minutes of its meetings. annually, promote awareness and familiarize staff Reports of the Audit Committee prepared by with the Code. its Chairman, which document discussions The World Bank Group is currently finalizing an held. These reports are distributed to the updated Code, which is expected to be rolled out to Executive Directors, Alternates, World Bank staff in the first quarter FY 2010 as the "Code of Group Senior Management and Vice Conduct." An e-learning module on the updated Presidents. Code is also in the final design phases, with rollout "Statement(s) of the Chairman" and planned for the second quarter FY 2010. This statements issued by other members of the training will be for certification, and staff, including Committee. consultants, will be required to complete an acknowledgment that they will abide by the tenets of The Annual Report to the Board of Executive the Code. Directors, which provides an overview of the main issues addressed by the Committee over In addition to the Code, the business conduct the year. obligations of staff are articulated in the Staff The Audit Committee's communications with the Manual (Principles of Staff Employment, Staff external auditor are described in Section 10.4 Rules), Administrative Manual and other guidelines. Auditor Independence. The Principles and Staff Rules require that all staff avoid or properly manage conflicts of interest. In Executive Sessions accordance with the Staff Rules, senior managers Members of the Committee may convene in must complete a confidential financial disclosure executive session at any time, without management instrument with the Office of Ethics and Business present. Under the Committee's terms of reference, it Conduct. meets separately in executive session with the In addition to the Code, rules and policies, guidance external and internal auditors. for staff is also provided through programs, training Access to Resources and to Management materials, and other resources. Managers are responsible for ensuring that internal systems, Throughout the year, the Audit Committee receives policies, and procedures are consistently aligned a large volume of information, which supports the with the World Bank Group's business conduct preparation of the financial statements. The Audit framework. Committee meets both formally and informally throughout the year to discuss financial and The following World Bank Group units assist in accounting matters. Executive Directors have communicating business conduct expectations to complete access to management. The Audit staff: Committee reviews and discusses with management The Office of Ethics and Business Conduct the quarterly and annual financial statements. The (EBC) works to ensure that staff are aware of Committee also reviews with the external auditor, their business conduct-related obligations. It the financial statements prior to their publication and provides insight on ethics trends to senior recommends them for approval to the Board. management and oversees related outreach, The Audit Committee has the capacity, under training and communication initiatives. EBC exceptional circumstances, to obtain advice and also handles allegations of staff misconduct assistance from outside legal, accounting or other not involving significant fraud and advisors as deemed appropriate. corruption. The Integrity Vice Presidency (INT) is 10.3 Code of Conduct and Business Conduct charged with investigating allegations of Infrastructure significant fraud and corruption both within The World Bank Group promotes a positive work the World Bank Group and in Bank-funded environment where staff members understand their projects worldwide. It also trains and ethical obligations to the institution, which are educates staff and clients in detecting and embodied in its Core Values and Principles of Staff reporting fraud and corruption. Employment. In support of this commitment, the IDA Management's Discussion and Analysis: June 30, 2009 119 Both EBC and INT report directly to the President An evaluation of the performance of the of the World Bank Group. Staff from these units external auditor at the mid-point of the five include professionals from a broad range of year term. disciplines including trainers, financial analysts, External auditors are appointed to a five-year term researchers, investigators, lawyers, prosecutors, of service. This is subject to annual reappointment forensic accountants, and staff with World Bank based on the recommendation of the Audit Group operational experience. These units maintain Committee and approval of a resolution by the comprehensive websites to provide guidance on how Executive Directors. In FY2009, KPMG began a to handle concerns. five-year term as IDA's external auditor. The World Bank Group has both an Ethics HelpLine As a standard practice, the external auditor is present and a Fraud and Corruption hotline, overseen by as an observer at virtually all Audit Committee EBC and INT respectively. These resources are meetings and is frequently asked to present its referenced in the Code, and are run by an outside perspective on issues. In addition, the Audit firm staffed by trained specialists. This third-party Committee meets periodically with the external service offers numerous methods of communication auditor in private session without management in addition to a toll free service in countries where present. Communication between the external access to telecommunications may be limited. These auditor and the Audit Committee is ongoing, as phone services can accept calls in multiple frequently as is deemed necessary by either party. languages. Other reporting channels include: IDA's auditors follow the communication phone, mail, email (EBC maintains a Notes service requirements with audit committees set out under account called Ethics Helpline), or through the units' U.S. generally accepted auditing standards. In respective websites. Callers may also visit the keeping with these standards, significant formal offices in person. communications include: IDA has in place procedures for the receipt, Annual financial statement reporting. retention and handling of recommendations and concerns identified during accounting, internal Annual appointment of the external auditors. control and auditing processes. Presentation of the external audit plan. The World Bank Group's Staff Rules clarify and Presentation of control recommendations and codify the obligations of staff in reporting suspected discussion of the COSO attestation and fraud, corruption or other misconduct that may report. threaten the operations or governance of the Bank Presentation of a statement regarding Group. Additionally, these rules offer protection independence. from retaliation. In 2008, the institution In addition to Committee meetings, individual implemented strengthened whistleblower members of the Audit Committee have independent protections. access to the external auditor. 10.4 Auditor Independence In FY 2003, the Board adopted a set of principles applicable to the appointment of the external auditor for IDA. Key features of those principles include: Prohibition of the external auditor from the provision of all non audit-related services. All audit-related services must be pre- approved on a case-by-case basis by the Board, upon recommendation of the Audit Committee. Mandatory rebidding of the external audit contract every five years. Prohibition of any firm serving as external auditors for more than two consecutive five- year terms. Mandatory rotation of the senior partner after five years. 120 The World Bank Annual Report 2009 Glossary of Terms Instrument of Commitment (IoC): A government's commitment to make a subscription or a subscription Asset-Backed Securities (ABS): Asset-backed and contribution to IDA's resources. Securities are instruments whose cash flow is based on the cash flows of a pool of underlying assets managed Membership votes: Voting rights accorded to IDA by a trust. members are based on participation in the initial subscription and subsequent replenishments. Blend Borrower: IDA Member that is eligible to Membership votes are the same for all members borrow from IDA on the basis of per capita income and whether they are Part I or Part II. is also eligible to borrow from IBRD on the basis of limited creditworthiness. Given the access to both Net Disbursements: Credit disbursements net of sources of funds, blend borrowers are expected to limit repayments and prepayments. IDA funding to social sector projects and to use IBRD resources for projects in the `harder' sectors. Part I and Part II Members: IDA's Articles distinguish between two categories of original Commitment Authority: Total value of resources members -- Part I and Part II -- and provide for a available during a particular replenishment including different treatment of the initial subscription payments donor contributions, internal resources, IBRD transfers, by each group. Part I members were originally those IFC grants and other resources. The Commitment countries, generally developed countries that contribute Authority level is monitored periodically to ensure that to the resources of IDA, whose economic and financial funding is available to meet commitments and to situation justified making the entire amount of their provide early warning signs of any problems in terms subscriptions available on a freely convertible basis. of resource availability. Part II members are mostly developing countries who Completion Point: When conditions specified in the subscribe to IDA replenishments for voting rights, legal notification sent to a country are met and the Some Part II members also contribute to the resources country's other creditors have confirmed their full of IDA. participation in the HIPC debt relief initiative. When a Replenishment: The process of periodic review of the country reaches its Completion Point, IDA's adequacy of IDA resources and authorization of commitment to provide the total debt relief for which additional subscriptions. Under IDA's Articles, the country is eligible, becomes irrevocable. replenishments are required to be approved by IDA's Committee of Sponsoring Organizations of the Board of Governors by a two-thirds majority of the Treadway Commission (COSO): Committee of total voting power. Sponsoring Organizations of the Treadway Special Drawing Rights (SDR): The SDR is an Commission. COSO was formed in 1985 to sponsor the international reserve asset, created by the International National Commission on Fraudulent Financial Monetary Fund in 1969 to supplement the existing Reporting, an independent private-sector initiative official reserves of member countries. The SDR is which studied the causal factors that can lead to defined as a basket of currencies, consisting of the fraudulent financial reporting. In 1992, COSO issued euro, Japanese yen, pound sterling, and U.S. dollar. its Internal Control-Integrated Framework, which The basket composition is reviewed every five years to provided a common definition of internal control and ensure that it reflects the relative importance of guidance on judging its effectiveness. currencies in the world's trading and financial systems. Decision Point: Decision by the Executive Directors Subscription votes: Voting rights accorded to IDA of IDA to provide debt relief under the HIPC Initiative. members are based on subscriptions. Subscription votes Deputies: Representatives of countries who contribute are calculated at a specific cost per vote for each to the resources of IDA. They include representatives replenishment and are dependent on each member's from both Part I members and those Part II members subscription amount. Additional subscription votes are who contribute to IDA's replenishments. provided to members who contribute to the replenishment. Duration: Duration provides an indication of the interest rate sensitivity of a fixed income security to Stop Loss: An order to buy or sell a certain quantity of changes in its underlying yield. a certain security if a specified price (the stop price) is reached or passed. Encashment: Draw down (payment in cash) of a promissory note in accordance with a schedule agreed Voting Rights: IDA's voting rights consist of a for each replenishment. combination of membership votes and subscription votes. Hedging: Hedging is a risk management technique of entering into offsetting commitments to eliminate or minimize the impact of adverse movements in value or cash flow of the underlying instrument or economic condition. IDA Management's Discussion and Analysis: June 30, 2009 121 INTERNATIONAL DEVELOPMENT ASSOCIATION FINANCIAL STATEMENTS AND INTERNAL CONTROL REPORTS June 30, 2009 Management's Report Regarding Effectiveness of Internal Controls Over External Financial Reporting 124 Independent Auditors' Report on Management's Assertion Regarding Effectiveness of Internal Controls Over External Financial Reporting 126 Independent Auditors' Report 127 Balance Sheet 128 Statement of Income 130 Statement of Comprehensive Income 131 Statement of Changes in Accumulated Deficit 131 Statement of Cash Flows 132 Summary Statement of Development Credits 133 Statement of Voting Power and Subscriptions and Contributions 136 Notes to Financial Statements 139 IDA FINANCIAL STATEMENTS: JUNE 30, 2009 123 MANAGEMENT'S REPORT REGARDING EFFECTIVENESS OF INTERNAL CONTROLS OVER EXTERNAL FINANCIAL REPORTING 124 THE WORLD BANK ANNUAL REPORT 2009 IDA FINANCIAL STATEMENTS: JUNE 30, 2009 125 INDEPENDENT AUDITORS' REPORT ON MANAGEMENT'S ASSERTION REGARDING EFFECTIVENESS OF INTERNAL CONTROLS OVER EXTERNAL FINANCIAL REPORTING 126 THE WORLD BANK ANNUAL REPORT 2009 INDEPENDENT AUDITOR'S REPORT IDA FINANCIAL STATEMENTS: JUNE 30, 2009 127 BALANCE SHEET June 30, 2009 and June 30, 2008 Expressed in millions of U.S. dollars 2009 2008 Assets Due from Banks Unrestricted currencies $ 127 $ 90 Currencies subject to restrictions 27 28 154 118 Investments--Trading (including securities transferred under repurchase or securities lending agreements of $4,656 million-June 30, 2009; $9,540 million-June 30, 2008)--Notes C, G and M 26,483 29,013 Securities Purchased Under Resale Agreements--Notes C and M 5 148 Nonnegotiable, Noninterest-bearing Demand Obligations on Account of Members' Subscriptions and Contributions Unrestricted currencies 8,398 8,004 Currencies subject to restrictions 50 54 8,448 8,058 Derivative Assets--Notes C, E, F, G and M Investments 1,016 2,969 Asset/liability management 5,902 6,727 Receivable from Affiliated Organizations--Notes E and L Unrestricted 1,109 1,091 Temporarily Restricted - 502 Other Receivables--Note C Receivable from investment securities traded 214 368 Accrued service and commitment charges 238 239 452 607 Development Credits Outstanding (Summary Statement of Development Credits, Notes D and G) Development credits 142,797 141,081 Less: Undisbursed balance 29,903 27,539 Development credits outstanding 112,894 113,542 Less: Accumulated provision for debt relief and losses on development credits 10,577 13,096 Plus: Deferred development credits origination costs 30 28 Net development credits outstanding 102,347 100,474 Other Assets 94 142 Total Assets $146,010 $149,849 128 THE WORLD BANK ANNUAL REPORT 2009 2009 2008 Liabilities Securities Sold Under Repurchase Agreements and Payable for Cash Collateral Received--Notes C and M $ 4,684 $ 9,722 Derivative Liabilities ­ Notes C, E, F, G and M Investments 1,017 3,034 Asset/liability management 5,527 6,747 Payable for Development Grants--Note I 5,652 5,522 Payable to Affiliated Organization--Note E 316 340 Other Liabilities ­ Notes C, D and H Payable for investment securities purchased 757 689 Accounts payable and miscellaneous liabilities 107 176 864 865 Total Liabilities 18,060 26,230 Equity Members' Subscriptions and Contributions (Statement of Voting Power and Subscriptions and Contributions, and Note B) Unrestricted 199,105 176,722 Restricted 318 316 Subscriptions and Contributions committed 199,423 177,038 Less: Subscriptions and Contributions receivable 47,712 33,141 Cumulative discounts on Subscriptions and Contributions 1,626 1,481 Subscriptions and Contributions paid-in 150,085 142,416 Deferred Amounts to Maintain Value of Currency Holdings (231) (225) Accumulated Deficit (Statement of Changes in Accumulated Deficit, and Note K) (35,687) (37,537) Accumulated Other Comprehensive Income--Note J 13,783 18,965 Total Equity 127,950 123,619 Total Liabilities and Equity $146,010 $149,849 The Notes to Financial Statements are an integral part of these Statements. IDA FINANCIAL STATEMENTS: JUNE 30, 2009 129 STATEMENT OF INCOME For the fiscal years ended June 30, 2009 and June 30, 2008 Expressed in millions of U.S. dollars 2009 2008 Income Development credits and guarantees--Note D Service charges, net $ 794 $ 891 Commitment charges and guarantee fee income 7 30 801 921 Investments--Trading--Notes C and F Interest 798 1,168 Net gains 825 228 1,623 1,396 Transfers and grants from affiliated organizations and trust funds--Notes E and H Unrestricted 1,037 602 Temporarily Restricted ­ 502 1,037 1,104 Other income 14 ­ Total Income 3,475 3,421 Expenses Administrative expenses--Notes E, H and L 975 888 Development grants--Note I 2,575 3,151 Securities sold under repurchase agreements 124 390 Release of provision for debt relief and for losses on credits and guarantees, net--Notes D and G (1,236) (773) Non-functional currency translation adjustment gains, net (859) (6) Write-off on sale of development credits--Note D 43 - Net unrealized (gains) losses on non-trading derivatives--Note F (13) 54 Other expenses 16 - Total Expenses 1,625 3,704 Net Income (Loss) $ 1,850 $ (283) The Notes to Financial Statements are an integral part of these Statements. 130 THE WORLD BANK ANNUAL REPORT 2009 STATEMENT OF COMPREHENSIVE INCOME For the fiscal years ended June 30, 2009 and June 30, 2008 Expressed in millions of U.S. dollars 2009 2008 Net Income (Loss) $ 1,850 $ (283) Other Comprehensive Income--Note J Currency translation adjustments on functional currencies (5,182) 7,360 Comprehensive Income $(3,332) $7,077 STATEMENT OF CHANGES IN ACCUMULATED DEFICIT For the fiscal years ended June 30, 2009 and June 30, 2008 Expressed in millions of U.S. dollars 2009 2008 Accumulated Deficit at beginning of the fiscal year $(37,537) $(37,254) Net income (loss) for the year 1,850 (283) Accumulated Deficit at end of the fiscal year $(35,687) $(37,537) The Notes to Financial Statements are an integral part of these Statements. IDA FINANCIAL STATEMENTS: JUNE 30, 2009 131 STATEMENT OF CASH FLOWS For the fiscal years ended June 30, 2009 and June 30, 2008 Expressed in millions of U.S. dollars 2009 2008 Cash flows from investing activities Development credits Disbursements $(7,010) $(6,534) Principal repayments 2,182 2,182 Development credits sold 27 - Net cash used in investing activities (4,801) (4,352) Cash flows from financing activities Members' subscriptions and contributions 7,272 5,295 Cash flows from operating activities Net income (loss) 1,850 (283) Adjustments to reconcile net income (loss) to net cash used in operating activities Release of provision for debt relief and losses on development credits and guarantees, net (1,236) (773) Non-functional currency translation adjustment gains (losses), net (859) (6) Write down on sale of development credits 43 ­ Changes in: Investments--Trading 1,345 2,326 Net investment securities traded/purchased ­Trading 190 (765) Net derivatives--Investments (50) (6) Net derivatives--Asset/liability management 137 64 Net securities purchased/sold under resale/repurchase agreements and payable for cash collateral received (4,602) (1,737) Net receivable from affiliated organizations 460 (567) Payable for development grants 366 534 Accrued service and commitment charges (13) (29) Miscellaneous assets (153) (8) Accounts payable and miscellaneous liabilities 69 339 Deferred development credits origination costs 18 1 Net cash used in operating activities (2,435) (910) Effect of exchange rate changes on unrestricted cash 1 9 Net increase in unrestricted cash 37 42 Unrestricted cash at beginning of the fiscal year 90 48 Unrestricted cash at end of the fiscal year $ 127 $ 90 Supplemental disclosure (Decrease) increase in ending balances resulting from exchange rate fluctuations Development credits outstanding $(4,680) $ 7,039 Investments--Trading (1,185) 2,572 Derivatives--Investments 13 (75) Derivatives - Asset/liability management 532 44 Principal repayments forgiven under Heavily Indebted Poor Countries (HIPC) Debt Initiative (76) (92) Development credits written off under HIPC Debt Initiative and Multilateral Debt Relief Initiative (MDRI) (650) (214) Development credits sold ­ nominal value 70 - The Notes to Financial Statements are an integral part of these Statements. 132 THE WORLD BANK ANNUAL REPORT 2009 SUMMARY STATEMENT OF DEVELOPMENT CREDITS June 30, 2009 Expressed in millions of U.S. dollars Total Undisbursed Development Percentage of development development credits development credits Borrower or guarantor credits credits a outstanding outstanding Afghanistan $ 513 $ 58 $ 455 0.40% Albania 990 155 835 0.74 Angola 569 194 375 0.33 Armenia 1,181 133 1,048 0.93 Azerbaijan 1,008 295 713 0.63 Bangladesh 12,206 1,629 10,577 9.37 Benin 514 236 278 0.25 Bhutan 116 6 110 0.10 Bolivia 519 224 295 0.26 Bosnia and Herzegovina 1,228 147 1,081 0.96 Botswana 5 ­ 5 * Burkina Faso 995 330 665 0.59 Burundi 180 38 142 0.13 Cambodia 665 113 552 0.49 Cameroon 715 477 238 0.21 Cape Verde 286 2 284 0.25 Central African Republic 398 14 384 0.34 Chad 935 41 894 0.79 Chile 1 ­ 1 * China 9,603 6 9,597 8.50 Colombia 1 ­ 1 * Comoros 121 ­ 121 0.11 Congo, Democratic Republic of 2,670 221 2,449 2.17 Congo, Republic of 302 5 297 0.26 Costa Rica ­ ­ ­ * Côte d'Ivoire 1,868 93 1,775 1.57 Djibouti 162 7 155 0.14 Dominica 31 5 26 0.02 Dominican Republic 8 ­ 8 0.01 Ecuador 11 ­ 11 0.01 Egypt, Arab Republic of 1,444 24 1,420 1.26 El Salvador 9 ­ 9 0.01 Equatorial Guinea 47 ­ 47 0.04 Eritrea 522 49 473 0.42 Ethiopia 2,862 1,735 1,127 1.00 Gambia, The 66 5 61 0.05 Georgia 1,099 81 1,018 0.90 Ghana 2,464 1,098 1,366 1.21 Grenada 51 14 37 0.03 Guinea 1,310 43 1,267 1.12 Guinea-Bissau 306 1 305 0.27 Guyana 10 ­ 10 0.01 Haiti 491 ­ 491 0.43 Honduras 748 269 479 0.42 India 29,819 4,299 25,520 22.61 Indonesia 2,476 350 2,126 1.88 Iraq 525 500 25 0.02 Jordan 36 ­ 36 0.03 Kenya 4,425 1,343 3,082 2.73 Korea, Republic of 35 ­ 35 0.03 Kyrgyz Republic 681 32 649 0.57 Lao People's Democratic Republic 686 8 678 0.60 Lesotho 339 34 305 0.27 Liberia 70 ­ 70 0.06 Macedonia, former Yugoslav Republic of 382 ­ 382 0.34 Madagascar 1,392 306 1,086 0.96 IDA FINANCIAL STATEMENTS: JUNE 30, 2009 133 SUMMARY STATEMENT OF DEVELOPMENT CREDITS (continued) June 30, 2009 Expressed in millions of U.S. dollars Total Undisbursed Development Percentage of development development credits development credits a Borrower or guarantor credits credits outstanding outstanding Malawi $ 375 $ 186 $ 189 0.17% Maldives 107 27 80 0.07 Mali 1,123 557 566 0.50 Mauritania 395 149 246 0.22 Mauritius 8 ­ 8 0.01 Moldova 414 92 322 0.29 Mongolia 441 100 341 0.30 Montenegro 91 16 75 0.07 Morocco 15 ­ 15 0.01 Mozambique 1,548 349 1,199 1.06 Myanmar 788 ­ 788 0.70 Nepal 1,646 157 1,489 1.32 Nicaragua 509 121 388 0.34 Níger 353 100 253 0.22 Nigeria 5,494 3,102 2,392 2.12 Pakistan 11,178 1,511 9,667 8.56 Papua New Guinea 149 74 75 0.07 Paraguay 16 ­ 16 0.01 Philippines 183 ­ 183 0.16 Rwanda 269 22 247 0.22 St. Kitts and Nevis 1 ­ 1 * St. Lucia 59 9 50 0.04 St. Vincent and the Grenadines 22 2 20 0.02 Samoa 89 9 80 0.07 São Tomé and Principe 14 1 13 0.01 Senegal 1,323 515 808 0.72 Serbia 756 93 663 0.59 Sierra Leone 128 19 109 0.10 Solomon Islands 44 ­ 44 0.04 Somalia 445 ­ 445 0.39 Sri Lanka 2,792 420 2,372 2.10 Sudan 1,297 ­ 1,297 1.15 Swaziland 3 ­ 3 * Syrian Arab Republic 17 ­ 17 0.02 Tajikistan 395 27 368 0.33 Tanzania 3,790 1,706 2,084 1.85 Thailand 61 ­ 61 0.05 Togo 592 ­ 592 0.52 Tonga 24 2 22 0.02 Tunisia 21 ­ 21 0.02 Turkey 51 ­ 51 0.05 Uganda 2,106 927 1,179 1.04 Uzbekistan 204 136 68 0.06 Vanuatu 13 ­ 13 0.01 Vietnam 9,621 4,279 5,342 4.73 Yemen, Republic of 2,455 318 2,137 1.89 Zambia 511 120 391 0.35 Zimbabwe 517 ­ 517 0.46 Subtotal members b 142,551 29,766 112,785 99.90 134 THE WORLD BANK ANNUAL REPORT 2009 Expressed in millions of U.S. dollars Total Undisbursed Development Percentage of development development credits development credits a Borrower or guarantor credits credits outstanding outstanding c West African Development Bank $ 160 $ 102 $ 58 0.05% Caribbean Development Bank d 23 ­ 23 0.02 Bank of the States of Central Africa e 50 32 18 0.02 Subtotal regional development banks 233 134 99 0.09 African Trade Insurance Agency f 11 2 9 0.01 Other g 1 ­ 1 * Total--June 30, 2009 b $142,797 $29,903 $112,894 100.00% Total--June 30, 2008 $141,081 $27,539 $113,542 * Indicates amounts less than 0.005 percent. NOTES a. Of the undisbursed balance at June 30, 2009, IDA has entered into irrevocable commitments to disburse $391 million ($305 million--June 30, 2008). b. May differ from the sum of individual figures shown due to rounding. c. These development credits are for the benefit of Benin, Burkina Faso, Côte d'Ivoire, Mali, Niger, Senegal and Togo. d. These development credits are for the benefit of Grenada and territories of the United Kingdom (Associated States and Dependencies) in the Caribbean region. e. These development credits are the benefit of Cameroon, Chad, Central African Republic, Republic of Congo, Gabon and Equatorial Guinea. f. Represents development credit extended to the African Trade Insurance Agency (ATI) as implementing agency for the benefit of Burundi, Kenya, Malawi, Rwanda, Tanzania, Uganda and Zambia. g. Represents development credits made at a time when the authorities in Taiwan represented China in IDA (prior to May 15, 1980). The Notes to Financial Statements are an integral part of these Statements. IDA FINANCIAL STATEMENTS: JUNE 30, 2009 135 STATEMENT OF VOTING POWER AND SUBSCRIPTIONS AND CONTRIBUTIONS June 30, 2009 Expressed in millions of U.S. dollars Subscriptions and Number of Percentage of contributions a Member votes total votes committed Part I Members Australia 224,641 1.23% $ 3,156.29 Austria 136,912 0.75 1,962.62 Belgium 206,975 1.13 2,973.05 Canada 493,508 2.69 8,719.55 Denmark 180,501 0.98 3,064.71 c Estonia 36,031 0.20 4.13 Finland 111,787 0.61 1,309.07 France 741,422 4.04 14,538.78 Germany 1,154,907 6.30 22,015.22 Greece 50,653 0.28 215.92 Iceland 46,037 0.25 48.85 Ireland 67,828 0.37 504.18 Italy 471,307 2.57 8,789.18 Japan 1,746,238 9.53 38,776.93 Kuwait 93,457 0.51 866.16 Latvia 33,956 0.19 0.93 Luxembourg 53,450 0.29 224.48 Netherlands 370,310 2.02 7,373.83 New Zealand 55,556 0.30 260.27 Norway 188,396 1.03 3,088.58 Portugal 53,527 0.29 297.38 Russian Federation 57,166 0.31 408.57 Slovenia 44,052 0.24 30.56 South Africa 54,472 0.30 173.78 Spain 163,320 0.89 3,215.13 Sweden 362,840 1.98 5,966.15 Switzerland 210,273 1.15 3,218.96 United Arab Emirates 1,367 0.01 5.58 United Kingdom 984,805 5.37 20,269.42 United States 2,228,252 12.16 42,686.03 b Subtotal Part I Members 10,623,946 57.97% $194,164.30 Part II Members Afghanistan 20,638 0.11% 1.32 Albania 45,667 0.25 0.35 Algeria 27,720 0.15 5.10 Angola 57,909 0.32 8.22 Argentina 134,439 0.73 69.80 Armenia 47,981 0.26 0.70 Azerbaijan 11,403 0.06 0.93 Bahamas, The 43,004 0.23 0.59 Bangladesh 107,859 0.59 7.73 Barbados 46,140 0.25 1.67 Belize 13,653 0.07 0.26 Benin 48,911 0.27 0.78 Bhutan 43,467 0.24 0.07 Bolivia 55,614 0.30 1.53 Bosnia and Herzegovina 45,734 0.25 2.48 Botswana 41,911 0.23 1.63 Brazil 293,046 1.60 581.09 Burkina Faso 48,910 0.27 0.77 Burundi 36,060 0.20 1.01 Cambodia 54,629 0.30 1.48 Cameroon 38,165 0.21 1.51 Cape Verde 8,320 0.05 0.10 Central African Republic 23,029 0.13 0.70 Chad 16,890 0.09 0.68 Chile 31,782 0.17 4.46 China 344,829 1.88 74.65 Colombia 92,384 0.50 24.93 Comoros 13,141 0.07 0.11 136 THE WORLD BANK ANNUAL REPORT 2009 Expressed in millions of U.S. dollars Subscriptions and Number of Percentage of contributions a Member votes total votes committed Congo, Democratic Republic of 60,483 0.33% $ 4.33 Congo, Republic of 38,923 0.21 0.74 Costa Rica 12,480 0.07 0.25 Côte d'Ivoire 50,037 0.27 1.52 Croatia 64,324 0.35 5.84 Cyprus 51,712 0.28 7.48 Czech Republic 86,000 0.47 93.74 Djibouti 9,390 0.05 0.20 Dominica 26,014 0.14 0.12 Dominican Republic 27,780 0.15 0.58 Ecuador 50,730 0.28 0.94 Egypt, Arab Republic of 89,296 0.49 9.14 El Salvador 46,464 0.25 0.49 Equatorial Guinea 6,167 0.03 0.41 Eritrea 31,162 0.17 0.12 Ethiopia 42,879 0.23 0.72 Fiji 19,462 0.11 0.76 Gabon 2,093 0.01 0.63 Gambia, The 19,444 0.11 0.34 Georgia 51,259 0.28 0.99 Ghana 71,336 0.39 3.13 Grenada 20,627 0.11 0.13 Guatemala 37,396 0.20 0.55 Guinea 33,987 0.19 1.33 Guinea-Bissau 6,790 0.04 0.17 Guyana 23,460 0.13 1.05 Haiti 24,871 0.14 0.98 Honduras 46,457 0.25 0.43 Hungary 133,811 0.73 91.10 India 573,783 3.13 60.31 Indonesia 158,832 0.87 15.54 Iran, Islamic Republic of 15,455 0.08 5.69 Iraq 15,207 0.08 1.02 Israel 65,381 0.36 67.79 Jordan 24,865 0.14 0.41 Kazakhstan 5,685 0.03 1.89 Kenya 63,143 0.34 2.40 Kiribati 11,777 0.06 0.08 Korea, Republic of 125,355 0.68 1,117.99 d Kosovo, Republic of 48,357 0.26 0.88 Kyrgyz Republic 8,751 0.05 0.50 Lao People's Democratic Republic 26,216 0.14 0.68 Lebanon 8,562 0.05 0.56 Lesotho 41,221 0.22 0.23 Liberia 22,467 0.12 0.95 Libya 16,871 0.09 1.35 Macedonia, former Yugoslav Republic of 46,885 0.26 1.11 Madagascar 54,982 0.30 1.42 Malawi 44,374 0.24 0.99 Malaysia 73,273 0.40 5.86 Maldives 40,270 0.22 0.05 Mali 38,474 0.21 1.28 Marshall Islands 4,902 0.03 0.01 Mauritania 32,813 0.18 0.67 Mauritius 53,320 0.29 1.27 Mexico 135,398 0.74 167.86 Micronesia, Federated States of 18,424 0.10 0.03 Moldova 4,016 0.02 0.69 Mongolia 45,667 0.25 0.32 Montenegro 47,096 0.26 0.73 Morocco 85,559 0.47 5.51 Mozambique 19,523 0.11 1.72 Myanmar 67,326 0.37 3.17 Nepal 41,100 0.22 0.70 IDA FINANCIAL STATEMENTS: JUNE 30, 2009 137 STATEMENT OF VOTING POWER AND SUBSCRIPTIONS AND CONTRIBUTIONS June 30, 2009 Expressed in millions of U.S. dollars Subscriptions and Number of Percentage of contributions a Member votes total votes committed Nicaragua 46,457 0.25% $ 0.44 Niger 19,302 0.11 0.68 Nigeria 72,183 0.39 4.56 Oman 46,580 0.25 1.39 Pakistan 168,679 0.92 14.18 Palau 3,804 0.02 0.02 Panama 10,185 0.06 0.04 Papua New Guinea 49,108 0.27 1.24 Paraguay 29,968 0.16 0.43 Peru 33,940 0.19 2.35 Philippines 16,583 0.09 6.43 Poland 385,457 2.10 88.53 Rwanda 27,184 0.15 1.01 St. Kitts and Nevis 13,778 0.08 0.17 St. Lucia 30,532 0.17 0.23 St. Vincent and the Grenadines 34,787 0.19 0.11 Samoa 21,741 0.12 0.12 São Tomé and Principe 9,714 0.05 0.08 Saudi Arabia 604,233 3.30 2,348.21 Senegal 50,925 0.28 2.50 Serbia 52,017 0.28 6.86 Sierra Leone 38,112 0.21 0.98 Singapore 13,421 0.07 60.73 Slovak Republic 57,892 0.32 21.71 Solomon Islands 43,901 0.24 0.13 Somalia 10,506 0.06 0.95 Sri Lanka 77,711 0.42 4.26 Sudan 25,784 0.14 1.31 Swaziland 19,022 0.10 0.42 Syrian Arab Republic 10,351 0.06 1.20 Tajikistan 20,568 0.11 0.46 Tanzania 53,758 0.29 2.25 Thailand 72,189 0.39 4.57 Timor-Leste 558 * 0.35 Togo 23,243 0.13 1.03 Tonga 43,714 0.24 0.11 Trinidad and Tobago 59,184 0.32 2.01 Tunisia 2,793 0.02 1.89 Turkey 115,613 0.63 155.84 Uganda 47,092 0.26 2.42 Ukraine 1,762 0.01 7.61 Uzbekistan 746 * 1.48 Vanuatu 13,821 0.08 0.25 Vietnam 23,425 0.13 1.98 Yemen, Republic of 53,742 0.29 2.15 Zambia 65,266 0.36 3.55 Zimbabwe 20,957 0.11 4.97 b Subtotal Part II Members 7,705,687 42.03% $ 5,258.66 b Total--June 30, 2009 18,329,633 100.00% $199,422.96 Total--June 30, 2008 17,248,162 100.00% $177,038.35 * Indicates less than 0.005 percent. NOTES a. See Notes to Financial Statements--Note A for an explanation of the two categories of membership. b. May differ from the sum of individual figures shown due to rounding. c. Estonia became a member of IDA on October 11, 2008. d. The Republic of Kosovo became a member of IDA on June 29, 2009. The Notes to Financial Statements are an integral part of these Statements. 138 THE WORLD BANK ANNUAL REPORT 2009 NOTES TO FINANCIAL STATEMENTS PURPOSE AND AFFILIATED these estimates. Significant judgments have been ORGANIZATIONS used in the valuation of certain financial instruments and the determination of the adequacy of the The International Development Association (IDA) is accumulated provision for the HIPC Debt Initiative, an international organization established in 1960. MDRI and losses on credits and guarantees. IDA's main goal is reducing poverty through promoting sustainable economic development in the Certain reclassifications of the prior years' less developed countries of the world who are information have been made to conform with the members of IDA, by extending concessionary current year's presentation. financing in the form of grants, development credits On August 5, 2009, the Executive Directors and guarantees, and by providing related technical approved these financial statements for issue, which assistance. The activities of IDA are complemented was also the date through which IDA's management by those of three affiliated organizations, the evaluated subsequent events. International Bank for Reconstruction and Development (IBRD), the International Finance Translation of Currencies Corporation (IFC), and the Multilateral Investment IDA's financial statements are expressed in terms of Guarantee Agency (MIGA). Each of these U.S. dollars for the purpose of summarizing IDA's organizations is legally and financially independent financial position and the results of its operations for from IDA, with separate assets and liabilities, and the convenience of its members and other interested IDA is not liable for their respective obligations. parties. Transactions with these affiliates are disclosed in the notes that follow. The principal purpose of IBRD is IDA is an international organization which conducts to promote sustainable economic development and its operations in Special Drawing Rights (SDRs) and reduce poverty in its member countries, primarily by the SDR's component currencies of U.S. dollar, providing loans, guarantees and related technical euro, Japanese yen and pound sterling. These assistance for specific projects and for programs of comprise the functional currencies of IDA. economic reform in developing member countries. Assets and liabilities are translated at market IFC's purpose is to encourage the growth of exchange rates in effect at the end of the accounting productive private enterprises in its member period, except Members' Subscriptions and countries through loans and equity investments in Contributions which are translated in the manner such enterprises without a member's guarantee. described below. Income and expenses are translated MIGA's purpose is to encourage the flow of at either the market exchange rates in effect on the investments for productive purposes between dates of income and expense recognition, or at an member countries and, in particular, to developing average of the exchange rates in effect during each member countries by providing guarantees against month. Translation adjustments relating to the noncommercial risks for foreign investment in its revaluation of development credits, development developing member countries. grants payable and all other assets and liabilities IDA is immune from taxation pursuant to Article denominated in either SDR or the component VIII, Section 9, Immunities from Taxation, of IDA's currencies of SDR, which comprise IDA's Articles of Agreement. functional currencies are reflected in Accumulated Other Comprehensive Income. Translation NOTE A--SUMMARY OF SIGNIFICANT adjustments relating to non-functional currencies are ACCOUNTING AND RELATED POLICIES reported in the Statement of Income. IDA's financial statements are prepared in Members' Subscriptions and Contributions conformity with the accounting principles generally Recognition accepted in the United States of America (U.S. Members' Subscriptions and Contributions GAAP). committed for each IDA replenishment are initially The preparation of financial statements in recorded both as Subscriptions and Contributions conformity with U.S. GAAP requires management committed and as Subscriptions and Contributions to make estimates and assumptions that affect the receivable based upon the full amount of reported amounts of assets and liabilities and Instruments of Commitment (IoC) received from disclosure of contingent assets and liabilities at the members upon effectiveness of the relevant date of the financial statements and the reported replenishment. Prior to effectiveness, only a portion amounts of income and expenses during the of the value of IoCs received as specified in the reporting period. Actual results could differ from replenishment resolution is recorded as IDA FINANCIAL STATEMENTS: JUNE 30, 2009 139 Subscriptions and Contributions committed. IoCs their initial subscriptions in freely convertible can contain unqualified or qualified commitments. currencies, and the remaining 90 percent of their Under an unqualified commitment, a contributing initial subscriptions, and all additional subscriptions member agrees to pay a specified amount of its and contributions in their own currencies or in freely subscription and contribution without qualification. convertible currencies. Certain Part II members A qualified commitment is subject to the provide a portion of their subscriptions and contributing member obtaining the necessary contributions in the same manner as mentioned in appropriation legislation. Subscriptions and (1) above. IDA's Articles of Agreement and contributions made under IoCs become available for subsequent replenishment resolutions provide that commitment for development credits, development the currency of any Part II member paid in by it may grants, and guarantees by IDA in accordance with not be used by IDA for projects financed by IDA the IDA commitment authority framework as and located outside the territory of the member approved by the Executive Directors. except by agreement between the member and IDA. The local currency portion of subscriptions of Part II A replenishment becomes effective when IDA members is recorded as restricted under Members' receives IoCs from members whose subscriptions Subscriptions and Contributions unless released and contributions represent a specified portion of the under an agreement between the member and IDA full replenishment. Amounts not yet paid in, at the or used for administrative expenses. The cash paid date of effectiveness, are recorded as Subscriptions and notes deposited in nonconvertible local and Contributions receivable and shown as a currencies for the subscriptions of Part II members reduction of Subscriptions and Contributions are recorded either as currencies subject to committed. These receivables become due restriction under Due from Banks, or as restricted throughout the replenishment period (generally three notes included under Non-negotiable, noninterest- years) in accordance with an agreed payment bearing demand obligations on account of member schedule. The actual payment of receivables when subscriptions and contributions. they become due may be subject to the budgetary appropriation processes for certain members. Following adoption by the Board of Governors on April 21, 2006 of a resolution authorizing additions The Subscriptions and Contributions receivable are to IDA's resources to finance the MDRI, pledges settled through payment of cash or deposit of received in the form of IoC for financing the MDRI nonnegotiable, noninterest-bearing demand notes. are recorded and accounted for in their entirety. The notes are encashed by IDA on an approximately Therefore, the full value of all IoCs received is pro rata basis either as provided in the relevant recorded as subscriptions and contributions. replenishment resolution over the disbursement Correspondingly, the IoCs are also recorded as period of the credits committed under the Subscriptions and Contributions Receivable and replenishment, or as needed. deducted from equity. In certain replenishments, donors have had the Under IDA's Articles of Agreement, a member may option of paying all of their subscription and withdraw from membership in IDA at any time. contribution amounts in cash before they become When a government ceases to be a member, it due, and thereby receiving discounts. In addition, remains liable for all financial obligations some replenishment arrangements have incorporated undertaken by it to IDA, whether as a member, an accelerated encashment schedule. In these cases, borrower, guarantor or otherwise. The Articles IDA and the donor agree that IDA will invest the provide that upon withdrawal, IDA and the cash and retain the income with the donor receiving government shall proceed to a settlement of voting rights for the full undiscounted amount. accounts. If agreement is not reached within six Subscriptions and Contributions committed are months, standard arrangements are provided. Under recorded at the full undiscounted amount. these arrangements, IDA would pay to the Subscriptions and Contributions paid-in are recorded government the lower of the member's total paid-in net of discounts. subscriptions and contributions or the member's For the purposes of its financial resources, the proportionate share of IDA's net assets. These funds membership of IDA is divided into two categories: would be paid as a proportionate share of all (1) Part I members, which make payments of principal repayments received by IDA on loans subscriptions and contributions provided to IDA in made during the period of the government's convertible currencies which may be freely used or membership. exchanged by IDA in its operations and (2) Part II members, which make payments of ten percent of 140 THE WORLD BANK ANNUAL REPORT 2009 Valuation of Subscriptions and Contributions Section 2(a) and (b) have by agreement been The subscriptions and contributions provided extended to cover additional subscriptions and through the Third Replenishment are expressed in contributions of IDA through the Third terms of "U.S. dollars of the weight and fineness in Replenishment, but are not applicable to those of the effect on January 1, 1960" (1960 dollars). Following Fourth and subsequent replenishments. the abolition of gold as a common denominator of The Executive Directors decided on June 30, 1987 the monetary system and the repeal of the provision that settlements of maintenance of value, which of the U.S. law defining the par value of the U.S. would result from the resolution of the valuation dollar in terms of gold, the pre-existing basis for issue on the basis of the 1974 SDR, would be translating 1960 dollars into current dollars or any deferred until the Executive Directors decide to other currency disappeared. The Executive Directors resume such settlements. These amounts are shown of IDA decided, that until such time as the relevant as Deferred Amounts Receivable to Maintain Value provisions of the Articles of Agreement are of Currency Holdings and deducted from equity; any amended, the words "U.S. dollars of the weight and changes relate solely to translation adjustments. fineness in effect on January 1, 1960" in Article II, Section 2(b) of the Articles of Agreement of IDA Development Credits are interpreted to mean the SDR introduced by the In fulfilling its mission, IDA makes concessional International Monetary Fund as the SDR was valued credits to the poorest countries. These development in terms of U.S. dollars immediately before the credits are made to, or guaranteed by, member introduction of the basket method of valuing the governments or to the government of a territory of a SDR on July 1, 1974, such value being equal to member (except for development credits which have $1.20635 for one SDR (the 1974 SDR). The been made to regional development institutions for Executive Directors also decided to apply the same the benefit of members or territories of members of standard of value to amounts expressed in 1960 IDA). In order to qualify for lending on IDA terms, dollars in the relevant resolutions of the Board of a country's per capita income must be below a Governors. certain cut-off level ($1,095 for FY2009 and $1,065 for FY2008) and the country may have only limited The subscriptions and contributions provided or no creditworthiness for IBRD lending. through the Third Replenishment are expressed on the basis of the 1974 SDR. Prior to the decision of The following terms apply to the different types of the Executive Directors, IDA had valued these development credits: subscriptions and contributions on the basis of the SDR at the current market value of the SDR. Regular development credits: These carry a service charge of 0.75 percent and generally have 35-year The subscriptions and contributions provided under (for Blend borrowers) or 40-year (for IDA-only the Fourth Replenishment and thereafter are borrowers) final maturities and a 10-year grace expressed in members' currencies or SDRs and are period for principal payments. payable in members' currencies. Subscriptions and contributions made available for disbursement in Hardened-term development credits: These are cash to IDA are translated at market exchange rates offered to member countries with per capita income in effect on the dates they were made available. above IDA's cut-off level for two consecutive years Subscriptions and contributions not yet available for and the lending terms include 20-year maturity, with disbursements are translated at market exchange a 10-year grace period. rates in effect at the end of the accounting period. Hard-term development credits: Eligibility for these credits is restricted to creditworthy IBRD/IDA blend Maintenance of Value countries with per capita incomes below the IDA Article IV, Section 2(a) and (b) of IDA's Articles of operational cut-off and an active IBRD lending Agreement provides for maintenance of value program. Lending terms include a 35-year maturity, payments on account of the local currency portion of with a 10 year grace period, and an interest charge in the initial subscription whenever the par value of the addition to standard IDA service charges. The member's currency or its foreign exchange value interest rate is determined on an annual basis, prior has, in the opinion of IDA, depreciated or to the start of IDA's fiscal year, and remains fixed appreciated to a significant extent, so long as, and to for the life of the development credit. the extent that, such currency shall not have been initially disbursed or exchanged for the currency of Incremental direct costs associated with originating another member. The provisions of Article IV, development credits are capitalized and amortized over the term of the credit. Development credits are IDA FINANCIAL STATEMENTS: JUNE 30, 2009 141 carried in the financial statements at the face amount Pursuant to the applicable buy-down terms, IDA of the borrowers' outstanding obligations, less an enters into an arrangement with third party donors accumulated provision for debt relief and credit who make payments on the borrower's service and losses, plus the deferred origination costs. commitment charges through a trust fund until the borrower reaches agreed performance goals. At that It is the policy of IDA to place in nonaccrual status time, IDA sells the related credits to the trust fund all development credits made to, or guaranteed by, a for an amount equivalent to the present value of the member government or to the government of a remaining cash flows of the related credits, based on territory of a member if principal or charges with appropriate discount rates. The trust fund respect to any such development credit are overdue subsequently cancels the purchased credits, thereby by more than six months, unless IDA's management converting them to grant terms. determines that the overdue amount will be collected in the immediate future. In addition, if loans by The difference between the carrying amount of the IBRD to a member government are placed in development credit sold and the amount received is nonaccrual status, all development credits to that recognized as an expense by way of write-off in member government will also be placed in IDA's Statement of Income. nonaccrual status by IDA. On the date a member's Development Grants development credits are placed in nonaccrual status, outstanding charges that had accrued on Development grants are charged to income, and a development credits that remained unpaid are liability recognized, upon approval by IDA's deducted from the income from development credits Executive Directors. of the current period. Charges on nonaccruing Guarantees development credits are included in income only to the extent that payments have actually been received IDA provides guarantees for loans issued in support by IDA. If collectibility risk is considered to be of projects located within a member country that are particularly high at the time of arrears clearance, the undertaken by private entities. These financial member's credits may not automatically emerge guarantees are commitments issued by IDA to from nonaccrual status, even though the member's guarantee payment performance by a borrower to a eligibility for new credits may have been restored in third party in the event that a member government such instances. In such instances, a decision on the (or government-owned entity) fails to perform its restoration of accrual status is made on a case-by- contractual obligations with respect to a private case basis after a suitable period of payment or project. policy performance has passed from the time of Guarantees are regarded as outstanding when the arrears clearance. underlying financial obligation of the borrower is The repayment obligations of IDA's development incurred, and called when a guaranteed party credits funded from resources through the Fifth demands payment under the guarantee. IDA would Replenishment are expressed in the development be required to perform under its guarantees if the credit agreements in terms of 1960 dollars. In June payments guaranteed are not made by the borrower 1987, the Executive Directors decided to value those and the guaranteed party called the guarantee by development credits at the rate of $1.20635 per 1960 demanding payment from IDA in accordance with dollar on a permanent basis. Development credits the terms of the guarantee. funded from resources provided under the Sixth At inception of the guarantees, IDA records the fair Replenishment and thereafter are denominated in value of the obligation to stand ready, and a SDRs; the principal amounts disbursed under such corresponding asset in the Balance Sheet under development credits are to be repaid in currency Other Assets. amounts currently equivalent to the SDRs disbursed. In the event that a guarantee is called, IDA has the Sale of credits under buy-down mechanism contractual right to require payment from the The Investment Partnership for Polio program to member country that has provided the counter fund the immunization of children in high-risk polio guarantee to IDA, on demand, or as IDA may countries has a funding mechanism that allows the otherwise direct. purchase of oral vaccines from the proceeds of Guarantee fee income received is deferred and development credits, which are subsequently amortized over the life of the guarantee. converted to grant terms under IDA's "buy-down mechanism", upon attainment of agreed IDA records a contingent liability for the probable performance goals. losses related to guarantees outstanding. This 142 THE WORLD BANK ANNUAL REPORT 2009 provision, as well as the unamortized balance of the quantitative and qualitative analyses of various deferred guarantee fee income, and the unamortized factors, including estimates of decision and balance of the obligation to stand ready, are included completion point dates. IDA periodically reviews in Accounts Payable and Miscellaneous Liabilities these factors and reassesses the adequacy of the on the Balance Sheet. accumulated provision for the HIPC Debt Initiative and MDRI. Adjustments to the accumulated HIPC Debt Initiative provision are recorded as a charge against or The HIPC Debt Initiative was launched during 1996 addition to income. as a joint effort by bilateral and multilateral creditors Upon approval by the Executive Directors of IDA of to ensure that reform efforts of HIPCs would not be put at risk by unsustainable external debt burdens. debt relief for a country under the Enhanced HIPC Initiative the principal component of the estimated Under the Enhanced HIPC Framework, which was debt relief costs is recorded as a reduction of the approved by IDA's Executive Directors in FY2000, disbursed and outstanding development credits implementation mechanisms include: (i) partial under the accumulated provision for debt relief, and forgiveness of IDA debt service as it comes due, and as a charge to income. This estimate is subject to ii) in the case of countries with a substantial amount periodic revision. The accumulated provision for of outstanding IBRD debt, partial refinancing by HIPC Debt Initiative is reduced when debt relief is IDA resources (excluding transfers from IBRD) of provided by IDA. outstanding IBRD debt. Following the Executive Directors' approval of Upon signature by IDA of the country specific legal IDA's participation in the MDRI in June 2006, IDA notification, immediately following the decision by provided in full for the estimated probable write-off the Executive Directors of IDA to provide debt relief of the principal component of debt relief to be to the country (the Decision Point), the country delivered under the MDRI for the HIPC eligible becomes eligible for debt relief up to the nominal countries confirmed by the Executive Directors as value equivalent of one third of the net present value eligible for relief at that time. of the total HIPC debt relief committed to the specific country. A Completion Point is reached The provision is recorded as a reduction of the disbursed and outstanding development credits when the conditions specified in the legal notification are met and the country's other creditors under the accumulated provision for debt relief and as a charge against income. The applicable have confirmed their full participation in the debt relief initiative. When the country reaches its development credits are written off when the Completion Point, IDA's commitment to provide the country reaches the completion point and the related provision reduced accordingly. total debt relief for which the country is eligible, becomes irrevocable. Accumulated Provision for Losses on Development Credits (and Guarantees) MDRI Delays in receiving payments from development Debt relief provided under the MDRI is in addition credits or guarantee premiums result in present value to existing debt relief commitments provided by losses to IDA since it does not charge fees or IDA and other creditors under the HIPC Debt additional service charges or interest on any overdue Initiative. Additional resources for financing IDA's service charges, interest and other charges. These costs of providing debt relief under MDRI will be present value losses are equal to the difference provided by donors over time under a resolution of between the present value of payments of service IDA's Board of Governors adopted on April 21, charges and other charges made according to the 2006. These resources are added to IDA's resources credit's contractual terms and the present value of its and are accounted for as subscriptions and expected future cash flows. contributions. On June 23, 2006, the Executive Directors approved the implementation of the MDRI Management determines the appropriate level of commencing July 1, 2006. accumulated provision for losses on credits and guarantees after taking into consideration the Accumulated Provision for Debt Relief and expected relief under the HIPC Debt Initiative and Losses on Development Credits (and Guarantees) MDRI. This accumulated provision reflects the Accumulated Provision for HIPC Debt Initiative and probable losses inherent in its nonaccrual and MDRI accrual portfolios. There are several steps required The adequacy of the accumulated provision for the to determine the appropriate level of provisions. HIPC Debt Initiative and MDRI is based on both First, the total credits and guarantees portfolio is IDA FINANCIAL STATEMENTS: JUNE 30, 2009 143 segregated into the accrual and nonaccrual recorded at face value which approximates fair portfolios. In both portfolios, the net exposure for value. IDA receives securities purchased under each borrower (defined as the nominal amount of resale agreements, monitors the fair value of the credits outstanding plus the present value of securities and, if necessary, closes out transactions guarantees less the accumulated provision for debt and enters into new repriced transactions. The relief under the HIPC Debt Initiative and MDRI) is securities transferred to IDA under the repurchase then assigned a credit risk rating. IDA development and security lending arrangements and the securities credits and guarantees in the accrual portfolio are transferred to counterparties under the resale grouped according to the assigned borrower risk agreements have not met the accounting criteria for rating. Each risk rating is mapped to an expected treatment as a sale. Therefore, securities transferred default frequency based on experience. The under repurchase agreements and security lending provision required is calculated by multiplying the arrangements are retained as assets on IDA's balance outstanding exposure, by the expected default sheet, and securities received under resale frequency and by the assumed severity of the loss agreements are not recorded on IDA's Balance given default for IDA. Sheet. IDA reassesses the adequacy of the accumulated Nonnegotiable, Noninterest-bearing Demand provision for losses on credits and guarantees each Obligations on Account of Members' quarter. Adjustments to the accumulated provision Subscriptions and Contributions are recorded as a charge against or addition to Payments on these instruments are due to IDA upon income. demand and are held in bank accounts which bear Statement of Cash Flows IDA's name. Accordingly, these instruments are carried and reported at face value as assets on the For the purpose of IDA's Statement of Cash Flows, Balance Sheet. cash is defined as the amount of Due from Banks-- Unrestricted currencies. Accounting for Derivatives Investments Derivative instruments are recorded on the Balance Sheet at fair value. IDA has elected not to designate Investment securities are classified based on any hedging relationships. Rather, all derivative management's intention on the date of purchase, instruments have been marked to fair value and all their nature, and IDA's policies governing the level changes in fair value have been recognized in net and use of such investments. At June 30, 2009 and income. June 30, 2008, all investment securities were held in a trading portfolio. Investment securities and related Valuation of Financial Instruments financial instruments held in IDA's trading portfolio Derivative financial instruments and investment are carried and reported at fair value. The first-in securities are recorded in IDA's financial statements first-out (FIFO) method is used to determine the cost at fair value. of securities sold in computing the realized gains and losses on these instruments. Unrealized gains IDA has an established and documented process for and losses for investment securities and related determining fair values. Fair value is based upon financial instruments held in the trading portfolio are quoted market prices, where available. Financial included in income. Derivative instruments are used instruments for which quoted market prices are not in liquidity management to enhance investment readily available are valued based on discounted returns and are not designated as hedging cash flow models. These models primarily use instruments. These derivatives are carried at fair market-based or independently sourced market value. IDA enters into forward contracts for the sale parameters such as yield curves, interest rates, or purchase of investment securities; these foreign exchange rates and credit curves. To ensure transactions are recorded at the trade date. that the valuations are appropriate where internally- Securities Purchased Under Resale Agreements developed models are used, IDA has various and Securities Sold Under Repurchase controls in place, which include both internal and Agreements and Payable for Cash Collateral periodic external verification and review. Received Determination of Fair Value Securities purchased under resale agreements, Summarized below are the techniques applied in securities lent under securities lending agreements, determining the fair values of financial instruments. and securities sold under repurchase agreements are 144 THE WORLD BANK ANNUAL REPORT 2009 Investment securities on unadjusted quoted prices for identical assets or liabilities in active markets. Where available, quoted market prices are used to determine the fair value of trading securities. Level 2: Financial assets and liabilities whose Examples include some government securities. For values are based on quoted prices for instruments for which market quotations are not similar assets or liabilities in active available, fair values are determined based on markets; quoted prices for identical or model-based valuation techniques, whether similar assets or liabilities in non-active internally-generated or vendor-supplied, that include markets; or pricing models for which all the standard discounted cash flow method using significant inputs are observable, either market observable inputs such as yield curves, credit directly or indirectly for substantially the spreads, and prepayment speeds. Unless quoted full term of the asset or liability. prices are available, money market instruments are Level 3: Financial assets and liabilities whose reported at face value which represents fair value. values are based on prices or valuation Securities Purchased under Resale Agreements and techniques that require inputs that are Securities Sold under Agreements to Repurchase both unobservable and significant to the overall fair value measurement. Securities purchased under resale agreements and securities sold under agreements to repurchase are Transfers and Grants reported at face value which represents fair value. Transfers from IBRD's net income and grants made Derivative contracts from the retained earnings of IFC to IDA are recorded through IDA's Statement of Income and Derivative contracts include currency forward are receivable upon approval by the Board of contracts and plain vanilla interest rate swaps valued Governors of IBRD and execution of a grant using the standard discounted cash flow methods agreement between IFC and IDA, respectively. In using market observable inputs such as yield curves, addition, IDA periodically receives transfers from foreign exchange rates and basis spreads. trust funds and private institutions which are Fair Value Hierarchy recognized through the Income Statement upon receipt. IDA does not assign any voting rights for IDA applies a three-level fair value hierarchy under these transfers and grants. which financial instruments are categorized based on the priority of the inputs to the valuation technique. Temporary restrictions relating to these transfers The fair value hierarchy gives the highest priority to arise from the timing of receipt of cash, or donor quoted prices in active markets for identical assets or imposed restrictions as to use. When the cash is liabilities (Level 1), the next highest priority to received and any other restrictions on the transfers observable market-based inputs or inputs that are and grants are complied with, the temporary corroborated by market data (Level 2) and the restrictions are removed. lowest priority to unobservable inputs that are not corroborated by market data (Level 3). When the Accounting and Reporting Developments inputs used to measure fair value fall within Effective July 1, 2008, IDA adopted Financial different levels of the hierarchy, the level within Accounting Standards Board's (FASB's) Statement which the fair value measurement is categorized is of Financial Accounting Standards No. 157, Fair based on the lowest level input that is significant to Value Measurements (FAS 157), which defines fair the fair value measurement of the instrument in its value, establishes a consistent framework for entirety. Thus, a Level 3 fair value measurement measuring fair value and expands disclosure may include inputs that are observable (Level 2) and requirements about fair value measurements. FAS unobservable (Level 3). Additionally, FAS 157 157 also requires that the valuation techniques used requires that the valuation techniques used to to measure fair value maximize the use of measure fair value maximize the use of observable observable inputs and minimize the use of inputs and minimize the use of unobservable inputs. unobservable inputs. IDA's adoption of FAS 157 did Financial assets and liabilities recorded at fair value not have any impact on its financial statements, on the Condensed Balance Sheet are categorized apart from additional disclosures in the notes to the based on the inputs to the valuation techniques as financial statements (see Note M­Fair Value of follows: Financial Instruments). Level 1: Financial assets whose values are based In conjunction with the adoption of FAS 157, IDA IDA FINANCIAL STATEMENTS: JUNE 30, 2009 145 adopted FASB's Statement of Financial Accounting disclosures related to events or transactions Standards No. 159, The Fair Value Option for occurring after the balance sheet date. The Financial Assets and Financial Liabilities (FAS application of this standard resulted in additional 159) effective July 1, 2008. At the date of adoption, disclosures in IDA's June 30, 2009 financial IDA did not elect to fair value any existing financial statements. instruments under FAS 159. Subsequent to the In June 2009, the FASB issued Statement of adoption date, it is IDA's policy to assess the Financial Accounting Standards No. 166, appropriateness of this election on an instrument-by- Accounting for Transfers of Financial Assets--an instrument basis. amendment of FASB Statement No.140 (FAS 166). In December 2008, the FASB issued FASB Staff This standard addresses the information that a Position (FSP) FAS 140-4 and FIN 46(R)-8, reporting entity provides in its financial reports Disclosures by Public Entities (Enterprises) about about transfers of financial assets including: the Transfers of Financial Assets and Interests in effects of a transfer on its financial position, Variable Interest Entities. The FSP increases financial performance, and cash flows; and a disclosure requirements for public companies and is transferor's continuing involvement in transferred effective for interim and annual reporting periods assets. This standard is effective for IDA's interim ending after December 15, 2008. The application of and annual reporting periods beginning July 1, 2010. this FSP did not have a material impact on IDA's IDA is currently assessing the impact of this June 30, 2009 financial statements. standard on its financial statements. Effective March 31, 2009, IDA adopted FASB's In June 2009, the FASB issued Statement of Statement of Financial Accounting Standards Financial Accounting Standards No. 167, No.161, Disclosures about Derivative Instruments Amendments to FASB Interpretation No.46(R) (FAS and Hedging Activities - an amendment of FASB 167). This standard amends certain requirements of Statement No. 133 (FAS 161). FAS 161 requires FASB Interpretation No. 46 (revised December enhanced disclosures about derivative instruments 2003), Consolidation of Variable Interest Entities and hedging activities (see Note F­Derivative relating to enterprises involved with variable interest Instruments). entities. This standard is effective for IDA's interim and annual reporting periods beginning July 1, 2010. In April 2009, the FASB issued FSP FAS 157-4, IDA is currently assessing the impact of this Determining Fair Value When the Volume and Level standard on its financial statements. of Activity for the Asset or Liability Have Significantly Decreased and Identifying NOTE B-- MEMBERS' SUBSCRIPTIONS Transactions That Are Not Orderly. This FSP AND CONTRIBUTIONS provides guidance for estimating fair value when the volume and level of activity for the asset or liability Subscriptions and Contributions Paid-In: The have significantly decreased, and on the process for movement in Subscriptions and Contributions Paid- identifying circumstances in which a transaction is In during the fiscal years ended June 30, 2009 and not orderly. The FSP is applicable prospectively to June 30, 2008 is summarized below: the financial statements for interim and annual reporting periods ending after June 15, 2009. The In millions of U.S. dollars application of this FSP resulted in additional June 30, June 30, 2009 2008 disclosures in the notes to the financial statements Beginning of the fiscal year $142,416 $136,091 (see Note M­Fair Value of Financial Instruments). Cash contributions received 1,994 1,043 Promissory notes received 6,295 4,663 In May 2009, the FASB issued Statement of Translation adjustment (620) 619 Financial Accounting Standards No. 165, End of the fiscal year $150,085 $142,416 Subsequent Events (FAS 165). This standard establishes principles and requirements for Subscriptions and Contributions Receivable: At evaluating and reporting subsequent events. In June 30, 2009, receivables from subscriptions and particular, it sets forth; the period after the balance contributions were $47,712 million ($33,141 sheet date during which management shall evaluate million--June 30, 2008) of which $785 million events or transactions that may occur for potential ($585 million--June 30, 2008) was due and $46,927 recognition or disclosure in the financial statements; million ($32,556 million--June 30, 2008) was not the circumstances under which an entity shall yet due. recognize events or transactions occurring after the balance sheet date in its financial statements; and the 146 THE WORLD BANK ANNUAL REPORT 2009 Subscriptions and contributions due at June 30, 2009 Donor Financing of MDRI: As of June 30, 2009, were as follows: 33 donors to the MDRI had issued IoCs totaling In millions of U.S. dollars $32,390 million at the applicable MDRI and IDA15 Amounts initially due foreign exchange reference rates covering 85% of July 1, 2008 through June 30, 2009 $442 total costs based on the updated costs estimates for June 30, 2008 and earlier 343 the MDRI resolution. This includes firm Total $785 (unqualified) donor commitments covering 18% of the total costs. Contributions provided under Subscriptions and contributions not yet due at June qualified commitments become available for IDA's 30, 2009 will become due as follows: commitment authority once the commitment becomes unqualified. In millions of U.S. dollars Period The following table summarizes by donor country July 1, 2009 through June 30, 2010 $ 9,199 the IoCs received under the MDRI resolution as of July 1, 2010 through June 30, 2011 8,498 June 30, 2009. Thereafter 29,230 Total $46,927 In millions of U.S. dollars Country Unqualified Qualified Total Australia $ 170 $ 170 th Austria 82 82 On October 11, 2008, Estonia became the 168 Belgium 13 13 member country of IDA with a subscription of Canada 873 $ 594 1,467 $868,572. Czech Republic 5 13 18 Denmark 184 470 654 On June 29, 2009, The Republic of Kosovo became Finland 68 68 the 169th member of IDA with a subscription of France 518 1,950 2,468 $874,956. Germany 1,036 2,673 3,709 Greece 14 35 49 The Fifteenth Replenishment of IDA's Resources Hungary 5 5 Iceland 3 3 (IDA15): IDA15 became effective on November 6, Ireland 80 80 2008, following the receipt of commitments for Italy 52 1,532 1,584 subscriptions and contributions above the minimum Japan 331 4,616 4,947 threshold of SDR 9,696 million. Korea, Republic of 97 246 343 Kuwait 58 58 Cumulative Discounts on Subscriptions and Luxembourg 40 40 Netherlands 242 907 1,149 Contributions: At June 30, 2009, the cumulative New Zealand 14 35 49 discounts on Subscriptions and Contributions totaled Norway 200 431 631 $1,626 million ($1,481 million--June 30, 2008) and Poland 2 9 11 comprised the following: Portugal 83 83 Russian Federation 33 33 Saudi Arabia 16 16 In millions of U.S. dollars Slovak Republic 1 1 June 30, 2009 June 30, 2008 Slovenia 1 10 11 Discounts on Advance South Africa 29 29 Subscriptions and Spain 210 537 747 Contributions $1,114 $ 969 Sweden 306 780 1,086 Allocation to Switzerland 512 512 Switzerland 153 153 Cumulative discounts $1,626 $1,481 United Kingdom 1,463 3,731 5,194 United States 336 7,103 7,439 Total $6,718 $25,672 $32,390 The allocation to Switzerland represents the discount given to Switzerland when they became a member of IDA. Switzerland had provided $580 million in co-financing grants to IDA borrowers before it became a member of IDA. These grant contributions were converted to IDA subscriptions and contributions upon membership at $512 million, representing the present value of the future reflows of the co-financing grants had they been made through IDA on IDA's repayment terms existing then. IDA FINANCIAL STATEMENTS: JUNE 30, 2009 147 Payable for Investment Securities Purchased on the NOTE C--INVESTMENTS Balance Sheet. As of June 30, 2009 there were $21 million ($96 For the fiscal year ended June 30, 2009, IDA had million--June 30, 2008) of short sales included in included $450 million of unrealized gains in income. A summary of IDA's trading portfolio and the currency composition at June 30, 2009 and June 30, 2008, is as follows: In millions of U.S. dollars Carrying Value June 30, 2009 June 30, 2008 Investments--Trading Government and agency obligations $18,725 $14,771 Time deposits 5,191 11,114 Asset-backed securities 2,567 3,128 Total $26,483 $29,013 Investments - Trading In millions of U.S. dollars June 30, 2009 June 30, 2008 Average Repricing Average Repricing a a Carrying value (years) Carrying value (years) Euro $ 9,327 3.67 $14,246 1.84 Japanese yen 2,794 2.79 1,625 4.37 Pounds sterling 2,557 2.86 3,543 1.40 U.S. dollars 10,976 3.16 8,800 4.42 Other 829 0.44 799 0.05 Total $26,483 3.18 $29,013 2.66 a. The average repricing represents the remaining period to the contractual repricing or maturity date, whichever is earlier. This indicates the average length of time for which interest rates are fixed. Net Investment Portfolio IDA manages its investments on a net portfolio basis. The following tables summarize IDA's net portfolio position and currency composition as of June 30, 2009 and June 30, 2008: In millions of U.S. dollars Carrying Value June 30, 2009 June 30, 2008 Investments--Trading $26,483 $29,013 Securities purchased under resale agreements 5 148 Securities sold under repurchase agreements and payable for cash collateral received (4,684) (9,722) Derivatives Assets Currency forward contracts 1,014 2,968 Interest rate swaps 2 1 Total 1,016 2,969 Derivatives Liabilities Currency forward contracts (1,015) (3,033) Interest rate swaps (2) (1) Total (1,017) (3,034) a Cash held in investment portfolio 27 * Receivable from investment securities traded 214 368 Payable for investment securities purchased (757) (689) Net Investment Portfolio $21,287 $19,053 * Indicates amounts less than $0.5 million. a. This amount is included in Unrestricted Currencies under Due from Banks on the Balance Sheet. 148 THE WORLD BANK ANNUAL REPORT 2009 In millions of U.S. dollars June 30, 2009 June 30, 2008 Average Average Carrying value Repricing Carrying value Repricing a a (years) (years) Euro $ 7,321 4.62 $ 7,658 3.35 Japanese yen 2,435 3.19 1,961 3.65 Pounds sterling 1,986 3.58 2,140 2.26 U.S. dollars 9,542 3.63 7,293 5.03 Other 3 * 1 * Total $21,287 3.92 $19,053 3.90 * Indicates amounts not meaningful. a. The average repricing represents the remaining period to the contractual repricing or maturity date, whichever is earlier. This indicates the average length of time for which interest rates are fixed. Collateral Arrangements accounted for as sales as the accounting criteria for the treatment as a sale have not been met. These IDA may engage in securities lending and securities must be available to meet IDA's obligation repurchases, against adequate collateral, as well as to counterparties. The following is a summary of securities borrowing and reverse repurchases the carrying amount of the securities transferred (resales) of government and agency obligations, and under repurchase or securities lending agreements, corporate and asset-backed securities. Transfers of and the related liabilities: securities by IDA to counterparties are not In millions of U.S. dollars June 30, 2009 June 30, 2008 Financial Statement Presentation Securities transferred under repurchase or Included under Investments-Trading on the $4,656 $9,540 securities lending agreements Balance Sheet Liabilities relating to securities transferred Included under Securities Sold Under under repurchase or securities lending $4,684 $9,658 Repurchase Agreements and Payable for Cash agreements Collateral Received on the Balance Sheet. IDA receives collateral in connection with resale credits made under IDA's hard-term lending window agreements. This collateral serves to mitigate IDA's which are available to eligible recipients. For the exposure to credit risk. The collateral received is in fiscal year ended June 30, 2009, the rate for hard- the form of liquid securities and IDA is permitted to term development credits was 3.2 percent (fiscal year repledge these securities. While these transactions ended June 30, 2008--4.2 percent). The rate is fixed are legally considered to be true purchases and sales, for the life of the development credit. the securities received are not recorded on IDA's Deferred origination costs represent the incremental Balance Sheet as the accounting criteria for treatment direct costs of credit origination incurred in as a sale have not been met. As of June 30, 2009, transactions with borrowers and are reported in the IDA had received securities with a fair value of $5 Balance Sheet as "Deferred development credits million ($148 million-- June 30, 2008). None of origination costs" and are amortized over the life of these securities ($65 million-- June 30, 2008) had the credits. The movement in this balance represents been transferred under repurchase or security lending the impact of deferrals of new costs and the agreements. amortization of previously deferred costs between NOTE D--DEVELOPMENT CREDITS AND reporting periods. GUARANTEES Commitment charges Service charges Commitment charges on the undisbursed balance of All outstanding regular development credits carry a development credits are recognized into income as service charge of 0.75 percent per annum. This rate accrued. The rate is set annually by the Executive has been in effect since FY1966. Directors of IDA. For the fiscal year ended June 30, 2009, the rate was set at zero percent (fiscal year In addition to the standard service charge of 0.75 ended June 30, 2008--0.10%). percent per annum, there are interest charges on IDA FINANCIAL STATEMENTS: JUNE 30, 2009 149 Development credits outstanding by product type on approval at June 30, 2009 and June 30, 2008 comprised of: In millions of U.S. dollars June 30, 2009 June 30, 2008 Regular credits with 40-years or more maturity $ 69,841 $ 70,691 Regular credits with 35 years maturity 41,140 41,449 Hardened term credits 1,706 1,206 Hard-term credits 207 196 Total $112,894 $113,542 The maturity structure of IDA's development credits outstanding at June 30, 2009 and June 30, 2008 were as follows: In millions of U.S. dollars June 30, 2009 June 30, 2008 a July 1, 2009 through June 30, 2010 $ 4,136 July 1, 2008 through June 30, 2009 $ 3,201 July 1, 2010 through June 30, 2014 12,082 July 1, 2009 through June 30, 2013 11,838 July 1, 2014 through June 30, 2019 21,113 July 1, 2013 through June 30, 2018 20,838 Thereafter 75,563 Thereafter 77,665 Total $112,894 Total $113,542 a. Includes $830 million to be written off on July 1, 2009 under the MDRI. Currency Composition The currency composition of IDA's development credits outstanding at June 30, 2009 and June 30, 2008 was as follows: In millions of U.S. dollars June 30, 2009 June 30, 2008 USD $ 8,472 $ 9,007 SDR 104,422 104,535 Development credits outstanding $112,894 $113,542 Overdue Amounts At June 30, 2009, in addition to those development credits referred to in the following paragraph, principal payments of $0.9 million and charges of $0.6 million payable to IDA on development credits were overdue by more than three months. The following tables provide a summary of selected financial information related to development credits in nonaccrual status for the fiscal year ended June 30, 2009 and June 30, 2008: In millions of U.S. dollars June 30, June 30, 2009 2008 a Recorded investment in nonaccrual credits $3,047 $3,153 Accumulated provision for debt relief under HIPC/MDRI on nonaccrual credits 1,660 1,697 Accumulated provision for credit losses on nonaccrual credits 185 194 Average recorded investment in nonaccrual credits for the period 3,029 5,223 Overdue amounts of nonaccrual credits: 1,149 1,066 Principal 839 768 Charges 310 298 a. A credit loss provision has been recorded against each of the credits in the nonaccrual portfolio. 150 THE WORLD BANK ANNUAL REPORT 2009 In millions of U.S. dollars 2009 2008 Service charge income recognized on credits in nonaccrual status at the end $- $ - of the fiscal year Service charge income not recognized as a result of credits being in 21 23 nonaccrual status A summary of countries with development credits or guarantees in nonaccrual status at June 30, 2009, is as follows: In millions of U.S. dollars Principal Principal and Nonaccrual Borrower Outstanding Charges Overdue Since Myanmar $ 788 $ 300 September 1998 Somalia 445 198 July 1991 Sudan 1,297 530 January 1994 Zimbabwe 517 121 October 2000 Total $3,047 $1,149 During the fiscal year ended June 30, 2009, there income that would have been accrued in previous were no borrowers that went into or were restored fiscal years had these credits not been in nonaccrual from nonaccrual status. status. The developments in the nonaccrual portfolio during In May 2008, Togo cleared all of its overdue the fiscal year ended June 30, 2008 are discussed principal and charges due to IDA and the credits to, below: or guaranteed by, Togo were restored to accrual status. The impact of this event was an increase in In December 2007, Liberia cleared all of its overdue income from development credits by $38 million, principal and charges due to IDA and IBRD and the including $34 million which represented income that development credits to, or guaranteed by, Liberia would have been accrued in previous fiscal years were restored to accrual status. As a result of this had these credits not been in nonaccrual status. event, income from development credits increased In each of the above cases, the clearance of overdue by $17 million, all of which represented income that payments was accomplished using intra-day bridge would have been accrued in previous fiscal years financing provided by other member countries. IDA had these credits not been in nonaccrual status. then disbursed development grants on the respective In April 2008, Côte d'Ivoire cleared all of its arrears clearance dates, with part of the grants overdue principal and charges due to IDA and the proceeds being applied towards repayment of the credits to, or guaranteed by, Côte d'Ivoire were bridge financing. The development grants were restored to accrual status. This resulted in the funded by IDA resources other than transfers from increase in income from development credits by $63 IBRD. million, including $52 million which represented IDA FINANCIAL STATEMENTS: JUNE 30, 2009 151 The following table presents IDA's development credits outstanding at June 30, 2009, and June 30, 2008, and associated charge income during the fiscal years ended June 30, 2009 and June 30, 2008, by geographic region. In millions of U.S. dollars June 30, 2009 June 30, 2008 Development Credits Development Credits Outstanding Charge Income Outstanding Charge Income Africa $ 29,720 $194 $ 29,278 $298 East Asia and Pacific 19,937 141 20,028 143 Europe and Central Asia 7,273 53 7,264 53 Latin America and the Caribbean 1,868 12 1,827 13 Middle East and North Africa 3,826 28 3,927 30 South Asia 50,270 373 51,218 384 Total $112,894 $801 $113,542 $921 For the fiscal year ended June 30, 2009, development credits to one country generated in excess of ten percent of charge income. Charge income from this country was $189 million. Accumulated Provision for the HIPC Debt Initiative, MDRI, and Losses on Credits and Guarantees Changes to the accumulated provision for the HIPC Debt Initiative, MDRI, and Losses on Credits and Guarantees for the fiscal years ended June 30, 2009 and June 30, 2008, are summarized below: In millions of U.S. dollars June 30, June 30, 2009 2008 Credits and Debt Relief Guarantees HIPC/MDRI Losses Total Total Accumulated provision, beginning of the fiscal year $11,843 $1,257 $13,100 $13,364 (Release of) increase in the provision, net (1,264) 28 (1,236) (773) Debt relief given (76) - (76) (92) Development credits written off (650) - (650) (214) Translation adjustment (516) (42) (558) 815 Accumulated provision, end of the fiscal year $ 9,337 $1,243 $10,580 $13,100 Composed of: Accumulated provision for debt relief and losses on development credits 10,577 $13,096 Accumulated provision for guarantee losses 3 4 $10,580 $13,100 Reported as Follows Balance Sheet Statement of Income Allowance for Losses on: Accumulated provision for debt relief Provision for debt relief and for losses on credits HIPC, MDRI and Credits and losses on development credits and guarantees Guarantees Other Liabilities-Accounts payable and Provision for debt relief and for losses on credits miscellaneous liabilities and guarantees Except for debt relief provided under the HIPC Debt make timely payments for protracted periods, Initiative and MDRI, IDA has always eventually resulting in their credits being placed in nonaccrual collected all contractual principal, charges and status. Several borrowers have emerged from interest on its credits. Notwithstanding this history, nonaccrual status after a period of time by bringing there remains a risk of loss of principal, charges and up-to-date all principal payments and all overdue interest due to the risk of non-payment and default service payments, including interest and other by borrowers. IDA also suffers losses resulting from charges. To recognize the probable losses inherent in the difference between the discounted present value its credit and guarantee portfolio, IDA maintains an of payments for interest and charges according to the accumulated provision for losses on credits and related credit's contractual terms and the actual cash guarantees. flows. Certain borrowers have found it difficult to 152 THE WORLD BANK ANNUAL REPORT 2009 The following table provides the amounts written off by country on an accumulated basis since implementation of the MDRI, commencing on July 1, 2006. In millions of U.S. dollars Country Cumulative amounts written off Benin $ 689 Bolivia 1,506 Burkina Faso 822 Burundi 650 Cameroon 908 Ethiopia 3,053 The Gambia 214 Ghana 3,769 Guyana 221 Honduras 1,103 Madagascar 1,891 Malawi 1,865 Mali 1,260 Mauritania 607 Mozambique 1,189 Nicaragua 970 Niger 967 Rwanda 866 São Tomé and Principe 69 Senegal 1,733 Sierra Leone 526 Tanzania 3,300 Uganda 2,923 Zambia 2,318 Total $33,419 The following countries reached completion point under the HIPC Debt Initiative during the fiscal year, allowing cancellation of eligible development credits outstanding under the MDRI: Country Completion Point Date Impact on Development Credits Burundi January 29, 2009 $650 million written off on April 1, 2009 Central African Republic June 30, 2009 $377 million written off on July 1, 2009 Haiti June 30, 2009 $453 million written off on July 1, 2009 The amounts written off on July 1, 2009 were included in the accumulated provision for debt relief under HIPC and MDRI of $9,337 million as of June 30, 2009. Sale of Credits under buy-down mechanism between 7 and 22 years, and expire in decreasing amounts through 2026. In March 2009, two development credits with an outstanding nominal value of $70 million were sold At June 30, 2009, liabilities related to IDA's for a present value equivalent of $27 million under obligations under guarantees of $19 million (June the buy-down mechanism to the Global Program to 30, 2008--$21 million), have been included in Eradicate Poliomyelitis Trust Funds, resulting in a Accounts Payable and Miscellaneous Liabilities on $43 million write-off. the Balance Sheet. These include the accumulated provision for guarantee losses of $3 million (June Guarantees 30, 2008--$4 million). Guarantees of $209 million were outstanding at June During the fiscal years ended June 30, 2009 and 30, 2009 ($194 million--June 30, 2008). This June 30, 2008, no guarantees provided by IDA were amount represents the maximum potential called. undiscounted future payments that IDA could be required to make under these guarantees, and is not included on the Balance Sheet. The guarantees issued by IDA have original maturities ranging IDA FINANCIAL STATEMENTS: JUNE 30, 2009 153 NOTE E--AFFILIATED ORGANIZATIONS In millions of U.S. dollars Transfers and Grants Derivative Transactions during the fiscal year These transactions relate to the intermediation by June 30, Temporarily June 30, IBRD of foreign exchange derivative transactions on Transfers from 2008 Unrestricted restricted 2009 behalf of IDA under an arrangement approved by IBRD $ 9,845 $ 583 $- $10,428 the Executive Directors of both IDA and IBRD. The IFC 650 450 - 1,100 balances from these transactions are reported at fair Trust funds ­ Note H 147 4 - 151 value, and are included under Derivative Assets/ Derivative Liabilities ­ Asset/liability management Total Transfers $10,642 $1,037 $- $11,679 on the Balance Sheet (See Note F--Derivative Instruments for more details). Administrative Expenses Transfers and Grants Administrative expenses represent IDA's share of On October 13, 2008 the Board of Governors of expenses jointly incurred by IBRD and IDA. IBRD approved a transfer of $583.3 million from its fiscal year 2008 net income to IDA. This transfer The allocation of expenses is based upon an agreed was received by IDA on October 15, 2008. cost sharing formula that reflects the administrative costs of service delivery to countries that are eligible On December 12, 2008, IFC and IDA signed an for lending from IBRD and IDA. Amounts due for agreement for IFC to provide a grant to IDA of $450 administrative expenses are settled on a periodic million to be used as part of IDA 15 resources in basis by IDA, net of any fees earned for furtherance of IFC's purposes. The grant was administering trust funds which totaled $23 million received by IDA on December 15, 2008. during the fiscal year ended June 30, 2009 (fiscal Cumulative transfers and grants made to IDA as of year ended June 30, 2008--$20 million). June 30, 2009 were $11,679 million ($10,642 million--June 30, 2008). Details by transferee are provided below: Receivables and Payables At June 30, 2009, and June 30, 2008, the total amounts receivable from or payable to affiliated organizations comprised of the following: In millions of U.S. dollars Receivable from: June 30, 2009 June 30, 2008 Unrestricted IBRD $1,109 $1,091 Temporarily Restricted IFC - $ 500 Trust funds ­ Note I - 2 Total Temporarily Restricted $ - $ 502 Payable to: IBRD $316 $ 340 At June 30, 2009, the unrestricted receivable from At June 30, 2009, a payable for administrative IBRD of $1,109 million ($1,091 million--June 30, services to IBRD of $ 316 million ($340 million-- 2008) represents IDA's share of prepaid costs June 30, 2008) was reported as Payable to Affiliated related to pension and other postretirement benefits. Organizations on the Balance Sheet. These will be realized over the life of the plan participants. 154 THE WORLD BANK ANNUAL REPORT 2009 NOTE F--DERIVATIVE INSTRUMENTS statement reporting, IDA has elected not to designate any hedging relationships. Rather, all IDA uses derivative instruments in its investments derivative instruments, as defined by FAS 133, have portfolio and for asset/liability management been marked to fair value and all changes in fair purposes. In applying FASB's Statement of value have been recognized in net income. Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities (FAS 133) for the purposes of financial The following table summarizes IDA's use of derivatives in its various financial portfolios: Portfolio Derivative instruments used Purpose/Risk being managed Currency swaps, interest rate swaps and Investments--Trading Enhance returns in target currencies. currency forward contracts Manage foreign exchange risks of Other assets/liabilities Currency forward contracts future cash flows. Derivatives for Asset/Liability Management with the market to convert donors' expected Purposes contributions in national currencies under IDA 15 and prior replenishments into U.S. dollars, Euro, These comprise currency forward contracts entered Japanese Yen and British Pounds, the four into by IDA with IBRD acting as the intermediary currencies of the SDR basket. The following tables provide a summary of the derivative assets and derivative liabilities relating to IDA's other derivatives at June 30, 2009 and June 30, 2008: In millions of U.S. dollars In millions of U.S. dollars 2009 2008 Average Maturity Average Maturity Amount (years) Amount (years) Receivable: Receivable: Euro $4,860 2.9 Euro $5,553 3.3 U.S. dollars 1,042 2.0 U.S. dollars 1,174 2.5 Total Receivable $5,902 2.4 Total Receivable $6,727 3.2 Payable: Payable: Pounds Sterling $1,766 3.7 Pounds Sterling $1,728 4.7 Japanese Yen 286 0.7 Japanese Yen 250 1.7 Other currencies 3,474 2.8 Other currencies 4,769 2.7 Total Payable $5,527 2.4 Total Payable $6,747 3.2 The following tables provide information on the fair value amounts and the location of the derivative instruments on the Balance Sheet, as well as the contract value/notional amounts of those derivative instruments, as of June 30, 2009 and June 30, 2008: Fair value amounts of the derivative instruments on the Condensed Balance Sheet In millions of U.S. dollars Derivative assets Derivative liabilities Derivatives not designated as hedging instruments Balance Sheet June 30, June 30, Balance Sheet June 30, June 30, under FAS 133 Location 2009 2008 Location 2009 2008 Options and Futures Other assets $ 8 $ 21 Other liabilities $ ­ $ ­ Derivative assets Derivative liabilities Interest rate swaps at fair value 2 1 at fair value 2 1 Derivative assets Derivative liabilities Currency forward contracts at fair value 6,916 9,695 at fair value 6,542 9,780 Total Derivatives $6,926 $9,717 $6,544 $9,781 IDA FINANCIAL STATEMENTS: JUNE 30, 2009 155 Contract value/notional amounts of the derivative instruments `In millions of U.S. dollars June 30, 2009 June 30, 2008 Type of contract Investments--Trading Interest rate swaps Notional principal $ 40 $ 80 Exchange traded Options and Futures Notional long position 1,693 17,602 Notional short position 351 108 The following table provides information on the gains and losses on the derivative instruments during the fiscal year ended June 30, 2009 and their location on the Statement of Income: Derivatives not designated as hedging instruments under FAS 133, and not held in a trading portfolio In millions of U.S. dollars Gains (Losses) Derivatives not designated as hedging instruments under FAS 133, and not held Income Statement Location 2009 2008 a in a trading portfolio Net unrealized gains (losses) on Currency forward contracts non-trading derivatives $13 $(54) a. For alternative disclosures about trading derivatives, see the following table. All of the instruments in IDA's investment portfolio commitments. In addition, IDA uses derivatives as are held for trading purposes. IDA's investment part of its liquidity management to enhance portfolio is primarily held for liquidity management investment returns. purposes. Within the liquidity portfolio, IDA holds The following table provides information on gains highly rated fixed income securities as well as and losses on both derivative and non-derivative derivatives. The primary objective of holding this instruments during fiscal year ended June 30, 2009 portfolio is to protect the principal amount of these and June 30, 2008 and their location on the investments and thereby ensure the availability of Statement of Income: sufficient cashflows to meet all of IDA's financial Investments--Trading related instruments In millions of U.S. dollars a Investments--Trading Income Statement Location Gains 2009 2008 Type of instrument Fixed income Investments--Trading $825 $228 a. Amounts associated with the instrument type include realized and unrealized gains (losses) on both derivative and non-derivative instruments. NOTE G--CREDIT RISK Commercial Credit Risk: For the purpose of risk management in the investment portfolio, IDA is Country Credit Risk: This risk includes potential party to a variety of financial instruments, certain of losses arising from protracted arrears on payments which involve elements of credit risk. Credit risk from borrowers for credits and guarantees. IDA exposure represents the maximum potential establishes commitment authority limits for accounting loss due to possible nonperformance by individual borrowing member countries. These obligors and counterparties under the terms of the exposure limits are tied to performance on contracts. IDA limits trading to a list of authorized macroeconomic and structural policies. dealers and counterparties. Credit limits have been Collectability risk is covered by the accumulated established for counterparties by type of instrument provision for losses on credits and guarantees. and maturity category. 156 THE WORLD BANK ANNUAL REPORT 2009 In addition, IDA has entered into master derivatives IDA-executed trust funds involve execution of agreements which contain legally enforceable close- activities by IDA as described in relevant out netting provisions. These agreements may administration agreements with donors which define further reduce the gross credit risk exposure related the terms and conditions for use of the funds. to the swaps shown below. The reduction in Spending authority is exercised by IDA, under the exposure as a result of these netting provisions can terms of the administration agreements. The vary as additional transactions are entered into under executing agency services provided by IDA vary these agreements. The extent of the reduction in and include for example, activity preparation, exposure may therefore change substantially within analytical and advisory activities and project-related a short period of time following the balance sheet activities, including procurement of goods and date. services. The credit risk exposure, as applicable, of these In some trust funds, execution is split between financial instruments at June 30, 2009 and June 30, Recipient-executed and IDA-executed portions. 2008 are given below: Decisions on assignment of funding resources In millions of U.S. dollars between the two types of execution may be made on June 30, June 30, an ongoing basis; therefore the execution of a CREDIT RISK EXPOSURE 2009 2008 portion of these available resources may not yet be assigned. Interest rate swaps IDA also acts as financial intermediary to provide Investments ­ Trading portfolio $ 2 $1 specific administrative or financial services with a limited fiduciary or operational role. These Currency forward contracts arrangements include, for example, administration Investments ­ Trading portfolio 1 1 Derivatives ­ Asset/liability of debt service trust funds, financial intermediation management 431 40 and other more specialized limited funds management roles. Funds are held and disbursed in accordance with instructions from donors or, in Exchange traded instruments are deemed to have no some cases, external governance structure or body material credit risk. All outstanding futures and operating on behalf of donors. The cash and options contracts at the end of June 30, 2009, and investment assets held in trust by IDA as June 30, 2008, were interest rate contracts. administrator and trustee at June 30, 2009 and June NOTE H-- TRUST FUNDS ADMINISTRATION 30, 2008 are summarized below: In millions of U.S. dollars IDA, alone or jointly with one or more of its Total fiduciary assets affiliated organizations, administers on behalf of June 30, June 30, donors, including members, their agencies and other 2009 2008 entities, funds restricted for specific uses in IDA-executed $ 499 $ 403 accordance with administration agreements with Recipient-executed 2,074 2,018 donors. Specified uses include, for example, co- Financial intermediary funds 1,214 1,192 Execution not yet assigned* 3,167 3,117 financing of IDA lending projects, debt reduction Total $6,954 $6,730 operations for IDA members, technical assistance for borrowers including feasibility studies and * These represent assets held in trust for which the project preparation, global and regional programs, agreement as to use and type of execution is to be and research and training programs. These funds are finalized jointly by the donors and IDA. held in trust with IDA and/or IBRD, and are held in a separate investment portfolio which is not During the fiscal year ended June 30, 2009, IDA, as commingled with IDA and/or IBRD funds, neither executing agency, disbursed $ 208 million ($181 are they included in the assets of IDA. million--fiscal year ended June 30, 2008) of trust fund program funds. Trust fund execution may be carried out in one of two ways: Recipient-executed or IDA-executed. Fees Recipient-executed trust funds involve activities During the fiscal year ended June 30, 2009, IDA carried out by a recipient third-party "executing recognized fees for administration of trust funds agency". IDA enters into agreements with and operations totaling $23 million ($20 million-fiscal disburses funds to such recipients, who then exercise year ended June 30, 2008). Fees collected by trust spending authority to meet the objectives and funds from donor contributions but not yet earned by comply with terms stipulated in the agreements. IDA totaling $59 million at June 30, 2009 ($65 million--June 30, 2008) are included in Other IDA FINANCIAL STATEMENTS: JUNE 30, 2009 157 Assets and in Accounts payable and miscellaneous NOTE J--ACCUMULATED OTHER liabilities, correspondingly, on the Balance Sheet. COMPREHENSIVE INCOME Transfers Received Comprehensive income consists of net income/loss and other gains and losses affecting equity that, Under the agreements governing the administration under U.S. GAAP, are excluded from net income of certain trust funds, IDA may receive any surplus (loss). For IDA, comprehensive income is comprised assets as transfers upon the termination of these trust of net loss and currency translation adjustments on funds. In addition, as development credits are repaid functional currencies. These items are presented in to trust funds, in certain cases they are transferred to the Statement of Comprehensive Income. The IDA. Receipts of these transfers are reported as following tables present the changes in Accumulated income in the period in which they are received. Other Comprehensive Income balances for the fiscal Details of the cumulative transfers by transferee are years ended June 30, 2009 and June 30, 2008: provided below. In millions of U.S. dollars June 30, 2009 In millions of U.S. dollars Balance, beginning of the fiscal year $18,965 Transfers Currency translation adjustments on during the fiscal year functional currencies (5,182) Balance, end of the fiscal year $13,783 June 30, Temporarily June 30, Transfers from 2008 Unrestricted restricted 2009 Trust Fund for In millions of U.S. dollars Bosnia and June 30, 2008 Herzegovina $135 $- $­ $135 Balance, beginning of the fiscal year $11,605 Trust Fund for Currency translation adjustments on Kosovo 4 ­ ­ 4 functional currencies 7,360 Balance, end of the fiscal year $18,965 Trust Fund for West Bank and Gaza 8 3 ­ 11 Private Organizations * 1 ­ 1 NOTE K--ACCUMULATED DEFICIT Total Transfers $147 $4 $­ $151 The accumulated deficit comprises the following elements at June 30, 2009 and June 30, 2008. * Indicates amounts less than $0.5 million. In millions of U.S. dollars NOTE I--DEVELOPMENT GRANTS Accumulated Deficit A summary of changes to the amounts payable for Temporarily development grants is presented below: Unrestricted restricted Total Balance at In millions of U.S. dollars June 30, 2008 $(38,039) $ 502 $(37,537) June 30, June 30, Release of 2009 2008 temporary Balance, beginning of the fiscal restriction 502 (502) ­ year $ 5,522 $ 4,642 Net income Commitments 2,575 3,160 for the fiscal Disbursements (2,209) (2,626) year 1,850 ­ 1,850 Translation adjustment (236) 346 Balance at June 30, 2009 $(35,687) $ - $(35,687) Balance, end of the fiscal year $ 5,652 $ 5,522 The commitments reported in the above table may NOTE L--PENSION AND OTHER differ from the amount of commitments reported in POSTRETIREMENT BENEFITS the Statement of Income due to the exchange rate IDA and IBRD are jointly called The World Bank. movements in the value of commitments approved The staff of IBRD perform functions for both IBRD in SDR. and IDA, but all staff compensation is paid directly Commitment charges on the undisbursed balances of by IBRD. Accordingly, a portion of IBRD's staff and IDA development grants are set annually by the associated administrative costs is allocated to IDA Executive Directors of IDA. For the fiscal year based on an agreed cost sharing ratio computed ended June 30, 2009, IDA's commitment charge on every year using various indicators. The the undisbursed balances of grants was set at zero methodology for computing this share ratio is (fiscal year ended June 30, 2008--zero). approved by the Executive Directors for both institutions. IBRD, along with IFC and MIGA sponsor a defined 158 THE WORLD BANK ANNUAL REPORT 2009 benefit Staff Retirement Plan (SRP), a Retired Staff based upon their employees' respective participation Benefits Plan (RSBP) and a Post-Employment in the plans. Benefits Plan (PEBP) that cover substantially all of The amounts presented below reflect IBRD's and their staff members. IDA's respective share of the costs, assets and The SRP provides regular defined pension benefits liabilities of the plans. While IDA is not a and also includes a cash balance component. The participating entity to these benefit plans, IDA RSBP provides certain health and life insurance shares in the costs and reimburses IBRD for its benefits to eligible retirees. The PEBP provides proportionate share of any contributions made to certain pension benefits administered outside the these plans by IBRD. SRP. As a result, the cost of any potential future liability A June 30 measurement date is used for these arising from these plans would be shared by IBRD pension and other postretirement benefit plans. All and IDA using the applicable share ratio. The costs, assets and liabilities associated with these following disclosures provide the status of the plans are allocated between IBRD, IFC, and MIGA benefit plans as applicable to the World Bank. The following table summarizes the benefit costs associated with the SRP, RSBP, and PEBP for IBRD and IDA for the fiscal years ended June 30, 2009 and June 30, 2008. In millions of U.S. dollars SRP RSBP PEBP 2009 2008 2009 2008 2009 2008 Benefit Cost Service cost $ 264 $ 258 $ 44 $ 38 $15 $14 Interest cost 697 611 104 82 28 15 Expected return on plan assets (948) (943) (115) (112) -- -- Amortization of prior service cost (credit) 7 7 (2) (2) * * Amortization of unrecognized net loss -- -- 21 4 20 3 Net periodic pension cost (income) $ 20 $(67) $ 52 $ 10 $64 $32 of which: IBRD's share $ 10 $(32) $ 25 $ 5 $31 $15 IDA's share $ 10 $(35) $ 27 $ 5 $33 $17 * Indicates amount less than $0.5 million IDA's share of the net periodic pension income/cost PEBP for IBRD and IDA for the fiscal years ended for the SRP, RSBP and PEBP are included in June 30, 2009, and June 30, 2008. Since the assets Administrative Expenses. for the PEBP are not held in an irrevocable trust separate from the assets of IBRD, they are therefore The following table summarizes the projected included in IBRD's investment portfolio. The assets benefit obligations, fair value of plan assets, and of the PEBP are invested in fixed income funded status associated with the SRP, RSBP, and instruments. In millions of U.S. dollars SRP RSBP PEBP 2009 2008 2009 2008 2009 2008 Projected Benefit Obligations $9,607 $10,561 $1,433 $1,558 $395 $ 436 Fair value of plan assets 9,932 12,414 1,166 1,396 ­ ­ a Funded status 325 1,853 (267) (162) (395) (436) Accumulated Benefit Obligations $8,003 $ 8,673 $1,433 $1,558 $356 $ 402 a. IDA's share of the funded status of these benefit plans are included in Unrestricted Receivable from Affiliated Organizations on the Balance Sheet. IDA FINANCIAL STATEMENTS: JUNE 30, 2009 159 Assumptions The following tables present the weighted-average assumptions used in determining the projected benefit obligations and the net periodic pension costs for the fiscal year ended June 30, 2009. Weighted average assumptions used to determine projected benefit obligation In millions of U.S. dollars SRP RSBP PEBP 2009 2008 2009 2008 2009 2008 Discount rate 7.00 6.75 7.00 6.75 7.00 6.75 Rate of compensation increase 6.70 7.00 6.70 7.00 Health care growth rates - at end of fiscal year 7.00 7.25 - ultimate health care growth rate 4.75 5.50 Year in which ultimate rate is reached 2017 2016 Weighted average assumptions used to determine net periodic pension cost In millions of U.S. dollars SRP RSBP PEBP 2009 2008 2009 2008 2009 2008 Discount rate 6.75 6.25 6.75 6.25 6.75 6.25 Expected return on plan assets 7.75 7.75 8.25 8.25 Rate of compensation increase 7.00 6.50 7.00 6.50 Health care growth rates - at end of fiscal year 7.25 6.80 - ultimate health care growth rate 5.50 4.75 Year in which ultimate rate is reached 2016 2012 The medical cost trend rate can significantly affect the reported postretirement benefit income or costs and benefit obligations for the RSBP. The following table shows the effects of a one-percentage-point change in the assumed healthcare cost trend rate: In millions of U.S. dollars One percentage point One percentage point increase decrease Effect on total service and interest cost $ 36 $ (27) Effect on postretirement benefit obligation 267 (211) Expected Contributions The best estimate of the amount of contributions expected to be paid by IBRD and IDA combined is $149million to the SRP and $54 million to the RSBP during the fiscal year beginning July 1, 2009. IDA's share of these estimated contributions will be based on the applicable share ratio for the fiscal year ended June 30, 2010. NOTE M--FAIR VALUE OF FINANCIAL INSTRUMENTS Effective July 1, 2008, IDA adopted FAS 157 which defines fair value, establishes a consistent framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and expands disclosure requirements about fair value measurements. FAS 157 establishes a three-level fair value hierarchy under which financial instruments are categorized based on the priority of the inputs to the valuation technique. 160 THE WORLD BANK ANNUAL REPORT 2009 Financial Instruments Measured at Fair Value on a Recurring Basis The following table presents IDA's fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of June 30, 2009: In millions of U.S. dollars Fair Value Measurements on a Recurring Basis as of June 30, 2009 Level 1 Level 2 Level 3 Total Assets: Investments - Trading Government and agency obligations $2,656 $16,069 $­ $18,725 Time deposits 1,668 3,523 ­ 5,191 Asset-backed securities ­ 2,496 71 2,567 Securities Purchased Under Resale Agreements ­ 5 ­ 5 Derivative Assets Investments ­ 1,016 ­ 1,016 Asset/Liability Management ­ 5,902 ­ 5,902 Total assets at fair value $4,324 $29,011 $71 $33,406 Liabilities: Securities Sold Under Repurchase Agreements and Payable for Cash Collateral Received $409 $4,275 $­ $4,684 Derivative Liabilities Investments ­ 1,017 ­ 1,017 Asset/Liability Management ­ 5,527 ­ 5,527 Total liabilities at fair value $409 $10,819 $ $11,228 The following table provides a summary of changes in the fair value of IDA's Level 3 financial assets relating to Investments-Trading during the fiscal year ended June 30, 2009: In millions of U.S. dollars Level 3 Financial Assets: Investments ­Trading Asset-backed securities Fair value, beginning of the fiscal year $ 17 Total realized/unrealized gains (losses) in: Net income (21) Purchases, issuance and settlements, net (2) Transfers in (out), net 77 Fair value, end of the fiscal year $ 71 The following table provides information on the unrealized gains or losses included in income for the fiscal year ended June 30, 2009, relating to IDA's Level 3 financial instruments still held at that date, as well as where those amounts are included in the Statement of Income. In millions of U.S. dollars Level 3 Financial Instruments Investments--Trading Unrealized (Losses) Gains Asset-backed securities Income: Investments--Trading $(8) IDA FINANCIAL STATEMENTS: JUNE 30, 2009 161 Financial Instruments Measured at Fair Value on a Non-Recurring Basis As of June 30, 2009, IDA had no assets or liabilities measured at fair value on a non-recurring basis. NOTE N--FAIR VALUE DISCLOSURES The condensed balance sheets below present IDA's estimates of fair value of its assets and liabilities along with their respective carrying amounts as of June 30, 2009. In millions of U.S. dollars June 30, 2009 Carrying Value Fair Value Due from Banks $ 154 $ 154 Investments­Trading 26,483 26,483 Net Development Credits Outstanding 102,347 56,971 Derivative Assets Investments 1,016 1,016 Asset/Liability Management 5,902 5,902 Nonnegotiable, noninterest-bearing demand obligations on account of members' subscriptions and contributions 8,448 8,448 Other Assets 1,660 1,660 Total Assets $146,010 $100,634 Securities sold under Repurchase Agreements and Payable for Cash Collateral Received $ 4,684 $ 4,684 Derivative Liabilities Investments 1,017 1,017 Asset/Liability Management 5,527 5,527 Payable for Development Grants 5,652 5,652 Other Liabilities 1,180 1,180 Total Liabilities 18,060 18,060 Subscriptions and Contributions paid in 150,085 150,085 Accumulated Deficit and Other Equity (22,135) (67,511) Total Equity 127,950 82,574 Total Liabilities and Equity $146,010 $100,634 Given that the fiscal year ended June 30, 2009 is the first period of presentation of condensed fair value disclosures, IDA's management considered it impracticable to provide the June 30, 2008 comparative amounts. Valuation Methods and Assumptions Development Credits: The fair values of development credits are determined using market- Due from Banks: The carrying amount of based methodologies incorporating Credit Default unrestricted and restricted currencies is considered a Swap (CDS) levels. reasonable estimate of the fair value of those positions. Derivatives: Asset/liability management: Derivatives used to manage currency exposure are Investments: IDA's investment securities and recorded at fair value. These fair values are based related financial instruments held in the trading on discounted cash flow models using market portfolio are carried and reported at fair value. discount rates and forward foreign exchange rates. Therefore, for the investment portfolio, no additional adjustment is necessary. The fair values are based on Other assets/receivables and liabilities/payables: quoted market prices, where available. If quoted These amounts are generally short-term in nature. market prices are not available, fair values are based Therefore, the carrying value is a reasonable on quoted market prices of comparable instruments estimate of fair value. or market-based valuation methodologies using market information. The fair value of short-term financial instruments approximates their carrying value. 162 THE WORLD BANK ANNUAL REPORT 2009 Summaries of Operations Approved during Fiscal 2009, Africa View Excel Version Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Africa IDA Regional Communication Infrastructure Adaptable Program Grant for Rwanda will link SDN 09/30/08 n.a. 15.3 24.0 the region into the global communications network. Total cost: $24 million. IDA Central Africa 3A ­ CEMAC Regional Institutions Support Specific Investment FPD 12/04/08 2019/2048 20.4 32.0 c Credit/Grant will strengthen the institutions of the Central African Economic and Monetary n.a. 11.5 18.0 g Community. Total cost: $81.6 million. IDA West and Central Africa Air Transport Phase II ­ B Adaptable Program Credit/Grant will SDN 02/25/09 2019/2049 4.7 7.0 c improve the compliance of civil aviation authorities with international safety and security standards. n.a. 6.1 9.0 g Total cost: $18 million. IDA Second Lake Victoria Environmental Management Adaptable Program Credit will SDN 03/03/09 2019/2048 57.4 90.0 improve collaborative management of natural resources in the Lake Victoria basin. Total cost: $114.8 million. IDA Eastern Africa Agricultural Productivity Adaptable Program Credit will strengthen SDN 06/11/09 2019/2049 60.3 90.0 agricultural productivity and growth, to scale up regional cooperation in generation of technology benefiting Ethiopia, Kenya, and Tanzania. Total cost: $90 million. IDA Third Phase of Regional Communications Infrastructure Adaptable Program Credit will SDN 06/25/09 2019/2049 101.4 151.0 help extend access to affordable communications services to Malawi ($20 million of the funding), Mozambique ($31 million), and Tanzania ($100 million). Total cost: $151 million. IDA Power Market Adaptable Program Grant ­ Additional Financing will rehabilitate an existing SDN 06/30/09 n.a. 116.7 180.6 2,300 kilometer power transmission line from the Inga hydropower stations to Kasumbalesa at the border with Zambia. Total cost: $252.5 million. Angola IDA Market-Oriented Smallholder Agriculture Specific Investment Credit will increase SDN 07/31/08 2018/2043 18.5 30.0 agricultural production of rural smallholder farmers in selected communities and municipalities. Total cost: $49.3 million. IDA Water Sector Institutional Development Specific Investment Credit will strengthen the SDN 07/31/08 2018/2043 35.0 57.0 institutional capacity and efficiency of agencies in the water sector. Total cost: $113.2 million. Benin IDA Fifth Poverty Reduction Strategy Development Policy Grant (PRSG 5) will support PREM 01/22/09 n.a. 20.1 30.0 implementation of Benin's poverty reduction strategy and progress toward achieving the Millennium Development Goals. Total cost: $30 million. IDA Increased Access to Modern Energy Specific Investment Credit will upgrade the existing SDN 06/23/09 2019/2049 47.5 70.0 system and increase the reliability and access to modern energy services by urban and rural inhabitants. Total cost: $178.5 million. Botswana IBRD National HIV/AIDS Prevention Support Specific Investment Loan will provide a zero- HDN 07/10/08 2016/2033 n.a. 50.0 interest loan to strengthen the capacity of the Government of Botswana to fight the HIV/AIDS pandemic. Total cost: $50 million. IBRD Integrated Transport Specific Investment Loan enhances the efficiency of the transport SDN 05/28/09 2017/2036 n.a. 186.0 system by improving critical transport infrastructure and empowering private sector participation. Total cost: $385.2 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Burkina Faso IDA Eighth Poverty Reduction Support Development Policy Credit will support growth and PREM 09/23/08 2018/2048 61.5 100.0 poverty reduction by improving the investment climate, improving access to basic services, and enhancing public financial management. Total cost: $100 million. IDA Urban Water Sector Specific Investment Grant will increase sustainable access to water SDN 05/28/09 n.a. 53.5 80.0 and sanitation services in targeted urban areas. Total cost: $92.9 million. IDA Poverty Reduction Support Development Policy Grant will provide support to cope with PREM 06/26/09 n.a. 64.6 100.0 the impact of the global economic downturn through the cotton sector and maintaining the reforms. Total cost: $100 million. Burundi IDA Second Economic Reform Support Development Policy Grant (ERSG II) will support PREM 08/05/08 n.a. 18.5 30.0 reforms in public financial management and in the legal and institutional environment to foster private sector-led growth. Total cost: $30 million. IDA Health Project Specific Investment Grant will increase the use of a defined package of HDN 06/09/09 n.a. 16.8 25.0 health services by pregnant women and children under the age of five. Total cost: $25 million. IDA Public Works and Urban Management Specific Investment Grant will increase access to SDN 06/09/09 n.a. 30.1 45.0 basic socio-economic services and short-term employment focusing on infrastructure investment programs in Bujumbura, Gitega, and Ngozi. Total cost: $46.4 million. IDA Emergency Demobilization and Transitional Integration Emergency Recovery Grant will SDN 06/16/09 n.a. 10.1 15.0 promote peace building by providing socio-economic reintegration support to ex-combatants, and paying special attention to female, child, and disabled ex-combatants. Total cost: $22.5 million. Cameroon IDA Agricultural Competitiveness Specific Investment Credit will increase productivity, quality, SDN 06/18/09 2019/2049 40.3 60.0 and marketing for market-oriented smallholders and organizations, targeting rice producers and promoters of economic partnership projects. Total cost: $82 million. IDA Second Community Development Adaptable Program Credit will improve the delivery of PREM 06/18/09 2019/2049 26.7 40.0 basic social services in targeted communes, and support decentralization to new regions. Total cost: $103 million. Cape Verde IDA Poverty Reduction Support Development Policy Credit (PRSC-4) will support the PREM 07/08/08 2018/2048 6.2 10.0 modernization of the public administration and strengthening of decentralization within Cape Verde's Growth and Poverty Reduction Strategy. Total cost: $10 million. Central African Republic IDA Emergency Power Response Emergency Recovery Grant will support rehabilitation of SDN 02/17/09 n.a. 5.1 8.0 hydropower facilities to increase power supply and improve the financial and operational sustainability of the utilities. Total cost: $8 million. IDA Economic Governance and Reform Development Policy Grant will improve transparent PREM 03/30/09 n.a. 3.4 5.0 management of public resources and establish a legal and regulatory framework for the mining and forestry sectors. Total cost: $5 million. IDA Support to Vulnerable Groups Community Development Emergency Recovery Grant will SDN 03/31/09 n.a. 5.5 8.0 rehabilitate social infrastructure and improve the capacity of local stakeholders to plan and manage community recovery. Total cost: $8 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Cte d'Ivoire IDA Economic Governance and Recovery Development Policy Grant will support the PREM 03/31/09 n.a. 96.4 150.0 government in improving public financial management and enhancing governance and transparency in the energy, cocoa, and financial sectors. Total cost: $150 million. IDA Urgent Electricity Sector Rehabilitation Specific Investment Grant will improve and SDN 06/09/09 n.a. 33.5 50.0 expand the electricity distribution network and prepare future transmission network investments to improve the financial and technical performance. Total cost: $54 million. Congo, Democratic Republic of IDA Urban Water Supply Specific Investment Grant aims to increase the efficiency of state SDN 12/18/08 n.a. 127.5 190.0 water utility through sector reform for the extension of water to underserved areas. Total cost: $190 million. IDA Emergency Financial Crisis Alleviation Emergency Recovery Grant will support the DRC in FPD 02/26/09 n.a. 66.2 100.0 alleviating the impacts of the international crisis by financing imports essential to the Congolese economy. Total cost: $100 million. IDA Forest and Nature Conservation Specific Investment Grant will improve the capacity of SDN 04/02/09 n.a. 42.3 64.0 the Ministry of Environment, Nature Conservation, and Tourism and civil society stakeholders to manage forest resources. Total cost: $79 million. Congo, Republic of IDA Basic Education Support Specific Investment Grant will support efforts to achieve HDN 06/09/09 n.a. 10.1 15.0 universal quality primary education to improve quality and equity in the provision of basic education. Total cost: $30 million. IDA HIV/AIDS and Health Specific Investment Grant aims to contain the spread of HIV/AIDS HDN 06/23/09 n.a. 3.4 5.0 and sexually transmitted infections, and mitigate the health and socio-economic impact of AIDS. Total cost: $15 million. Ethiopia IDA Productive Safety Net Program (PSNP) Additional Financing of Adaptable Program HDN 12/10/08 n.a. 16.8 25.0 Grant and Fertilizer Project will provide transfers to food-insecure households through a labor- intensive public work program and support the distribution of fertilizers through unions. Total cost: $25 million. IDA Global Food Crisis Response Emergency Recovery Credit/Grant will support the SDN 12/10/08 2018/2048 82.1 122.5 c Government in ensuring the availability of fertilizers to maintain the level of food production by small n.a. 85.5 127.5 g farmers. Total cost: $250 million. IDA General Education Quality Improvement Adaptable Program Credit will support teacher HDN 12/16/08 2019/2048 33.5 50.0 development, school rehabilitation, management planning, and budget capacity in the Ministry of Education and regional education bureaus. Total cost: $417.3 million. IDA Second Protection of Basic Services Specific Investment Credit/Grant will improve the HDN 05/14/09 2019/2049 154.3 230.2 c quality of education, health, agriculture, water supply and sanitation, and rural roads delivered by n.a. 207.5 309.8 g subnational governments. Total cost $3.36 billion. IDA Road Sector Development Adaptable Program Credit will support the third phase of SDN 06/02/09 2019/2048 166.0 245.0 Ethiopia's program to build, maintain, and expand the country's road network. Total cost: $308.2 million. IDA Sustainable Tourism Development Specific Investment Credit will enhance the quality FPD 06/30/09 2019/2049 23.6 35.0 and variety of tourism products and services, boosting the volume of tourism and foreign exchange earnings. Total cost: $39.5 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Gambia, The IDA Budget Support Development Policy Grant will strengthen the Government's capacity to use PREM 05/12/09 n.a. 4.5 7.0 public resources and improve management of the groundnut sector. Total cost: $7 million. Ghana IDA Second Additional Financing ­ Small Towns Water Supply and Sanitation Adaptable SDN 05/12/09 2019/2043 10.2 15.0 Program Credit will finance cost overruns in community water supply and sanitation projects. Total cost: $15 million. IDA Economic Governance and Poverty Reduction Development Policy Credit will assist PREM 06/30/09 2019/2044 193.8 300.0 Ghana's efforts to bring the fiscal situation back on a sustainable track while protecting the development objectives. Total cost: $300 million. IDA Natural Resources and Environmental Governance Development Policy Credit will SDN 06/30/09 2019/2044 6.8 10.0 ensure predictable and sustainable financing for the forest and wildlife sectors and effective forest law enforcement and transparency. Total cost: $26.9 million. IDA Transport Sector Specific Investment Credit will improve the mobility of goods and SDN 06/30/09 2019/2044 150.5 225.0 passengers by reducing travel time and operating cost, and improve road safety standards. Total cost: $225 million. Guinea IDA Education for All Specific Investment Grant ­ Additional Financing will strengthen HDN 10/30/08 n.a. 6.4 10.0 teacher performance and create state and civil society mechanisms for increased accountability in the education system. Total cost: $10 million. Guinea-Bissau IDA First Economic Governance Reform Development Policy Grant will promote efficiency, PREM 06/16/09 n.a. 5.4 8.0 transparency and accountability in the use of public resources through improved public financial management. Total cost: $8 million. Kenya IDA Cash Transfer for Orphans and Vulnerable Children (OVC) Specific Investment Credit HDN 03/31/09 2019/2048 33.0 50.0 will increase social safety net access for extremely poor OVC households, through an efficient expansion of the program. Total cost: $50 million. IDA Northern Corridor Transport Improvement Additional Financing of Specific Investment SDN 04/02/09 2019/2048 172.0 253.0 Credit will support the completion of the original project activities and address institutional capacity and governance constraints to project effectiveness. Total cost: $355.3 million. IDA Energy Sector Recovery Project Additional Financing of Specific Investment Credit SDN 04/02/09 2019/2048 53.0 80.0 finances cost overruns and commences preparation for nationwide electrification programs. Total cost: $80 million. IDA Agricultural Productivity and Agribusiness Adaptable Program Credit will increase SDN 06/11/09 2019/2049 55.0 82.0 agricultural productivity and incomes of smallholder farmers by transforming and improving the performance of agricultural technology systems. Total cost: $98.5 million. Lesotho IDA Second Water Sector Improvement Adaptable Program Credit/Grant will strengthen SDN 05/26/09 2019/2049 11.1 16.5 c sector institutions and support development of an environmentally sound, socially responsible, and n.a. 5.7 8.5 g financially viable framework for the sector. Total cost: $31.8 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Liberia IDA Urban and Rural Infrastructure Rehabilitation Emergency Recovery Grant will improve SDN 04/21/09 n.a. 29.5 44.0 road access in Monrovia and targeted rural areas, and strengthen institutional capacity for technical management of the road sector. Total cost: $53.2 million. IDA Second Reengagement and Reform Support Development Policy Grant will improve PREM 05/21/09 n.a. 2.7 4.0 public finance management, rebuild public institutions, and create better conditions for private sector-led growth. Total cost: $4 million. IDA Agriculture and Infrastructure Development Emergency Recovery Grant will finance SDN 06/30/09 n.a. 10.4 16.0 infrastructure to boost agricultural production, including covering costs associated with the construction of a critical bridge in Monrovia. Total cost: $24.2 million. IDA Emergency Infrastructure Project Emergency Recovery Loan will finance the costs SDN 06/30/09 n.a. 5.3 8.2 associated with the introduction of a new infrastructure improvement activity in the port of Monrovia. Total cost: $24.2 million. Madagascar IDA Rural Development Support Additional Financing of Specific Investment Credit aims to SDN 10/21/08 2018/2048 18.5 30.0 reduce poverty in rural areas while preserving the country's natural resource base. Total cost: $36.1 million. IDA Emergency Food Security and Reconstruction Emergency Recovery Credit will finance a HDN 12/16/08 2019/2048 26.9 40.0 cash-for-work program in food-insecure areas and seek to restore access to social and economic services following catastrophic events. Total cost: $40.4 million. Malawi IDA Poverty Reduction Support Second Development Policy Grant will support PREM 05/28/09 n.a. 20.1 30.0 implementation of the government's Growth and Development Strategy within a harmonized framework for budget support. Total cost: $30 million. Mali IDA Household Energy and Universal Access Specific Investment Credit will provide funding SDN 09/04/08 2019/2048 21.6 35.0 to rural electrification initiatives to increase the number of communities with access to basic energy services. Total cost: $38.4 million. IDA Third Poverty Reduction Support Development Policy Credit will improve the framework PREM 05/19/09 2019/2049 43.5 65.0 for infrastructure and private investment, strengthen public financial management, and improve basic service delivery. Total cost: $65 million. IDA HIV/AIDS MAP Additional Financing of Specific Investment Credit will improve access to FPD 05/19/09 2019/2049 4.1 6.0 prevention, treatment, and care for the most-at-risk population and people living with HIV/AIDS. Total cost: $6 million. IDA Energy Support Project Specific Investment Credit will expand and improve access and SDN 06/18/09 2019/2049 80.7 120.0 efficiency of electricity services in Bamako, the capital city, and in targeted rural areas. Total cost: $120 million. Mauritania IDA Transport Sector Institutional Development Technical Assistance Credit will improve SDN 07/31/08 2018/2048 2.8 4.5 management of the land, maritime, and air transport sectors. Total cost: $5.5 million. Mauritius IBRD Economic Transition Technical Assistance Specific Investment Loan will improve the FPD 01/29/09 2015/2029 n.a. 18.0 performance of selected private enterprises and services that contribute to an improved investment climate. Total cost: $18 million. IBRD Third Trade and Competitiveness Development Policy Loan will support reforms that PREM 03/31/09 2014/2028 n.a. 100.0 respond to trade preference erosion, high oil prices, and the transition from a low-skill to a knowledge-based economy. Total cost: $100 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Mozambique IDA Fifth Poverty Reduction Support Development Policy Credit will support Mozambique's PREM 11/04/08 2019/2048 57.3 90.0 reform program to reduce poverty, achieve economic growth, and respond to the high global food and fuel prices. Total cost: $100 million. IDA Competitiveness and Private Sector Development Specific Investment Credit will FPD 02/12/09 2019/2048 16.8 25.0 improve the business environment and enterprise competitiveness by reducing costs, building capacity, and developing tourism and horticulture sectors. Total cost: $29.6 million. IDA Health Service Delivery Specific Investment Credit will reduce the prevalence of HDN 04/16/09 2019/2049 29.9 44.6 tuberculosis, and improve equity in access to health services. Total cost: $72.4 million. Namibia IBRD Education and Training Sector Improvement Development Policy Loan will increase the HDN 11/18/08 2010/2010 n.a. 7.5 sector's contribution to growth, competitiveness in a knowledge-based economy, and curbing the spread of HIV/AIDS. Total cost: $60.3 million. Niger IDA Community Action Adaptable Program Grant (PAC2) will improve the capacity of rural SDN 08/29/08 n.a. 18.5 30.0 communes to design and implement community development plans and annual investment plans. Total cost: $44.9 million. IDA Growth Policy Reform Development Policy Grant will reduce policy, institutional, and FPD 03/24/09 n.a. 26.5 40.0 infrastructure constraints to private sector growth. Total cost: $40 million. IDA Agro-Pastoral Export and Market Development Specific Investment Credit will increase SDN 03/26/09 2019/2048 26.5 40.0 the value of selected products marketed by project-supported producers. Total cost: $43.2 million. Nigeria IDA Fadama III Specific Investment Credit will increase the incomes of the rural poor who are SDN 07/01/08 2018/2048 153.4 250.0 dependent on agriculture. Total cost: $457 million. IDA Community and Social Development Specific Investment Credit will support social HDN 07/01/08 2018/2048 121.5 200.0 provision and resource management in rural areas. Total cost: $380 million. IDA Partnership for Polio Eradication Specific Investment Credit will finance the Polio HDN 09/30/08 2018/2048 31.8 50.0 Eradication Initiative's contribution to institutional and capacity strengthening of the health sector and the delivery of immunization services. Total cost: $50 million. IDA Second Health Systems Development Specific Investment Credit will provide financing to HDN 09/30/08 2018/2048 57.3 90.0 strengthen health system management capacity and to improve maternal, child, and reproductive health services. Total cost: $120.5 million. IDA Commercial Agriculture Development Specific Investment Credit will strengthen SDN 01/15/09 2019/2048 100.7 150.0 agriculture production systems and facilitate access to markets among small, and medium-scale commercial farmers. Total cost: $185 million. IDA Electricity and Gas Improvement Specific Investment Credit will help strengthen the SDN 06/16/09 2019/2049 134.4 200.0 electricity transmission system, and improve service delivery by boosting efficiency and reducing losses and subsidies. Total cost: $600 million. IDA Second HIV/AIDS Program Development Specific Investment Credit will support the HDN 06/16/09 2019/2049 150.4 225.0 implementation of Universal Basic Education through strengthening human resource capacity in approximately 1,000 primary schools throughout Nigeria. Total cost: $230 million. IDA Lagos Eko Secondary Education Specific Investment Credit will improve the quality of HDN 06/16/09 2019/2049 63.6 95.0 public secondary education in Lagos State, supporting over half a million public school students. Total cost: $95 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ IDA Electricity and Gas Improvement Partial Risk Guarantee will support the domestic gas SDN 06/16/09 n.a. n.a. 400.0 market development and help Nigeria's Federal Government's efforts to improve electrical power supply to Nigerians. Total cost: $600 million. IDA Malaria Control Booster Specific Investment Credit will improve the utilization of Malaria HDN 06/16/09 2019/2049 67.2 100.0 Plus Package (MPP) and strengthen capacity to manage and oversee delivery of MPP intervention. Total cost: $100 million. Rwanda IDA Fifth Poverty Reduction Support Development Policy Grant will increase agricultural PREM 03/17/09 n.a. 53.0 80.0 production, improve the quality of infrastructure services, strengthen post-basic education, and improve the management of public resources. Total cost: $80 million. IDA First Community Living Standards Development Policy Grant expands access to high- HDN 04/02/09 n.a. 4.0 6.0 impact health, nutrition, and population interventions at the community level. Total cost: $10 million. Senegal IDA Sustainable Management of Fish Resources Specific Investment Grant will reduce SDN 12/16/08 2019/2048 2.3 3.5 pressure on the central coastal fisheries by promoting comanagement, rehabilitation of ecosystems, and poverty reduction measures. Total cost: $10.8 million. IDA Rapid Response Child-Focused Social Cash Transfer and Nutrition Security HDN 05/06/09 2019/2049 6.8 10.0 Emergency Recovery Credit will reduce the risk of nutrition insecurity of vulnerable populations and children under five in poor urban and rural areas. Total cost: $18 million. IDA Dakar-Diamniado Toll Highway Project Specific Investment Credit will address the SDN 06/02/09 2019/2049 71.2 105.0 severe congestion in and out of Dakar, fund slum upgrading, urban restructuring, and environmental protection in Dakar metropolitan area. Total cost: $531.4 million. IDA Fast-Track Public Finance Support Development Policy Credit will support the efforts to PREM 06/29/09 2019/2049 40.4 60.0 bring the fiscal stance to a sustainable track and mitigate fiscal risks emanating from public sector entities. Total cost: $60 million. Sierra Leone IDA Second Governance Reform and Growth Development Policy Credit will support PREM 10/07/08 2019/2048 6.4 10.0 transition from post-conflict recovery to sustainable development by promoting accountability in public resources and improving the investment climate. Total cost: $10 million. IDA Public Financial Management Technical Assistance Grant will assist the Government of OPCS 06/04/09 n.a. 2.7 4.0 Sierra Leone to sustainably improve the credibility, control, and transparency of fiscal and budget management. Total cost: $20.9 million. Tanzania IDA Sixth Poverty Reduction Support Development Policy Credit will support Tanzania's PREM 10/21/08 2019/2048 101.8 160.0 National Strategy for Growth and Poverty Reduction to sustain high growth and expand the delivery of basic services. Total cost: $160 million. IDA Accelerated Food Security Emergency Recovery Credit will assist Tanzania in its efforts to SDN 06/09/09 2019/2049 107.6 160.0 achieve food security by increasing food production, expanding farmers' access to critical agricultural inputs. Total cost: $299 million. IDA Seventh Poverty Reduction Support Development Policy Credit will sustain high and PREM 06/09/09 2019/2049 127.7 190.0 shared economic growth in Tanzania and expand the effective delivery of basic public services. Total cost: $190 million. IDA Sustainable Management of Mineral Resources Technical Assistance Credit will SDN 06/09/09 2019/2049 33.5 50.0 strengthen the Tanzanian government's capacity to sustainably manage the mineral sector to improve the socio-economic impacts of mining. Total cost: $55 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ IDA Second Social Action Fund Emergency Recovery Credit (FY05) will help enhance SDN 06/09/09 2019/2049 20.2 30.0 regional specialization in agricultural research and enhance collaboration in agriculture training and technology dissemination. Total cost: $30 million. IDA Agricultural Sector Development Emergency Recovery Credit (FY06) will extend access HDN 06/09/09 2019/2049 20.2 30.0 to affordable and reliable telecommunications services to Eastern and Southern Africa benefiting Malawi, Mozambique, and Tanzania. Total cost: $30 million. Togo IDA Financial Sector and Governance Specific Investment Grant will improve financial sector FPD 03/31/09 n.a. 8.0 12.0 stability by supporting the government's financial sector reform program. Total cost: $12.4 million. IDA Second Economic Recovery and Governance Development Policy Grant will improve PREM 04/21/09 n.a. 13.6 20.0 public financial management and transparency in key economic sectors. Total cost: $20 million. IDA Emergency Infrastructure and Electricity Rehabilitation Project Emergency Recovery SDN 06/02/09 n.a. 16.8 25.0 Grant will improve access to as well as rehabilitate, restore, and improve urban infrastructure in the city of Lome. Total cost: $26.8 million. Uganda IDA Second Environmental Management Capacity Building Specific Investment Credit will SDN 09/04/08 2019/2048 9.3 15.0 support the expansion of municipal solid waste composting, tree planting, and strengthening the enforcement of the environmental management authority. Total cost: $15 million. IDA Sustainable Management of Mineral Resources Specific Investment Credit will SDN 09/23/08 2018/2048 3.1 5.0 strengthen Uganda's capacity to develop a sound minerals sector based on private investment and improvement in small-scale mining areas. Total cost: $5.6 million. IDA Post-Primary Education and Training Adaptable Program Credit will improve access to HDN 03/31/09 2019/2049 99.0 150.0 post-primary education and improve the quality of post-primary education and training. Total cost: $150 million. IDA Second Energy for Rural Transformation Adaptable Program Credit will increase access SDN 04/06/09 2019/2049 49.5 75.0 to energy and information and communication technologies in rural Uganda. Total cost: $93 million. IDA Second Northern Uganda Social Action Fund Specific Investment Credit will mobilize the HDN 05/28/09 2019/2049 66.9 100.0 poor to form livelihood-oriented groups, and rehabilitate public socio-economic infrastructure in underserved communities. Total cost: $103 million. Zambia IDA Water Sector Performance Improvement Specific Investment Credit will improve access SDN 04/16/09 2019/2049 6.5 10.0 to the water supply and sanitation services for consumers in three districts outside of the city of Lusaka. Total cost: $11 million. Total 4,905.7 8,202.9 Special Financingc Benin Emergency Food Security Support Emergency Recovery Grant will increase domestic SDN 10/25/08 n.a. n.a. 9.0 production of cereal crops (maize and rice) in order to mitigate the short-term impact of increasing prices. Total cost: $9 million. Burundi Food Crisis Response Development Policy Grant will support the government's program to PREM 08/13/08 n.a. n.a. 10.0 mitigate the impact of increased food prices on the poor, while maintaining fiscal stability. Total cost: $10 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Central African Republic Food Response Emergency Recovery Grant will provide increased food access to primary and SDN 08/13/08 n.a. n.a. 7.0 pre-school students and support rural producer's capacity to ensure adequate supply. Total cost: $7 million. Guinea Agricultural Productivity Support Emergency Recovery Grant will compensate for loss of SDN 09/19/08 n.a. n.a. 5.0 revenues resulting from the reduction of customs duties on low-quality rice to support the poorest consumers. Total cost: $5 million. Labor Intensive Public Works Phase II of Third Urban Development Emergency Recovery SDN 09/19/08 n.a. n.a. 2.5 Grant ­ Additional Financing will improve the provision of infrastructure and services in Conakry and support the financial and organizational management of municipalities. Total cost: $2.5 million. Food Crisis Response Development Policy Grant will support the government's poverty PREM 09/19/08 n.a. n.a. 2.5 reduction strategy by compensating the revenue loss resulting from the customs duty reduction on rice imports. Total cost: $2.5 million. Guinea-Bissau Emergency Food Security Support Emergency Recovery Grant will mitigate the impact of SDN 09/22/08 n.a. n.a. 5.0 rising food prices in Guinea-Bissau as a result of the global food price trends. Total cost: $5 million. Kenya Agricultural Input Supply Emergency Recovery Grant will finance the costs associated with SDN 04/21/09 n.a. n.a. 5.0 seed and fertilizer for 50,000 small farmers to directly increase their cereal production. Toal cost: $8.7 million. Madagascar Supplemental Financing for Fifth Poverty Reduction Support Development Policy Grant will PREM 08/13/08 n.a. n.a. 10.0 contribute to the sustainability of the overall reform program of the government. Total cost: $10 million. Mali Second Poverty Reduction Support Development Policy Grant will strengthen public finance HDN 12/30/08 n.a. n.a. 5.0 management (including procurement) and improve the business environment by creating a strong basis for the private sector. Total cost: $5 million. Niger Emergency Food Security Support Emergency Recovery Grant will mitigate the impact of the SDN 08/26/08 n.a. n.a. 7.0 food crisis by increasing the production of rice in irrigated farmlands. Total cost: $7 million. Rwanda Supplemental Financing of Fourth Poverty Reduction Support Development Policy Grant PREM 08/13/08 n.a. n.a. 10.0 will fulfill the immediate needs related to sustaining food crop production and intensification. Total cost: $10 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Sierra Leone National Social Action Project ­ Additional Financing Emergency Recovery Grant will assist HDN 08/13/08 n.a. n.a. 4.0 war-affected or otherwise vulnerable communities to restore infrastructure and services and build local capacity for collective action. Total cost: $4 million. Food Crisis Response Development Policy Grant will compensate for the lost revenues HDN 08/06/08 n.a. n.a. 3.0 resulting from the recently reduced tariffs on food and fuel imports. Total cost: $3 million. Somalia Rapid Response Rehabilitation of Rural Livelihoods Emergency Recovery Grant will reduce SDN 09/05/08 n.a. n.a. 7.0 the negative impact of high and volatile food prices on the lives of the poor in a timely way. Total cost: $7 million. Sudan Southern Sudan Emergency Food Crisis Response Emergency Recovery Grant will reduce SDN 10/03/08 n.a. n.a. 5.0 the negative impact of high and volatile food prices on the lives of the poor in a timely way. Total cost: $5 million. Togo Community Development Emergency Recovery Grant ­ Additional Financing will provide HDN 10/17/08 n.a. n.a. 7.0 poor communities with improved basic socio-economic infrastructures and income generating activities. Total cost: $7 million. Note: Numbers may not add to totals because of rounding. denotes projects with actual involvement of civil society organizations in identification, preparation, and/or appraisal, and with intended civil society participation in the implementation, monitoring, and evaluation phases. n.a. = not applicable; c = IDA credit; g = IDA grant. a. SDN = Sustainable Development Network; FPD = Financial and Private Sector Development; HDN = Human Development Network; PREM = Poverty Reduction and Economic Management; OPCS = Operations Policy and Country Services. b. IDA funds are denominated in Special Drawing Rights (SDRs), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount reflects the exchange rates in effect at the time of the negotiations of the credit or grant. c. Financing provided by trust funds administered by the Bank. Summaries of Operations Approved during Fiscal 2009, East Asia and Pacific View Excel Version Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Cambodia IDA Demand for Good Governance Specific Investment Grant will enhance the demand for SDN 12/02/08 n.a. 12.8 20.0 good governance in priority reform areas by strengthening institutions, supporting partnerships, and sharing lessons. Total cost: $25.2 million. China IBRD Jiangxi Shihutang Navigation and Hydropower Complex Specific Investment Loan will SDN 09/25/08 2017/2033 n.a. 100.0 improve the utilization of the Gan River for more reliable freight transport and cleaner energy production while generating electricity. Total cost: $319 million. IBRD Eco-Farming Specific Investment Loan aims to integrate biogas into cooking for rural SDN 12/02/08 2014/2028 n.a. 120.0 households and support farmer households to use biogas in their production systems. Total cost: $439.7 million. IBRD Wenchuan Earthquake Emergency Recovery Loan aims to restore essential SDN 02/12/09 2014/2038 n.a. 710.0 infrastructure, health, and education services and build the capacity of local governments to manage the recovery program. Total cost: $740 million. IBRD Hubei Yiba Highway Specific Investment Loan aims to improve passenger and freight SDN 03/31/09 2017/2036 n.a. 150.0 flows by construction of an expressway with enhanced environmental management practices. Total cost: $2.1 billion. IBRD Guizhou Guangzhou Railway Project Specific Investment Loan will provide additional SDN 04/16/09 2014/2033 n.a. 300.0 transport capacity and reduce transport time between western parts of southwest China and the Pearl River Delta region. Total cost: $12.5 billion. IBRD Guizhou Cultural and Natural Heritage Protection and Development Specific SDN 05/05/09 2015/2039 n.a. 60.0 Investment Loan will increase economic benefits to local communities through tourism growth and protection of cultural and natural heritage. Total cost: $89.8 million. IBRD Yunnan Urban Environmental Second Specific Investment Loan will assist in improving SDN 05/05/09 2017/2034 n.a. 90.0 the effectiveness and coverage of infrastructure services in selected counties and improve the lake basin management. Total cost: $191.2 million. IBRD Shanxi Coal Bed Methane Development and Utilization Specific Investment Loan will SDN 05/19/09 2014/2029 n.a. 80.0 increase the utilization of coal bed methane to reduce greenhouse gas emissions and local air pollutants associated with coal combustion. Total cost: $204.3 million. IBRD Xining Flood and Watershed Management Specific Investment Loan will improve the SDN 06/02/09 2014/2039 n.a. 100.0 protection of property and safety of people from floods and utilize sustainable water resources within Xining Municipality. Total cost: $207.5 million. IBRD Jiangsu Water and Wastewater Specific Investment Loan will improve the efficiency and SDN 06/02/09 2017/2034 n.a. 130.0 effectiveness of water and wastewater services and reduce pollution discharges to local rivers in the Jiangsu Province. Total cost: $431.8 million. IBRD Guangdong Technical and Vocational Education and Training Specific Investment HDN 06/02/09 2014/2035 n.a. 20.0 Loan will improve the quality and relevance of technical education and produce lessons for future school reforms and policy development. Total cost: $45.6 million. IBRD NanGuang Railway Specific Investment Loan will provide additional transport capacity SDN 06/24/09 2014/2034 n.a. 300.0 and reduce transport time between the western region of southwest China and the Pearl River Delta region. Total cost: $5.98 billion. IBRD Shanghai Urban Environment Third Phase of Adaptable Program Loan will improve SDN 06/25/09 2014/2039 n.a. 200.0 Shanghai's resource and environmental sustainability through investments and institutional reforms in the water and wastewater sectors. Total cost: $631.1 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Indonesia IBRD BOS Knowledge Improvement for Transparency and Accountability Specific HDN 10/07/08 2017/2033 n.a. 600.0 Investment Loan will improve access to quality education by strengthening school-based management and community participation, and improving fiduciary arrangements. Total cost: $2.6 billion. IBRD Second Infrastructure Development Policy Loan will increase the central government SDN 12/09/08 2018/2033 n.a. 200.0 spending on infrastructure, improve subnational infrastructure services, increase private investment, and enhance governance for infrastructure. Total cost: $200 million. IBRD Fifth Development Policy Loan will help the Government of Indonesia achieve its medium- PREM 12/09/08 2018/2033 n.a. 750.0 term growth and poverty reduction objectives. Total cost: $750 million. IBRD Tax Administration Reform Specific Investment Loan will increase the efficiency and PREM 01/15/09 2018/2033 n.a. 110.0 effectiveness of the Directorate General of Tax and improve governance by strengthening transparency and accountability mechanisms. Total cost: $146.1 million. IBRD Public Expenditure Support Facility Development Policy Loan will assist the PREM 03/03/09 2019/2059 n.a. 2,000.0 Government to address potential adverse impacts of the global financial crisis on public expenditures during 2009­10. Total cost: $2 billion. IBRD Dam Operational Improvement/Safety Specific Investment Loan increases the safety SDN 03/19/09 2018/2033 n.a. 50.0 and functionality of water supply reservoirs and strengthens capacity within the Ministry of Public Works. Total cost: $70.4 million. IBRD National Program for Community Empowerment in Urban Areas Specific Investment SDN 04/14/09 2018/2033 n.a. 115.0 Loan ­ Additional Financing will support the National Program for Community Empowerment through capacity building and training for villages to execute subprojects. Total cost: $572.8 million. IBRD National Program for Community Empowerment in Rural Areas Specific Investment SDN 04/14/09 2018/2033 n.a. 300.0 Loan ­ Additional Financing will improve governance and provide investment resources to support proposals developed through the community-driven development process. Total cost: $1,85 billion. IBRD Indonesia Infrastructure Finance Facility Financial Intermediary Loan will strengthen FPD 06/24/09 2018/2033 n.a. 100.0 and develop the institutional framework of the financial sector to facilitate financing of infrastructure projects. Total cost: $100 million. Lao People's Democratic Republic IDA Poverty Reduction Fund (Additional Financing and Project Restructuring) Specific HDN 07/15/08 n.a. 9.3 15.0 Investment Grant will assist in the development of community infrastructure at the village level and empower villagers in poor districts on public investment planning. Total cost: $19.8 million. IDA Sustainable Forestry for Rural Development (SUFORD) Specific Investment Grant will SDN 12/18/08 n.a. 6.8 10.0 support the Lao government to sustainably manage its forests through a range of policy reforms. Total cost: $23.5 million. Mongolia IDA MONSTAT: Strengthening the National Statistical System of Mongolia Adaptable PREM 06/12/09 2019/2049 1.4 2.0 Program Credit will improve efficiency and effectiveness of the statistical system of Mongolia to provide relevant and reliable data for evidence-based policy making. Total cost: $3.1 million. IDA Development Policy Credit will improve the management of mining revenues, improve the PREM 06/25/09 2019/2049 26.9 40.0 planning of the capital budget, and protect basic infrastructure. Total cost: $40 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Philippines IBRD Global Food Crisis Response Program Development Policy Operation will address the HDN 12/10/08 2019/2033 n.a. 200.0 challenges of high food prices by strengthening social protection and safety nets for the poor. Total cost: $200 million. IBRD Second Agrarian Reform Communities Development Specific Investment Loan SDN 03/19/09 2019/2033 n.a. 10.0 (Additional Financing) will help finance the shortfall in resources required to complete the remaining critical infrastructure investments under this project. Total cost: $13.1 million. IBRD Rural Power Adaptable Program Loan ­ Additional Financing will support rural SDN 04/14/09 2018/2036 n.a. 40.0 electrification by targeting more households, encouraging more private sector participation, and upgrading electric cooperatives. Total cost: $48.3 million. IBRD Participatory Irrigation Development Adaptable Program Loan will improve irrigation SDN 06/24/09 2019/2034 n.a. 70.4 service delivery on a sustainable basis to increase agricultural production and productivity. Total cost: $113.5 million. Solomon Islands IDA Solomon Islands Sustainable Energy Specific Investment Grant aims to improve the SDN 07/08/08 n.a. 2.5 4.0 operational efficiency, system reliability, and financial sustainability of Solomon Islands Electricity Authority. Total cost: $4.5 million. Timor Leste IDA Youth Development Emergency Recovery Grant will promote youth empowerment and SDN 07/01/08 n.a. 1.3 2.1 inclusion by expanding youth capacity and opportunities to initiate and participate in development initiatives. Total cost: $2.1 million. Tonga IDA Tonga Transport Sector Consolidation Specific Investment Grant will consolidate the SDN 07/08/08 n.a. 3.4 5.4 operations of the Ministry of Transport and improve compliance with international civil and maritime safety and security standards. Total cost: $6.5 million. Vietnam IDA Agriculture Competitiveness Specific Investment Credit will strengthen the SDN 09/23/08 2019/2048 36.8 59.8 competitiveness of smallholder farmers in collaboration with the agribusiness sector. Total cost: $75 million. IDA Financial Sector Modernization and Information Management System Specific FPD 10/30/08 2019/2048 38.2 60.0 Investment Credit will assist the State Bank of Vietnam, the Credit Information Center, and the Deposit Insurance of Vietnam to improve service delivery. Total cost: $71.8 million. IDA Renewable Energy Development Financial Intermediary Credit will increase the supply of SDN 05/05/09 2019/2049 136.9 202.0 electricity to the national grid from renewable energy sources on a sustainable basis. Total cost: $318 million. IDA Second Rural Energy Specific Investment Credit ­ Additional Financing will improve SDN 05/21/09 2019/2049 133.8 200.0 access to good quality, affordable electricity services to rural communities in an efficient and sustainable manner. Total cost: $250.6 million. IDA Second Phase of the Second Program for Communes Facing Extreme Hardship in SDN 05/21/09 2019/2049 66.9 100.0 Ethnic Minority and Mountainous Areas Development Policy Credit will strengthen policies on poverty targeting; decentralization, participation, and empowerment; fiduciary transparency and accountability; and monitoring and evaluation. Total cost: $100 million. IDA First Operation of Higher Education Development Policy Credit will strengthen HDN 06/23/09 2019/2049 33.6 50.0 governance, rationalize financing, improve the quality of teaching and research, improve accountability for performance, and enhance transparency in financial management. Total cost: $50 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ IDA School Education Quality Assurance Specific Investment Credit will improve learning HDN 06/23/09 2019/2049 85.4 127.0 outcomes and education completion for primary education students, particularly disadvantaged students, by supporting the full-day schooling program. Total cost: $127 million. IDA Eighth Poverty Reduction Support Operation Development Policy Credit will assist the PREM 06/25/09 2019/2049 235.2 350.0 government in fostering business development, ensuring social inclusion, managing natural resources, and strengthening governance. Total cost: $350 million. Total 831.2 8,152.7 Special Financingc Lao People's Democratic Republic Rice Productivity Improvement Emergency Recovery Grant will increase rice productivity and SDN 01/13/09 n.a. n.a. 3.0 overall volume of rice production among smallholders in selected provinces. Total cost: $3 million. Note: Numbers may not add to totals because of rounding. denotes projects with actual involvement of civil society organizations in identification, preparation, and/or appraisal, and with intended civil society participation in the implementation, monitoring, and evaluation phases. n.a. = not applicable. a. SDN = Sustainable Development Network; FPD = Financial and Private Sector Development; HDN = Human Development Network; PREM = Poverty Reduction and Economic Management. b. IDA funds are denominated in Special Drawing Rights (SDRs), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount reflects the exchange rates in effect at the time of the negotiations of the credit or grant. c. Financing provided by trust funds administered by the Bank. Summaries of Operations Approved during Fiscal 2009, South Asia View Excel Version Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Afghanistan IDA Strengthening Health Activities for the Rural Poor Emergency Operation Grant will HDN 03/24/09 n.a. 19.9 30.0 improve the health and nutritional status of Afghans, focusing on women and children, and underserved areas of the country. Total cost: $126 million. IDA Financial Sector Strengthening Specific Investment Grant will improve access to formal FPD 04/30/09 n.a. 5.5 8.0 banking services in Afghanistan and strengthen Da Afghanistan Bank's core function of banking supervision and regulation. Total cost: $9.3 million. IDA Second Emergency National Solidarity Additional Financing Emergency Recovery Grant SDN 05/12/09 n.a. 50.9 75.0 will help improve local governance at the grassroots level and build rural infrastructure. Total cost: $75 million. IDA Emergency Customs Modernization and Trade Facilitation Additional Financing SDN 05/26/09 n.a. 4.6 6.8 Emergency Recovery Grant will support government efforts in establishing a more efficient customs and transit regime. Total cost: $6.8 million. IDA Emergency Irrigation Rehabilitation Additional Financing Specific Investment Grant will SDN 05/28/09 n.a. 22.7 33.5 restore irrigated agricultural production in rural communities through improved and reliable water supply to irrigation schemes. Total cost: $33.5 million. IDA Strengthening Institutions Development Policy Grant will consolidate previous PREM 06/04/09 n.a. 23.5 35.0 achievements under the ongoing public financial management and public administration reform agenda. Total cost: $35 million. IDA Sustainable Development of Natural Resources Additional Financing Emergency Recovery SDN 06/11/09 n.a. 6.8 10.0 Grant will assist in effectively regulating the country's minerals and hydrocarbon resources and foster private investment in the sector. Total cost: $10 million. Bangladesh IDA Disability and Child-at-Risk Specific Investment Credit will support the government in HDN 07/01/08 2018/2048 21.9 35.0 expanding the coverage, use, and quality of social care services for these vulnerable groups. Total cost: $35 million. IDA Social Investment Program Specific Investment Credit ­ Additional Financing will improve SDN 07/01/08 2018/2048 30.7 50.0 local infrastructure, assets, and livelihoods for families affected by cyclone Cidr in November 2008. Total cost: $50 million. IDA Secondary Education Quality and Access Enhancement Specific Investment Credit will HDN 07/31/08 2018/2048 80.3 130.7 improve the quality of secondary education by systematically monitoring learning outcomes to increase access and quality at the school level. Total cost: $155.7 million. IDA Food Crisis Development Support Development Policy Credit will ease the pressure on the PREM 10/28/08 2019/2048 82.7 130.0 current budget, which is staggering from expansion of food-related spending, including social protection programs. Total cost: $130 million. IDA Siddhirganj Peaking Power Specific Investment Credit will increase reliable power during SDN 10/30/08 2019/2048 222.6 350.0 peak demand times in Bangladesh, where poor supply costs 2 percent in GDP growth each year. Total cost: $470 million. IDA Emergency 2007 Cyclone Recovery and Restoration Emergency Recovery Credit will SDN 11/06/08 2019/2048 69.3 109.0 support efforts to repair infrastructure and restore the livelihoods for thousands of families affected by November 2007's Cyclone Sidr. Total cost: $109 million. IDA Dhaka Water Supply and Sanitation Specific Investment Credit will improve water supply SDN 12/02/08 2019/2048 94.8 149.0 and sanitation services to the rapidly growing megacity of Dhaka, especially to people living in poor areas. Total cost: $165.7 million. IDA Higher Education Quality Enhancement Specific Investment Credit is designed to improve HDN 03/17/09 2019/2049 54.4 81.0 the quality and relevance of teaching and research in the country's higher education institutions. Total cost: $91.8 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ IDA Clean Air and Sustainable Environment Specific Investment Credit will improve urban air SDN 05/12/09 2019/2049 42.2 62.2 quality through measures that will cut emissions in key polluting sectors, including transport and brick making. Total cost: $71.2 million. Bhutan IDA Development Policy Financing for Institutional Strengthening Development Policy PREM 05/26/09 2019/2049 7.5 11.1 c Credit/Grant will support the government's medium-term reform program aimed at sustaining and n.a. 6.1 9.1 g accelerating socio-economic development. Total cost: $20.2 million. India IDA National Vector Borne Disease Control and Polio Eradication Support Sector Investment HDN 07/31/08 2019/2043 319.9 521.0 Credit will boost effective prevention, diagnosis, and treatment services for malaria and kala azar, mainly in remote areas, and increase polio vaccinations. Total cost: $521 million. IDA Orissa Rural Livelihoods Specific Investment Credit will empower rural communities, and SDN 07/31/08 2019/2043 50.6 82.4 especially women and disadvantaged people, through self-help groups that will channel microfinance to poor people. Total cost: $90.5 million. IBRD Orissa State Roads Specific Investment Loan will reduce transportation costs and remove SDN 09/30/08 2014/2037 n.a. 250.0 bottlenecks in transport corridors through better performance, safety, and increased capacity of priority roads. Total cost: $322.5 million. IBRD/IDA Orissa Community Tanks Management Specific Investment Loan/Creditc will assist SDN 09/30/08 2014/2038 n.a. 56.0 l tank-based producers to administer tank systems more effectively by improving agricultural productivity and better managing water user associations. Total cost: $127.8 million. 2019/2043 34.5 56.0 c IBRD Fourth Power System Development Specific Investment Loan ­ Additional Financing will SDN 10/21/08 2013/2038 n.a. 400.0 finance the completion of selected transmission schemes intended to expand transmission system and capacity. Total cost: $2.1 billion. IBRD Small- and Medium-Enterprise Financing and Development Additional Financing FPD 04/30/09 2014/2024 n.a. 400.0 Financial Intermediary Loan will improve access to finance and business development services, thereby fostering SME growth, competitiveness, and employment creation. Total cost: $440 million. IBRD Coal Fired Generation Rehabilitation Specific Investment Loan will renovate and modernize SDN 06/18/09 2014/2039 n.a. 180.0 old, inefficient, and polluting coal-fired power plants to lower carbon emissions and boost power production. Total cost: $303.4 million. IDA Second Madhya Pradesh District Poverty Initiatives Specific Investment Credit is designed SDN 06/24/09 2019/2044 64.6 100.0 to improve the capacity and opportunities for rural poor to achieve sustainable livelihoods. Total cost: $110 million. IDA Third Uttar Pradesh Sodic Lands Reclamation Specific Investment Credit is designed to SDN 06/30/09 2019/2044 127.3 197.0 increase the agricultural productivity of degraded lands in the state of Uttar Pradesh. Total cost: $272 million. Maldives IDA Pension and Social Protection Administration Specific Investment Credit will revitalize the HDN 05/12/09 2019/2049 2.6 3.8 pension system and provide additional social protection programs under a new implementing authority. Total cost: $3.8 million. Nepal IDA Social Safety Nets Emergency Operation Credit/Grant will ensure access to food and basic SDN 09/30/08 2019/2048 1.7 2.7 c needs for vulnerable households in the short term, especially in food-insecure districts. Total cost: n.a. 8.9 14.0 g $21.7 million. IDA Irrigation and Water Resource Management Additional Financing Specific Investment SDN 09/30/08 2019/2048 9.1 14.3 Credit will improve irrigated agriculture productivity and management of selected irrigation schemes, and enhance institutional capacity for integrated water resources management. Total cost: $14.3 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ IDA Project for Agriculture Commercialization and Trade Specific Investment Credit/Grant will SDN 06/04/09 2019/2049 7.2 10.7 c improve the competitiveness of smallholder farmers and agribusiness in selected commodity value n.a. 6.3 9.3 g chains in 25 districts. Total cost: $26.5 million. IDA Power Development Project ­ Additional Financing Specific Investment Credit/Grant will SDN 06/18/09 2019/2049 49.6 73.7 c increase access to electricity in rural areas and improve the efficiency of the electricity supply. Total n.a. 10.5 15.5 g cost: $104.2 million. Pakistan IDA Poverty Reduction and Economic Support Development Policy Credit will support the PREM 03/26/09 2019/2044 321.3 500.0 government's program to regain and maintain economic stability to increase economic growth. Total cost: $500 million. IDA Second Trade and Transport Facilitation Specific Investment Credit will provide technical SDN 05/12/09 2019/2043 16.8 25.0 advisory services to help implement the National Trade Corridor Improvement Program. Total cost: $25 million. IDA Punjab Education Sector Specific Investment Credit will improve access and equity, and the HDN 06/04/09 2019/2044 234.1 350.0 quality and relevance of education in Punjab. Total cost: $3.3 billion. IDA Sindh Education Sector Specific Investment Credit will support the education reforms to HDN 06/04/09 2019/2044 200.6 300.0 increase school participation, reduce gender and rural-urban disparities, and improve education sector governance. Total cost: $2.1 billion. IDA Third Pakistan Poverty Alleviation Fund Specific Investment Credit will empower poor SDN 06/04/09 2019/2043 167.2 250.0 people with increased incomes, improved productive capacity, and better access to services to reduce poverty. Total cost: $250 million. IDA Third Partnership for Polio Eradication Specific Investment Credit will eradicate polio by HDN 06/18/09 2019/2044 50.2 74.7 ensuring timely supply and effective use of oral polio vaccines for young children. Total cost: $143.1 million. IDA Social Safety Net Technical Assistance Project Technical Assistance Credit will enhance HDN 06/18/09 2019/2044 40.2 60.0 the operation and management of a safety net system to cushion the effects of the food and economic crises. Total cost: $60 million. IDA Sindh On-Farm Water Management Specific Investment Credit ­ Additional Financing will SDN 06/30/09 2019/2044 32.3 50.0 improve the efficiency, reliability, and equity of irrigation water distribution at watercourse levels and enhance agricultural productivity. Total cost: $61.7 million. Sri Lanka IDA Road Sector Assistance Specific Investment Credit ­ Additional Financing will provide SDN 07/17/08 2018/2028 59.6 98.1 additional funding to rehabilitate the national highways, which will lower transportation costs and travel times. Total cost: $98.1 million. IDA Health Sector Development Specific Investment Credit ­ Additional Financing will improve HDN 06/23/09 2019/2029 16.3 24.0 the efficiency and quality of public health services with a special emphasis on needs arising from the recent conflict. Total cost: $26.6 million. Total 2,677.8 5,433.6 Special Financingd Afghanistan Food Crisis Response Emergency Recovery Grant will enhance wheat and other cereal SDN 08/05/08 n.a. n.a. 8.0 production by supporting small-scale irrigation at the community level. Total cost: $8 million. Note: Numbers may not add to totals because of rounding. denotes projects with actual involvement of civil society organizations in identification, preparation, and/or appraisal, and with intended civil society participation in the implementation, monitoring, and evaluation phases. n.a. = not applicable; l = IBRD loan; c = IDA credit; g = IDA grant. a. SDN = Sustainable Development Network; FPD = Financial and Private Sector Development; HDN = Human Development Network; PREM = Poverty Reduction and Economic Management. b. IDA funds are denominated in Special Drawing Rights (SDRs), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount reflects the exchange rates in effect at the time of the negotiations of the credit or grant. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ c. "Blend" loan/credit. d. Financing provided by trust funds administered by the Bank. Summaries of Operations Approved during Fiscal 2009, Europe and Central Asia View Excel Version Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Albania IBRD Social Service Delivery (SSDP) Specific Investment Loan ­ Additional Financing will HDN 03/17/09 2019/2034 n.a. 5.0 improve the efficiency and effectiveness of the pension system by supporting institutional strengthening and improving the public understanding. Total cost: $6 million. IBRD Privatization of the Power Distribution System Operator (OSSH) Partial Risk Guarantee SDN 05/05/09 n.a. n.a. 78.0 will facilitate the privatization of OSSH in the context of a new regulatory framework. Total cost: $132 million. Armenia IDA Municipal Water and Wastewater Specific Investment Loan ­ Additional Financing will SDN 10/30/08 2019/2028 12.8 20.0 enhance the sustainability, impact, and development effectiveness of the ongoing program of water system rehabilitation and improvements. Total cost: $26.8 million. IBRD Access to Finance for Small and Medium Enterprises Financial Intermediary Loan will FPD 02/24/09 2014/2035 n.a. 50.0 support the development of small- and medium-scale rural businesses by improving their access to markets. Total cost: $50 million. IDA Lifeline Roads Improvement (LRIP) Emergency Recovery Credit will upgrade selected SDN 02/24/09 2019/2029 16.1 25.0 sections of the lifeline road network and create temporary employment in road construction. Total cost: $30.4 million. IDA Rural Enterprise and Small-Scale Commercial Agriculture Development Emergency SDN 02/24/09 2019/2028 1.3 2.0 Recovery Credit ­ Additional Financing will increase the total number of communities benefiting from project activities under the community-focused economic development (CED) component. Total cost: $2.1 million. IDA Third Social Investment Fund Specific Investment Credit ­ Additional Financing will HDN 02/24/09 2019/2028 5.2 8.0 raise living standards of the poor and increase the coverage of community infrastructure and services in poor communities. Total cost: $10.3 million. IDA Second Education Quality and Relevance Project Adaptable Program Credit will HDN 05/12/09 2019/2028 17.0 25.0 enhance and facilitate learning in general education and improve the readiness of children who are entering primary education. Total cost: $31.2 million. Azerbaijan IBRD/IDA Second Highway Specific Investment Loan/Creditc ­ Additional Financing will SDN 06/24/09 2013/2029 n.a. 113.0 l rehabilitate 116 km of highway and improve about 200 km of local roads connecting the highway 2019/2029 41.7 62.0 c with nearby villages. Total cost: $257.9 million. IDA Public Investment Capacity Building Project Technical Assistance Credit will improve the SDN 06/24/09 2019/2029 5.4 8.0 quality and efficiency of preparation and implementation of investment projects in key priority sectors, especially infrastructure. Total cost: $10 million. Belarus IBRD Water Supply and Sanitation Specific Investment Loan will improve the quality, SDN 09/30/08 2014/2025 n.a. 60.0 efficiency, and sustainability of water supply and wastewater treatment services covering about 1.7 million consumers. Total cost: $60 million. IBRD Energy Efficiency Project Specific Investment Loan will improve energy efficiency in heat SDN 05/28/09 2015/2025 n.a. 125.0 and power generation by converting existing heat-only boiler plants to combined heat-and-power plants. Total cost: $193.1 million. Bosnia and Herzegovina IBRD/IDA Second Solid Waste Management Specific Investment Credit/Loanc will improve SDN 11/25/08 2016/2028 n.a. 25.0 l the availability, quality, environmental soundness, and financial viability of solid waste management 2018/2028 9.6 15.0 c services in participating utilities/regions. Total cost: $43.5 million. Bulgaria Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ IBRD Social Inclusion (SIP) Specific Investment Loan will promote social inclusion through HDN 11/04/08 2014/2025 n.a. 59.0 increasing the school readiness of children below the age of seven, targeting low-income families.Total cost: 136.7 million. IBRD Second Social Sector Institutional Reform Development Policy Loan will help the HDN 11/04/08 2013/2058 n.a. 150.0 government of Bulgaria meet some of the challenges associated with European Union accession and post-accession. Total cost: $150 million. IBRD Third Social Sector Institutional Reform Development Policy Loan will support the HDN 05/14/09 2016/2027 n.a. 200.0 Government in meeting the challenges associated with reaching the living standards of the European Union. Total cost: $200 million. Croatia IBRD Development of Emergency Medical Services and Investment Planning (DEMSIP) HDN 09/30/08 2013/2038 n.a. 28.3 Specific Investment Loan aims to improve the emergency medical services and to strengthen the capacity of the Ministry of Health and Social Welfare. Total cost: $132.7 million. IBRD Second Coastal Cities Pollution Control Project Adaptable Program Loan will improve SDN 12/11/08 2014/2023 n.a. 87.5 efficient and sustainable wastewater services and reduce the nutrients entering Croatia's coastal waters from selected municipalities. Total cost: $181.4 million. IBRD Rijeka Gateway II Specific Investment Loan will develop the capacity, financial SDN 12/11/08 2019/2031 n.a. 122.5 performance, and quality of services in the port of Rijeka to meet growing traffic demand. Total cost: 88 million. Georgia IDA Regional and Municipal Infrastructure Development Specific Investment Credit will SDN 10/02/08 2019/2028 25.5 40.0 improve the reliability of municipal infrastructure and service by restoring infrastructure, services, and improving housing conditions of conflict-affected people. Total Cost: $65.4 million. IDA Second East-West Highway Improvement (SEWHIP) Specific Investment Credit ­ SDN 10/30/08 2019/2028 12.8 20.0 Additional Financing will reduce road transport costs and improve ease of transit and safety along the central part of Georgia's East-West corridor. Total cost: $30 million. IDA Fourth Poverty Reduction Support Operation (PRSO) Development Policy Credit will PREM 10/02/08 2019/2028 25.5 40.0 support the government to sustain implementation of the PRSO program following the unanticipated budget constraints associated with August 2008 conflict. Total cost: $40 million. IBRD Secondary and Local Roads Specific Investment Loan ­ Additional Financing will SDN 03/19/09 2014/2039 n.a. 70.0 support road rehabilitation for about 450 km of secondary and local roads throughout the country that are in poor condition. Total cost: $100 million. Kazakhstan IBRD South West Roads Project Specific Investment Loan will upgrade the trade route linking SDN 04/30/09 2014/2033 n.a. 2,125.0 China to Russia and Western Europe through Kazakhstan, bringing economic stimulus to Kazakhstan's poorest provinces. Total cost: $2.5 billion. Kyrgyz Republic IDA Capacity Building for Economic Management Technical Assistance Grant will establish PREM 07/01/08 n.a. 1.9 3.0 and institutionalize a sound framework and capacity for economic policy making and implementation. Total cost: $3.4 million. IDA Second Land and Real Estate Registration Specific Investment Grant will support SDN 07/15/08 n.a. 3.6 5.9 markets for more intensive and effective use of land and real estate. Total cost: $7.5 million. IDA Energy Emergency Assistance Emergency Recovery Credit/Grant will support the SDN 11/25/08 2019/2048 3.5 5.5 c implementation of the government's Energy Emergency Mitigation Action Plan (EEMAP) and n.a. 3.5 5.5 g improve energy security in the country. Total cost: $11 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ IDA Small Towns Infrastructure and Capacity Building Project Specific Investment SDN 04/02/09 2019/2048 1.5 2.2 c Credit/Grant will help to improve the availability, quality and efficiency of local infrastructure services for the population of participating small towns. Total cost: $4.1 million. 1.2 1.8 g IDA Second Rural Water Supply and Sanitation Project Specific Investment Credit/Grant will SDN 04/21/09 2019/2048 3.8 5.5 c improve access to potable water in Kyrgyz communities and help to improve hygiene and sanitation n.a. 3.1 4.5 g in rural areas. Total cost: $18.3 million. Macedonia, former Yugoslav Republic of IBRD Municipal Services Improvement Specific Investment Loan will improve transparency, SDN 03/26/09 2014/2022 n.a. 25.0 financial sustainability, and delivery of targeted municipal services in the participating municipalities. Total cost: $25 million. IBRD Conditional Cash Transfers Specific Investment Loan will strengthen the effectiveness HDN 06/16/09 2016/2034 n.a. 25.0 and efficiency of the government's social safety net through conditional cash transfers and improvements in monitoring. Total cost: 20.3 million. Moldova IDA Second Energy Specific Investment Credit ­ Additional Financing will improve the heating SDN 01/29/09 2019/2048 6.7 10.0 supply for 18 additional public institutions, including hospitals, educational buildings, and social assistance centers. Total cost: $11 million. IDA Second Social Investment Fund Specific Investment Credit ­ Additional Financing will HDN 03/24/09 2019/2048 3.4 5.0 extend support to poor villages that were damaged by floods in 2008; it also delivers support to small towns. Total cost: $5.8 million. IDA Second Rural Investment and Services Project Specific Investment Credit will foster post- SDN 05/14/09 2019/2049 6.8 10.0 privatization growth in the agricultural and rural sectors by improving farmers' access to knowledge and finance. Total cost: $14 million. Montenegro IBRD Energy Efficiency Specific Investment Loan will improve energy efficiency in public SDN 12/09/08 2012/2016 n.a. 9.4 buildings to create a sustainable energy efficiency improvement program in the public sector. Total cost: $9.4 million. IBRD Land Administration and Management Specific Investment Loan aims to improve the SDN 12/09/08 2013/2018 n.a. 16.2 efficiency of permitting and the property registration system. Total cost: 22.4 million. IBRD Montenegro Institutional Development and Agricultural Strengthening Specific SDN 04/21/09 2014/2020 n.a. 15.7 Investment Loan will improve delivery of government assistance for sustainable agriculture and rural development in a manner consistent with the EU's pre-accession requirements. Total cost: $23.9 million. Poland IBRD Development Programmatic Development Policy Loan will enhance the quality and PREM 12/22/08 2014/2038 n.a. 1,250.0 efficiency of public finances, increase the supply of skilled labor, and strengthen the business environment. Total cost: $1.25 billion. IBRD Employment, Entrepreneurship, and Human Capital Development Policy Loan will HDN 06/30/09 2014/2039 n.a. 1,300.2 support reforms to public financial management, and improvements to labor market efficiency, finance, and provision of health and education. Total cost: $1.3 billion. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Serbia IBRD Second Programmatic Private Financial Sector Development Policy Loan will support FPD 03/05/09 2017/2029 n.a. 50.0 three policy areas, including improving the business environment, strengthening financial discipline, and building a more efficient financial sector. Total cost: $50 million. IBRD Health Specific Investment Loan ­ Additional Financing will support activities under the HDN 03/19/09 2014/2026 n.a. 13.5 Serbia Health Project to reform hospital payment methods and improve quality of health care services. Total cost: $13.5 million. Tajikistan IDA Pamir Private Power Specific Investment Grant ­ Additional Financing will enhance the SDN 07/31/08 n.a. 1.6 2.5 electricity supply in the Gorno Badakhslan Autonomous Region in a financially, environmentally, and socially sustainable way. Total cost: $7.8 million. IDA Third Programmatic Development Policy Grant (PDPG3) will improve the environment for PREM 03/26/09 n.a. 13.3 20.0 private sector development, and support overall functioning and delivery of the public services. Total cost: $20 million. IDA Community and Basic Health Specific Investment Grant will increase access to health HDN 04/30/09 n.a. 3.4 5.0 services by building capacity at national levels in administering a basic package of health benefits. Total cost: $5 million. IDA Public Financial Management Modernization Adaptable Program Grant will establish PREM 05/14/09 n.a. 3.4 5.0 basic processes for efficient and transparent management of public expenditures and support the automated financial management information system. Total cost: $13.1 million. Turkey IBRD Access to Finance for SMEs Financial Intermediary Loan ­ Additional Financing will FPD 12/09/08 2014/2038 n.a. 200.0 scale up development effectiveness and support the project's objectives to increase Turkish small and medium enterprises' (SME) access to medium-term finance. Total cost: $200 million. IBRD Second Competitiveness and Employment Development Policy Loan will support the FPD 12/16/08 2021/2031 n.a. 500.0 advances in the implementation of the government's competitiveness and employment agenda since mid-2007. Total cost: $500 million. IBRD Private Sector Renewable Energy and Energy Efficiency Specific Investment Loan will SDN 05/28/09 2014/2039 n.a. 500.0 help increase privately owned energy production from renewable sources within the market-based framework of the Turkish Electricity Market Law. Total cost: $1.1 billion. IBRD Programmatic Electricity Sector Development Policy Loan will support the implementation SDN 06/11/09 2021/2032 n.a. 800.0 of Turkey's updated national electricity strategy and its ongoing program to reform the electricity sector. Total cost: $800 million. IBRD Health Transformation and Social Security Reform Adaptable Program Loan will HDN 06/11/09 2015/2039 n.a. 75.1 increase the effectiveness of the Social Security Institution and Ministry of Health's formulation and implementation of reforms. Total cost: $75.1 million. Ukraine IBRD Third Development Policy Loan will improve the investment climate by creating fiscal PREM 12/22/08 2014/2038 n.a. 500.0 space for growth through strengthened public finances and public sector reforms. Total cost: $500 million. IBRD Roads and Safety Improvement Project Specific Investment Loan will improve the SDN 04/07/09 2014/2038 n.a. 400.0 condition and quality of sections of the M-03 road and increase traffic safety along Ukraine's main road network. Total cost: $500 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Uzbekistan IDA Second Basic Education Adaptable Program Credit will support the Government of HDN 06/23/09 2019/2044 18.9 28.0 Uzbekistan's efforts to improve the quality and overall cost effectiveness of basic education. Total cost: $36 million. Total 252.5 9,362.8 Special Financingd Moldova Health Services and Social Assistance Emergency Recovery Grant will increase access to HDN 08/08/08 n.a. n.a. 7.0 quality and efficient health services to decrease premature mortality and disability for the local population. Total cost: $7 million. Note: Numbers may not add to totals because of rounding. denotes projects with actual involvement of civil society organizations in identification, preparation, and/or appraisal, and with intended civil society participation in the implementation, monitoring, and evaluation phases. n.a. = not applicable; l = IBRD loan; c = IDA credit; g = IDA grant. a. SDN = Sustainable Development Network; FPD = Financial and Private Sector Development; HDN = Human Development Network; PREM = Poverty Reduction and Economic Management. b. IDA funds are denominated in Special Drawing Rights (SDRs), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount reflects the exchange rates in effect at the time of the negotiations of the credit or grant. c. "Blend" loan/credit. d. Financing provided by trust funds administered by the Bank. Summaries of Operations Approved during Fiscal 2009, Latin America and the Caribbean View Excel Version Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Argentina IBRD Social and Fiscal National Identification System Technical Assistance Loan ­ Phase II will PREM 07/10/08 2013/2038 n.a. 20.0 identify social or fiscal attributes of physical and legal persons in Argentina through a sustainable information exchange system. Total cost: $28 million. IBRD Mining Environmental Restoration Specific Investment Loan will assess environmental SDN 07/31/08 2013/2038 n.a. 30.0 risks from closed uranium mines, processing sites, and related mining investments, in accordance with international good practice. Total cost: $34.2 million. IBRD Second Provincial Agricultural Development Specific Investment Loan will increase the SDN 09/25/08 2014/2038 n.a. 300.0 productivity and profitability of small- and medium-size agricultural producers. Total cost: $423.8 million. IBRD Unleashing Productive Innovation Specific Investment Loan will create new knowledge- FPD 09/25/08 2013/2038 n.a. 150.0 based companies, upgrade the research infrastructure and strengthen the policy framework for science, technology, and productive innovation. Total cost: $224 million. IBRD PERMER Renewable Energy Additional Financing Specific Investment Loan will fund the SDN 11/11/08 2014/2038 n.a. 50.0 Renewable Energy in the Rural Market Project (PERMER) to provide clean energy to rural communities in Argentina. Total cost: $55 million. IBRD Basic Protection Specific Investment Loan will improve Argentina's safety net programs for HDN 06/09/09 2014/2038 n.a. 450.0 the unemployed and families with children. Total cost: $1.2 billion. IBRD Matanza-Riachuelo Basin Sustainable Development Adaptable Program Loan will SDN 06/09/09 2014/2039 n.a. 840.0 improve sewer services in the Matanza-Riachuelo River Basin and elsewhere in the province and city of Buenos Aires. Total cost: $1.4 billion. Barbados IBRD Barbados Second HIV/AIDS Specific Investment Loan will support the implementation of HDN 08/07/08 2013/2038 n.a. 35.0 the 2008­13 Barbados National HIV/AIDS Strategic Plan. Total cost: $94.3 million. Bolivia, Plurinational State of IDA Rural Alliances Additional Financing of Specific Investment Credit will expand the project SDN 04/07/09 2019/2044 19.9 30.0 into two new subregions of the country and cofinance more alliances in the original project area. Total cost: $36.5 million. Brazil IBRD Second Provincial Agricultural Development Specific Investment Loan will promote SDN 07/17/08 2013/2038 n.a. 35.6 better living conditions for the São Luís's Bacanga River Basin, one of the poorest areas of the city. Total cost: $59.4 million. IBRD Uruguaiana ­ RS Integrated Municipal Development Horizontal Adaptable Program SDN 07/23/08 2013/2028 n.a. 6.8 Loan will support the municipalities of Bagé, Pelotas, Rio Grande, Santa Maria, and Uruguaiana to provide infrastructure services and employment opportunities. Total cost: $109 million. IBRD Bagé RS Integrated Municipal Development Adoptable Program Loan will support the SDN 07/23/08 2013/2028 n.a. 6.6 municipalities of Bagé, Pelotas, Rio Grande, Santa Maria, and Uruguaiana to provide infrastructure services and employment opportunities. Total cost: $100 million. IBRD Rio Grande do Sul Fiscal Sustainability for Growth Development Policy Loan will help PREM 07/31/08 2008/2038 n.a. 1,100.0 the State of Rio Grande do Sul achieve a more stable and sustainable fiscal position. Total cost: $1.1 billion. IBRD Sergipe State Integrated Project: Rural Poverty Specific Investment Loan will generate SDN 09/23/08 2014/2023 n.a. 20.8 productive activities through local associations and cooperatives, boosting the income of small farmers. Total cost: $27 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ IBRD Ceara Inclusive Growth (SWAP II) Adaptable Program Loan will help the Government of PREM 09/30/08 2016/2034 n.a. 240.0 Ceara to improve its fiscal situation, quality of education, and access to water and sewage systems. Total cost: $2.4 billion. IBRD Paraiba Second Rural Poverty Reduction Specific Investment Loan will reduce the SDN 11/25/08 2013/2027 n.a. 20.9 incidence of rural poverty through public investment and technical assistance. Total cost: $28.1 million. IBRD Acre Social and Economic Inclusion and Sustainable Development (PROACRE) HDN 12/18/08 2016/2036 n.a. 120.0 Specific Investment Loan will promote social and economic inclusion of the most disadvantaged populations in urban and isolated rural areas. Total cost: $150 million. IBRD Additional Financing to the Ceara Integrated Water Resource Management Specific SDN 12/18/08 2015/2029 n.a. 103.0 Investment Loan will improve soil management and vegetation in tributary watersheds to enhance conservation, minimize erosion and maximize natural water storage mechanisms. Total cost: $207.2 million. IBRD Santa Maria ­ RS Integrated Municipal Development Horizontal Adoptable Program SDN 12/23/08 2014/2026 n.a. 14.0 Loan will support the municipalities of Bagé, Pelotas, Rio Grande, Santa Maria, and Uruguaiana to provide infrastructure services and employment opportunities. Total cost: $109 million. IBRD Brazil Health Formation and Quality Improvement Adaptable Program Loan will develop HDN 01/29/09 2014/2038 n.a. 235.0 regional health care networks, hospitals, and health centers. Total cost: $676.8 million. IBRD Brazil Espirito Santo Water and Coastal Pollution Management Specific Investment Loan SDN 02/24/09 2012/2038 n.a. 71.5 ­ Additional Financing will improve clean water and sewer access. Total cost: $110 million. IBRD Brazil Ceara Regional Economic Development Specific Investment Loan will improve SDN 02/24/09 2019/2033 n.a. 46.0 public services in the Central Cariri Region of Ceará. Total cost: $66 million. IBRD Brazil Sustainable Environmental Management Development Policy Loan will improve SDN 03/05/09 2015/2039 n.a. 1,300.0 the Brazilian environmental management system. Total cost: $1.3 billion. IBRD Federal District Multisector Public Management Specific Investment Loan will establish HDN 04/09/09 2012/2032 n.a. 130.0 results-based management practices; improve fiduciary oversight; and modernize the education, health care, and public transport sectors. Total cost: $400 million. IBRD Pernambuco Education Results and Accountability Specific Investment Loan will HDN 04/14/09 2014/2023 n.a. 154.0 improve the quality, efficiency, and equity of public education in Pernambuco and introduce management reforms. Total cost: $656.6 million. Chile IBRD Promoting Innovation and Competitiveness Specific Investment Loan will enhance Chile's HDN 07/15/08 2014/2019 n.a. 30.0 policy and institutional innovation framework for competitiveness through priority programs in critical areas. Total cost: $70 million. Colombia IBRD Bogota Urban Services (BUSP) Specific Investment Loan will upgrade the Integrated SDN 10/21/08 2013/2018 n.a. 30.0 Mass Transit System and assist the Instituto de Desarrollo Urbano to improve the road administration system. Total cost: $62.6 million. IBRD Strengthening Public Information, Monitoring, Evaluation for Results Management PREM 12/12/08 2017/2026 n.a. 8.5 Horizontal Adaptable Program Loan will improve the government's program and policy design capability. Total cost: $15.8 million. IBRD Third Sustainable Development Policy Loan will help achieve the Millennium Development SDN 12/18/08 2020/2032 n.a. 450.0 Goals (MDGs) on environmental sustainability, sustainable development, water sanitation, and supporting the urban poor. Total cost: $450 million. IBRD Disaster Risk Management with Catastrophe Deferred Draw Down Option Development SDN 12/18/08 2020/2059 n.a. 150.0 Policy Loan will strengthen the Government of Colombia's program for reducing risks resulting from adverse natural events. Total cost: $150 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ IBRD Second Social Safety Net ­ Familias en Acción ­ Specific Investment Loan will provide HDN 12/18/08 2018/2036 n.a. 636.5 additional income, promote health care, and increase school enrollment and attendance for poor families with children. Total cost: $776.2 million. Costa Rica IBRD Costa Rica Catastrophe Deferred Draw Down Option (CAT DDO) Development Policy SDN 09/16/08 2013/2058 n.a. 65.0 Loan will provide a source of immediate liquidity in case of a natural disaster. Total cost: $65 million. IBRD Public Finance, Education, and Competitiveness Enhancing Development Policy Loan PREM 04/30/09 2014/2039 n.a. 500.0 will enhance secondary education, facilitate entry into the telecommunications and insurance sectors, and strengthen intellectual property rights. Total cost: $500 million. Dominican Republic IBRD Water and Sanitation in Tourist Areas Adaptable Program Loan will improve the water SDN 04/02/09 2014/2028 n.a. 27.5 and sanitation sector in the Dominican Republic and the La Romana Water and Sewerage Company. Total cost: $34 million. El Salvador IBRD El Salvador Public Finance and Social Sector Development Policy Loan will sustain PREM 01/22/09 2014/2038 n.a. 450.0 government reform during the global economic crisis. Total cost: $450 million. Grenada IDA OECS Education Development Additional Financing of Adaptable Program Credit will HDN 12/04/08 2019/2043 1.3 1.9 increase equitable access to secondary education and strengthen the institutional capacity of the educational sector. Total cost: $2.3 million. IDA OECS (Grenada) Skills for Inclusive Growth Adaptable Program Credit will increase youth HDN 01/14/09 2019/2043 2.1 3.0 job skills through public-private partnerships. Total cost: $4.5 million. Guatemala IBRD Fiscal and Institutional Development Policy Loan will support transparency, monitoring, PREM 10/21/08 2017/2034 n.a. 200.0 and evaluation of public expenditures and support macroeconomic stability and greater fiscal space for priority spending. Total cost: $200 million. IBRD Disaster Risk Management with a Catastrophe Deferred Drawdown Option SDN 04/14/09 2017/2059 n.a. 85.0 Development Policy Loan will enhance the government's disaster risk management program for natural disasters. Total cost: $85 million. Haiti IDA Avian Influenza Control and Human Influenza Emergency Preparedness and Control SDN 07/14/08 n.a. 1.0 1.6 Emergency Recovery Grant will confront the threat posed by Avian and Human Influenza infection and other zoonoses to the poultry sector and humans. Total cost: $2.1 million. IDA Emergency Bridge Reconstruction and Vulnerability Reduction Emergency Recovery SDN 11/18/08 n.a. 12.8 20.0 Grant will finance the reconstruction and emergency maintenance of key infrastructure destroyed or damaged by hurricanes and tropical storms in 2008. Total cost: $20 million. IDA Community-Driven Development Additional Financing of Specific Investment Grant will SDN 01/29/09 n.a. 5.4 8.0 implement the direct transfer of public resources to local community organizations in poor rural and peri-urban communities. Total cost: $8.5 million. IDA Haiti Emergency School Reconstruction Emergency Recovery Grant will repair damage HDN 03/05/09 n.a. 3.4 5.0 from storms and hurricanes in 2008. Total cost: $5 million. IDA Strengthening the Management of Agricultural Public Services Specific Investment Grant SDN 06/25/09 n.a. 3.4 5.0 will prioritize and target investments according to sector policies and improve local agriculture support services. Total cost: $5 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Honduras IDA Food Prices Crisis Supplemental Financing to the First Programmatic Financial Sector FPD 08/07/08 2018/2028 6.2 10.0 Development Policy Credit will help maintain macroeconomic stability and allow the government to respond to the food price crisis. Total cost: $10 million. IDA Honduras Power Sector Efficiency Enhancement Specific Investment Credit will improve SDN 01/22/09 2019/2028 20.2 30.0 the National Electric Power Company's management and regional sub-networks. Total cost: $42.3 million. IDA Second Road Reconstruction and Improvement Specific Investment Credit will improve SDN 05/21/09 2019/2029 16.8 25.0 the quality of the road network and road management to facilitate economic growth and competitiveness. Total cost: $25 million. Jamaica IBRD Jamaica Fiscal and Debt Sustainability Development Policy Loan will improve public PREM 01/15/09 2014/2038 n.a. 100.0 spending and investment. Total cost: $100 million. Mexico IBRD Mexico Information Technology (IT) Industry Development Specific Investment Loan will SDN 07/10/08 2018/2018 n.a. 80.0 create jobs in Mexican IT companies. Total cost: $80 million. IBRD Savings and Rural Finance Second Phase Specific Investment Loan will strengthen SDN 09/09/08 2023/2023 n.a. 50.0 savings and credit institutions by making them financially viable, operationally effective, and compliant with credit law. Total cost: $105.6 million. IBRD Mexico Environmental Sustainability Development Policy Loan will integrate SDN 10/02/08 2023/2023 n.a. 300.8 environmental concerns in the sectoral policies and programs of key development sectors: tourism, energy, forestry, water, agriculture, and housing. Total cost: $300.7 million. IBRD Private Housing Finance Markets Strengthening Specific Investment Loan will develop FPD 11/06/08 2013/2038 n.a. 1,010.0 and consolidate markets for housing finance and promote increased access to lower income groups over the medium-term. Total cost: $1.01 billion. IBRD Results-Based Management and Budgeting Technical Assistance Loan will improve the PREM 12/11/08 2026/2026 n.a. 17.2 quality of public spending in Mexico and help make budgeting a tool for good government. Total cost: $32.9 million. IBRD Supplemental Financing for Mexico Environmental Sustainability Development Policy SDN 12/18/08 2025/2025 n.a. 401.0 Loan will reduce water and air pollution, promote the efficient use of water and energy, and conserve forest and land resources. Total cost: $401 million. IBRD Mexico Sustainable Rural Development Specific Investment Loan will promote SDN 02/24/09 2026/2026 n.a. 50.0 environmentally sustainable agribusinesses. Total cost: $168.3 million. IBRD Support to Oportunidades Project Specific Investment Loan will increase the health, HDN 04/09/09 2025/2025 n.a. 1,503.8 nutrition, and education of poor families and build sustainable connections between Oportunidades and other social programs. Total cost: $6.3 billion. IBRD Customs Institutional Strengthening Technical Assistance Loan will improve the efficiency PREM 4/21/09 2026/2026 n.a. 10.0 of Mexico's customs processes to improve competitiveness and facilitate trade. Total cost: $54.8 million. Nicaragua IDA Development Policy Credit will strengthen the public sector, emphasizing public sector PREM 09/25/08 2019/2048 12.2 20.0 management and transparency, and promote improved efficiency and accountability of basic social services. Total cost: $20 million. IDA Greater Managua Water and Sanitation (PRASMA) Specific Investment Credit/Grant will SDN 12/16/08 2019/2048 13.5 20.0 c increase access to reliable water and sanitation services for the population living in the Greater Managua region. Total cost: $40 million. n.a. 13.5 20.0 g Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Panama IBRD Health Quality and Performance Improvement Specific Investment Loan will provide HDN 08/05/08 2013/2028 n.a. 40.0 basic health services to mothers and children in underserved rural communities and improve health system performance. Total cost: $58.7 million. IBRD Basic Education Quality Improvement Specific Investment Loan will improve the quality HDN 08/05/08 2013/2028 n.a. 35.0 of education programs; the coverage of initial and basic education; and support the Ministry of Education. Total cost: $42 million. IBRD Second Competitiveness and Public Financial Management Development Policy Loan FPD 12/16/08 2011/2033 n.a. 100.0 will enhance private sector competitiveness, consolidate fiscal discipline, and increase public sector accountability. Total cost: $100 million. IBRD Protecting the Poor Under Global Uncertainity Development Policy Loan will improve PREM 04/21/09 2011/2028 n.a. 80.0 targeting and coverage of social sector programs, and strengthen banking regulation and supervision. Total cost: $80 million. Paraguay IBRD Water and Sanitation Sector Modernization Specific Investment Loan will increase the SDN 04/14/09 2017/2035 n.a. 64.0 efficiency, coverage, and sustainability of water supply and sanitation services in Paraguay. Total cost: $83.5 million. IBRD First Public Sector Reform Development Policy Loan will safeguard the proportion of PREM 05/05/09 2017/2036 n.a. 100.0 budgeted social expenditure during execution, as a contribution of the anti-crisis plan. Total cost: $100 million. Peru IBRD Second Programmatic Fiscal Management and Competitiveness Development Policy PREM 08/05/08 2022/2029 n.a. 370.0 Loan will support increased economic growth and fight poverty through better and more efficient public spending and improved economic competitiveness. Total cost: $370 million. IBRD Second Programmatic Fiscal Management and Competitiveness Development PREM 12/18/08 2022/2030 n.a. 330.0 Supplemental Financing Development Policy Loan will fund the risk management tools, in the event of a shift in the external circumstances or a natural disaster. Total cost: $330 million. IBRD Second Health Reform Adaptable Program Loan will improve healthcare services for HDN 02/17/09 2020/2034 n.a. 15.0 women and children under three. Total cost: $162.4 million. IBRD Environmental Development Policy Loan will develop environmental policies for the mining, SDN 02/17/09 2022/2030 n.a. 330.0 fisheries, and urban transport/energy sectors. Total cost: $330 million. IBRD Second Results and Accountability (REACT) Development Policy Loan will strengthen HDN 04/09/09 2022/2030 n.a. 330.0 the accountability framework and improve results in health, nutrition, and education. Total cost: $330 million. St. Lucia IDA Disaster Management II Specific Investment Credit will reduce Saint Lucia's vulnerability to SDN 07/15/08 2018/2043 1.9 3.0 natural events, such as hurricanes and floods by strengthening the infrastructure and improving emergency preparedness. Total cost: $3.9 million. Uruguay IBRD Second Programmatic Reform Implementation Development Policy Loan will support PREM 02/03/09 2024/2029 n.a. 400.0 private sector reforms and improve social protection networks. Total cost: $400 million. Total 133.6 14,031.0 Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Special Financingc Nicaragua Emergency Food Price Response Emergency Recovery Grant will mitigate the negative HDN 01/21/09 n.a. n.a. 7.0 nutritional impact of the food price increase on pre-primary and primary school children. Total cost: $7.3 million. Note: Numbers may not add to totals because of rounding. denotes projects with actual involvement of civil society organizations in identification, preparation, and/or appraisal, and with intended civil society participation in the implementation, monitoring, and evaluation phases. n.a. = not applicable; c = IDA credit; g = IDA grant. a. SDN = Sustainable Development Network; FPD = Financial and Private Sector Development; HDN = Human Development Network; PREM = Poverty Reduction and Economic Management. b. IDA funds are denominated in Special Drawing Rights (SDRs), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount reflects the exchange rates in effect at the time of the negotiations of the credit or grant. c. Financing provided by trust funds administered by the Bank. Summaries of Operations Approved during Fiscal 2009, Middle East and North Africa View Excel Version Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Djibouti IDA Improving Health Sector Peformance Adaptable Program Grant will assist the Government HDN 05/26/09 n.a. 4.7 7.0 of Djibouti in achieving the Millennium Development Goals. Total cost: $7 million. Egypt, Arab Republic of IBRD Ain Sokhna Power Specific Investment Loan will ensure continuous electricity supply to SDN 01/29/09 2015/2030 n.a. 600.0 meet demand in a sustainable manner through investment in new generation capacity. Total cost: $2.1 billion. IBRD National Railways Restructuring Specific Investment Loan will improve the reliability, SDN 03/17/09 2014/2039 n.a. 270.0 efficiency, and safety of the railway services and modernize its management and operating practices. Total cost: $305 million. Jordan IBRD Amman Solid Waste Management Specific Investment Loan will strengthen the SDN 09/30/08 2016/2025 n.a. 25.0 operational, financial, and environmental performance of Municipal Solid Waste Management in Amman. Total cost: $40.5 million. IBRD Amman Development Corridor Additional Financing of Specific Investment Loan will SDN 12/04/08 2014/2028 n.a. 33.0 provide additional financing to cover cost overruns for the Amman Development Corridor Project. Total cost: $182.6 million. IBRD Higher Education Reform for the Knowledge Economy Specific Investment Loan will HDN 05/19/09 2015/2031 n.a. 25.0 improve equitable access for male and female students for a higher education system that is financially and institutionally sustainable. Total cost: $65 million. IBRD Second Education Reform for the Knowledge Economy Specific Investment Loan will HDN 05/19/09 2015/2031 n.a. 60.0 improve skills necessary to participate in the knowledge economy for students enrolled in all streams of pre-tertiary education. Total cost: $408 million. Lebanon IBRD Urban Transport Development Additional Financing Specific Investment Loan will provide SDN 01/22/09 2016/2038 n.a. 69.7 Beirut with the basic institutional framework and critical investments needed to improve the existing urban transport infrastructure. Total cost: $69.7 million. Morocco IBRD Solid Waste Sector Development Policy Loan will support Morocco's reform program aimed SDN 03/19/09 2013/2034 n.a. 132.7 at improving the financial, environmental, and social performance of the municipal solid waste sector. Total cost: $132.7 million. Tunisia IBRD Integration and Competitiveness Development Policy Loan will support the strategic PREM 03/24/09 2015/2039 n.a. 250.0 elements of Tunisia's 11th National Development Plan (2007­11) to strengthen growth and increase employment. Total cost: $250 million. IBRD Second Water Sector Investment Specific Investment Loan will promote efficient SDN 05/19/09 2015/2039 n.a. 30.6 management of public irrigation schemes by farmers and improve access to drinking water in un- served communities. Total cost: $162.9 million. IBRD Scaling Up Energy Efficiency and Renewable Investment Specific Investment Loan will SDN 06/30/09 2010/2039 n.a. 55.0 scale up industrial energy efficiency investments, and thereby contribute to the government's new four- year Energy Conservation Program. Total cost: $55 million. Yemen, Republic of IDA Groundwater and Soil Conservation Additional Financing Specific Investment Grant will SDN 09/11/08 n.a. 9.2 15.0 assist the recipient in promoting groundwater conservation in farming areas and increasing surface and groundwater availability. Total cost: $19.1 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ IDA Water Sector Support Specific Investment Grant will improve access and service levels for SDN 02/24/09 n.a. 57.9 90.0 poverty alleviation and support the use of sustainable resource use through water conservation. Total cost: $340.5 million. IDA Flood Protection and Emergency Reconstruction Second Additional Financing SDN 03/24/09 n.a. 23.2 35.0 Emergency Recovery Grant will finance the reconstruction and rehabilitation of infrastructure destroyed or damaged by the tropical storm and floods in October 2008. Total cost: $41 million. IDA Rural Energy Access Specific Investment Grant will support the government's efforts to find SDN 05/19/09 n.a. 16.8 25.0 sustainable solutions in meeting the challenges of rural development. Total cost: $117.1 million. Total 111.8 1,723.0 Special Financingc Lebanon Second Emergency Social Protection Implementation Support Emergency Recovery Grant will HDN 09/05/08 n.a n.a 6.0 improve the implementation of social sector reforms including social insurance, safety nets, health expenditures, and education. Total cost: $16 million. Emergency Fiscal Management Reform Implementation Emergency Recovery Grant will support PREM 03/12/09 n.a n.a 4.0 the implementation of the reforms in the public expenditure and debt management system. Total cost: $4 million. West Bank and Gaza Food Price Crisis Response Program Additional Financing to Social Safety Nets Reform HDN 11/12/08 n.a n.a 5.0 Emergency Recovery Grant will scale up the existing safety net instruments to support the poorest population groups in the West Bank and Gaza. Total cost: $5 million. Southern West Bank Solid Waste Management Specific Investment Grant will improve the SDN 05/14/09 n.a n.a 12.0 delivery of a solid waste management system in Southern West Bank municipalities through a regional approach and partnership. Total cost: $20 million. Second Palestinian Reform and Development Plan Development Policy Grant will support the PREM 05/28/09 n.a n.a 40.0 Palestinian Authority's efforts to implement the Palestinian Reform and Development Program. Total cost: $40 million Third West Bank and Gaza Emergency Services Support Specific Investment Grant will support HDN 05/28/09 n.a n.a 5.0 the Ministries of Education and Higher Education, Health, and Social Affairs by financing their nonsalary recurrent costs. Total cost: $5 million. West Bank and Gaza Tertiary Education Specific Investment Grant ­ Additional Financing will HDN 05/28/09 n.a n.a 5.0 improve the internal and external efficiency of universities and technical colleges. Total cost: $5 million Third Palestinian Non-Government Organization Specific Investment Grant ­ Additional SDN 05/28/09 n.a n.a 3.0 Financing will finance social services for the poor, vulnerable, or for people affected by the deteriorating socio-economic conditions in Gaza. Total cost: $3 million. Emergency Municipal Services (Rehab. II) Emergency Recovery Grant ­ Additional Financing SDN 05/28/09 n.a n.a 3.0 will support local government units in sustaining the provision of essential municipal services in Gaza. Total cost: $8 million. West Bank and Gaza Electric Utility Management Specific Investment Grant ­ Additional SDN 05/28/09 n.a n.a 2.5 Financing will restore the damaged network, specifically, for procurement of essential distribution equipment for Gaza Electric Distribution Company (GEDCO). Total cost: $2.5 million. West Bank and Gaza Second Emergency Water Emergency Recovery Grant ­ Additional SDN 05/28/09 n.a n.a 3.0 Financing will rehabilitate the damaged water and wastewater infrastructure in Gaza through the purchase of materials, supplies, and construction equipment. Total cost: $3 million. Principal amount Date of (millions) Country/project name Networka approval Maturities SDRb US$ Note: Numbers may not add to totals because of rounding. denotes projects with actual involvement of civil society organizations in identification, preparation, and/or appraisal, and with intended civil society participation in the implementation, monitoring, and evaluation phases. n.a. = not applicable. a. SDN = Sustainable Development Network; FPD = Financial and Private Sector Development; HDN = Human Development Network; PREM = Poverty Reduction and Economic Management. b. IDA funds are denominated in Special Drawing Rights (SDRs), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount reflects the exchange rates in effect at the time of the negotiations of the credit or grant. c. Financing provided by trust funds administered by the Bank. POPULATION LIVING BELOW $1.25 AND $2 A DAY | 1981­2005 View Excel Version percent Population living below $1.25 a day 1981 1984 1987 1990 1993 1996 1999 2002 2005 Africa 53.4 55.8 54.5 57.6 56.9 58.8 58.4 55.0 50.9 East Asia and Pacific 77.7 65.5 54.2 54.7 50.8 36.0 35.5 27.6 16.8 South Asia 59.4 55.6 54.2 51.7 46.9 47.1 44.1 43.8 40.3 Europe and Central Asia 1.8 1.4 1.1 2.1 4.4 4.8 5.3 4.8 3.8 Latin America and the Caribbean 12.9 15.3 13.7 11.3 10.1 10.9 10.9 10.7 8.2 Middle East and North Africa 7.9 6.1 5.7 4.3 4.1 4.1 4.2 3.6 3.6 Low- and middle-income countries 52.2 47.0 42.1 42.0 39.5 34.7 33.9 30.7 25.3 Population living below $2 a day 1981 1984 1987 1990 1993 1996 1999 2002 2005 Africa 73.8 75.5 74.0 76.0 75.9 77.9 77.6 75.6 72.9 East Asia and Pacific 92.6 88.5 81.5 79.8 75.8 64.1 61.8 51.9 38.6 South Asia 86.5 84.8 83.9 82.7 79.7 79.8 77.2 77.0 73.9 Europe and Central Asia 8.7 6.8 5.9 7.1 10.8 12.4 14.9 12.5 9.2 Latin America and the Caribbean 24.6 28.1 24.9 21.9 20.7 22.0 21.8 21.5 17.1 Middle East and North Africa 26.7 23.0 22.7 19.7 19.8 20.2 18.9 17.6 16.9 Low- and middle-income countries 69.9 68.1 64.7 63.8 62.0 58.6 57.4 53.6 47.3 Note: For additional information on the World Bank's poverty estimates, see http://iresearch.worldbank.org/PovcalNet. GROSS DOMESTIC PRODUCT PER CAPITA INDEX | 1998­2008 Africa East Asia and Pacific 250 250 207 200 200 150 150 122 100 100 100 100 50 50 1998 2008 1998 2008 South Asia Europe and Central Asia 250 250 200 200 164 170 150 150 100 100 100 100 50 50 1998 2008 1998 2008 Latin America and the Caribbean Middle East and North Africa 250 250 200 200 150 150 121 128 100 100 100 100 50 50 1998 2008 1998 2008 Source: World Development Indicators database. World Bank Lending by Theme and Sector | Fiscal 2004­2009 View Excel Version millions of dollars Theme 2004 2005 2006 2007 2008 2009 Economic Management 428.8 594.6 213.8 248.3 396.6 2,304.7 Environmental and Natural Resource Management 1,304.6 2,493.8 1,387.3 2,017.0 2,661.8 5,085.4 Financial and Private Sector Development 4,176.6 3,862.0 6,137.8 4,260.8 6,156.2 9,694.8 Human Development 3,079.5 2,951.0 2,600.1 4,089.4 2,280.9 6,378.6 Public Sector Governance 3,373.9 2,636.4 3,820.9 3,389.7 4,346.6 6,108.4 Rule of Law 503.4 303.8 757.6 424.5 304.2 15.8 Rural Development 1,507.8 2,802.2 2,215.8 3,175.7 2,276.8 4,298.6 Social Development, Gender, and Inclusion 1,557.8 1,285.8 1,094.1 1,250.3 1,002.9 813.2 Social Protection and Risk Management 1,577.0 2,437.6 1,891.7 1,647.6 881.9 5,295.7 Trade and Integration 1,212.7 1,079.9 1,610.9 1,569.9 1,393.2 3,444.1 Urban Development 1,358.1 1,860.0 1,911.2 2,622.7 3,001.2 3,466.7 Theme Total 20,080.1 22,307.0 23,641.2 24,695.8 24,702.3 46,906.0 Sector 2004 2005 2006 2007 2008 2009 Agriculture, Fishing, and Forestry 1,386.1 1,933.6 1,751.9 1,717.4 1,360.6 3,400.0 Education 1,684.5 1,951.1 1,990.6 2,021.8 1,926.6 3,444.8 Energy and Mining 966.5 1,822.7 3,030.3 1,784.0 4,180.3 6,267.4 Finance 1,808.9 1,675.1 2,319.7 1,613.6 1,540.7 4,235.6 Health and Other Social Services 2,997.1 2,216.4 2,132.3 2,752.5 1,607.9 6,305.5 Industry and Trade 797.9 1,629.4 1,542.2 1,181.3 1,543.5 2,806.5 Information and Communication 90.9 190.9 81.0 148.8 56.5 329.2 Law and Justice and Public Administration 4,978.8 5,569.3 5,857.6 5,468.2 5,296.4 9,491.6 Transportation 3,777.8 3,138.2 3,214.6 4,949.0 4,829.9 6,260.6 Water, Sanitation, and Flood Protection 1,591.6 2,180.3 1,721.0 3,059.4 2,359.9 4,364.9 Sector Total 20,080.1 22,307.0 23,641.2 24,695.8 24,702.3 46,906.0 Of which IBRD 11,045.4 13,610.8 14,135.0 12,828.8 13,467.6 32,910.8 Of which IDA 9,034.6 8,696.2 9,506.2 11,866.9 11,234.8 13,995.2 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. Numbers may not add to totals because of rounding. World Bank Lending to Borrowers in Africa by Theme and Sector | Fiscal 2004­2009 View Excel Version millions of dollars Theme 2004 2005 2006 2007 2008 2009 Economic Management 68.0 46.5 31.4 94.6 139.4 183.5 Environmental and Natural Resource Management 195.2 217.2 250.6 212.0 338.0 246.1 Financial and Private Sector Development 810.9 768.2 979.1 962.7 982.1 1,556.4 Human Development 618.2 620.2 673.3 1,104.5 572.2 1,259.1 Public Sector Governance 818.4 708.0 964.7 859.2 1,612.1 1,131.0 Rule of Law 28.3 30.9 179.7 13.1 22.7 11.7 Rural Development 360.7 537.2 528.6 780.0 526.4 2,047.5 Social Development, Gender, and Inclusion 374.3 221.8 198.5 314.3 275.2 236.6 Social Protection and Risk Management 209.2 294.3 262.7 272.3 169.0 348.9 Trade and Integration 371.5 232.0 413.1 449.7 407.3 423.0 Urban Development 261.1 211.4 304.9 734.5 642.2 759.1 Theme Total 4,115.9 3,887.5 4,786.6 5,796.9 5,686.5 8,202.9 Sector 2004 2005 2006 2007 2008 2009 Agriculture, Fishing, and Forestry 268.5 215.3 585.5 369.7 367.6 1,249.3 Education 362.9 369.0 339.3 706.6 373.0 719.7 Energy and Mining 365.8 509.5 524.5 773.0 939.4 1,417.7 Finance 165.7 68.6 142.3 26.3 129.7 75.4 Health and Other Social Services 723.1 590.3 614.0 687.3 467.5 1,004.3 Industry and Trade 95.4 253.8 348.4 144.2 196.2 289.9 Information and Communication 52.9 20.0 5.0 146.0 0.8 144.3 Law and Justice and Public Administration 1,004.2 1,077.5 1,263.0 1,352.5 1,748.0 1,602.3 Transportation 716.6 507.2 602.7 870.8 986.5 1,146.5 Water, Sanitation, and Flood Protection 360.8 276.2 361.9 720.5 477.9 553.6 Sector Total 4,115.9 3,887.5 4,786.6 5,796.9 5,686.5 8,202.9 Of which IBRD 0.0 0.0 40.0 37.5 30.0 361.5 Of which IDA 4,115.9 3,887.5 4,746.6 5,759.4 5,656.5 7,841.4 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. Numbers may not add to totals because of rounding. World Bank Lending to Borrowers in East Asia and Pacific by Theme and Sector | View Excel Version Fiscal 2004­2009 millions of dollars Theme 2004 2005 2006 2007 2008 2009 Economic Management 0.0 87.0 78.7 82.5 0.0 784.1 Environmental and Natural Resource Management 432.2 446.9 396.4 565.0 746.0 550.0 Financial and Private Sector Development 553.9 340.6 720.7 999.1 1,132.9 1,927.5 Human Development 164.6 184.6 543.7 213.4 229.0 818.7 Public Sector Governance 299.0 344.5 385.9 705.4 644.4 1,568.1 Rule of Law 67.3 45.8 13.4 0.0 23.5 0.0 Rural Development 400.9 484.1 465.7 608.2 555.4 717.8 Social Development, Gender, and Inclusion 167.2 241.1 83.3 189.9 197.1 178.0 Social Protection and Risk Management 5.5 88.7 144.9 43.8 99.3 888.2 Trade and Integration 82.9 126.5 112.1 233.0 177.3 175.9 Urban Development 399.2 493.5 456.9 403.7 663.2 544.4 Theme Total 2,572.7 2,883.3 3,401.6 4,043.9 4,468.1 8,152.7 Sector 2004 2005 2006 2007 2008 2009 Agriculture, Fishing, and Forestry 290.4 207.9 373.3 268.6 112.8 200.8 Education 118.6 228.0 287.9 125.3 234.3 941.3 Energy and Mining 67.2 359.1 425.2 118.5 666.1 946.0 Finance 49.0 213.1 197.6 230.1 263.0 1,009.4 Health and Other Social Services 84.3 204.3 160.6 132.7 213.0 581.5 Industry and Trade 78.7 159.1 29.3 102.0 189.5 753.6 Information and Communication 0.0 5.0 5.3 0.0 10.0 11.0 Law and Justice and Public Administration 257.5 436.6 693.6 887.7 888.8 1,474.2 Transportation 1,209.9 306.7 652.3 1,554.7 1,531.7 1,204.9 Water, Sanitation, and Flood Protection 417.1 763.7 576.5 624.3 359.0 1,030.2 Sector Total 2,572.7 2,883.3 3,401.6 4,043.9 4,468.1 8,152.7 Of which IBRD 1,665.5 1,809.8 2,344.3 2,806.6 2,676.7 6,905.4 Of which IDA 907.2 1,073.6 1,057.2 1,237.4 1,791.4 1,247.4 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. Numbers may not add to totals because of rounding. World Bank Lending to Borrowers in South Asia by Theme and Sector | Fiscal 2004­2009 View Excel Version millions of dollars Theme 2004 2005 2006 2007 2008 2009 Economic Management 7.7 87.5 56.6 11.2 122.8 161.6 Environmental and Natural Resource Management 94.8 433.9 93.0 309.7 386.6 250.3 Financial and Private Sector Development 689.9 923.0 550.4 809.9 1,344.5 1,873.4 Human Development 760.6 1,041.6 391.7 1,476.3 788.3 1,279.0 Public Sector Governance 669.8 639.5 597.9 916.6 423.7 360.2 Rule of Law 2.9 10.5 7.2 50.4 26.0 1.7 Rural Development 314.1 1,132.5 568.6 1,095.5 574.1 739.2 Social Development, Gender, and Inclusion 642.8 265.3 366.9 372.5 321.5 294.4 Social Protection and Risk Management 98.6 337.0 472.3 550.5 145.4 282.0 Trade and Integration 52.7 63.7 138.8 31.3 68.8 30.4 Urban Development 87.8 59.0 553.7 7.7 45.2 161.4 Theme Total 3,421.6 4,993.3 3,797.2 5,631.6 4,246.8 5,433.6 Sector 2004 2005 2006 2007 2008 2009 Agriculture, Fishing, and Forestry 251.9 940.8 368.9 733.6 420.5 551.7 Education 665.8 286.4 377.2 724.7 694.5 648.0 Energy and Mining 130.8 83.6 483.0 243.7 1,481.4 1,178.7 Finance 331.4 461.8 73.0 678.1 86.6 558.8 Health and Other Social Services 334.6 493.2 195.9 1,006.2 247.5 892.1 Industry and Trade 46.1 485.2 306.5 292.9 167.5 167.3 Information and Communication 16.9 91.9 50.0 2.8 13.2 0.0 Law and Justice and Public Administration 925.5 885.7 1,101.4 1,165.8 699.6 855.0 Transportation 444.8 1,181.0 520.1 559.9 229.9 402.8 Water, Sanitation, and Flood Protection 273.7 83.7 321.3 223.9 206.1 179.2 Sector Total 3,421.6 4,993.3 3,797.2 5,631.6 4,246.8 5,433.6 Of which IBRD 439.5 2,095.9 1,231.0 1,599.5 1,490.6 1,286.0 Of which IDA 2,982.1 2,897.4 2,566.2 4,032.1 2,756.2 4,147.6 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. Numbers may not add to totals because of rounding. World Bank Lending to Borrowers in Europe and Central Asia by Theme and Sector | View Excel Version Fiscal 2004­2009 millions of dollars Theme 2004 2005 2006 2007 2008 2009 Economic Management 242.0 17.4 4.6 5.7 2.6 692.5 Environmental and Natural Resource Management 309.4 394.4 148.8 397.6 461.4 452.0 Financial and Private Sector Development 950.2 933.9 1,461.1 823.6 1,295.9 2,396.9 Human Development 297.1 539.4 360.3 258.3 228.8 1,286.1 Public Sector Governance 895.1 272.3 589.1 328.8 515.0 850.9 Rule of Law 132.3 66.8 401.6 230.4 170.6 1.4 Rural Development 117.4 161.5 238.5 150.1 260.2 180.2 Social Development, Gender, and Inclusion 33.9 246.6 95.1 23.2 24.4 17.5 Social Protection and Risk Management 305.3 668.8 335.9 346.7 125.5 890.3 Trade and Integration 182.6 424.4 226.6 539.5 497.9 2,359.3 Urban Development 93.6 368.0 183.0 658.2 588.8 235.8 Theme Total 3,559.1 4,093.5 4,044.6 3,762.2 4,171.1 9,362.8 Sector 2004 2005 2006 2007 2008 2009 Agriculture, Fishing, and Forestry 168.6 107.0 117.9 53.4 126.3 9.0 Education 164.0 263.8 126.7 81.9 67.4 357.1 Energy and Mining 352.2 657.9 1,108.3 337.6 546.7 1,547.1 Finance 836.9 259.1 374.5 353.5 311.5 621.0 Health and Other Social Services 244.3 484.9 339.9 192.9 215.9 630.9 Industry and Trade 126.3 253.5 274.8 395.5 499.0 699.5 Information and Communication 7.0 10.9 0.0 0.0 23.6 0.0 Law and Justice and Public Administration 1,176.8 1,160.6 1,271.7 812.6 919.0 2,346.9 Transportation 321.2 557.9 416.7 712.3 893.7 2,912.2 Water, Sanitation, and Flood Protection 162.0 337.9 14.2 822.4 568.0 239.1 Sector Total 3,559.1 4,093.5 4,044.6 3,762.2 4,171.1 9,362.8 Of which IBRD 3,012.9 3,588.6 3,531.9 3,340.1 3,714.3 8,978.5 Of which IDA 546.2 504.9 512.8 422.1 456.8 384.4 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. Numbers may not add to totals because of rounding. World Bank Lending to Borrowers in Latin America and the Caribbean by Theme and Sector | View Excel Version Fiscal 2004­2009 millions of dollars Theme 2004 2005 2006 2007 2008 2009 Economic Management 111.2 310.4 42.5 54.3 131.8 483.0 Environmental and Natural Resource Management 159.1 841.2 454.0 353.0 664.8 3,437.6 Financial and Private Sector Development 912.4 729.6 1,518.7 498.9 622.7 1,569.7 Human Development 1,046.7 469.8 502.6 1,022.5 445.5 1,643.8 Public Sector Governance 672.0 506.2 1,054.2 519.9 943.4 2,180.7 Rule of Law 270.9 147.9 108.8 97.5 50.1 1.0 Rural Development 249.6 331.7 236.5 415.4 307.5 531.6 Social Development, Gender, and Inclusion 268.9 187.9 282.6 175.4 109.2 65.7 Social Protection and Risk Management 926.9 950.4 606.2 419.0 307.0 2,853.4 Trade and Integration 364.6 233.4 720.3 300.5 224.8 254.1 Urban Development 337.6 457.1 384.1 696.9 853.1 1,010.3 Theme Total 5,319.8 5,165.7 5,910.5 4,553.3 4,660.0 14,031.0 Sector 2004 2005 2006 2007 2008 2009 Agriculture. Fishing, and Forestry 379.6 233.4 291.0 83.4 333.5 1,329.2 Education 218.3 680.0 712.7 369.1 525.3 710.6 Energy and Mining 50.5 212.6 172.8 19.5 266.8 502.3 Finance 405.1 530.0 907.3 286.4 249.5 1,921.0 Health and Other Social Services 1,558.9 443.4 821.8 649.1 436.7 3,190.5 Industry and Trade 428.0 199.9 569.2 236.3 462.0 696.2 Information and Communication 14.0 44.7 20.8 0.0 0.0 173.9 Law and Justice and Public Administration 1,521.3 1,776.0 1,278.8 1,187.8 851.4 3,137.4 Transportation 675.7 556.4 785.4 1,223.9 1,083.4 204.3 Water, Sanitation, and Flood Protection 68.4 489.5 350.7 497.8 451.3 2,165.7 Sector Total 5,319.8 5,165.7 5,910.5 4,553.3 4,660.0 14,031.0 Of which IBRD 4,981.6 4,904.4 5,654.1 4,353.3 4,353.5 13,828.5 Of which IDA 338.2 261.3 256.4 200.0 306.5 202.5 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. Numbers may not add to totals because of rounding. World Bank Lending to Borrowers in Middle East and North Africa by Theme and Sector | Fiscal View Excel Version 2004­2009 millions of dollars Theme 2004 2005 2006 2007 2008 2009 Economic Management 0.0 45.8 0.0 0.0 0.0 0.0 Environmental and Natural Resource Management 113.8 160.2 44.5 179.7 65.0 149.3 Financial and Private Sector Development 259.3 166.6 907.8 166.7 778.0 371.0 Human Development 192.1 95.4 128.5 14.3 17.2 92.0 Public Sector Governance 19.6 166.0 229.0 59.8 208.0 17.5 Rule of Law 1.7 1.8 46.9 33.0 11.2 0.0 Rural Development 65.1 155.3 177.9 126.6 53.3 82.3 Social Development, Gender, and Inclusion 70.7 123.0 67.8 174.9 75.5 21.0 Social Protection and Risk Management 31.6 98.5 69.7 15.4 35.7 32.9 Trade and Integration 158.3 0.0 0.0 16.0 17.2 201.4 Urban Development 178.7 271.1 28.5 121.6 208.8 755.7 Theme Total 1,091.0 1,283.6 1,700.6 907.9 1,469.8 1,723.0 Sector 2004 2005 2006 2007 2008 2009 Agriculture, Fishing, and Forestry 27.2 229.2 15.3 208.5 0.0 60.0 Education 154.9 124.0 146.8 14.3 32.0 68.0 Energy and Mining 0.0 0.0 316.5 291.6 280.0 675.8 Finance 20.8 142.5 625.0 39.2 500.3 50.0 Health and Other Social Services 52.0 0.3 0.0 84.3 27.3 6.3 Industry and Trade 23.4 277.9 14.0 10.3 29.4 200.0 Information and Communication 0.0 18.5 0.0 0.0 9.0 0.0 Law and Justice and Public Administration 93.6 232.9 249.2 61.9 189.6 75.7 Transportation 409.6 29.0 237.6 27.4 104.7 390.1 Water, Sanitation, and Flood Protection 309.5 229.3 96.4 170.5 297.6 197.2 Sector Total 1,091.0 1,283.6 1,700.6 907.9 1,469.8 1,723.0 Of which IBRD 946.0 1,212.1 1,333.6 691.9 1,202.5 1,551.0 Of which IDA 145.0 71.5 367.0 216.0 267.3 172.0 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. Numbers may not add to totals because of rounding. Africa: World Bank Commitments, Disbursements, and Net Transfers l Fiscal 2004­2009 View Excel Version millions of dollars Nigeria Ethiopia Tanzania Total region Item 2009 2004­2009 2009 2004­2009 2009 2004­2009 2009 2004­2009 IBRD and IDA commitments 1,760 3,974 1,145 3,761 620 3,108 8,203 32,476 Undisbursed balance 3,102 3,102 1,735 1,735 1,706 1,706 14,445 14,445 Gross disbursements 353 1,680 915 2,809 422 2,489 4,437 24,571 Repayments 158 1,281 4 130 1 189 639 5,239 Net disbursements 195 399 912 2,680 422 2,299 3,798 19,333 Interest and charges 29 277 7 101 14 123 233 2,404 Net transfers 166 122 905 2,579 408 2,176 3,565 16,929 Note: The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2008 and 2009). IBRD and IDA commitments do not include HIPC grants. Effective fiscal 2005, IBRD and IDA commitments include guarantees and guarantee facilities. Commitments to regional projects are classified in this table as regional projects and are not counted as commitments of the individual countries involved in the regional project. However, undisbursed balances, gross disbursements, repayments, net disbursements, interest and charges, and net transfers are reported or classified under the individual countries because the individual amounts are covered by separate loan, credit, grant, or guarantee agreements and are guaranteed by the individual countries. Disbursements are made to the individual countries, and principal, interest, and charges are billed to the individual countries. Repayments are made by the individual countries and also include payments from donors under debt service trust funds or debt relief under HIPC and MDRI. Numbers may not add to totals because of rounding. East Asia and Pacific: World Bank Commitments, Disbursements, and Net Transfers l Fiscal 2004­2009 View Excel Version millions of dollars Indonesia China Vietnam Total region Item 2009 2004­2009 2009 2004­2009 2009 2004­2009 2009 2004­2009 IBRD and IDA commitments 4,225 8,603 2,360 9,217 1,149 5,225 8,153 25,522 Undisbursed balance 4,270 4,270 6,225 6,225 4,279 4,279 16,009 16,009 Gross disbursements 1,785 5,763 1,579 7,753 681 3,074 4,529 18,910 Repayments 1,213 8,170 1,281 7,364 42 137 3,544 25,879 Net disbursements 572 -2,407 298 388 639 2,937 985 -6,968 Interest and charges 320 2,833 517 3,176 38 193 1,099 8,435 Net transfers 252 -5,240 -219 -2,788 601 2,744 -114 -15,403 Note: The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2008 and 2009). IBRD and IDA commitments do not include HIPC grants. Effective fiscal 2005, IBRD and IDA commitments include guarantees and guarantee facilities. Commitments to regional projects are classified in this table as regional projects and are not counted as commitments of the individual countries involved in the regional project. However, undisbursed balances, gross disbursements, repayments, net disbursements, interest and charges, and net transfers are reported or classified under the individual countries because the individual amounts are covered by separate loan, credit, grant, or guarantee agreements and are guaranteed by the individual countries. Disbursements are made to the individual countries, and principal, interest, and charges are billed to the individual countries. Repayments are made by the individual countries and also include payments from donors under debt service trust funds or debt relief under HIPC and MDRI. Numbers may not add to totals because of rounding. South Asia: World Bank Commitments, Disbursements, and Net Transfers l Fiscal 2004­2009 View Excel Version millions of dollars India Pakistan Bangladesh Total region Item 2009 2004­2009 2009 2004­2009 2009 2004­2009 2009 2004­2009 IBRD and IDA commitments 2,242 13,872 1,610 6,266 1,097 3,817 5,434 27,524 Undisbursed balance 9,132 9,132 1,835 1,835 1,629 1,629 13,265 13,265 Gross disbursements 2,163 11,920 940 4,952 376 3,216 3,995 22,880 Repayments 1,205 7,249 455 2,573 221 1,065 1,979 11,364 Net disbursements 958 4,671 485 2,380 155 2,151 2,016 11,515 Interest and charges 431 2,550 140 924 76 427 681 4,087 Net transfers 527 2,121 345 1,456 79 1,724 1,335 7,428 Note: The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2008 and 2009). IBRD and IDA commitments do not include HIPC grants. Effective fiscal 2005, IBRD and IDA commitments include guarantees and guarantee facilities. Commitments to regional projects are classified in this table as regional projects and are not counted as commitments of the individual countries involved in the regional project. However, undisbursed balances, gross disbursements, repayments, net disbursements, interest and charges, and net transfers are reported or classified under the individual countries because the individual amounts are covered by separate loan, credit, grant, or guarantee agreements and are guaranteed by the individual countries. Disbursements are made to the individual countries, and principal, interest, and charges are billed to the individual countries. Repayments are made by the individual countries and also include payments from donors under debt service trust funds or debt relief under HIPC and MDRI. Numbers may not add to totals because of rounding. Europe and Central Asia: World Bank Commitments, Disbursements, and Net Transfers l View Excel Version Fiscal 2004­2009 millions of dollars Turkey Poland Kazakhstan Total region Item 2009 2004­2009 2009 2004­2009 2009 2004­2009 2009 2004­2009 IBRD and IDA commitments 2,075 9,348 2,550 3,560 2,125 2,488 9,363 28,993 Undisbursed balance 4,374 4,374 1,658 1,658 2,427 2,427 16,383 16,383 Gross disbursements 1,676 7,201 1,443 2,396 75 314 5,379 20,362 Repayments 633 4,025 146 2,070 31 1,102 2,520 18,256 Net disbursements 1,043 3,176 1,297 327 44 -788 2,860 2,108 Interest and charges 332 1,819 85 473 15 208 1,177 7,018 Net transfers 711 1,357 1,212 -146 29 -996 1,683 -4,910 Note: The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2008 and 2009). IBRD and IDA commitments do not include HIPC grants. Effective fiscal 2005, IBRD and IDA commitments include guarantees and guarantee facilities. Commitments to regional projects are classified in this table as regional projects and are not counted as commitments of the individual countries involved in the regional project. However, undisbursed balances, gross disbursements, repayments, net disbursements, interest and charges, and net transfers are reported or classified under the individual countries because the individual amounts are covered by separate loan, credit, grant, or guarantee agreements and are guaranteed by the individual countries. Disbursements are made to the individual countries, and principal, interest, and charges are billed to the individual countries. Repayments are made by the individual countries and also include payments from donors under debt service trust funds or debt relief under HIPC and MDRI. Numbers may not add to totals because of rounding. Latin America and the Caribbean: World Bank Commitments, Disbursements, and Net Transfers l Fiscal View Excel Version 2004­2009 millions of dollars Brazil Mexico Colombia Total region Item 2009 2004­2009 2009 2004­2009 2009 2004­2009 2009 2004­2009 IBRD and IDA commitments 3,604 10,518 3,423 7,237 1,275 5,297 14,031 39,640 Undisbursed balance 4,809 4,809 2,010 2,010 1,458 1,458 16,618 16,618 Gross disbursements 1,781 7,912 2,511 7,167 1,240 4,459 8,051 30,218 Repayments 879 6,368 171 11,385 176 1,521 2,823 31,526 Net disbursements 902 1,544 2,340 -4,218 1,065 2,938 5,228 -1,307 Interest and charges 428 2,455 198 2,275 228 1,230 1,377 9,924 Net transfers 474 -911 2,142 -6,493 837 1,708 3,851 -11,231 Note: The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2008 and 2009). IBRD and IDA commitments do not include HIPC grants. Effective fiscal 2005, IBRD and IDA commitments include guarantees and guarantee facilities. Commitments to regional projects are classified in this table as regional projects and are not counted as commitments of the individual countries involved in the regional project. However, undisbursed balances, gross disbursements, repayments, net disbursements, interest and charges, and net transfers are reported or classified under the individual countries because the individual amounts are covered by separate loan, credit, grant, or guarantee agreements and are guaranteed by the individual countries. Disbursements are made to the individual countries, and principal, interest, and charges are billed to the individual countries. Repayments are made by the individual countries and also include payments from donors under debt service trust funds or debt relief under HIPC and MDRI. Numbers may not add to totals because of rounding. Middle East and North Africa: World Bank Commitments, Disbursements, and Net Transfers l View Excel Version Fiscal 2004­2009 millions of dollars Egypt, Arab Republic of Morocco Tunisia Total region Item 2009 2004­2009 2009 2004­2009 2009 2004­2009 2009 2004­2009 IBRD and IDA commitments 870 3,147 133 1,490 336 874 1,723 8,176 Undisbursed balance 1,541 1,541 429 429 661 661 4,307 4,307 Gross disbursements 679 1,971 250 1,386 64 857 1,399 6,593 Repayments 129 735 252 1,970 228 1,486 998 7,023 Net disbursements 550 1,235 -2 -585 -163 -628 401 -430 Interest and charges 63 283 115 625 65 430 343 2,156 Net transfers 487 952 -117 -1,210 -228 -1,058 58 -2,586 Note: The table shows the three countries with the largest lending commitments in the region over the past two fiscal years (2008 and 2009). IBRD and IDA commitments do not include HIPC grants. Effective fiscal 2005, IBRD and IDA commitments include guarantees and guarantee facilities. Commitments to regional projects are classified in this table as regional projects and are not counted as commitments of the individual countries involved in the regional project. However, undisbursed balances, gross disbursements, repayments, net disbursements, interest and charges, and net transfers are reported or classified under the individual countries because the individual amounts are covered by separate loan, credit, grant, or guarantee agreements and are guaranteed by the individual countries. Disbursements are made to the individual countries, and principal, interest, and charges are billed to the individual countries. Repayments are made by the individual countries and also include payments from donors under debt service trust funds or debt relief under HIPC and MDRI. Numbers may not add to totals because of rounding. Projects Approved for IBRD and IDA Assistance, by Region and Country | Fiscal 2009 View Excel Version millions of dollars IBRD IDA Total No. of No. of No. of Region/country operations Amount operations Amount operations Amount Africa 4 461.6 4 461.6 Eastern Africa 1 90.0 1 90.0 Central Africa 1 50.0 1 50.0 Angola 2 87.0 2 87.0 Benin 2 100.0 2 100.0 Burkina Faso 3 280.0 3 280.0 Burundi 4 115.0 4 115.0 Botswana 2 236.0 2 236.0 Cameroon 2 100.0 2 100.0 Cape Verde 1 10.0 1 10.0 Central African Republic 3 21.0 3 21.0 Congo, Democratic Republic of 3 354.0 3 354.0 Congo, Republic of 2 20.0 2 20.0 Côte d'Ivoire 2 200.0 2 200.0 Ethiopia 5 1,145.0 5 1,145.0 Ghana 4 550.0 4 550.0 Gambia, The 1 7.0 1 7.0 Guinea 1 10.0 1 10.0 Guinea-Bissau 1 8.0 1 8.0 Kenya 3 465.0 3 465.0 Lesotho 1 25.0 1 25.0 Liberia 3 72.2 3 72.2 Madagascar 2 70.0 2 70.0 Malawi 1 30.0 1 30.0 Mali 4 226.0 4 226.0 Mauritania 1 4.5 1 4.5 Mauritius 2 118.0 2 118.0 Mozambique 3 159.6 3 159.6 Namibia 1 7.5 1 7.5 Niger 3 110.0 3 110.0 Nigeria 9 1,760.0 9 1,760.0 Rwanda 2 86.0 2 86.0 Senegal 4 178.5 4 178.5 Sierra Leone 2 14.0 2 14.0 Tanzania 6 620.0 6 620.0 Togo 3 57.0 3 57.0 Uganda 4 345.0 4 345.0 Zambia 1 10.0 1 10.0 Total 5 361.5 94 7,841.4 99 8,202.9 East Asia Cambodia 1 20.0 1 20.0 China 13 2,360.0 13 2,360.0 Indonesia 9 4,225.0 9 4,225.0 Lao People's Democratic Republic 1 25.0 1 25.0 Mongolia 2 42.0 2 42.0 Philippines 3 320.4 3 320.4 Solomon Islands 1 4.0 1 4.0 Tonga 1 5.4 1 5.4 Timor-Leste 1 2.1 1 2.1 Vietnam 8 1,148.8 8 1,148.8 Total 25 6,905.4 15 1,247.4 40 8,152.7 South Asia Afghanistan 4 198.3 4 198.3 Bangladesh 9 1,096.9 9 1,096.9 Bhutan 1 20.2 1 20.2 India 5 1,286.0 4 956.4 9 2,242.4 Maldives 1 3.8 1 3.8 Nepal 4 140.2 4 140.2 IBRD IDA Total No. of No. of No. of Region/country operations Amount operations Amount operations Amount Pakistan 8 1,609.7 8 1,609.7 Sri Lanka 122.1 122.1 Total 5 1,286.0 31 4,147.6 36 5,433.6 Europe and Central Asia Albania 2 83.0 2 83.0 Armenia 1 50.0 5 80.0 6 130.0 Azerbaijan 1 113.0 1 70.0 2 183.0 Belarus 2 185.0 2 185.0 Bosnia and Herzegovina 1 25.0 15.0 1 40.0 Bulgaria 3 409.0 3 409.0 Croatia 3 238.3 3 238.3 Georgia 1 70.0 1 100.0 2 170.0 Kazakhstan 1 2,125.0 1 2,125.0 Kyrgyz Republic 4 33.9 4 33.9 Macedonia, former Yugoslav Republic of 2 50.0 2 50.0 Moldova 3 25.0 3 25.0 Montenegro 3 41.3 3 41.3 Poland 2 2,550.2 2 2,550.2 Serbia 2 63.5 2 63.5 Tajikistan 3 32.5 3 32.5 Turkey 5 2,075.1 5 2,075.1 Ukraine 2 900.0 2 900.0 Uzbekistan 1 28.0 1 28.0 Total 31 8,978.5 18 384.4 49 9,362.8 Latin America and the Caribbean Argentina 7 1,840.0 7 1,840.0 Barbados 1 35.0 1 35.0 Bolivia 1 30.0 1 30.0 Brazil 12 3,604.2 12 3,604.2 Chile 1 30.0 1 30.0 Colombia 5 1,275.0 5 1,275.0 Costa Rica 2 565.0 2 565.0 El Salvador 1 450.0 1 450.0 Dominican Republic 1 27.5 1 27.5 Grenada 2 4.9 2 4.9 Guatemala 2 285.0 2 285.0 Haiti 5 39.6 5 39.6 Honduras 2 65.0 2 65.0 Jamaica 1 100.0 1 100.0 Mexico 7 3,422.8 7 3,422.8 Nicaragua 2 60.0 2 60.0 Panama 4 255.0 4 255.0 Peru 4 1,375.0 4 1,375.0 Paraguay 2 164.0 2 164.0 St. Lucia 1 3.0 1 3.0 Uruguay 1 400.0 1 400.0 Total 51 13,828.5 13 202.5 64 14,031.0 Middle East and North Africa Djibouti 1 7.0 1 7.0 Egypt, Arab Republic of 2 870.0 2 870.0 Jordan 3 143.0 3 143.0 Lebanon 69.7 69.7 Morocco 1 132.7 1 132.7 Tunisia 3 335.6 3 335.6 Yemen, Republic of 4 165.0 4 165.0 Total 9 1,551.0 5 172.0 14 1,723.0 Overall total 126 32,910.8 176 13,995.2 302 46,906.0 Note: Excludes a HIPC grant commitment of $45.5 million for Côte D'Ivoire. Includes guarantees. Supplemental and additional financing operations (except for projects scaled up through additional financing) are not counted as separate lending operations, although they are included in the amount. Joint IBRD­IDA operations are counted only once, as IBRD operations. A blank space equals zero. World Bank Development Policy-Based Operations | Fiscal 2009 View Excel Version millions of dollars Country Project ID Operation IBRD IDA Total Afghanistan P107921 Strengthening Institutions Development Policy Grant 35.0 35.0 Bangladesh P112761 Food Crisis Development Support Credit 130.0 130.0 Benin P107498 Fifth Poverty Reduction Support Grant 30.0 30.0 Brazil P095205 Programmatic Environmental and Social 1,300.0 1,300.0 Sustainability Development Policy Loan Brazil P106767 Rio Grande do Sul Fiscal Sustainability for Growth 1,100.0 1,100.0 Development Policy Loan Bhutan P111222 Development Policy Financing for Institutional 20.2 20.2 Strengthening Grant/Credit Burkina Faso P099011 Eighth Poverty Reduction Support Credit 100.0 100.0 Burkina Faso P099033 Ninth Poverty Reduction Support Credit Project 100.0 100.0 Bulgaria P102160 Second Social Sectors Institutional Reform 150.0 150.0 Development Policy Loan Bulgaria P115400 Third Social Sectors Institutional Reform 200.0 200.0 Development Policy Loan Burundi P102508 Second Economic Reform Support Grant 30.0 30.0 Cape Verde P106502 Fourth Poverty Reduction Support Credit 10.0 10.0 Central African Republic P113176 Second Economic Management and Governance 5.0 5.0 Reform Grant Côte d'Ivoire P112368 Second Economic Governance and Recovery Grant 150.0 150.0 Colombia P101301 Third Programmatic Development Policy Loan for 450.0 450.0 Sustainable Development Colombia P113084 Disaster Risk Management Development Policy Loan 150.0 150.0 with Catastrophe Deferred Drawdown Option Costa Rica P111926 Catastrophe Deferred Drawdown Option 65.0 65.0 Costa Rica P115173 Public Finance, Education, and Competitiveness 500.0 500.0 Enhancing Development Policy Credit El Salvador P114910 Public Finance and Social Sector Development 450.0 450.0 Policy Loan Gambia, The P107398 Public Sector Reform and Growth Grant 7.0 7.0 Georgia P114167 Fourth Poverty Reduction Support Operation, 40.0 40.0 Supplemental Credit Ghana P113172 Second Natural Resources and Environmental 10.0 10.0 Governance Development Policy Operation Project Ghana P113301 Economic Governance and Poverty Reduction Credit 300.0 300.0 Guatemala P112312 Fiscal and Institutional Development Policy Loan 200.0 200.0 Guatemala P112544 Disaster Risk Management Development Policy Loan 85.0 85.0 with Catastrophe Deferred Drawdown Option Guinea-Bissau P107493 First Economic Governance Reform Grant 8.0 8.0 Honduras P112023 First Programmatic Financial Sector Development 10.0 10.0 Policy Credit, Food Prices Crisis Supplemental Financing Indonesia P110191 Fifth Development Policy Loan 750.0 750.0 Indonesia P111905 Second Infrastructure Development Policy Loan 200.0 200.0 Indonesia P115199 Public Expenditure Support Facility Development 2,000.0 2,000.0 Policy Loan with Deferred Drawdown Option Jamaica P101321 Fiscal and Debt Sustainability Development Policy 100.0 100.0 Loan Liberia P113450 Second Reengagement and Reform Support Project 4.0 4.0 Malawi P107303 Second Poverty Reduction Support Credit 30.0 30.0 Mali P113451 Third Poverty Reduction Support Credit 65.0 65.0 Mauritius P112369 Third Trade and Competitiveness Development 100.0 100.0 Policy Loan with Deferred Drawdown Option Mexico P095510 Environmental Sustainability Development Policy 300.8 300.8 Loan Mexico P115101 Environmental Sustainability Development Policy 401.0 401.0 Loan, Supplemental Financing Mongolia P115737 Development Policy Credit 40.0 40.0 Morocco P104937 Solid Waste Sector Development Policy Loan 132.7 132.7 Country Project ID Operation IBRD IDA Total Mozambique P107313 Fifth Poverty Reduction Support Grant 90.0 90.0 Namibia P109333 Second Development Policy Loan in Support of the 7.5 7.5 Education and Training Sector Improvement Program Nicaragua P106747 Development Policy Credit 20.0 20.0 Niger P107741 First Growth Policy Reform Grant 40.0 40.0 Pakistan P113372 Poverty Reduction and Economic Support Operation 500.0 500.0 Panama P106641 Second Competitiveness and Public Financial 100.0 100.0 Management Development Policy Loan Panama P115177 Protecting the Poor under Global Uncertainty 80.0 80.0 Development Policy Loan Paraguay P113457 Public Sector Reform Project 100.0 100.0 Peru P101177 Second Results and Accountability Development 330.0 330.0 Policy Loan with Deferred Drawdown Option Peru P101471 First Programmatic Environmental Development 330.0 330.0 Policy Loan with Deferred Drawdown Option Peru P101590 Second Programmatic Fiscal Management and 370.0 370.0 Competitiveness Development Policy Loan Peru P115120 Second Programmatic Fiscal Management and 330.0 330.0 Competitiveness Development Policy Loan, Supplemental Financing Philippines P113492 Global Food Crisis Response Program Development 200.0 200.0 Policy Operation Project Poland P112765 Employment, Entrepreneurship, and Social Services 1,250.0 1,250.0 Delivery Programmatic Policy Loan Poland P116125 Second Employment, Entrepreneurship, and Human 1,300.2 1,300.2 Capital Development Policy Program Development Policy Loan Rwanda P106083 Fifth Poverty Reduction Support Grant 80.0 80.0 Rwanda P106834 First Community Living Standards Grant 6.0 6.0 Senegal P107288 Public Financial Support Credit 60.0 60.0 Serbia P096711 Second Programmatic Private and Financial 50.0 50.0 Development Policy Loan Sierra Leone P102040 Second Government Reform and Growth Credit 10.0 10.0 Tajikistan P106963 Third Programmatic Development Policy Grant 20.0 20.0 Tanzania P101229 Sixth Poverty Reduction Support Credit 160.0 160.0 Tanzania P101230 Seventh Poverty Reduction Support Credit 190.0 190.0 Togo P113456 Second Economic Recovery and Governance Grant 20.0 20.0 Tunisia P095388 Integration and Competitiveness Development Policy 250.0 250.0 Loan Turkey P096840 Second Competitiveness and Employment 500.0 500.0 Development Policy Loan Turkey P110643 First Programmatic Electricity Sector Development 800.0 800.0 Policy Loan Ukraine P107365 Third Development Policy Loan 500.0 500.0 Uruguay P106724 Second Programmatic Reform Implementation 400.0 400.0 Development Policy Loan Vietnam P104694 Higher Education Development Policy Program 50.0 50.0 Project Vietnam P107062 Second Phase of Second Program for Communes 100.0 100.0 Facing Hardship in Ethnic Minority and Mountainous Areas Vietnam P111164 Eighth Poverty Reduction Support Credit 350.0 350.0 Total 15,532.2 2,820.2 18,352.4 Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. Numbers may not add to totals because of rounding. A blank space indicates zero. World Bank Development Policy Lending | Fiscal 2004­2009 View Excel Version 2004 2005 2006 2007 2008 2009 Millions Millions Millions Millions Millions Millions of of of of of of dollars Percent dollars Percent dollars Percent dollars Percent dollars Percent dollars Percent Development policy lending by region Africa 925 15 1,115 17 1,342 18 970 15 1,780 27 1,613 9 East Asia and Pacific 104 2 415 6 509 7 1,085 17 975 15 3,690 20 South Asia 480 8 1,105 17 985 13 1,662 26 920 14 685 4 Europe and Central Asia 1,620 26 538 8 1,061 14 975 16 786 12 4,810 26 Latin America and the 3,022 49 3,022 46 2,614 36 1,388 22 1,427 21 7,172 39 Caribbean Middle East and North Africa 400 6 820 11 200 3 751 11 383 2 Total 6,151 100 6,595 100 7,330 100 6,280 100 6,639 100 18,352 100 World Bank development policy lending IBRD commitment 4,453 72 4,264 65 4,906 67 3,635 58 3,967 60 15,532 85 IDA commitment 1,698 28 2,331 35 2,425 33 2,645 42 2,672 40 2,820 15 Total 6,151 100 6,595 100 7,330 100 6,280 100 6,639 100 18,352 100 Total World Bank lending commitments IBRD commitment 11,045 13,611 14,135 12,829 13,468 32,911 IDA commitment 9,035 8,696 9,506 11,867 11,235 13,995 Total 20,080 22,307 23,641 24,696 24,702 46,906 Of which development 31 30 31 25 27 39 policy lending Note: Effective fiscal 2005, lending includes guarantees and guarantee facilities. Numbers may not add to totals because of rounding. a. Excludes a HIPC grant commitment of $45.5 million for Côte d'Ivoire World Bank Expenditures by Program l Fiscal 2004­2009 View Excel Version millions of dollars Actual Program 2004 2005 2006 2007 2008 2009 Regional 895.0 940.1 975.7 1,001.3 1,067.0 1,103.5 Networks 172.7 177.9 180.3 179.7 193.9 207.2 Other operational programs 35.9 37.6 33.9 32.7 35.7 40.4 Development Economics and World Bank Institute 120.0 119.0 117.2 117.7 118.9 117.5 Financial 124.3 126.7 127.6 131.0 136.6 149.1 Administrativea 194.6 198.6 197.4 323.0 312.6 345.0 Corporate management and services 132.2 137.4 139.1 144.3 148.1 162.6 Overheads, benefits, and contingenciesa (47.6) (20.9) (25.8) (128.8) (152.9) (178.0) Administrative budget 1,627.1 1,716.5 1,745.3 1,800.8 1,859.8 1,947.4 Less: Reimbursements and fee income (195.2) (214.3) (231.0) (254.1) (263.5) (308.3) Net administrative budget 1,431.8 1,502.2 1,514.3 1,546.7 1,596.3 1,639.2 Staff Retirement Accountb 150.6 233.2 281.9 224.9 223.1 187.7 Development Grant Facility 179.2 172.7 173.1 171.3 175.6 199.7 Corporate Secretariat 78.7 81.6 84.0 87.1 87.0 88.4 Operations Evaluation 21.6 21.9 22.5 23.7 24.5 24.4 Less: Reimbursements and fee income--Board, Corporate (0.7) (0.4) (0.5) (0.9) (0.8) (0.7) Secretariat, and Independent Evaluation Group Total administrative budget 1,861.1 2,011.3 2,075.3 2,052.9 2,105.7 2,138.6 a. Managed overheads, previously recorded as "Overheads, Benefits, and Contingencies," are included in the "Administrative" line starting with fiscal 2007. b. Includes Staff Retirement Plan (SRP), Supplemental SRP, and Retired Staff Benefit Plan contributions. IBRD and IDA Cumulative Lending Since Fiscal 1990 by Theme and Sector and by Region | View Excel Version June 30, 2009 millions of dollars IBRD commitments, by regiona Europe Latin Middle East Asia and America East and and South Central and the North Theme and Sector Africa Pacific Asia Asia Caribbean Africa Total Theme Economic Management 230.30 1,635.50 372.60 5,819.82 8,724.26 689.96 17,472.44 Environmental and Natural 514.86 12,523.91 3,039.51 5,494.75 11,135.89 2,347.58 35,056.50 Resource Management Financial and Private Sector 568.81 24,613.20 10,607.02 25,705.81 22,391.93 6,611.41 90,498.17 Development Human Development 307.02 4,180.66 997.41 4,926.74 12,586.79 1,751.37 24,749.98 Public Sector Governance 524.54 6,864.72 1,443.65 7,976.62 15,174.18 1,718.78 33,702.49 Rule of Law 25.31 525.48 331.30 1,823.92 1,790.17 452.50 4,948.67 Rural Development 351.33 8,195.46 2,706.94 4,073.74 7,949.44 2,247.50 25,524.41 Social Development, Gender, and 85.86 1,845.87 448.27 876.50 3,811.25 622.21 7,689.95 Inclusion Social Protection and Risk 62.03 3,106.56 394.20 6,048.71 12,773.66 889.94 23,275.11 Management Trade and Integration 355.23 2,793.96 1,085.42 7,025.33 4,222.18 1,124.84 16,606.95 Urban Development 520.29 8,692.36 3,087.97 4,734.29 9,252.56 3,024.84 29,312.32 Theme Total 3,545.56 74,977.68 24,514.27 74,506.23 109,812.32 21,480.93 308,836.99 Sector Agriculture, Fishing, and Forestry 288.13 4,576.41 2,048.56 2,837.07 6,363.99 2,429.36 18,543.51 Education 178.93 4,595.94 167.18 2,461.72 9,885.26 1,412.10 18,701.12 Energy and Mining 605.98 13,071.90 8,788.92 12,769.60 4,772.92 2,433.95 42,443.25 Finance 107.03 8,951.26 2,379.90 8,513.60 14,675.94 3,353.95 37,981.67 Health and Other Social Services 198.65 2,767.06 314.90 5,337.47 15,561.18 1,170.28 25,349.53 Industry and Trade 410.17 6,528.57 1,346.44 10,853.33 5,420.93 3,016.75 27,576.19 Information and Communication 223.37 1,654.61 72.23 737.66 707.35 279.06 3,674.27 Law and Justice and Public 613.08 8,399.80 2,038.67 17,807.05 30,130.43 2,614.72 61,603.75 Administration Transportation 355.51 16,353.31 6,252.31 9,833.12 13,559.26 2,257.94 48,611.45 Water, Sanitation, and Flood 564.72 8,078.83 1,105.18 3,355.63 8,735.05 2,512.83 24,352.24 Protection Sector Total 3,545.56 74,977.68 24,514.27 74,506.23 109,812.32 21,480.93 308,836.99 IDA commitments, by regiona Europe Latin Middle East Asia and America East and and South Central and the North Theme and Sector Africa Pacific Asia Asia Caribbean Africa Total Theme Economic Management 2,914.63 356.88 1,302.38 409.33 444.40 32.20 5,459.82 Environmental and Natural 3,807.79 2,541.28 3,456.54 548.74 295.32 399.29 11,048.96 Resource Management Financial and Private Sector 13,910.93 3,088.46 5,419.49 2,366.04 1,044.24 472.52 26,301.68 Development Human Development 9,616.16 2,405.27 10,095.81 753.80 559.96 473.34 23,904.35 Public Sector Governance 11,876.44 1,560.55 4,827.18 1,001.54 765.48 251.78 20,282.98 Rule of Law 761.24 191.48 277.49 355.88 151.35 17.72 1,755.17 Rural Development 9,079.55 5,112.44 7,694.36 928.92 889.06 680.36 24,384.70 Social Development, Gender, and 4,569.43 1,465.78 6,005.97 437.81 404.41 719.87 13,603.27 Inclusion Social Protection and Risk 3,513.93 1,208.02 3,531.87 687.42 588.05 326.25 9,855.53 Management Trade and Integration 4,045.17 499.73 822.17 273.94 230.20 11.62 5,882.81 Urban Development 6,631.77 1,927.09 1,633.18 673.12 446.89 339.19 11,651.24 Theme Total 70,727.04 20,356.98 45,066.44 8,436.54 5,819.36 3,724.14 154,130.50 Sector Agriculture, Fishing, and Forestry 5,791.79 3,544.06 5,785.38 732.41 491.37 455.22 16,800.24 Education 6,568.82 2,081.91 7,205.69 397.43 577.35 605.83 17,437.02 Energy and Mining 7,904.17 2,396.82 3,085.71 960.73 230.21 290.87 14,868.51 Finance 2,882.69 1,482.04 2,370.63 736.47 332.55 193.71 7,998.08 Health and Other Social Services 8,849.52 2,042.46 8,646.41 932.12 746.57 499.56 21,716.65 Industry and Trade 4,939.58 1,141.68 3,103.97 1,172.37 381.44 222.57 10,961.61 Information and Communication 700.91 67.76 399.15 38.50 50.55 3.64 1,260.51 Law and Justice and Public 17,593.24 2,812.83 8,172.20 2,116.08 1,671.93 506.27 32,872.55 Administration Transportation 10,338.36 2,721.67 3,627.93 728.30 919.17 411.53 18,746.96 Water, Sanitation, and Flood 5,157.95 2,065.75 2,669.37 622.13 418.22 534.93 11,468.36 Protection Sector Total 70,727.04 20,356.98 45,066.44 8,436.54 5,819.36 3,724.14 154,130.50 Note: Figures are cumulative since fiscal 1990, the first year for which reclassified sector and theme data are available. Starting fiscal 2005, lending includes guarantees and guarantee facilities. Amounts may not add to totals due to rounding. a. No account is taken of cancellations subsequent to original commitment. IBRD loans to IFC are excluded. IBRD and IDA Cumulative Lendinga by Country | Fiscal 1945­2009b View Excel Version millions of dollars IBRD IDA IBRD/IDA Country Number Amount Number Amount Number Amount Afghanistan 62 2,113.4 62 2,113.4 Africa 11 259.8 31 2,843.8 42 3,103.6 Albania 6 131.6 62 949.9 68 1,081.5 Algeria 71 5,765.8 71 5,765.8 Angola 19 676.1 19 676.1 Argentina 148 26,421.9 148 26,421.9 Armenia 2 62.0 52 1,116.0 54 1,178.0 Australia 7 417.7 7 417.7 Austria 9 106.4 9 106.4 Azerbaijan 11 1,765.0 35 972.2 46 2,737.2 Bahamas, The 5 42.8 5 42.8 Bangladesh 1 46.1 211 14,256.5 212 14,302.6 Barbados 13 153.4 13 153.4 Belarus 8 442.8 8 442.8 Belgium 4 76.0 4 76.0 Belize 9 86.2 9 86.2 Benin 66 1,282.5 66 1,282.5 Bhutan 18 176.4 18 176.4 Bolivia, Plurinational State of 15 314.3 82 2,107.0 97 2,421.3 Bosnia and Herzegovina 1 25.0 56 1,118.6 57 1,143.6 Botswana 21 516.7 6 15.8 27 532.5 Brazil 341 43,701.1 341 43,701.1 Bulgaria 39 2,814.1 39 2,814.1 Burkina Faso 1.9 80 2,320.4 80 2,322.3 Burundi 1 4.8 66 1,393.2 67 1,398.0 Cambodia 35 826.5 35 826.5 Cameroon 45 1,347.8 40 1,606.7 85 2,954.5 Cape Verde 24 270.9 24 270.9 Caribbean 4 83.0 3 52.0 7 135.0 Central Africa 1 50.0 1 50.0 Central African Republic 33 577.4 33 577.4 Central America 1 8.0 1 8.0 Central Asia 1 25.0 1 25.0 Chad 1 39.5 49 1,066.6 50 1,106.1 Chile 73 4,112.8 19.0 73 4,131.8 China 238 36,491.2 71 9,946.7 309 46,437.9 Colombia 202 16,701.3 19.5 202 16,720.8 Comoros 20 137.4 20 137.4 Congo, Democratic Republic of 7 330.0 79 4,228.5 86 4,558.5 Congo, Republic of 10 216.7 22 478.3 32 695.0 Costa Rica 45 1,636.0 5.5 45 1,641.5 Côte d'Ivoire 62 2,887.9 32 2,797.5 94 5,685.4 Croatia 38 2,489.6 38 2,489.6 Cyprus 29 404.8 29 404.8 Czech Republic 3 776.0 3 776.0 Denmark 3 85.0 3 85.0 Djibouti 21 184.1 21 184.1 Dominica 3 6.6 5 22.6 8 29.1 Dominican Republic 42 1,432.4 3 22.0 45 1,454.4 Eastern Africa 2 135.0 2 135.0 Ecuador 82 3,240.0 5 36.9 87 3,276.9 Egypt, Arab Republic of 79 7,657.1 41 1,984.0 120 9,641.1 El Salvador 41 1,782.6 2 25.6 43 1,808.2 Equatorial Guinea 9 45.0 9 45.0 Eritrea 15 548.9 15 548.9 Estonia 8 150.7 8 150.7 Ethiopia 12 108.6 106 7,944.2 118 8,052.8 Fiji 12 152.9 12 152.9 Finland 18 316.8 18 316.8 IBRD IDA IBRD/IDA Country Number Amount Number Amount Number Amount France 1 250.0 1 250.0 Gabon 16 267.0 16 267.0 Gambia, The 32 293.2 32 293.2 Georgia 1 70.0 47 1,062.5 48 1,132.5 Ghana 9 187.0 131 6,127.4 140 6,314.4 Greece 17 490.8 17 490.8 Grenada 6 22.0 5 38.8 11 60.8 Guatemala 50 2,231.1 50 2,231.1 Guinea 3 75.2 65 1,430.0 68 1,505.2 Guinea-Bissau 28 332.9 28 332.9 Guyana 12 80.0 22 355.3 34 435.3 Haiti 1 2.6 55 894.2 56 896.8 Honduras 33 717.3 51 1,822.3 84 2,539.6 Hungary 40 4,247.6 40 4,247.6 Iceland 10 47.1 10 47.1 India 219 37,682.9 276 36,142.6 495 73,825.5 Indonesia 281 35,228.0 53 2,875.3 334 38,103.4 Iran, Islamic Republic of 48 3,413.1 48 3,413.1 Iraq 6 156.2 5 508.5 11 664.7 Ireland 8 152.5 8 152.5 Israel 10 254.5 10 254.5 Italy 8 399.6 8 399.6 Jamaica 75 1,865.1 75 1,865.1 Japan 31 862.9 31 862.9 Jordan 65 2,610.2 15 85.3 80 2,695.5 Kazakhstan 32 4,411.9 32 4,411.9 Kenya 45 1,180.7 98 4,767.7 143 5,948.4 Korea, Republic of 112 15,472.0 6 110.8 118 15,582.8 Kosovo 13 66.0 13 66.0 Kyrgyz Republic 46 857.1 46 857.1 Lao People's Democratic Republic 51 913.9 51 913.9 Latvia 19 416.0 19 416.0 Lebanon 22 1,255.1 22 1,255.1 Lesotho 2 155.0 37 450.9 39 605.9 Liberia 19 156.0 24 724.7 43 880.7 Lithuania 17 490.9 17 490.9 Luxembourg 1 12.0 1 12.0 Macedonia, former Yugoslav Republic of 28 693.1 15 378.7 43 1,071.8 Madagascar 5 32.9 105 3,380.9 110 3,413.8 Malawi 9 124.1 89 2,568.7 98 2,692.8 Malaysia 87 4,145.6 87 4,145.6 Maldives 12 126.2 12 126.2 Mali 1.9 84 2,366.2 84 2,368.1 Malta 1 7.5 1 7.5 Mauritania 3 146.0 59 903.5 62 1,049.5 Mauritius 37 637.7 4 20.2 41 657.9 Mexico 216 42,229.3 216 42,229.3 Moldova 9 302.8 29 441.6 38 744.4 Mongolia 31 464.1 31 464.1 Montenegro 3 41.3 9 75.0 12 116.3 Morocco 144 10,060.8 3 50.8 147 10,111.6 Mozambique 63 3,530.1 63 3,530.1 Myanmar 3 33.4 30 804.0 33 837.4 Namibia 2 15.0 2 15.0 Nepal 95 2,674.9 95 2,674.9 Netherlands 8 244.0 8 244.0 New Zealand 6 126.8 6 126.8 Nicaragua 27 233.6 48 1,481.7 75 1,715.3 Niger 66 1,570.2 66 1,570.2 Nigeria 84 6,248.2 53 5,788.0 137 12,036.2 Norway 6 145.0 6 145.0 OECS Countriesc 3 11.8 2 29.9 5 41.6 IBRD IDA IBRD/IDA Country Number Amount Number Amount Number Amount Oman 11 157.1 11 157.1 Pakistan 92 7,600.2 151 12,219.4 243 19,819.6 Panama 56 1,769.6 56 1,769.6 Papua New Guinea 35 786.6 12 195.0 47 981.6 Paraguay 48 1,205.6 6 45.5 54 1,251.1 Peru 115 8,424.5 115 8,424.5 Philippines 178 12,873.2 5 294.2 183 13,167.4 Poland 46 8,944.5 46 8,944.5 Portugal 32 1,338.8 32 1,338.8 Romania 88 7,731.0 88 7,731.0 Russian Federation 64 13,856.1 64 13,856.1 Rwanda 70 1,671.5 70 1,671.5 Samoa 14 99.1 14 99.1 São Tomé and Principe 13 86.4 13 86.4 Senegal 19 164.9 101 2,905.2 120 3,070.1 Serbia 8 277.3 19 689.0 27 966.3 Seychelles 2 10.7 2 10.7 Sierra Leone 4 18.7 39 888.1 43 906.8 Singapore 14 181.3 14 181.3 Slovak Republic 9 424.6 9 424.6 Slovenia 5 177.7 5 177.7 Solomon Islands 11 58.6 11 58.6 Somalia 39 492.1 39 492.1 South Africa 13 302.8 13 302.8 Spain 12 478.7 12 478.7 Sri Lanka 12 210.7 96 3,535.1 108 3,745.8 St. Kitts and Nevis 5 23.5 1.5 5 25.0 St. Lucia 11 32.9 2 46.6 13 79.6 St. Vincent and the Grenadines 5 12.0 1 18.2 6 30.1 Sudan 8 166.0 47 1,352.9 55 1,518.9 Swaziland 12 104.8 2 7.8 14 112.6 Syrian Arab Republic 16 579.6 3 47.3 19 626.9 Taiwan, China 14 329.4 4 15.3 18 344.7 Tajikistan 35 488.9 35 488.9 Tanzania 17 318.9 135 7,269.0 152 7,587.9 Thailand 118 8,027.4 6 125.1 124 8,152.5 Timor-Leste 8 28.1 8 28.1 Togo 1 20.0 46 982.7 47 1,002.7 Tonga 6 28.2 6 28.2 Trinidad and Tobago 22 333.6 22 333.6 Tunisia 129 5,940.2 5 69.8 134 6,010.0 Turkey 164 29,516.0 10 178.5 174 29,694.5 Turkmenistan 3 89.5 3 89.5 Uganda 1 9.1 105 5,755.7 106 5,764.8 Ukraine 40 6,242.6 40 6,242.6 Uruguay 63 3,165.9 63 3,165.9 Uzbekistan 13 554.1 4 196.0 17 750.1 Vanuatu 5 18.9 5 18.9 Venezuela, República Bolivariana de 40 3,328.4 40 3,328.4 Vietnam 85 9,380.9 85 9,380.9 Western Africa 1 6.1 3 52.5 4 58.6 Yemen, Republic of 146 2,868.0 146 2,868.0 Yugoslavia, former 89 6,090.7 89 6,090.7 Zambia 27 679.1 64 2,948.2 91 3,627.3 Zimbabwe 24 983.2 12 662.0 36 1,645.2 Overall total 5,366 479,435.2 4,633 206,640.5 9,999 686,075.7 Note: A blank space indicates zero. a. Effective fiscal 2005, lending includes guarantees and guarantee facilities. Supplemental and additional financing operations (except projects scaled up through additional financing) are not counted as separate lending operations, although they are included in the amount. IBRD IDA IBRD/IDA Country Number Amount Number Amount Number Amount b. Joint IBRD­IDA operations are counted only once, as IBRD operations. When more than one loan is made for a single project, the operation is counted only once. Commitments in regional projects are classified under this table as regional projects and are not counted as commitments of the individual countries involved under the regional project. Figure excludes a HIPC grant commitment of $45.5 million for Côte d'Ivoire. c. OECS = Organization of Eastern Caribbean States. World Bank Lending to MDG-Related Projects | Fiscal 2009 View Excel Version Number of projects Commitments (millions of dollars) IBRD IDA IBRD/IDA IBRD IDA IBRD/IDA All projects 126 176 302 32,911 13,995 46,906 MDG-related projects 34 35 69 10,016 3,496 13,511 Achieve universal primary education 6 9 16 1,634 1,227 2,861 Promote gender equality and 0 1 1 7 111 118 empower women Reduce child mortality 1 4 5 167 458 626 Improve maternal health 1 1 2 35 58 92 Combat HIV/AIDS, malaria, 2 4 6 73 519 592 tuberculosis, and other diseases Ensure environmental sustainability 18 10 28 4,481 605 5,085 Develop a global partnership for 6 5 11 3,619 518 4,137 development a. Excludes a HIPC grant commitment of $45.5 million for Côte d'Ivoire. Active Project Porfolio by Region, Theme, and Sector | June 30, 2009 View Excel Version Projects Net commitment Billions of Region Number Percent dollars Percent Africa 482 29 29 22 East Asia and Pacific 271 16 26 19 South Asia 190 11 26 19 Europe and Central Asia 291 18 21 16 Latin America and the Caribbean 297 18 26 19 Middle East and North Africa 120 7 7 5 Other 2 0 0 0 Region Total 1,653 100 135 100 Projects Net commitment Billions of Theme Number Percent dollars Percent Economic Management 18 1 2 2 Environmental and Natural Resource Management 249 15 15 11 Financial and Private Sector Development 230 14 25 19 Human Development 262 16 19 14 Public Sector Governance 182 11 15 11 Rule of Law 34 2 1 1 Rural Development 236 14 17 12 Social Development, Gender, and Inclusion 116 7 8 6 Social Protection and Risk Management 100 6 10 8 Trade and Integration 69 4 8 6 Urban Development 158 10 15 11 Theme Total 1,653 100 135 100 Projects Net commitment Billions of Sector Number Percent dollars Percent Agriculture, Fishing, and Forestry 181 11 11 8 Education 150 9 11 8 Energy and Mining 164 10 17 12 Finance 65 4 7 5 Health and Other Social Services 195 12 15 11 Industry and Trade 74 4 6 4 Information and Communication 19 1 1 1 Law and Justice and Public Administration 430 26 25 18 Transportation 185 11 27 20 Water, Sanitation, and Flood Protection 191 12 16 12 Sector Total 1,653 100 135 100 Note: Numbers may not add to totals because of rounding. GOVERNORS AND ALTERNATES OF THE WORLD BANK | JUNE 30, 2009 Member Governor Alternate Afghanistan Omar Zakhilwal Mohammad M. Mastoor Albania Ridvan Bode Fatos Ibrahimi Algeria Karim Djoudi Abdelhak Bedjaoui Angola Ana Dias Lourenco Job Graca Antigua and Barbudaa Harold Lovell Whitfield Harris Argentina Carlos Fernandez Martin Redrado Armenia Vahram Nercissiantz Tigran Davtyan Australia Wayne Swan Bob McMullan Austria Josef Proell Edith Frauwallner Azerbaijan Elman Siradjogly Rustamov Shahin Mustafayev Bahamas, The Hubert A. Ingraham Ehurd Cunningham Bahraina Ahmed Bin Mohammed Al-Khalifa Yousif Abdulla Humood Bangladesh Abul Maal A. Muhith M. Musharraf Hossain Bhuiyan Barbados Darcy Boyce Grantley W. Smith Belarusa Andrei V. Kobyakov Andrei M. Kharkovets Belgium Didier Reynders Guy Quaden Belize Dean Barrow Carla Barnett Benin Pascal I. Koupaki Idriss L. Daouda Bhutan Lyonpo Wangdi Norbu Nim Dorji Bolivia Noel Aguirre Ledezma Luis Alberto Arce Catacora Bosnia and Herzegovina Nikola Spiric Boris Tihi Botswana Baledzi Gaolathe Solomon M. Sekwakwa Brazil Guido Mantega Henrique de Campos Meirelles Brunei Darussalama Haji Hassanal Bolkiah Abdul Rahman Ibrahim Bulgariaa Plamen Oresharski Dimitar Kostov Burkina Faso Lucien Marie Noel Bembamba Lene Sebgo Burundi Clotilde Nizigama Leon Nimbona Cambodia Keat Chhon Aun Porn Moniroth Cameroon Louis Paul Motaze Dieudonne Evou Mekou Canada James Michael Flaherty Margaret Biggs Cape Verde Cristina Duarte Leonesa Lima Fortes Central African Republic Sylvain Maliko Bendert Bokia Chad Ousmane Matar Breme Bichara Doudoua Chile Andres Velasco Branes Alberto Arenas de Mesa China Xie Xuren Li Yong Colombia Oscar Ivan Zuluaga Esteban Piedrahita Uribe Comoros Mohamed Ali Soilihi Said Abdillah Congo, Democratic Republic of Athanase Matenda Kyelu Jean-Claude Masangu Mulongo Congo, Republic of Pierre Moussa Pacifique Issoibeka Costa Rica Guillermo Zuniga Chaves Francisco de Paula Gutierrez Côte d'Ivoire Paul Antoine Bohoun Bouabre Koffi Charles Diby Croatia Ivan Suker Zdravko Maric Cyprus Charilaos Stavrakis Christos Patsalides Czech Republic Miroslav Kalousek Miroslav Singer Denmark Ulla Toernaes Ib Petersen Djibouti Ali Farah Assoweh Simon Mibrathu Dominica Roosevelt Skerrit Rosamund Edwards Dominican Republic Juan Temistocles Montas Vicente Bengoa Albizu Ecuador Maria Elisa Viteri Acaiturri Isela Sanchez Egypt, Arab Republic of Mahmoud Mohieldin Fayza Abulnaga Member Governor Alternate El Salvador Alexander E. Segovia Juan Ramon Caceres Chavez Equatorial Guinea Jose Ela Oyana Estanislao Don Malavo Eritrea Berhane Abrehe Kidane Martha Woldegiorghis Estonia Jurgen Ligi Kalle Killar Ethiopia Sufian Ahmed Mekonnen Manyazewal Fiji Josaia Voreqe Bainimarama John Prasad Finland Jyrki Katainen Paavo Vayrynen France Christine Lagarde Ramon Fernandez Gabon Anacle Bissielo Christian Bongo Ondimba Gambia, The Mousa G. Bala Gaye Mod A.K. Secka Georgia Kakha Baindurashvili Lasha Zhvania Germany Heidemarie Wieczorek-Zeul Joerg Asmussen Ghana Kwabena Duffuor Seth Terkper Greece Ioannis Papathanassiou Panayotis Thomopoulos Grenada V. Nazim Burke Timothy Antoine Guatemala Juan Alberto Fuentes Maria Antonieta del Cid de Bonilla Guinea Guinea-Bissau Helena Nosolini Embalo Jose Mario Vaz Guyana Bharrat Jagdeo Ashni Singh Haiti Daniel Dorsainvil Charles Castel Honduras Hungary Peter Oszko Tamas Katona Iceland Ossur Skarphedinsson Steingrimur J. Sigfusson India Pranab Mukherjee Ashok Chawla Indonesia Sri Mulyani Indrawati Paskah Suzetta Iran, Islamic Republic of Seyyed Shams Al-din Hosseini Behrouz Alishiri Iraq Baker J. Al-Zubaidy Ali Gh. Baban Ireland Brian Lenihan David Doyle Israel Stanley Fischer Yarom Ariav Italy Mario Draghi Carlo Monticelli Jamaicaa Audley Shaw Wesley George Hughes Japan Kaoru Yosano Masaaki Shirakawa Jordan Suhair Al-Ali Nasser S.H. Shraideh Kazakhstan Erbol Orynbayev Timur Suleimenov Kenya Uhuru Kenyatta Joseph Kanja Kinyua Kiribati Natan Teewe Atanteora Beiatau Korea, Republic of Jeung-Hyun Yoon Seongtae Lee Kosovo Ahmet Shala Bedri Hamza Kuwait Mustafa Al-Shamali Abdulwahab Ahmed Al-Bader Kyrgyz Republic Marat A. Sultanov Lada J. Orozbaeva Lao People's Democratic Republic Somdy Douangdy Somphao Phaysith Latvia Einars Repse Artis Kampars Lebanon Mohamad Chatah Alain A. Bifani Lesotho Timothy T. Thahane Mosito Khethisa Liberia Augustine Kpehe Ngafuan Amara Konneh Libya Abdel-Hafiz Zleitni Ali Ramadan Shnebesh Lithuaniaa Algirdas Semeta Ramune Vilija Zabuliene Luxembourg Luc Frieden Georges Heinrich Macedonia, former Yugoslav Republic of Trajko Slaveski Zoran Stavreski Madagascar Malawi Ken Edward Kandodo Abi Marambika Shawa Malaysia Mohd. Najib Abdul Razak Wan Abdul Aziz Wan Abdullah Maldives Ali Hashim Ahmed As-ad Member Governor Alternate Mali Sanoussi Toure Lassine Bouare Maltaa Tonio Fenech Alfred S. Camilleri Marshall Islands Jack J. Ading Jefferson Barton Mauritania Mauritius Rama Krishna Sithanen Ali Michael Mansoor Mexico Agustin Carstens Alejandro M. Werner Wainfeld Micronesia, Federated States of Finley S. Perman Rose Nakanaga Moldova Mariana Durlesteanu Nina Lupan Mongolia Bayartsogt Sangajav Purevdorj Lkhanaasuren Montenegro Igor Luksic Milorad Katnic Morocco Salaheddine Mezouar Rachid Talbi Alami Mozambique Aiuba Cuereneia Ernesto Gouveia Gove Myanmar Hla Tun Myo Nwe Namibiaa Peter H. Katjavivi Carl-Hermann G. Schlettwein Nepal Babu Ram Bhattarai Rameshore Prasad Khanal Netherlands Wouter Bos Bert Koenders New Zealand Bill English John Whitehead Nicaragua Alberto Jose Guevara Obregon Antenor Rosales Bolanos Niger Ali M. Lamine Zeine Ramatou Diamballa Nigeria Mansur Muhtar Steve O. Oronsaye Norway Erik Solheim Hakon Arald Gulbrandsen Oman Ahmed Macki Darwish bin Ismail Al Balushi Pakistan Shaukat Fayaz Ahmed Tarin Farrakh Qayyum Palau Kerai Mariur Rhinehart Silas Panama Hector E. Alexander Enelda M. de Gonzalez Papua New Guinea Patrick Pruaitch Simon Tosali Paraguay Dionisio Borda Manuel Vidal Caballero Gimenez Peru Luis Carranza Ugarte Jose Arista Arbildo Philippines Margarito B. Teves Amando M. Tetangco, Jr. Poland Slawomir Skrzypek Pawel Samecki Portugal Fernando Teixeira dos Santos Carlos Costa Pina Qatara Yousef Hussain Kamal Abdullah Bin Soud Al-Thani Romaniaa Gheorghe Pogea Cristian Popa Russian Federation Aleksei Kudrin Elvira S. Nabiullina Rwanda James Musoni Monique Nsanzabaganwa St. Kitts and Nevis Denzil Douglas Janet Harris St. Lucia Stephenson King Isaac Anthony St. Vincent and the Grenadines Ralph E. Gonsalves Laura Anthony-Browne Samoa Nickel Lee Hang Hinauri Petana San Marinoa Marco Arzilli Biagio Bossone São Tomé and Principe Angela M. Viegas Santiago Americo Oliveira Saudi Arabia Ibrahim A. Al-Assaf Muhammad S. Al-Jasser Senegal Abdoulaye Diop Mamadou Abdoulaye Sow Serbia Mladjan Dinkic Diana Dragutinovic Seychellesa Patrick Pillay Ahmed Afif Sierra Leone Samura Mathew Wilson Kamara Sheku S. Sesay Singapore Tharman Shanmugaratnam Teo Ming Kian Slovak Republic Jan Pociatek Viliam Ostrozlik Slovenia Franc Krizanic Andrej Kavcic Solomon Islands Snyder Rini Shadrach Fanega Somalia South Africa Pravin J. Gordhan Elias Lesetja Kganyago Spain Elena Salgado Mendez Jose Manuel Campa Fernandez Member Governor Alternate Sri Lanka Mahinda Rajapaksa Sumith Abeysinghe Sudan Awad Ahmed Elgaz Lual A. Deng Surinamea Humphrey S. Hildenberg Adelien Wijnerman Swaziland Hlangusemphi Dlamini Dumisani E. Masilela Sweden Anders Borg Gunilla Carlsson Switzerland Doris Leuthard Micheline Calmy-Rey Syrian Arab Republic Amer Husni Lutfi Mohammad Hamandosh Tajikistan Safarali Najmuddinov Negmatjon Buriev Tanzania Mustafa Haidi Mkulo Ramadhani Mussa Khijjah Thailand Korn Chatikavanij Sathit Limpongpan Timor-Leste Emilia Pires Joao Goncalves Togo Gilbert B. Bawara Simfeitcheou Pre Tonga 'Otenifi Afu'alo Matoto 'Aisake V. Eke Trinidad and Tobago Karen Nunez-Tesheira Alison Lewis Tunisia Mohamed Nouri Jouini Kamel Ben Rejeb Turkey Ibrahim H. Canakci Memduh Aslan Akcay Turkmenistana Annamuhammet Gochyev Gochmyrat A. Myradov Uganda Syda N. Bbumba C. M. Kassami Ukraine Hryhoriy Nemyrya Boghdan Danylishin United Arab Emirates Hamdan bin Rashid Al-Maktoum Obaid Humaid Al Tayer United Kingdom Douglas Alexander Alistair Darling United States Timothy F. Geithner Uruguaya Alvaro Garcia Enrique Rubio Uzbekistan Faizulla M. Mullajanov Ulugbek Rozukulov Vanuatu Sela Molisa George Maniuri Venezuela, República Bolivariana dea Jorge Giordani Ali Rodriguez Araque Vietnam Nguyen Van Giau Nguyen Van Binh Yemen, Republic of Abdulkarim I. Al-Arhabi Mutahar Abdulaziz Al-Abbasi Zambia Situmbeko Musokotwane Likolo Ndalamei Zimbabwe Tendai Biti Willard L. Manungo a. Not a member of IDA. EXECUTIVE DIRECTORS AND ALTERNATES OF THE WORLD BANK AND THEIR VOTING POWER | JUNE 30, 2009 IBRD IDA Executive Total % of Total % of Director Alternate Director Casting votes of votes total votes total Appointed E. Whitney Debevoise (Vacant) United States 265,219 16.40 2,228,252 12.24 Toru Shikibu Masato Kanda Japan 127,250 7.87 1,746,238 9.59 Michael Hofmann Ruediger Von Kleist Germany 72,649 4.49 1,154,907 6.34 Susanna Moorehead Stewart James United Kingdom 69,647 4.31 984,805 5.41 Ambroise Fayolle Frederick Jeske-Schonhoven France 69,647 4.31 741,422 4.07 Elected Konstantin Huber Gino Alzetta Austria, Belarus,a Belgium, Czech 77,669 4.80 840,390 4.62 (Austria) (Belgium) Republic, Hungary, Kazakhstan, Luxembourg, Slovak Republic, Slovenia, Turkey Rudolf Treffers Claudiu Doltu Armenia, Bosnia and Herzegovina, 73,146 4.52 796,460 4.37 (Netherlands) (Romania) Bulgaria,a Croatia, Cyprus, Georgia, Israel, Macedonia (former Yugoslav Republic of), Moldova, Montenegro, Netherlands, Romania,a Ukraine Jose A. Rojas Marta Garcia Jauregui Costa Rica, El Salvador, Guatemala, 72,786 4.50 487,972 2.68 (República Bolivariana (Spain) Honduras, Mexico, Nicaragua, Spain, de Venezuela) Venezuela (República Bolivariana de) a Samy Watson Ishmael Lightbourne Antigua and Barbuda,a The Bahamas, 62,217 3.85 813,331 4.47 (Canada) (The Bahamas) Barbados, Belize, Canada, Dominica, Grenada, Guyana, Ireland, Jamaica,a St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines Carolina Renteria Rogerio Studart Brazil, Colombia, Dominican Republic, 58,124 3.59 574,763 3.16 (Colombia) (Brazil) Ecuador, Haiti, Panama, Philippines, Suriname,a Trinidad and Tobago Giovanni Majnoni Nuno Mota Pinto Albania, Greece, Italy, Malta,a Portugal, 56,705 3.51 621,712 3.41 (Italy) (Portugal) San Marino,a Timor-Leste James Hagan Do-Hyeong Kim Australia, Cambodia, Kiribati, Korea 55,800 3.45 673,326 3.70 (Australia) (Republic of Korea) (Republic of), Marshall Islands, Micronesia (Federated States of), Mongolia, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Vanuatu Pulok Chatterji Kazi M. Aminul Islam Bangladesh, Bhutan, India, Sri Lanka 54,945 3.40 802,820 4.41 (India) (Bangladesh) IBRD IDA Executive Total % of Total % of Director Alternate Director Casting votes of votes total votes total Toga McIntosh Hassan Ahmed Taha Angola, Botswana, Burundi, Ethiopia, 54,347 3.36 785,577 4.31 (Liberia) (Sudan) The Gambia, Kenya, Lesotho, Liberia, Malawi, Mozambique, Namibia,a Nigeria, Seychelles,a Sierra Leone, South Africa, Sudan, Swaziland, Tanzania, Uganda, Zambia, Zimbabwe Svein Aass Jens Haarlov Denmark, Estonia, Finland, Iceland, 54,039 3.34 959,548 5.27 (Norway) (Denmark) Latvia, Lithuania,a Norway, Sweden Sid Ahmed Dib Javed Talat Afghanistan, Algeria, Ghana, Iran 51,544 3.19 392,180 2.15 (Algeria) (Pakistan) (Islamic Republic of), Morocco, Pakistan, Tunisia Michel Mordasini Michal Krupinski Azerbaijan, Kyrgyz Republic, Poland, 49,192 3.04 689,215 3.79 (Switzerland) (Poland) Serbia, Switzerland, Tajikistan, Turkmenistan,a Uzbekistan Merza H. Hasan Ayman Alkaffas Bahrain,a Egypt (Arab Republic of), 47,042 2.91 400,568 2.20 (Kuwait) (Arab Republic of Egypt) Iraq, Jordan, Kuwait, Lebanon, Libya, Maldives, Oman, Qatar,a Syrian Arab Republic, United Arab Emirates, Yemen (Republic of) Zou Jiayi Yang Yingming China 45,049 2.79 344,829 1.89 (China) (China) Abdulrahman M. Abdulhamid Alkhalifa Saudi Arabia 45,045 2.79 604,233 3.32 Almofadhi (Saudi Arabia) (Saudi Arabia) Alexey Kvasov Eugene Miagkov Russian Federation 45,045 2.79 57,166 0.31 (Russian Federation) (Russian Federation) Sun Vithespongse Irfa Ampri Brunei Darussalam,a Fiji, Indonesia, 41,096 2.54 538,958 2.96 (Thailand) (Indonesia) Lao People's Democratic Republic, Malaysia, Myanmar, Nepal, Singapore, Thailand, Tonga, Vietnam Dante Contreras Felix Alberto Camarasa Argentina, Bolivia (Plurinational State 37,499 2.32 285,743 1.57 (Chile) (Argentina) of), Chile, Paraguay, Peru, Uruguaya Louis Philippe Ong Seng Agapito Mendes Dias Benin, Burkina Faso, Cameroon, Cape 31,102 1.92 682,380 3.75 (Mauritius) (São Tomé and Principe) Verde, Central African Republic, Chad, Comoros, Congo (Democratic Republic of), Congo (Republic of), Côte d'Ivoire, Djibouti, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Madagascar, Mali, Mauritius, Niger, Rwanda, São Tomé and Principe, Senegal, Togo In addition to the Executive Directors and Alternates shown in the foregoing list, the following also served after November 1, 2008: Executive Director End of period of service Alternate Director End of period of service Jorge Humberto Botero April 19, 2009 Mohamed Kamel Amr January 19, 2009 (Colombia) (Arab Republic of Egypt) Dhanendra Kumar February 11, 2009 Ana Maria Guevara April 17, 2009 (India) (United States) Zakir Ahmed Khan January 31, 2009 (Bangladesh) Chularat Suteethorn May 14, 2009 (Thailand) Note: Eritrea (843 votes in IBRD and 31,162 votes in IDA), Mauritania (1,150 votes in IBRD and 32,183 votes in IDA), and Somalia (802 votes in IBRD and 10,506 votes in IDA) did not participate in the 2008 Regular Election of Executive Directors. Kosovo (1,216 votes in IBRD and 48,357 votes in IDA) became a member after that election. a. Member of IBRD only. OFFICERS OF THE WORLD BANK | JUNE 30, 2009 Robert B. Zoellick President Juan Jose Daboub Managing Director Ngozi Okonjo-Iweala Managing Director Graeme Wheeler Managing Director Vincenzo La Via Chief Financial Officer Justin Yifu Lin Senior Vice President and Chief Economist Marwan Muasher Senior Vice President, External Affairs Anne-Marie Leroy Senior Vice President and World Bank Group General Counsel James W. Adams Vice President, East Asia and Pacific Fayezul Choudhury Vice President, Corporate Finance and Risk Management (Vacant) Vice President and Controller Pamela Cox Vice President, Latin America and the Caribbean (Vacant) Vice President and Chief Information Officer, Information Solutions Group Obiageli Katryn Ezekwesili Vice President, Africa Kristalina Georgieva Vice President and Corporate Secretary Daniela Gressani Vice President, Middle East and North Africa Isabel Guerrero Vice President, South Asia Jeffrey S. Gutman Vice President and Network Head, Operations Policy and Country Services Philippe Le Houerou Vice President, Concessional Finance and Global Partnerships Shigeo Katsu Vice President, Europe and Central Asia (Vacant) Vice President and Network Head, Financial and Private Sector Development Kenneth G. Lay Vice President and Treasurer Otaviano Canuto Vice President and Network Head, Poverty Reduction and Economic Management Leonard McCarthy Vice President, Institutional Integrity Joy Phumaphi Vice President and Network Head, Human Development Katherine Sierra Vice President and Network Head, Sustainable Development Hasan A. Tuluy Vice President, Human Resources Sanjay Pradhan Vice President, World Bank Institute (Vacant) Vice President and Auditor General Vinod Thomas Director General, Independent Evaluation ORGANIZATION CHART OF THE WORLD BANK EFFECTIVE JUNE 8, 2009 Board of Governors Executive Directors Werner Kiene Vinod Thomas Robert B. Chairperson Director-General Inspection Independent Zoellick Panel Evaluation Leonard McCarthy David Kanja Vice President President Acting Auditor- Institutional General Integrity Internal Auditing Kristalina Juan Jose Ngozi Georgieva Vincenzo La Via Jeffrey Gutman Daboub Okonjo-Iweala Anne-Marie Leroy Justin Yifu Lin Graeme Wheeler Vice President WBG Chief Vice President & Marwan Muasher Managing Managing Sr. Vice President & Sr. Vice President Managing & Corporate Financial Officer Network Head Sr. Vice President Director Director Secretary WBG General Counsel & Chief Economist Director Operations Policy & External Affairs Country Services Van Pulley Director General Services Department Xavier Legrain Acting Director Charles Philippe Le Pamela Cox Daniela Gressani Quality Shigeo Katsu Obiageli Katryn McDonough Houerou Assurance Ezekwesili Vice President Vice President Group Vice President Acting Vice Vice President Joy Phumaphi Katherine Sierra Latin America and Middle East and Europe and Central Vice President President & Concessional Vice President & Vice President & Caribbean North Africa Asia Africa Controller Finance & Global Network Head Network Head Partnerships Human Development Sustainable Development Fayezul Choudhury Michel Maila Kenneth Lay Vice President James W. Adams Vice President & Isabel Guerrero Vice President Penelope Brooks** Otaviano Canuto* Acting Chief Hasan Tuluy Corporate Finance Vice President Vice President & Treasurer Acting Vice President Vice President & Information Officer Vice President & Risk & Network Head East Asia and Pacific South Asia Management Information Solutions Human Resources Network Head Poverty Reduction & Group Financial and Private Economic Sector Development Management Sanjay Pradhan* Vice President World Bank Institute * Dotted line to Sr. Vice President & Chief Economist ** Reports to IFC Executive Vice President on IFC Business OFFICES OF THE WORLD BANK | JUNE 30, 2009 Washington, DC2 Tokyo2 Australia1 1818 H Street NW Mr. Kazushige Taniguchi Mr. Nigel Roberts Washington, DC 20433, USA The World Bank Group, Office of the The World Bank Group Tel: (202) 473-1000 Special Representative, Japan Level 19, 14 Martin Place Fax: (202) 477-6391 10th Floor, Fukoku Seimei Building CML Building E-mail: Feedback@worldbank.org 2-2-2 Uchisaiwai-cho, Chiyoda-ku, Sydney NSW 2000, Australia Web: http://www.worldbank.org Tokyo 100-0011 Japan Tel: (61-2) 9235-6522 Tel: (81-3) 3597-6650 Fax: (61-2) 9223-9903 New York Fax: (81-3) 3597-6695 E-mail: Nroberts@worldbank.org Mr. Ferid Belhaj E-mail:ktaniguchi@worldbank.org Web: http://www.worldbank.org/eap The World Bank, Office of the Special Web: http://www.worldbank.org/japan/jp Representative to the UN Austria 1 Dag Hammarskjold Plaza Afghanistan2 Mr. John Hegarty 885 2nd Avenue, 26th Floor Ms. Mariam Sherman The World Bank Group New York, NY 10017, USA The World Bank Group Centre for Financial Reporting Reform Tel: (212) 355-5112 Street No. 15, House No. 19 Europe and Central Asia Region Fax: (212) 355-4523 opposite Palace #8 Praterstrasse 31, 19th Floor E-mail: Fbelhaj@worldbank.org Wazir Akbar Khan A-1020 Vienna, Austria Kabul, Afghanistan Tel: (43-1) 217-0700 Europe2 Tel: (93-700) 276002 Fax: (43-1) 217-0701 Mr. Cyril Muller E-mail: Msherman@worldbank.org E-mail: Jhegarty@worldbank.org Special Representative to Europe Web: http://www.worldbank.org/af Web: http://www.worldbank.org/cfrr The World Bank Group 66 Avenue d'Léna Albania2 Azerbaijan2 75116 Paris, France Ms. Camille Nuamah Mr. Gregory Jedrzejczak Tel: (33-1) 40 69 30 00 The World Bank Group The World Bank Group Fax: (33-1) 40 69 30 64 Deshmoret e 4 Shkurtit Street 90A Nizami Street E-mail: cmuller@worldbank.org Tirana, Albania Landmark III, 5th Floor Web: http://www.worldbank.org/europe Tel: (355-4) 2280 650/51 Baku, AZ1010, Azerbaijan Fax: (355-4) 2240 590 Tel: (994-12) 492 1941 Berlin E-mail: clampart@worldbank.org Fax: (994-12) 492 6873 Ms. Claudia von Monbart Web: http://www.worldbank.org.al E-mail: Gjedrzejczak@worldbank.org The World Bank Web: http://www.worldbank.org.az Reichpietschufer 20 Algeria2 10785 Berlin, Germany The World Bank Group Bangladesh1, 2 Tel: (49-30) 7261 42504 5 bis, Chemin Mackley Mr. Xian Zhu Fax: (49-30) 7261 4255 Ben Aknoun 16306 The World Bank E-mail: cvonmonbart@worldbank.org Algiers, Algeria Plot E-32, Agargaon Web: http://www.worldbank.org/eu Tel: (213-21) 94.54.81 - 84 Sher-e-Bangla Nagar Fax: (213-21) 94.54.93 Dhaka 1207, Bangladesh Brussels Web: http://www.worldbank.org/dz (postal address: G.P.O. Box 97) Mr. Sandor Sipos Tel: (880-2) 815-9001-28 Special Representative to the Angola2 Fax: (880-2) 815-9029-30 European Union Institutions Mr. Ricardo Costa Gazel (Acting) E-mail: Xzhu1@worldbank.org The World Bank Group Banco Mundial Web: http://www.worldbank.org.bd Avenue Marnix 17 Largo Albano Machado 1000 Brussels, Belgium N° 23/25, Maculusso Belarus Tel: (32-2) 552 00 52 Luanda, Republica de Angola Mr. Craig Bell Fax: (32-2) 552 00 25 (postal address: Caixa Postal 1331) The World Bank Group E-mail: Ssipos@worldbank.org Tel: (244-222) 394-677 6A Partizansky Prospect, 4th Floor Web: http://www.worldbank.org/eu Fax: (244-222) 394-784 Minsk, 220033 E-mail: rgazel@worldbank.org Belarus Geneva Web: http://www.worldbank.org/ao Tel: (375-17) 228-1838 Mr. Richard Newfarmer Fax: (375-17) 222-7440 Special Representative to the WTO and UN Argentina1, 2 E-mail: cbell1@ifc.org The World Bank Mr. Pedro Alba 3, Chemin Louis-Dunant Banco Mundial Belarus2 Case Postale 66 Torre Bouchard Mr. Ivan Velev 1211 Geneva 20, Switzerland Bouchard 547, 28th & 29th Floors The World Bank Tel: (41-22) 748 1000 C1106ABG Buenos Aires, Argentina 2A Gertsen Street, 2nd Floor Fax: (41-22) 748 1030 Tel: (54-11) 4316-9700 / 44 / 43 Minsk, 220030 E-mail: Rnewfarmer@worldbank.org Fax: (54-11) 4313-1233 Belarus E-mail: Palba@worldbank.org Tel: (375-17) 226-5284 London Web: http://www.worldbank.org/ar Fax: (375-17) 211-0314 Mrs. Barbara Genevaz E-mail: Ivelev@worldbank.org The World Bank Group Armenia2 Web: http://www.worldbank.org.by 12th Floor, Millbank Tower Mr. Aristomene Varoudakis 21-24, Millbank The World Bank Group Belgium London SW1P 4QP, England 9 Grigor Lousavorich Str. Ms. Sandra Bloemenkamp Tel: (44-20) 7592 8400 Yerevan 0015, Armenia Europe and Central Asia Unit Fax: (44-20) 7592 8420 Tel: (374-10) 520 992 The World Bank Group E-mail: bgenevaz@worldbank.org Fax: (374-10) 521 787 Avenue Marnix 17 Web: http://www.worldbank.org/europe E-mail: Avaroudakis@worldbank.org 1000 Brussels, Belgium Web: http://www.worldbank.org/am Tel: (32-2) 504 09 95 Rome Fax: (32-2) 504 09 99 Mr. Massimiliano Paolucci E-mail: Sbloemenkamp@worldbank.org The World Bank Web: http://www.seerecon.org Via Labicana 110 00184 Rome, Italy Tel: (39-06) 77 71 01 Fax: (39-06) 70 96 046 E-mail: mpaolucci@worldbank.org Web: http://www.worldbank.org/europe 1. Country Directors are in the country office. 2. Public Information Center also located within this country. Belgium Burundi2 Congo, Democratic Republic of1, 2 Mr. Sandor Sipos Ms. Mercy Miyang Tembon Ms. Marie Françoise Marie-Nelly Special Representative to the European Banque Mondiale The World Bank Group Union Institutions Avenue de l'Aviation Avenue Wagenia, No. 4847 The World Bank Group Bujumbura, Burundi Kinshasa-Gombe Avenue Marnix 17, 2nd Floor (postal address: B.P. 2637) Democratic Republic of Congo 1000 Brussels, Belgium Tel: (257) 2220 6200, 2222 2443, 2224 5111 Tel: (243) 9999 49015, 9999 49008 Tel: (32-2) 552 00 52 Fax: (257) 2222 6005, 2220 6286 Fax: (243) 880 7817, 9999 75019 Fax: (32-2) 552 00 25 E-mail: mtembon@worldbank.org E-mail: Mmarienelly@worldbank.org E-mail: Ssipos@worldbank.org Web: http://www.worldbank.org/bi Web: http://www.worldbank.org/cd Web: http://www.worldbank.org/eu Cambodia2 Congo, Republic of2 Benin2 Mr. Qimiao Fan Mr. Midou Ibrahima Mr. Joseph Baah-Dwomoh The World Bank The World Bank Banque Mondiale 113 Norodom Boulevard Immeuble BDEAC, 2è Étage Route de l'Aeroport Phnom Penh, Cambodia Boulevard de la Révolution Avenue Jean-Paul II Tel: (855-23) 217301, 217304 P.O. Box 14536 Face Hotel Marina ex-Sheraton Fax: (855-23) 210504, 210373 Brazzaville, Republic of Congo Cotonou, Bénin E-mail: qfan@worldbank.org Tel: (242) 281 33 30, 281 46 38 (postal address: 03 B.P. 2112) Web: http//www.worldbank.org/kh Fax: (242) 281 53 16 Tel: (229) 21 30 58 57 E-mail: Mibrahima@worlbank.org Fax: (229) 21 30 17 44 Cameroon1, 2 Web: http://www.worldbank.org/cg E-mail: Jbaahdwomoh@worldbank.org Ms. Mary Barton-Dock Web: http://www.worldbank.org/bj Banque Mondiale Côte d'Ivoire1, 2 Rue 1. 792, No. 186 Mr. Madani M. Tall Bolivia, Plurinational State of2 Yaoundé, Cameroon Banque Mondiale Mr. Oscar Avalle (postal address: New Bastos, B.P. 1128) Angle des rues Booker Washington and Jacques The World Bank Group Tel: (237) 22 20 38 15 Aka Edificio Victor, Piso 9 Fax: (237) 22 21 07 22 Cocody, Abidjan, Côte d'Ivoire Calle Fernando Guachalla #342 ­ Sopocachi E-mail: Mbarton@worldbank.org (postal address: 01 B.P. 1850, Abidjan 01) La Paz, Bolivia Web: http://www.worldbank.org/cm Tel: (225) 22 40 04 00 (postal address: Casilla 8692) Fax: (225) 22 40 04 61 Tel: (591-2) 215-3300 Central African Republic E-mail: Mtall@worldbank.org Fax: (591-2) 215-3305 Ms. Jelena Pantelic Web: http://www.worldbank.org/ci E-mail: Oavalle@worldbank.org The World Bank Group Web: http://www.worldbank.org/bo Rue des Missions Croatia2 Bangui, République Centrafricaine Mr. Andras Horvai Bosnia and Herzegovina2 (postal address: B.P. 819) The World Bank Group Mr. Marco Mantovanelli Tel: (236) 21 61 61 38 Radnicka cesta 80/IX The World Bank Fax: (236) 21 61 60 87 10000 Zagreb, Croatia UNITIC Tower B E-mail: Jpantelic@worldbank.org Tel: (385-1) 2357-222 Fra Andjela Zvizdovica 1 Web: http://www.worldbank.org/cf Fax: (385-1) 2357-200 71000 Sarajevo E-mail: Ahorvai@worldbank.org Bosnia and Herzegovina Chad Web: http://www.worldbank.hr/ Tel: (387-33) 251 500 Mr. Mamadou Lamarane Deme (Acting) Fax: (387-33) 440 108 The World Bank Group Dominican Republic2 E-mail: Mmantovanelli@worldbank.org Avenue Charles de Gaulle Mr. Roberto Senderowitsch Web: http://www.worldbank.org.ba/ et Avenue du Commandant Lamy The World Bank Group Quartier Bololo Calle Virgilio Díaz Ordoñez #36 Brazil1, 2 N'Djamena, Chad esq. Gustavo Mejía Ricart Mr. Makhtar Diop (postal address: B.P. 146) Edificio Mezzo Tempo, Suite 401 Banco Mundial Tel: (235) 252-3247, 252-3360 5ta. Planta, Santo Domingo, R.D. Setor Comercial Norte Quadra 02 Fax: (235) 252-4484, 252-5110 Tel: (809) 566-6815 Lote A ­ Edificio E-mail: mdeme1@worldbank.org Fax: (809) 566-7746, 566-7189 Corporate Financial Center Web: http://www.worldbank.org/td E-mail: Rsenderowitsch@worldbank.org Conjuntos 701/702/703/704 Web: http://www.worldbank.org/do Brasilia, DF 70712-900, Brazil China1, 2 Tel: (55-61) 3329-1000 Ms. Hsiao-Yun Elaine Sun (Acting) Ecuador2 Fax: (55-61) 3329-1010 The World Bank Group Banco Mundial E-mail: mdiop2@worldbank.org 16th Floor, China World Tower 2 Calle 12 de Octubre 1830 y Cordero Web: http://www.worldbank.org/br No. 1 Jian Guo Men Wai Avenue World Trade Center Beijing, 100004 Torre B, Piso 13 Bulgaria2 China Quito, Ecuador Mr. Florian Fichtl Tel: (86-10) 5861-7600 Tel: (593-2) 294-3600 The World Bank Group Fax: (86-10) 5861-7800 Fax: (593-2) 294-3601 World Trade Center--Interpred E-mail: Hsun@worldbank.org Web: http://www.worldbank.org/ec 36 Dragan Tsankov Blvd. Web: http://www.worldbank.org/cn Block A, 5th Floor Egypt, Arab Republic of1, 2 1057 Sofia, Bulgaria Colombia2 Mr. Emmanuel Mbi Tel: (359-2) 96 97 229 Mr. Eduardo Somensatto The World Bank Fax: (359-2) 971 20 45 The World Bank Group World Trade Center E-mail: Ffichtl@worldbank.org Carrera 7 No. 71-21 1191 Corniche El-Nil, 15th Floor, Boulaq Web: http://www.worldbank.bg/ Torre A, Piso 16 Cairo 11221, Arab Republic of Egypt Apartado 10229 Tel: (20-2) 2574 1670 Burkina Faso2 Bogota, Colombia Fax: (20-2) 2574 1676 Ms. Galina Sotirova Tel: (57-1) 326-3600 E-mail: Embi@worldbank.org The World Bank Group Fax: (57-1) 326-3480 Web: http://www.worldbank.org/eg 179, Avenue du Président Saye Zerbo E-mail: esomensatto@worldbank.org Zone de Ambassades, Koulouba Web: http://www.worldbank.org/co Ouagadougou 01, Burkina Faso Web: http://bancomundial.org/co (postal address: 01 BP 622) Tel: (226) 5049 6300 Fax: (226) 5049 6364 E-mail: Gsotirova@worldbank.org Web: http://www.worldbank.org/bf 1. Country Directors are in the country office. 2. Public Information Center also located within this country. El Salvador2 Guatemala2 Indonesia, Jakarta1, 2 Mr. Alberto Leyton Ms. Anabela Abreu Mr. Joachim von Amsberg The World Bank Group The World Bank Group The World Bank Group Edificio Naciones Unidas, 5o. Piso 13 Calle 3-40 Indonesia Stock Exchange Building Urbanizacion Santa Elena, Antiguo Cuscatlan Zona 10, Edificio Atlantis, Piso 14 Tower 2, 12th Floor La Libertad, El Salvador Guatemala City, Guatemala Sudirman Central Business District (SCBD) Tel: (503) 2263-4877 Tel: (502) 2329-8000 Jl. Jendral Sudirman Kav. 52­53 Fax: (503) 2526-5936 Fax: (502) 2329-8099 Jakarta 12190, Indonesia E-mail: aleyton@worldbank.org E-mail: aabreu@worldbank.org (postal address: P.O. Box 1324/JKT) Web: http://www.worldbank.org/sv Web: http://www.worldbank.org/gt Tel: (62-21) 5299-3000 Fax: (62-21) 5299-3111 Eritrea2 Guinea2 E-mail: Jvonamsberg@worldbank.org The World Bank Mr. Siaka Bakayoko Web: http://www.worldbank.org/id 173-2 Street #15/17 The World Bank Group Zone 03, Subzone 01 Immeuble de l'Archevêché Indonesia, Banda Aceh2 Asmara, Eritrea Face Baie des Anges Mr. Safriza Sofyan, Deputy for Aceh and Nias MDF (postal address: P.O. Box 4983) Conakry, Guinée The World Bank Group, Satellite Office Tel: (291-1) 12 43 02 (postal address: B.P. 1420) Jl. Peurada Utama No. 11 A, Gampong Peurada Fax: (291-1) 12 43 09 Tel: (224) 30 41 27 70/ 30 41 13 91 Banda Aceh 23115, Indonesia Web: http://www.worldbank.org/er Fax: (224) 30 41 50 94 Tel: (62-651) 7551176 E-mail: Sbakayoko@worldbank.org Fax: (62-651) 7551178 Ethiopia1, 2 Web: http://www.worldbank.org/gn E-mail: Ssofyan@worldbank.org Mr. Kenichi Ohashi The World Bank Group Guinea-Bissau Indonesia, Makassar2 Africa Avenue Ms. Carmen Maria Pereira Ms. Caroline Tupamahu (Acting) Bole Road The World Bank Liaison Office The World Bank, Satellite Office Addis Ababa, Ethiopia Avenida Francisco Mendes, C.P. 214 Jl. Dr. Sutomo No. 26 (postal address: P.O. Box 5515) Bissau Codex 1124 Makassar 90113, South Sulawesi, Indonesia Tel: (251-11) 517 60 00 Bissau, Guinea-Bissau Tel: (62-411) 3650320-22 Fax: (251-11) 662 77 17 Tel: (245) 320 59 04 Fax: (62-411) 3650323 E-mail: Kohashi@worldbank.org Fax: (245) 320 59 09 E-mail: Ctupamahu@worldbank.org Web: http://www.worldbank.org/et E-mail: cpereira@worldbank.org Web: http://www,worldbank.org/gw Iran Gabon2 The World Bank Liaison Office Mr. Olivier P. Fremond Guyana No. 39, Shahrazad Blv., Darrous Banque Mondiale Mr. Giorgio Valentini Tehran, Iran Quartier: Derrière le Palais de Justice The World Bank Tel: (98-21) 2288 1947 P.O. Box 4027 UNDP Building Fax: (98-21) 2288 1948 Libreville, Gabon 42 Brickdam and UN Place Tel: (241) 73 81 68 /71 /72 Stabroek Iraq Fax: (241) 73 81 69 Georgetown, Guyana Mr. Jean-Michel Happi E-mail: Ofremond@worldbank.org Tel: (592) 223 5036 The World Bank Web: http://www.worldbank.org/ga Fax: (592) 225 1384 5th Floor, Tower C E-mail: gvalentini@worldbank.org Ministry of Planning, Freedom Building Gambia, The Web: http://www.worldbank.org/gy Haifa Street, Baghdad, Iraq Mr. Badara Alieu Joof (postal Address: Mailstop BGWWB The World Bank Liaison Office Haiti 1818 H Street N.W. Washington, DC, USA) c/o UN House, UNDP Complex Mr. Eustache Ouayoro Tel: + 1 703 5446967 5 Koffi Annan Street, Cape Point Banque Mondiale E-mail: Jhappi@worldbank.org P.O. Box 553 10, Rue Frank Cardozo Web: http://www.worldbank.org/iq Banjul, The Gambia (near Montana Hotel) Tel: (220) 449-7936, 449-4775, 449-8089 Pétion-Ville, Haiti Iraq (Interim Office in Amman) Fax: (220) 449-8090 Tel: (509) 256-0844 Mr. Ziad Badr E-mail: bjoof@worldbank.org Fax: (509) 513-1789 The World Bank Group Web: http://www.worldbank.org/gm E-mail: Eouayoro@worldbank.org Interim Iraq Office in Amman Web: http://www.worldbank.org/ht T16 Ahmed Orabi Street Georgia1, 2 Shmeisani - Amman, Jordan Mr. Asad Alam Honduras2 (postal address: P.O. Box 930375 The World Bank Group Mr. Geoffrey H. Bergen Amman, Jordan 11193) 5A, 1st Drive, Chavchavadze Avenue The World Bank Group Tel: (962-6) 568-5060 Tbilisi, 0179 Georgia Centro Financiero UNO, 4to Piso Fax: (962-6) 568-5067 Tel: (995-32) 91 30 96 Boulevard San Juan Bosco E-mail: Zbadr@worldbank.org Fax: (995-32) 91 34 78 Colonia Payaquí Web: http://www.worldbank.org/iq E-mail: Aalam@worldbank.org Apartado Postal 3591 Web: http://www.worldbank.org/eca Tegucigalpa, Honduras Jamaica Tel: (504) 239-4551 Mr. Badrul Haque 1, 2 Ghana Fax: (504) 239-4555 The World Bank Group Mr. Ishac Diwan E-mail: Gbergen@worldbank.org Courtleigh Corporate Centre, 3rd Floor The World Bank Web: http://www.worldbank.org/hn 6 St. Lucia Avenue 69 Dr. Isert Road Kingston 5, Jamaica North Ridge Residential Area India2 Tel: (876) 960-0459 Accra, Ghana Mr. N. Roberto Zagha Fax: (876) 960-0463 (postal address: P.O. Box M. 27) The World Bank Email: bhaque@worldbank.org Tel: (233-21) 229681 70 Lodi Estate Web: http://www.worldbank.org/jm Fax: (233-21) 227887 New Delhi 110 003, India E-mail: Idiwan@worldbank.org (postal address: P.O. Box 416, New Delhi 110 001) Kazakhstan1, 2 Web: http://www.worldbank.org/gh Tel: (91-11) 2461 7241 Mr. Motoo Konishi Fax: (91-11) 2461 9393 The World Bank Group E-mail: Nzagha@worldbank.org Central Asia Regional Office Web: http://www.worldbank.org.in/ 41/A Kazybek bi Street, 4th Floor 050010 Almaty, Kazakhstan Tel: (7-727) 298 -0580 Fax: (7-727) 298-0581 Email: Mkonishi@worldbank.org Web: http://www.worldbank.org.kz/ 1. Country Directors are in the country office. 2. Public Information Center also located within this country. Kazakhstan, Astana2 Lesotho2 Mauritania2 Mr. Sergei I. Shatalov Mr. Husam Abudagga Mr. François Rantrua The World Bank Astana Office The World Bank Liaison Office Banque Mondiale 12 Samal Microdistrict, 14th Floor UN House Villa No. 30, Lot A Astana Towers 13 United Nations Road Quartier Socogim 010000 Astana, Kazakhstan Maseru, Lesotho Nouakchott, Mauritanie Tel: (7-7172) 580-555 Tel: (266) 22 21 7000 (postal address: B.P. 667) Fax: (7-7172) 580-342 Fax: (266) 22 21 7034/5 Tel: (222) 525 10 17 E-mail: Sshatalov@worldbank.org E-mail: Habudagga@worldbank.org Fax: (222) 525 13 34 Web: http://www.worldbank.org.kz/ Web: http://www.worldbank.org/ls E-mail: Frantrua@worldbank.org Web: http://www.worldbank.org/mauritania Kenya2 Liberia Mr. Johannes C. M. Zutt Mr. Ohene Owusu Nyanin Mauritius The World Bank The World Bank Group Mr. Constantine Chikosi Hill Park Building Bright Building The World Bank Liaison Office Upper Hill Road Mamba Point 3rd Floor Médine Mews Nairobi, Kenya Monrovia, Liberia Chaussée Street (postal address: P.O. Box 30577-00100) Tel: (231-6) 606-967/48 Port-Louis, Mauritius Tel: (254-20) 322 6000 E-mail: Onyanin@worldbank.org Tel: (230) 203 2500 Fax: (254-20) 322 6382 Web: http://www.worldbank.org/lr Fax: (230) 208 0502 Email: jzutt@worldbank.org E-mail: Cchikosi@worldbank.org Web: http://www.worldbank.org/ke Macedonia, Former Yugoslav Republic of2 Web: http://www.worldbank.org/mauritius Mr. Markus Repnik Kosovo2 The World Bank Mexico1, 2 Mr. Ranjit Nayak 34 Leninova Street Mr. Axel van Trotsenburg The World Bank 1000 Skopje, FYR Macedonia Banco Mundial Muje Ulqinaku No. 3, Tel: (389-2) 3117-159 Insurgentes Sur 1605, Piso 24 Pristina 10000, Kosovo Fax: (389-2) 3117-627 San Jose Insurgentes Tel: (381-38) 249 459 E-Mail: Mrepnik@worldbank.org 03900 Mexico, D.F., Mexico Fax: (381-38) 249 780 Web: http://www.worldbank.org.mk/ Tel: (52-55) 5480-4200 E-mail: Rnayak@worldbank.org Fax: (52-55) 5480-4222 Web: http://www.worldbank.org/kosovo Madagascar2 E-mail: Avantrotsenburg@worldbank.org Mr. Adolfo Brizzi Web: http://www.worldbank.org/mx Kuwait The World Bank Group Mr. Radwan Ali Shaban Rue Andriamifidy L. Razafimanantsoa Moldova2 The World Bank Group Anosy (près du Ministère des Affaires Etrangères) Ms. Melanie Marlett 10th Commercial Area, Block 10 Antananarivo 101, Madagascar The World Bank Sahat Al-Safat Street (postal address: B. P. 4140) 20/1, Pushkin St. Baitak Tower, Floor 28 Tel: (261-20) 225 6000 MD-2012, Chisinau Kuwait City, Kuwait Fax: (261-20) 223 3338 Moldova (postal address: P.O. Box 1015, Safat 13010) E-mail: Abrizzi@worldbank.org Tel: (373-22) 200 706 Tel: (965) 2291 3500/2/3 Web: http://www.worldbank.org/madagascar Fax: (373-22) 237 053 Fax: (965) 2291 3520 E-mail: Mmarlett@worldbank.org E-mail: rshaban@worldbank.org Malawi2 Web: http://www.worldbank.org.md Web: http://www.worldbank.org/mna Mr. Timothy R. Gilbo The World Bank Mongolia2 Kyrgyz Republic2 Mulanje House Mr. Arshad Sayed Mr. Roger Robinson Plot 13/57 off Presidential Way The World Bank Group The World Bank Group City Centre 5 F, MCS Plaza Building 214, Moskovskaya Str., Lilongwe 3, Malawi Seoul Street-4 Bishkek 720010, Kyrgyz Republic (postal address: P.O. Box 30557) Ulaanbaatar 210644, Mongolia Tel: (996-312) 45 40 40 Tel: (265-1) 770 611 Tel: (976-11) 312-647 or 312-654 Fax: (996-312) 35 29 94 Fax: (265-1) 771 158 / 773 908 Fax: (976-11) 312-645 E-mail: Rrobinson@worldbank.org E-mail: Tgilbo@worldbank.org E-mail: Asayed@worldbank.org Web: http://www.worldbank.org.kg Web: http://www.worldbank.org/mw Web: http://www.worldbank.org.mn Lao People's Democratic Republic2 Maldives Montenegro Mr. Patchamuthu Illangovan Ms. Naoko Ishii Mr. Jan-Peter Olters The World Bank The World Bank The World Bank Pathou Xay, Nehru Road 2 Floor, Hithigasdhoshuge Aage c/o Central Bank of Montenegro (P.O. Box 345 Code 01004) Hakuraa Goalhi Bulevar Svetog Petra Cetinjskog 6 Vientiane, Lao PDR Male', Maldives MNE - 81000 Podgorica, Montenegro Tel: (856-21) 414-209, 450-010 Tel: (960) 334 1910 Tel: (382-20) 403-295 Fax: (856-21) 414-210 Fax: (960) 334 1911 Fax: (382-20) 665-353 E-mail: Pillangovan@worldbank.org E-mail: Nishii@worldbank.org E-mail: jolters@worldbank.org Web: http://www.worldbank.org/la Web: http://www.worldbank.org/maldives Web: http://www.worldbank.org.me Lebanon2 Mali2 Morocco 2 Mr. Demba Ba Mr. Alassane Diawara Ms. Françoise Clottes The World Bank Group Banque Mondiale The World Bank Group Bourie House 119 Immeuble SOGEFIH, 7, Rue Larbi Ben Abdellah Abdallah Bayhum Street Centre Commercial, Rue 32 Rabat-Souissi, Morocco Marffaa, Solidere Quartier du Fleuve Tel: (212-537) 63.60.50 P.O. Box 11-8577 Bamako, Mali Fax: (212-537) 63.60.51 Beirut, Lebanon (postal address: B. P. 1864) E-mail: Fclottes@worldbank.org Tel: (961-1) 987 800 Tel: (223) 222 22 83 Web: http://www.worldbank.org/ma Fax: (961-1) 986 800 Fax: (223) 222 66 82 E-mail: Dba@worldbank.org E-mail: Adiawara@worldbank.org Mozambique2 Web: http://www.worldbank.org/lb Web: http://www.worldbank.org/ml Mr. Luiz Claudio Martins Tavares (Acting) The World Bank Group Avenue Kenneth Kaunda, 1224 Maputo, Mozambique (postal address: Caixa Postal 4053) Tel: (258-21) 482 300 Fax: (258-21) 492 893, 482 385 E-mail: Ltavares@worldbank.org Web: http://www.worldbank.org/mz 1. Country Directors are in the country office. 2. Public Information Center also located within this country. Nepal1, 2 Paraguay2 Saudi Arabia Ms. Susan G. Goldmark Ms. Rossana Polastri Mr. Jamal Al-Kibbi The World Bank Group Banco Mundial The World Bank Group Yak & Yeti Hotel Complex Edificio Naciones Unidas 1st Floor, UNDP Building, Diplomatic Quarter Durbar Marg Av. Mariscal Lopez y Saravi (opposite the parking area of the American Kathmandu, Nepal Asunción, Paraguay Embassy) (postal address: P.O. Box 798) Tel: (595-21) 664-000 Riyadh, Saudi Arabia Tel: (977-1) 4226792 Fax: (595-21) 664-002 (postal address: P.O. Box 5900, Fax: (977-1) 4225112 Email: Rpolastri@worldbank.org Riyadh 11432, Saudi Arabia) E-mail: sgoldmark@worldbank.org Web: http://www.worldbank.org/py Tel: (966-1) 483-4956 Web: http://www.worldbank.org/np Fax: (966-1) 488-5311 Peru1, 2 Email: Jkibbi@worldbank.org Nicaragua2 Mr. Carlos Felipe Jaramillo Web: http://www.worldbank.org/sa Mr. Joseph Owen The World Bank Group The World Bank Group Avenida Alvarez Calderón 185 Senegal1, 2 Plaza Santo Domingo Piso 7, San Isidro Mr. Habib M. Fetini Kilómetro 6.5 Carretera Masaya Lima, Peru Banque Mondiale Edificio Cobirsa, Quinto Piso Tel: (51-1) 615-0660 Corniche Ouest X David Diop Managua, Nicaragua Fax: (51-1) 421-7241 Dakar, Sénégal Tel: (505) 2270-0000 E-mail: cjaramillo@worldbank.org (postal address: B.P. 3296) Fax: (505) 2270-0077 Web: http://www.worldbank.org/pe Tel: (221) 33-859-4000 E-mail: Jowen@worldbank.org Fax: (221) 33-859-4283 Web: http://www.worldbank.org/ni Philippines1, 2 E-mail: HFetini@worldbank.org Mr. Bert Hofman Web: http://www.worldbank.org/sn Niger2 The World Bank Mr. Ousmane Diagana 23/F, The Taipan Place Building Serbia2 Banque Mondiale F. Ortigas Jr. Road, Ortigas Center Mr. Neil Simon Gray 187, Rue des Dallols Pasig City, Metro Manila, Philippines 1605 The World Bank Group B.P. 12402 Tel: (63-2) 637-5855 Bulevar Kralja Aleksandra 86-90 Niamey, Niger Fax: (63-2) 637-5870 11000 Belgrade, Serbia Tel: (227) 20 72 21 88 E-mail: Bhofman@worldbank.org Tel: (381-11) 3023-700 Fax: (227) 20 73 55 06 Web: http://www.worldbank.org.ph Fax: (381-11) 3023-732 E-mail: Odiagana@worldbank.org E-mail: Ngray@worldbank.org Web: http://www.worldbank.org/ne Poland2 Web: http://www.worldbank.org.yu/ Mr. Thomas Blatt Laursen Nigeria1, 2 The World Bank Group Sierra Leone2 Mr. Onno Ruhl 53, Emilii Plater St. Mr. Engilbert Gudmundsson The World Bank Warsaw Financial Center, 9th Floor The World Bank 102, Yakubu Gowon Crescent 00-113 Warsaw, Poland Africanus House Opposite ECOWAS Secretariat Tel: (48-22) 520 8000 13A Howe Street Asokoro District Fax: (48-22) 520 8001 Freetown, Sierra Leone Abuja, Nigeria E-mail: tlaursen@worldbank.org Tel: (232-22) 227555 (postal address: P.O. Box 2826, Garki) Web: http:/www.worldbank.org.pl/ Tel: (232-76) 806467, 806468 Tel: (234) 8058205408; 8058205422 Fax: (232-22) 228555 Tel : (234) 7035830641-44; 7089996090-1 Romania2 E-mail: Egudmundsson@worldbank.org Fax: (234-9) 314-5267 Mr. Benoit Blarel Web: http://www.worldbank.org/sl E-mail: Oruhl@worldbank.org The World Bank Group Web: http://www.worldbank.org/ng Armand Calinescu, 2­4 Singapore Millennium Business Center, 8th Fl. Ms. Tina Taheri Moayed 1, 2 Pakistan Sector 2 The World Bank Group Mr. Yusupha B. Crookes Bucharest, Romania 10 Shenton Way The World Bank Group Tel: (40-21) 201-0311 MAS Building #15-08 20 A Shahrah-e-Jamhuriyat, Ramna 5 Fax: (40-21) 201-0338 Singapore, 079117 Sector G-5/1, Islamabad, Pakistan E-mail: bblarel@worldbank.org Tel: (65) 6501-5500 (postal address: P.O. Box 1025) Web: http://www.worldbank.org.ro/ Direct: (65) 6501-5515 Tel: (92-51) 2279641-6 Fax: (65) 6324-4615, 6501 5510 Fax: (92-51) 2279648 Russian Federation1, 2 Email: ttaheri@worldbank.org E-mail: Ycrookes@worldbank.org Mr. Klaus Rohland Web: www.worldbank.org/sg Web: http://www.worldbank.org.pk The World Bank Group Bolshaya Molchanovka 36-1 Solomon Islands Panama 121069 Moscow, Russian Federation Ms. Edith Bowles Mr. Frederic de Dinechin Tel: (7-495) 745-70-00 The World Bank Group The World Bank Fax: (7-495) 745-70-02 Mud Alley Avenida Aquilino De La Guardia y Calle 47 Marbella E-mail: Krohland@worldbank.org Honiara, Solomon Islands Edificio Ocean Business Center Plaza, Web: http://www.worldbank.org.ru/ (postal address: GPO Box 1744) Piso 21, Oficina 2111 Tel: (677) 21444 Panama City, Panama Rwanda2 Fax/ADSL: (677) 21448 Tel: (507) 830-5200 The World Bank Group Mobile: (677) 95196 Fax: (507) 264-6182 Blvd. de la Révolution Email: ebowles@worldbank.org E-mail: Fdedinechin@worldbank.org SORAS Building Web: www.worldbank.org/pi Web: http://www.worldbank.org/panama Kigali, Rwanda (postal address: P.O. Box 609) South Africa1, 2 Papua New Guinea2 Tel: (250) 591 300 Ms. Ruth Kagia Ms. Laura E. Bailey Fax: (250) 591 385 The World Bank The World Bank Group Web: http://www.worldbank.org/rw 442 Rodericks Road Level 13, Deloitte Tower, P.O. Box 1877 Corner Lynnwood and Rodericks Roads, 0081 Port Moresby, National Capital District Pretoria, South Africa Papua New Guinea (postal address: P.O. Box 12629, Tel: (675) 321-7111 Hatfield 0028, Pretoria) Fax: (675) 321-7730 Tel: (27-12) 348 8895 E-mail: Lbailey@worldbank.org Fax: (27-12) 348 7120, 348 7127 Web: http://www.worldbank.org/pg E-mail: Rkagia@worldbank.org Web: http://www.worldbank.org/za 1. Country Directors are in the country office. 2. Public Information Center also located within this country. Sri Lanka1, 2 Togo2 Uzbekistan2 Ms. Naoko Ishii Mr. Joseph Baah-Dwomoh Mr. Loup Brefort The World Bank Banque Mondiale The World Bank Group 1st Floor, DFCC Building 169 Boulevard du 13 Janvier International Business Center, 15th Floor 73/5, Galle Road Immeuble BTCI, 8ème Étage 107 B, Amir Timur Str. Colombo 3, Sri Lanka Lomé, Togo Tashkent, Uzbekistan 100084 (postal address: P.O. Box 1761) (postal address: Boite Postale 3915) Tel: (998-71) 238 59 50 Tel: (94-11) 2448070/1 Tel: (228) 223 33 00, 221 57 77 Fax: (998-71) 238 59 51, 238 59 52 Fax: (94-11) 2440357 Fax: (228) 221 78 56 E-mail: Lbrefort@worldbank.org E-mail: Nishii@worldbank.org E-mail: Jbaahdwomoh@worldbank.org Web: http://www.worldbank.org.uz Web: http://www.worldbank.org/srilanka Web: http://www.worldbank.org/tg Vietnam1, 2 Sudan2 Tunisia2 Ms. Victoria Kwakwa Mr. Laurence Clarke Mr. Ndiame Diop The World Bank Group The World Bank Bureau de Liaison Banque Mondiale 63 Ly Thai To, 8th Floor Plot 39, Street 39 s/c Banque Africaine de Developpement Hoan Kiem District Khartoum East (II) Bloc EPI C, 10ième Étage Hanoi, Vietnam Khartoum, Sudan 16, Rue Hedi Nouira Tel: (84-4) 3934-6600 (postal address: P.O. Box 229) BP 323 Fax: (84-4) 3934-6597 Tel: (249) 156 55 3000 1002 Tunis Belvédère E-mail: Vkwakwa@worldbank.org Fax: (249)156 55 3064 Tunisia Web: http://www.worldbank.org/vn E-mail: Lclarke@worldbank.org Tel: (216-71) 10 35 78 Web: http://www.worldbank.org/sd Fax: (216-71) 10 37 66 West Bank and Gaza1, 2 E-mail: ndiop@worldbank.org Mr. A. David Craig Sudan, Juba Web: http://www.worldbank.org/tn The World Bank Group Mr. Laurence Clarke P.O. Box 54842 The World Bank Group Sub-office Turkey1, 2 Jerusalem Ministries Complex Mr. Ulrich Zachau Al-Ram Tel: (972-2) 236 6500 Kololo Road, Opposite Ministry of Health The World Bank Al-Ram Fax: (972-2) 236 6543 Juba, Sudan Ugur Mumcu Caddesi No. 88, Kat: 2 Gaza Tel: (972-8) 282 3422 Tel: (249)126 43 2998; 129 01 6902 06700 Gaziosmanpasa Gaza Fax: (972-8) 282 4296 E-mail: Lclarke@worldbank.org Ankara, Turkey E-mail: Acraig@worldbank.org Web: http://www.worldbank.org/sd Tel: (90-312) 459 83 00 Web: http://www.worldbank.org/ps Fax: (90-312) 446 24 42 Tajikistan2 E-mail: Uzachau@worldbank.org Yemen, Republic of2 Ms. Chiara Bronchi Web: http://www.worldbank.org.tr/ Mr. Benson Ateng The World Bank Group The World Bank Group Shevchenko Str. 91-10 Turkmenistan2 Hadda Street No. 40 734025 Dushanbe, Tajikistan The World Bank Liaison Office off Damascus Road Tel: (992-372) 210-756, 210-381 United Nations Building Sana'a, Republic of Yemen Fax: (992-372) 510-042 Galkynysh Street, 40 (postal address: P.O. Box 18152) E-Mail: Cbronchi@worldbank.org Ashgabat 744000, Turkmenistan Tel: (967-1) 413 708 Web: http://www.worldbank.org/tj Tel: (993-12) 350477 Fax: (967-1) 413 709 Fax: (993-12) 351693 E-mail: Bateng@worldbank.org Tanzania1, 2 Web: http://www.worldbank.org/tm Web: http://www.worldbank.org/ye Mr. John Murray McIntire The World Bank Uganda2 Zambia2 50 Mirambo Street Ms. Kundhavi Kadiresan Mr. Kapil Kapoor Dar es Salaam, Tanzania The World Bank Group The World Bank (postal address: P.O. Box 2054) Plot 1, Lumumba Avenue Pyramid Plaza Tel: (255-22) 2163200 Rwenzori House Plot #746 Church Road Fax: (255-22) 2113039, 2163295 Kampala, Uganda Cathedral Hill E-mail: Jmcintire@worldbank.org (postal address: P.O. Box 4463) P. O. Box 35410 Web: http://www.worldbank.org/tz Tel: (256-414) 230-094 Lusaka, Zambia Fax: (256-414) 230-092 Tel: (260-21) 125-2811 Thailand1, 2 E-mail: Kkadiresan@worldbank.org Fax: (260-21) 125-4283 Ms. Annette Dixon Web: http://www.worldbank.org/ug E-mail: kkapoor@worldbank.org The World Bank Group Web: http://www.worldbank.org/zm 30th Floor, Siam Tower Ukraine1, 2 989 Rama 1 Road, Pathumwan Mr. Martin Raiser Zimbabwe2 Bangkok 10330, Thailand The World Bank Mr. Nginya Mungai Lenneiye (Acting) Tel: (66-2) 686-8300 1, Dniprovsky Uzviz The World Bank Fax: (66-2) 686-8301 Kyiv 01010, Ukraine Old Lonrho Building E-mail: adixon@worldbank.org Tel: (380-44) 490 6671 88 Nelson Mandela Avenue Web: http://www.worldbank.or.th Fax: (380-44) 490 6670 Harare, Zimbabwe E-mail: mraiser@worldbank.org (postal address: P.O. Box 2960) Timor-Leste2 Web: http://www.worldbank.org.ua/ Tel: (263-4) 702285 ; 701233/4 ; 708347 Mr. Antonio S. Franco Fax: (263-4) 708-659 The World Bank Group Uruguay2 E-mail: nlenneiye@worldbank.org Avenida Dos Direitos Humanos Mr. David E. Yuravlivker Web: http://www.worldbank.org.zw/ Dili, Timor-Leste Banco Mundial (postal address: World Bank Mission, Calle Buenos Aires 570, Piso 3 Timor-Leste, GPO Box 3548, Darwin CP11000 NT 0801, Australia) Montevideo, Uruguay Tel: (670) 332-4649, 332-4648 Tel: (598-2) 916-9400 Fax: (670) 332-1178 Fax: (598-2) 916-9400 ext. 3701 E-mail: afranco@worldbank.org E-mail: Dyuravlivker@worldbank.org Web: http://www.worldbank.org/tl Web: http://www.worldbank.org/uy 1. Country Directors are in the country office. 2. Public Information Center also located within this country. PUBLIC INFORMATION CENTERS AND SERVICES | JUNE 30, 2009 Afghanistan ....also Afghanistan Development Information Corner Public Information Center Kabul University, Ali Abad Road, Jamal Mina, Universidad Nacional de Buenos Aires, Facultad de Ciencias Económicas, Kabul Cordoba 2122, Afghanistan Buenos Aires Operation hours: Saturday­Thursday, 8:00 a.m.­4:00 p.m. Argentina Contact: Farooq, Mohammad Rafi Operation hours: Monday­Friday, 8:00 a.m.­10:45 p.m. E-mail: rfarooq@worldbank.org ....also ....also Public Information Center Universidad de San Andrés Afghanistan Public Information Center and Services Vito Dumas 284 (B1644BID), The World Bank Country Office, H. 19, St. 15, next to Canadian Embassy, Wazir Victoria Akbar Khan, Argentina Kabul Operation hours: Monday­Friday, 8:30 a.m.­7:00 p.m.; Saturday, 8:30 a.m.­ Afghanistan 5:30 p.m. Operation hours: Sunday­Thursday, 8:00 a.m.­12:30 p.m. and 1:30 p.m.­ 4:30 p.m. ....also Public Information Center Universidad Nacional del Litoral, Facultad de Ciencias ....also Económicas Biblioteca Development Information Corner 25 de mayo 1783, 3000 Afghanistan National Assembly Library, Darul Aman Road, Santa Fe Kabul Argentina Afghanistan Operation hours: Monday­Friday, 7:30 a.m.­1:00 p.m. and 2:00 p.m.­8:00 p.m. Operation hours: Saturday-Thursday, 8:00 a.m.­12:30 p.m. and 1:30 p.m.­ 4:00 p.m. Armenia Armenia Public Information Center and Services ....also American University of Armenia Knowledge for Development Center Development Information Corner, Herat Public Library 40 Bagramyan Avenue, 0019 Park Farhang, Yerevan Herat City Armenia Afghanistan Operation hours: Monday­Friday, 9:00 a.m.-9:00 p.m. Operation hours: Saturday­Thursday, 8:00 a.m.­4:00 p.m. Contact: Mnatsakanyan, Tatevik E-mail: tmnatsakanyan@worldbank.org Albania Albania Public Information Center and Services Azerbaijan The Library of the Faculty of Economy, Tirana University Rr. Elbasanit, Azerbaijan Public Information Center and Services Tirana State Economic University, 1st Floor, 6, Istiglaliyyat Str., 370004 Albania Baku Operation hours: Monday­Friday, 8:30 a.m.­5:00 p.m. Azerbaijan Contact: Haxhiaj, Kozeta Operation hours: Monday­Friday, 10:00 a.m.­1:00 p.m. and 2:00 p.m.­5:00 p.m. E-mail: picalbania@worldbank.org Contact: Jafarova, Sabina E-mail: sjafarova@worldbank.org Algeria Centre Public d'Information, Chambre Algerienne de Commerce et d' Industrie Bangladesh (CACI) Bangladesh Public Information Center and Services 6, Bvd. Amilcar Cabral, Place des Martyrs, 16035 The World Bank Plot # E 32, Agargaon, Sher-e-Bangla Nagar, Algiers Dhaka 1207 Algeria Bangladesh Operation hours: Saturday­Wednesday: 8:30 a.m.­12:00 p.m. and 1:00 p.m.­ Operation hours: Sunday­Thursday, 9:00 a.m.­4:30 p.m. 4:30 p.m. Contact: Mazid, Muhammad Contact: Merabet, Nawal E-mail: mmazid@worldbank.org E-mail: cpialgerie@worldbank.org Belarus Angola Belarus Public Information Center and Services Angola Public Information Services The World Bank, 2A Gertsena Street, Largo Albano Machado N° 23­25, C.P. 1331, Minsk Luanda Belarus Angola Operation hours: Monday­Friday, 1:00 p.m.­5:00 p.m. Operation hours and phone inquiries (+244 2 394677): Monday, Wednesday, Contact: Oleinik, Irina Thursday, 9:00 a.m.­12:30 p.m. and 2:30 p.m.­5:00 p.m. E-mail: ioleinik@worldbank.org Contact: Carvalho, Ana Maria E-mail: acarvalho1@worldbank.org Benin Centre d'Information du Public Argentina Avenue Jean Paul II, Route de l'Aéroport Face Hôtel Marina ex-Sheraton, 03 BP Argentina Public Information Services 2112 The World Bank, Bouchard 547 Piso 29, 1106 Cotonou Buenos Aires Benin Argentina Operation hours: Monday­Friday, 9:00 a.m.­1:00 p.m. Operation hours and phone inquiries (+54 11 4316 3664): Monday­Friday, Contact: Allake Dende, Nadiath 9:00 a.m.­5:00 p.m. E-mail: ndende@worldbank.org Contact: Crerar, Carolina E-mail: ccrerar@worldbank.org Bolivia, Plurinational State of Servicios de Información en Desarrollo y Comunicación (Sidecom), Marcelo ....also Quiroga Santa Cruz Information and Documentation Center Av. 6 de Agosto # 2577, Edf. Las Dos Torres, Planta Baja, Ministry of Economy, Hipólito Yrigoyen 250, Oficina 200, 1310 La Paz Buenos Aires Plurinational State of Bolivia Argentina Operation hours: Monday­Friday, 10:00 a.m.­12:00 p.m. and 3:00 p.m.­ Operation hours: Monday­Friday, 9:00 a.m.-5:00 p.m. 7:00 p.m. Contact: Encinas, Claudia E-mail: cencinas@worldbank.org ....also ....also Biblioteca Municipal de Santa Cruz The World Bank Public Information Center Corner Sala de Referncia. Plazuela del Estudiante, frente al Palacio de Justicia, University of South-East Asia (USEA), Wat Bo Village, Siem Reap district, Santa Cruz Salakamroek Commune Plurinational State of Bolivia Cambodia Operation hours: Monday­Friday, 8:00 a.m.­12:00 p.m. and 3:00 p.m.­7:00 Operation hours: Monday­Saturday, 7:00 a.m.­12:00 p.m. and 2:00 p.m.­ p.m.; Saturday, 8:00 a.m.­12:00 p.m. 5:00 p.m. ....also ....also Biblioteca Municipal de Cochabamba The World Bank Public Information Center Corner Av. Heroínas # 0399 y 25 de Mayo, 2nd Floor, Western University (WU), No. 171­173, Cochabamba Preah Ang Eng Street Plurinational State of Bolivia Cambodia Operation hours: Monday­Friday, 8:00 a.m.-12:00 p.m. and 3:00 p.m.-6:30 p.m. Operation hours: Monday­Sunday, 7:15 a.m.­12:00 p.m. and 2:00 p.m.­ 6:00 p.m Bosnia and Herzegovina Bosnia and Herzegovina Public Information Center and Services ....also School of Economics and Business, E-Net Center, 3rd Floor, Trg Oslobodjenja 1, The World Bank Public Information Center Corner 71000 Paññasastra University of Cambodia, Street Spean Diach Chas (Previous) Sarajevo Romcheak Boun village, Rattanak commune, Bosnia and Herzegovina Battambang district Operation hours: Monday­Friday, 9:00 a.m.­5:00 p.m. Cambodia Contact: Tanic, Sanja Operation hours: Monday­Friday, 7:30 a.m.­12:00 p.m. and 1:30 p.m.­8:15 E-mail: stanic1@worldbank.org p.m.; Saturday-Sunday, 7:30 a.m.­12:00 p.m. and 1:30 p.m.­5:30 p.m. Botswana ....also Botswana Development Information Center The World Bank Public Information Center Corner Botswana Institute for Development Policy Analysis (BIDPA), Ground Floor Royal University of Agriculture (RUA), Chamkar Doung village, Sangkat Dangkor, BIDPA House, Millennium Park, Plot 134, Kgale View, Private Bag BR-29 Khan Dong Kor, Gaborone Phnom Penh Botswana Cambodia Operation hours: Monday, 10:00 a.m.­1:00 p.m. and 2:00 p.m.­5:00 p.m.; Operation hours: Monday­Friday, 8:00 a.m.­11:30 a.m. and 1:00 p.m.­5:00 p.m. Tuesday­Friday, 9:00 a.m.­1:00 p.m. and 2:00 p.m.­5:00 p.m. Contact: Seoposengwe, Mmenyane Cameroon E-mail: mseoposengwe@worldbank.org Cameroon Public Information Center and Services 1792 rue Bastos Ekoudou, Brazil Yaounde Brazil Public Information Services Cameroon The World Bank, Setor Comercial Norte, Quadra 2, Lote A Edifício Corporate Operation hours: Monday­Friday, 11:00 a.m.­3:00 p.m. Financial Center Sétimo andar, salas 702-703, 70712-900 Contact: Pieume, Helene Brasilia DF E-mail: hpieume@worldbank.org Brazil Operation hours and phone inquiries (+ 55 61 3329 1099): Monday­Friday, Chile 9:00 a.m.­6:00 p.m. Punto de difusión de las publicationes del Banco mundial Contact: Marinho, Denise Universidad de Chile, Facultad de Ciencias Económicas, Diagonal Paraguay E-mail: dmarinho@worldbank.org 257, Santiago Centro, Santiago Bulgaria Chile Bulgaria Public Information Services Operation hours: Monday­Friday, 9:00 a.m.­7:50 p.m.; Saturday, 10:00 a.m.­ The World Bank, Interpred World Trade Center, 36, Dragan Tsankov Blvd., 1057 1:00 p.m. Sofia Contact: Crerar, Carolina Marcela Bulgaria E-mail: ccrerar@worldbank.org Operation hours and phone inquiries (+359 2 969 7239): Monday­Friday, 9:00 a.m.­5:00 p.m. China Contact: Taushanova, Ivelina China Public Information Center and Services E-mail: itaushanova@worldbank.org The World Bank, Level 16, China World Tower 2, No. 1 Jianguomenwai Avenue, 100004 Burkina Faso Beijing Burkina Faso Public Information Center and Services China Bureau de la Banque mondiale au Burkina Faso 179, avenue du Président Saye Operation hours: Monday­Friday, 9:00 a.m.­11:30 a.m. and 1:30 p.m.­5:00 p.m. Zerbo, Zone des Ambassades Secteur 04, Contact: Yu, Ying Ouagadougou E-mail: yyu@worldbank.org Burkina Faso Operation hours: Monday­Friday, 9:00 a.m.­12:00 p.m. and 3:00 p.m.­5:00 pm ....also Contact: Yaro, Lionel Ningxia University Information Center E-mail: lyaro@worldbank.org No. 21, Wencui Beijie, Xixia District, 750021 Yinchuan Burundi China Centre d'Information au Public Operation hours: Monday­Friday, 9:30 a.m.­11:30 a.m. and 2:30 p.m.­5:00 p.m. La Banque mondiale, avenue de l'Aviation, Bujumbura ....also Burundi Guizhou School of Administration Information Center Operation hours: Monday­Thursday, 9:00 a.m.­12:00 p.m. Huaxi District, 550028 Contact: Nzeyimana, Marie-Claire Guiyang E-mail: mnzeyimana@worldbank.org China Operation hours: Monday­Friday, 9:30 a.m.­11:30 a.m. and 2:30 p.m.­5:00 p.m. Cambodia Cambodia Public Information Center and Services ....also The World Bank, # 70, Norodom Blvd., China NPO Network Information Center Phnom Penh Room 403, Unit 7, Building 2, New Era Garden, Wanliuzhonglu, Haidian District, Cambodia 100089 Operation hours: Monday­Friday, 9:00 a.m.­12:00 p.m. and 2:00 p.m.­5:00 p.m. Beijing Contact: Sam Oeun, Sophinith China E-mail: ssamoeun@worldbank.org Operation hours: Monday­Friday, 9:30 a.m.­11:30 a.m. and 2:30 p.m.­5:00 p.m. ....also ....also Xi'an University of Architecture & Technology Information Center Library of Congress of Luis Carlos Galán Sarmiento 37, Xijianda, No. 13, Yanta Road, 710055 Casa de la Candelaria Carrera 6ª No. 8­94, Xi'an Bogotá China Colombia Operation hours: Monday­Friday, 9:30 a.m.­11:30 a.m. and 2:30 p.m.­5:00 p.m. Operation hours: Monday­Friday, 9:00 a.m.­5:00 p.m. ....also Congo, Democratic Republic of Gansu School of Administration Information Center Democratic Republic of Congo Public Information Center and Services 926 Yantan Road, Chengguan District, 730000 Avenue Wagenia, No. 4847, Lanzhou Kinshasa-Gombe China Democratic Republic of Congo Operation hours: Monday­Friday, 9:30 a.m.­11:30 a.m. and 2:30 p.m.­5:00 p.m. Operation hours: Monday­Friday, 9:30 a.m.­4:30 p.m. Contact: Bobutaka, Bob ....also E-mail: bbobutaka@worldbank.org Qinghai School of Administration Information Center 2, Huanghe Road, 810001 Congo, Republic of Xining Centre d'information du public China BDEAC Building, 2nd Floor, Avenue de la Revolution, Operation hours: Monday­Friday, 9:30 a.m.­11:30 a.m. and 2:30 p.m.­5:00 p.m. Brazzaville Congo ....also Operation hours: Monday­Friday, 2:00 p.m.­6:00 p.m. Chongging Technology & Business University Information Center Contact: Maoungou, Clementine Xuefu Ave. (Wogongli), Nan'an District, 400067 E-mail: cmaoungou@worldbank.org Chongqing China Côte d'Ivoire Operation hours: Monday­Friday, 9:30 a.m.­11:30 a.m. and 2:30 p.m.­5:00 p.m. Côte d'Ivoire Public Information Center and Services Corner of Booker Washington and Jacques Aka Street, (Ground Floor) Cocody, ....also Abidjan Personnel Department of Guangxi Zhuang Autonomous Region Information Côte d'Ivoire Center Operation hours: Monday­Thursday, 9:30 a.m.­12:00 p.m. and 3:00 p.m.­ 2-1 Bei-er-li, Xinghu Road, 530022 5:00 p.m. Nanning Contact: Deciat, Grace Agouna China E-mail: gdeciat@worldbank.org Operation hours: Monday­Friday, 9:30 a.m.­11:30 a.m. and 2:30 p.m.­5:00 p.m. Croatia ....also Croatia Public Information Center and Services Yunan University Information Center National and University Library (NSK), Ulica Hrvatske bratske zajednice 4, p.p. 52, Hubei Road, 650029 550, 10 000 Kuming Zagreb China Croatia Operation hours: Monday­Friday, 9:30 a.m.­11:30 a.m. and 2:30 p.m.­5:00 p.m. Operation hours: Monday­Friday, 8:00 a.m.­9:00 p.m.; Saturday, 8:00 a.m.­ 3:00 p.m. ....also Contact: Frajtic, Vanja Sichuan School of Administration Information Center E-mail: vfrajtic@worldbank.org 43, Xiguanghualin, 610072 Chendu Dominican Republic China Centro de Información y Documentación para el Desarrollo Operation hours: Monday­Friday, 9:30 a.m.­11:30 a.m. and 2:30 p.m.­5:00 p.m Pontificia Universidad Catolica Madre y Maestra, 3er piso Biblioteca Rafael Herrera Cabral, (Recinto Santo Tomas de Aquino), Ave. Lincoln esq. Bolivar., ....also Santo Domingo Xinjiang School of Administration Information Center Dominican Republic No. 22, Xihoujie, 830002 Operation hours: Monday, Wednesday, Friday, 8:30 a.m.­10:00 p.m. Urumqi Contact: De La Paz Melo, Alejandra China E-mail: adelapaz@worldbank.org Operation hours: Monday­Friday, 9:30 a.m.­11:30 a.m. and 2:30 p.m.­5:00 p.m. Ecuador ....also Ecuador Public Information Center and Services Inner Mongolia School of Administration Information Center Centro Cultural Metropolitano, Sala de Información de los Organismos No. 45, West Road, Wulanchabu, 010010 Internacionales Avenida García Moreno y Espejo esquina, 3er piso, Hohhot Quito China Ecuador Operation hours: Monday­Friday, 9:30 a.m.­11:30 a.m. and 2:30 p.m.­5:00 p.m. Operation hours: Monday­Friday, 8:00 a.m.­4:00 p.m. ....also Egypt, Arab Republic of Library of Renmin University of China Egypt Public Information Center and Services No. 59, Zhongguancun Street, Haidian District, 100872 Institute of National Planning Salah Salem Road, 12211 Beijing Cairo China Egypt Operation hours: Monday­Sunday, 8:30 a.m.­12:00 p.m. and 2:00 p.m.­5:00 Operation hours: Sunday­Thursday, 9:00 a.m.­3:00 p.m. p.m. Contact: El Kouesny, Nehal Hassan E-mail: Nelkouesny@worldbank.org Colombia Centro de información pública ....also The World Bank, Cr 7 # 71­21, Torre A, piso 16, Public Information Center Bogotá D.C. Bibliotheca Alexandrina, 21526 Colombia Alexandria Operation hours: Monday­Friday, 9:00 a.m.­5:00 p.m. Egypt Contact: Ucros, Maria Clara Operation hours: Saturday­Thursday, 11:00 a.m.­7:00 p.m.; Friday, 3:00 p.m.­ E-mail: mucros@worldbank.org 7:00 p.m. ....also ....also Centro de información pública Egypt Public Information Center and Services Biblioteca Luis Angel Arango Carrera 4 No.11­68, The World Bank, 1191 Corniche El-Nil, Floor 15; Boulac, 11221 Bogotá D.C. Cairo Colombia Egypt Operation hours: Monday­Friday, 8:00 a.m.­8:00 p.m. Operation hours: Sunday­Thursday, 9:00 a.m.­5:00 p.m. ....also ....also Public Information Center Development Information Center Sugar Technology Research Institute, Assiut University, Kwame Nkrumah University of Science and Technology (KNUST) Private Mail Assiut Bag, Egypt Kumasi Operation hours: Saturday­Thursday, 9:00 a.m.­3:00 p.m. Ghana Operation hours: Monday­Saturday, 9:00 a.m.­5:00 p.m. El Salvador Public Information Services Banco Mundial ....also 3a Calle Poniente No. 4048 Entre 77 y 79 Ave. Nte Colonia Escalon, Development Information Services Center San Salvador Institute for Policy Alternatives (IPA) Airport Road, PO Box TL541, El Salvador Tamale Operation hours and phone inquiries (+503 2208 8555): Monday­Friday, Ghana 8:00 am­1:00 p.m. and 2:00 pm­5:00 p.m. Operation hours: Monday­Friday, 10:00 a.m.­5:00 p.m. Contact: Bolla, Valeria E-mail: vbolla@worldbank.org ....also Development Information Center Eritrea University of Development Studies, Wa, Upper West Region, Eritrea Public Information Center and Services Tamale 15/17 Tsegai Adig Str., Zone 03, Subzone 01, Ghana Asmara Operation hours: Monday­Friday, 8:30 a.m.­10:00 p.m.; Saturday, 8:30 a.m.­ Eritrea 4:00 p.m. Operation hours: Monday­Friday, 8:00 a.m.­12:00 p.m. and 2:00 p.m.­6:00 p.m. Contact: Woldu, Sofia ....also E-mail: swoldu@worldbank.org Development Information Center University of Cape Coast Library, Ethiopia Cape Coast Ethiopia Public Information Center and Services Ghana The World Bank, Worbek House, Africa Avenue, Bole Road Woreda 17, Kebele Operation hours: Monday­Friday, 9:00 a.m.­10:00 p.m.; Saturday, 9:00 a.m.­ 19, House #402/3, 4:00 p.m. Addis Ababa Ethiopia Guatemala Operation hours: Monday­Friday, 8:30 a.m.­5:30 p.m. Guatemala Public Information Center and Services Contact: Woldemichael, Berhanu Kassa The World Bank, 13 Calle 3-40, Zona 10, Edificio Atlantis, 14 nivel, 01010, E-mail: bwoldemichael@worldbank.org Guatemala City Guatemala ....also Operation hours: Monday­Friday, 10:00 a.m.­12:00 p.m. and 3:00 p.m.­ Development Information Center 5:00 p.m. National Archives Library of Ethiopia, Lideta Sub-City Kebele 53, Contact: Bolla, Valeria Addis Ababa E-mail: vbolla@worldbank.org Ethiopia Operation hours: Monday­Friday, 8:30 a.m.­5:30 p.m. ....also Punto de difusion del Banco Mundial France Biblioteca Landivariana­Universidad Rafael Landivar Campus Central, Edificio G European Public Information Services Vista Hermosa III, Zona 16, 01016 The World Bank, Office 66, avenue d'Iéna, 75116 Guatemala City Paris Guatemala France Operation hours: Monday­Friday, 8:00 a.m.­8:00 p.m.; Saturday, 7:30 a.m.­ Operation hours and phone inquiries (33 [0]1 40 69 30 26): Monday­Friday, 5:00 p.m. 9:30 a.m.­5:00 p.m. Contact: Chevalier, Valerie ....also E-mail: vchevalier@worldbank.org Punto de difusion del Banco Mundial Biblioteca Central Edificio de Recursos Educativos Nivel 2­Cuidad Universitaria Gabon Universidad de San Carlos de Guatemala­Zona 12, 01012 Gabon Public Information Center and Services Guatemala City The World Bank, Office Quartier Palais de Justice Section RG­Parcelle No. 222 Guatemala P.O. Box 4027, Operation hours: Monday­Friday, 7:30 a.m.­8:00 p.m.; Saturday, 8:00 a.m.­ Libreville 6:00 p.m. Gabon Operation hours: Monday­Friday, 9:00 a.m.­5:00 p.m. Guinea Contact: Etong Oveng, Patrice Centre d'information du public E-mail: petongoveng@worldbank.org The World Bank Office, Immeuble de l'Archeveche-Face Baie des Anges, B.P. 1420 Georgia Conakry Georgia Public Information Center and Services Guinea International School of Economics in Tbilisi (ISET), 16, Zandukeli Street, 0108 Operation hours: Monday­Friday, 9:00 a.m.­4:00 p.m. Tbilisi Contact: Gnékoyamou, Pépé Georgia E-mail: pgnekoyamou@worldbank.org Operation hours: Monday­Friday, 10:00 a.m.­6:00 p.m. Contact: Duishvili, Maia Honduras E-mail: mduishvili@worldbank.org Centro de Informacion para el Desarrollo c/o Banco Centroamericano de Integración Económica 1er Nivel, Boulevard Ghana Suyapa, Francisco Morazán, Ghana Public Information Center and Services Tegucigalpa No. 69 Dr. Isert Road North Ridge Residential Area, Honduras Accra Operation hours: Monday­Friday, 9:00 a.m.­4:30 p.m. Ghana Contact: San Martin, Maria Amalia Operation hours: Monday­Thursday, 10:00 a.m.­4:00 p.m.; Friday, 10:00 a.m.­ E-mail: msanmartin@worldbank.org 1:00 p.m. Contact: Fosu, Kennedy India E-mail: kfosu@worldbank.org India Public Information Center and Services The World Bank, 70 Lodi Estate, 110003 ....also New Delhi­110 003 Public Information Center and Services India University of Ghana Balme Library, Box LG 24, Operation hours: Monday­Friday, 10:30 a.m.­1:00 p.m. and 3:00 p.m.­5:30 p.m. Accra Contact: Balasubramanian, Hema Ghana E-mail: Hbalasubramanian@worldbank.org Operation hours: Monday­Friday, 9am­10 p.m.; Saturday, 8:00 a.m.­6:00 p.m. ....also ....also Regional Information Outlet Public Information Center Mulawarman University Library, Jalan Kampus Gunung Kelua, 75119 Indian Institute of Public Administration Library I P Estate, Ring Road, 110 002 Samarinda New Delhi­110 002 Indonesia India Operation hours: Monday -Thursday, 8:30 a.m.­1:00 p.m.; Friday, 8:30 a.m.­ Operation hours: Monday­Friday, 9:00 a.m.­7:00 p.m.; Saturday and holidays: 10:00 a.m.; Saturday, 8:30 a.m.­12:00 p.m. 9:00 a.m.­5:30 p.m.; Sunday, 9:00 a.m.­2:00 p.m. ....also ....also Regional Information Outlet Public Information Center Hasanuddin University Library, Kampus UNHAS Tamalanrea, Jalan Perintis Karnataka University Prof. SS Basavanal Library Pavate Nagar, 580 003 Kemerdekaan KM 10, 90245 Dharwad­Karnataka 580 003 Makassar India Indonesia Operation hours: Monday­Saturday, 9:00 a.m.­6:00 p.m. Operation hours: Monday­Thursday, 8:00 a.m.­4:00 p.m.; Friday, 8:00 a.m.­ 11:00 a.m. and 1:00 p.m.­3:00 p.m.; Saturday, 8:00 a.m.­3:00 p.m. Indonesia Indonesia Development Information Services (IDIS) ....also The World Bank, Jakarta Stock Exchange Building Tower 2, 13th Floor, Jl. Regional Information Outlet Jendral Sudirman Kav 52-53, 12190 Sam Ratulangi University Library, Jalan Kampus, 95115 Jakarta Selatan Manado Indonesia Indonesia Operation hours: Monday­Thursday, 9:00 a.m.­5:00 p.m.; Friday, 9:00 a.m.­ Operation hours: Monday­Friday, 8:00 a.m.­5:00 p.m.; Saturday, 8:00 a.m.­ 4:00 p.m. 1:00 p.m. Contact: Sonda, Wiwiek Endang W. E-mail: wsonda@worldbank.org ....also Regional Information Outlet ....also Sriwijaya University Library, Jl. Raya Palembang-Prabumulih Km 32, Indralaya Regional Information Outlet Ogan Komering Ilir, 30662 North Sumatra University Library, Jalan Perpustakaan No. 1, Kampus USU, Palembang 20155 Indonesia Medan Operation hours: Monday­Saturday, 8:00 a.m.­4:00 p.m. Indonesia Operation hours: Monday­Saturday, 8:00 a.m.­4:00 p.m.; Saturday, 8:00 a.m.­ ....also 1:00 p.m. Regional Information Outlet Tanjung Pura University, Jl. Jendral Ahmad Yani, 78124 ....also Pontianak Regional Information Outlet Indonesia Riau University Library, Kampus Bina Widia Km 12,5 Simpang Baru, 28293 Operation hours: Monday­Thursday, 8:00 a.m.­5:00 p.m.; Friday, 8:00 a.m.­ Pekan Baru 4:00 p.m.; Saturday, 8:30 a.m.­4:00 p.m. Indonesia Operation hours: Monday­Thursday, 9:00 a.m.­4:30 p.m.; Friday, 8:30 a.m.­ ....also 10:30 a.m.; Saturday, 10:00 a.m.­12:30 p.m. Regional Information Outlet Haluoleo University Library, Jl. Malaka, Kampus Bumi Tridharma Anduonohu, ....also 93232 Regional Information Outlet Kendari Bandung Institute of Technology Library, Jalan Ganesha No. 10, 40132 Indonesia Bandung Operation hours: Monday­Thursday, 8:00 a.m.­5:00 p.m.; Friday, 8:00 a.m.­ Indonesia 4:00 p.m.; Saturday, 9:00 a.m.­4:00 p.m. Operation hours: Monday­Thursday, 8:00 a.m.­9:00 p.m.; Friday, 8:00 a.m.­ 11:00 a.m. and 2:00 p.m.­9:00 p.m.; Saturday, 8:00 a.m.­9:00 p.m. ....also Indonesia Development Information Services (IDIS UGM) ....also Gadjah Mada University PO Box 16, Jl. Bulaksumur 19, 55281 Regional Information Outlet Yogyakarta Diponegoro University Library, Jalan Prof. Sudarto SH­Kampus Tembalang, Indonesia 50239 Operation hours: Monday­Friday, 7:30 a.m.­2:00 p.m.; Saturday, 7:30 a.m.­ Semarang 12:00 p.m. Indonesia Operation hours: Monday­Friday, 8:00 a.m.­4:00 p.m. ....also Regional Information Outlet ....also Papua University Library, Jl. Gunung Saliju Amban, 98314 Indonesia Development Information Services (IDIS-ITS) Manokwari Sepuluh November Institute of Technology Surabaya Library, Kampus ITS, Indonesia Sukolilo, 60111 Operation hours: Monday­Friday, 8:00 a.m.­9:00 p.m.; Saturday, 8:00 a.m.­ Surabaya 2:00 p.m. Indonesia Operation hours: Monday­Thursday, 7:30 a.m.­6:45 p.m.; Friday, 7:30 a.m.­ ....also 10:30 a.m. and 1:00 p.m.­6:20 p.m.; Saturday, 8:00 a.m.­11:50 a.m. Indonesia Development Information Services, Faculty of Social Political Sciences, University of Indonesia (IDIS-FSUI) ....also Building A, Floor 2, MBRC, Kampus FISIP-UI, Kampus UI, Regional Information Outlet Depok Udayana University Library, Kampus Bukit Jimbaran, 80364 Indonesia Bali Operation hours: Monday­Friday; 9:00 a.m.­9:00 p.m.; Friday-Saturday, Indonesia 9:00 a.m.­3:00 p.m. Operation hours: Monday­Thursday, 8:00 a.m.­2:00 p.m.; Friday, 8:00 a.m.­ 11:00 a.m.; Saturday, 8:00 a.m.­12:00 p.m. ....also Development Information Center ....also BaKTI (Bursa Pengetahuan Kawasan Timur Indonesia), Jl Dr. Soetomo No.26, Regional Information Outlet Makassar Mataram University Library, Jalan Majapahit No. 62, 83125 Indonesia Lombok Operation hours: Monday­Friday, 8:00 a.m.­5:00 p.m. Indonesia Operation hours: Monday­Friday, 8:00 a.m.­5:00 p.m.; Saturday, 8:00 a.m.­ ....also 12:30 p.m. Development Information Center Aceh Office, Jl. Prada Utama No.11 A Gampang Peurada Lamgugob, Banda Aceh Indonesia Operation hours: Monday­Friday, 9:00 a.m.­5:00 p.m. Japan ....also Japan Public Information Center and Services Development Information Center The World Bank Floor 1, Fukokuseimei Bldg. Uchisaiwai-cho 2-2-2, 100-0011 Lake Victoria Trust Fund for Jomo Kenyatta Grounds, P.O. Box 700, Tokyo Kisumu Japan Kenya Operation hours: Monday­Friday, 10:00 a.m.­6:00 p.m. Operation hours: Monday­Saturday, 8:00 a.m.­5:30 p.m. Contact: Yasuda, Izumi E-mail: iyasuda@worldbank.org ....also Data Information Center ....also Central Bureau of Statistics Library, Public Information Center Nairobi Hiroshima University, Graduate School for International Development and Kenya Cooperation 1-5-1 Kaganmiyama, 739-8529 Operation hours: Monday­Saturday, 9:00 a.m.­4:45 p.m. Higashi-Hiroshima-shi Japan ....also Operation hours: Monday­Friday, 9:30 a.m.­12:30 p.m. and 1:30 p.m.­5:30 p.m. Development Information Center Kenya National Library Services P.O. Box 30573, ....also Nairobi Public Information Center Kenya Kobe University, Graduate School of Internation Cooperation Studies 2-1, Operation hours: Monday­Thursday, 9:00 a.m.­6:30 p.m.; Friday, 9:00 a.m.­ Rokkodai-cho, Nada-ku, 657-8501 4:00 p.m.; Saturday, 9:00 a.m.­5:00 p.m. Kobe Japan ....also Operation hours: Monday­Friday, 10:30 a.m.­11:45 a.m. and 12:45 p.m.­ Mombasa Provincial Library Public Information Center 5:15 p.m. P.O. Box 90283, Mombasa ....also Kenya Public Information Center Operation hours: Monday­Thursday, 9:00 a.m.­6:30 p.m.; Friday, 9:00 a.m.­ Nagoya University, Graduate School of International Development Furo-cho, 4:00 p.m.; Saturday, 9:00 a.m.­5:00 p.m. Chikusa-ku, 464-8601 Nagoya ....also Japan Nakuru Provincial Library Public Information Center Operation hours: Monday­Friday, 9:30 a.m.­7:00 p.m. (during summer vacation: P.O. Box 253, 9:30 a.m.­5:00 p.m.) Nakuru Kenya ....also Operation hours: Monday­Thursday, 9:00 a.m.­6:30 p.m.; Friday, 9:00 a.m.­ Public Information Center 4:00 p.m.; Saturday, 9:00 a.m.­5:00 p.m. Hokkaido University, Graduate School of International Media, Communication, and Tourism Studies, Kita 17, Nishi 8, Kita-ku, 060-0817 Kosovo Sapporo Kosovo Public Information Center and Services Japan The World Bank, Kosovo Office, Mujo Ulqinaku 3, Operation hours: Monday­Friday, 9:00 a.m.­6:00 p.m. Pristina Kosovo Jordan Operation hours: Monday­Friday, 9:00 a.m.­6:00 p.m. Public Information Center Contact: Aliu, Lundrim Department of Public Libraries­Greater Amman Municipality Downtown, next to E-mail: laliu1@worldbank.org the Roman Amphitheater, Amman Kyrgyz Republic Jordan Development Information Center Operation hours: Saturday­Thursday, 8:00 a.m.­5:00 p.m. Republican Library for Children and Youth, 242 Ogonbaeva Str., 720040 Contact: El Khalil, Zeina Bishkek E-mail: zelkhalil@worldbank.org Kyrgyz Republic Operation hours: Monday­Saturday, 9:00 a.m.­6:00 p.m. Kazakhstan Contact: Iosipenko, Natalya Astana Information Center for Development E-mail: niosipenko@worldbank.org National Academic Library of Republic of Kazakhstan, Left Bank, 010000 Astana ....also Kazakhstan Kyrgyz Republic Public Information Center and Services Operation hours: Tuesday­Sunday, 11:00 a.m.­8:00 p.m. The World Bank Office, 214 Moskovskaya Str., 720010 Contact: Miller, Oxana Bishkek E-mail: omiller@worldbank.org Kyrgyz Republic Operation hours: Tuesday­Thursday, 9:00 a.m.­5:30 p.m. ....also Almaty Public Information Center and Services Lao People's Democratic Republic The World Bank, Central Asia Regional Office, 41A Kazybek bi Street, 4th Floor, Lao PDR Public Information Services 050010 The World Bank, Nehru Road, Pathou Xay, Vientiane, Almaty Vientiane Kazakhstan Lao PDR Operation hours: Monday­Friday, 9:00 a.m.­6:00 p.m. Operation hours and phone inquiries (+856 21 414209): Monday­Friday, 8:00 a.m.­12:00 p.m. and 1:00 p.m.­4:00 p.m. ....also Contact: Srithirath, Viengsamay Almaty Development Information Center E-mail: vsrithirath@worldbank.org National Library of the Republic of Kazakhstan, 14 Abai Ave., 3rd Floor, 050013 Almaty Latvia Kazakhstan Latvia Development Information Center Operation hours: Monday­Saturday, 10:00 a.m.-7:00 p.m. Latvian Academic Library, 10, Rupniecibas Str., 4th Floor, Room #407, LV-1162 Riga Kenya Latvia Kenya Public Information Center and Services Operation hours: Monday­Friday, 10:00 a.m.­6:00 p.m. The World Bank, Kenya Country Office Hill Park Building, Upper Hill Road, Opposite Don Bosco Church, Lebanon Nairobi Public Information Center Kenya Institute of Finance of the Ministry of Finance, 512, Corniche Al Nahr, 1107 2270 Operation hours: Monday­Thursday, 9:00 a.m.­4:00 p.m.; Friday, 9:00 a.m.­ Beirut 11:30 a.m. Lebanon Contact: Muthembwa, Keziah Operation hours: Monday­Friday, 8:00 a.m.­6:00 p.m.; Saturday, 8:00 a.m.­ E-mail: kmuthembwa@worldbank.org 1:00 p.m. Contact: El Khalil, Zeina E-mail: zelkhalil@worldbank.org ....also ....also Lebanon Public Information Services Centre d'Information The World Bank, Bourie House 119, Abdallah Bayhum Street, Marfaa, Solidere, Chambre de commerce de Mahajanga, 401 mailing address P.O. Box 11-8577, 1107 2270 Mahajanga Beirut Madagascar Lebanon Operation hours: Monday­Friday, 8:00 a.m.­12:00 p.m. and 2:00 p.m.­5:00 p.m. Operation hours and phone inquiries: Monday­Friday, 9:00 a.m.­5:00 p.m. ....also Lesotho Centre d'Information Lesotho Development Information Center Bibliotheque Municipale de Toamasina Angle rues Grandidier et Johns Bevan, National University of Lesotho 501 Roma Toamasina Lesotho Madagascar Operation hours: Monday­Friday, 8:30 a.m.­1:00 p.m. and 2:15 p.m.­5:00 p.m.; Operation hours: Monday­Friday, 7:30 a.m.­12:00 p.m. and 2:30 p.m.­5:30 p.m. Saturday, 9:00 a.m.­1:00 p.m. Contact: Seoposengwe, Mmenyane Malawi E-mail: mseoposengwe@worldbank.org Malawi Development Information Centre National Library, City Centre P.O. Box 30314, Macedonia, Former Yugoslav Republic of Lilongwe 3 Macedonia Public Information Center and Services Malawi The World Bank, 34 Leninova Street, 1000 Operation hours: Monday­Friday, 8:30 a.m.­5:30 p.m. and Saturday, 8:30 a.m.­ Skopje 3:30 p.m. Macedonia Contact: Banda, Zeria Operation hours: Monday­Friday, 9:00 a.m.­5:30 p.m. E-mail: zbanda@worldbank.org Contact: Boskovski, Denis E-mail: dboskovski@worldbank.org Mali Centre d'information du public Madagascar The World Bank, Immeuble SOGEFIH, avenue Moussa Travele, rue 321, Madagascar Public Information Center and Services Quartier du fleuve, Près Ministère des Affaires Etrangères, 1, rue Andriamifidy/Razafimanantsoa, Bamako Anosy, 101 Mali Antananarivo Operation hours: Monday­Friday, 8:30 a.m.­12:30 p.m. and 2:30 p.m.­5:30 p.m. Madagascar Contact: Dembele, Amidou Operation hours: Monday­Thursday, 8:00 a.m.­11:30 a.m. and 1:00 p.m.­ E-mail: adembele@worldbank.org 4:00 p.m. Contact: Rakotoarinjara, Voahangy Mauritania E-mail: Vrakotoarinjara@worldbank.org Centre d'Information et de Documentation des Nations Unies et de la Banque mondiale ....also Socogim Tevragh Zeina, Villa No. 30, B.P. 620 Centre d'Information Nouakchott Centre d'Echanges, de Documentation et d'Informations Institutionelles Mauritania Tsianolondroa, 301 Operation hours: Tuesday­Thursday, 9:00 a.m.­4:00 p.m. Fianarantsoa Contact: Sid'ahmed, Taleb Madagascar E-mail: touldsidahmed@worldbank.org Operation hours: Monday­Friday, 8:00 a.m.­12:00 p.m. and 2:00 p.m.­ 5:00 p.m.; Saturday, 6:00 a.m.­12:00 p.m. Mexico Centro de Información Pública (CIP) ....also The World Bank, Insurgentes Sur No. 1605, Piso 21 Col. San Jose Insurgentes, Centre d'Information 03900 Bibliothèque Municipale d'Antsirabe c/o Hall d'Information, 110 Mexico City Antsirabe Mexico Madagascar Operation hours: Monday­Friday, 9:00 a.m.­2:00 p.m. and 3:00 p.m.­6:00 p.m. Operation hours: Monday­Friday, 8:00 a.m.­12:00 p.m. and 2:00 p.m.­ Contact: Moreno Jimenez, Rebeca 5:00 p.m.; Saturday, 8:00 a.m.­12:00 p.m. E-mail: rebecamoreno@worldbank.org ....also Moldova Centre d'Information Moldova Public Information Center and Services Alliance Française de Toamasina 13, rue Paul Doumer, 501 The World Bank, St. Puskin, #20/1, MD-2012 Toamasina Chisinau Madagascar Moldova Operation hours: Tuesday­Saturday, 8:30 a.m.­12:00 p.m. and 2:30 p.m.­ Operation hours: Monday: 2:00 p.m.­4:00 p.m.; Tuesday­Friday, 10:00 a.m.­ 6:00 p.m. 12:00 p.m. and 2:00 p.m.­4:00 p.m. Contact: Prodan, Elena ....also E-mail: eprodan@worldbank.org Centre d'Information Alliance Française d'Antsirabe, rue de l'Alliance Française, 110 ....also Antsirabe Development Information Center, Academy of Economic Studies of Moldova Madagascar C Building #50, Capriana St., 2005 Operation hours: Tuesday, Thursday, Friday, Saturday, 10:00 a.m.­12:00 p.m. Chisinau and 2:00 p.m.­8:00 p.m.; Wednesday: 9:00 a.m.­12:00 p.m. and 2:00 p.m.­ Moldova 6:00 p.m. Operation hours: Monday­Friday, 8:00 a.m.­6:00 p.m.; Saturday, 9:00 a.m.- 4:00 p.m. ....also Centre d'Information Mongolia Bibliotheque Municipale de Mahajanga, Place du Marché, 401 Mongolia Development Information and Resource Center Mahajanga Jamiyan gun Street­5/1, 48 Madagascar Ulaanbaatar Operation hours: Monday­Friday, 8:00 a.m.­12:00 p.m. and 2:00 p.m.­6:00 p.m. Mongolia Operation hours: Monday­Friday, 9:00 a.m.­6:00 p.m. ....also Contact: Jamba, Sunjidmaa Centre d'Information E-mail: sjamba@worldbank.org Bibliotheque Municipale de Taolagnaro, 614 Taolagnaro ....also Madagascar Development Information and Learning Center Operation hours: Monday­Friday, 8:00 a.m.­12:00 p.m. and 2:00 p.m.­5:30 p.m. Central Library, Mongolian National University, Youth Avenue, University Street- 1, Sukhbaatar duureg, Ulaanbaatar Mongolia Operation hours: Monday­Friday, 9:00 a.m.­8:00 p.m. ....also Nicaragua Public Information Center--Public Library Centro de Información para el Desarrollo (CID) Darkan sum, Darkhan aimag, 2do. piso Biblioteca "Roberto Incer Barquero" Banco Central de Nicaragua. Km. Darkhan City 7 Carret. Sur, Mongolia Managua Operation hours: Monday­Sunday, 9:00 a.m.­6:00 p.m. Nicaragua Operation hours: Monday­Friday, 8:00 a.m.-4:00 p.m. ....also Contact: Norori, Maria Teresa Public Information and Learning Center E-mail: mnorori@worldbank.org Public Library, Open Society Forum, Educational Advising Resource Center, Dalanzadgad ....also Mongolia Centro de Información para el Desarrollo Biblioteca "Vicente Vita," Banco Central de Nicaragua (BCN), Morocco Matagalpa Services d'information au public, Bureau de la Banque mondiale Nicaragua 7, rue Larbi Ben Abdellah, Souissi, Operation hours: Monday­Friday, 8:00 a.m.-4:00 p.m. Rabat Morocco Niger Operation hours: Monday­Friday, 8:30 a.m.­12:30 p.m. and 2:30 p.m.­6:30 p.m. Centre d'information du public Contact: Sahraoui, Hafida The World Bank, rue des Dallol­Niamey Plateau, 12402 E-mail: Hsahraoui@worldbank.org Niamey Niger ....also Operation hours: Monday­Friday, 9:00 a.m.­1:00 p.m. and 4:00 p.m.­6:30 p.m. Centre public d'information Contact: Dossou-Yovo, Paul Université Hassan II Mohammedia Faculté de Sciences Juridiques et E-mail: pdossouyovo@worldbank.org Economiques, Boulevard Hassan II, B.P. 145 Mohammedia ....also Morocco Public Information Center Operation hours: Monday­Friday, 9:00 a.m.­12:00 p.m. and 3:00 p.m.­6:00 p.m. Université de Niamey Faculté des Sciences Economiques et Juridiques, B.P. 12442, ....also Niamey Centre public d'information Niger Université Sidi Mohamed Ben Abdellah Faculté de Sciences Juridiques et Operation hours: Monday­Friday, 9:00 a.m.­1:00 p.m. and 2:00 p.m.­5:00 p.m. Economiques B.P. 42 A, Fès Nigeria Morocco Nigeria Public Information Center and Services Operation hours: Monday­Friday, 9:00 a.m.­12:00 p.m. and 3:00 p.m.­6:00 p.m. The World Bank, Plot 433 Yakubu Gowon Crescent, Opp. ECOWAS Secretariat, Asokoro District, PO Box 2826 ....also Abuja Centre public d'information Nigeria Al Alkhawayn University, Avenue Hassan II, B.P. 104, Operation hours: Monday­Thursday, 10:00 a.m.­4:00 p.m; phone inquiries, Ifrane 9:00 a.m.­5:00 p.m. Morocco Contact: Tohomdet, Obadiah Operation hours: Monday­Friday, 9:00 a.m.­12:00 p.m. and 3:00 p.m.­6:00 p.m. E-mail: otohomdet@worldbank.org ....also ....also Centre public d'information Public Information Center Université Cadi Ayyad Faculté de Sciences Juridiques et Economiques B.P. Arewa House, Center for Historic Documentation and Research, Ahmadu Bello 2380, University PMB 2006, Marrakech Kaduna Morocco Nigeria Operation hours: Monday­Friday, 9:00 a.m.­12:00 p.m. and 3:00 p.m.­6:00 p.m. Operation hours: Monday­Thursday, 8:00 a.m.­6:00 p.m.; Saturday, 8:00 a.m.­ 4:00 p.m. ....also Centre public d'information ....also Université Abdelmalek Essaâdi Faculté de Sciences Juridiques et Economiques, NESG/World Bank Public Information Center Route de Ashakar, B.P. 1373, The Nigerian Economic Summit Group Ltd/Gte ICON HOUSE Plot 999F, Idejo Tangiers Street, off Adeola Odeku Street Victoria Island, P.M.B. 71347, Morocco Lagos Operation hours: Monday­Friday, 9:00 a.m.­12:00 p.m. and 3:00 p.m.­6:00 p.m. Nigeria Operation hours: Monday­Friday, 8:00 a.m.­5:00 p.m. Mozambique O Centro de Informação para o Desenvolvimento Pakistan Biblioteca Nacional, Rua do Bagamoio, nr. 165, 1 andar, Pakistan Public Information Center and Services Maputo The World Bank, 20-A, Shahrah-e-Jamhuriat, Ramna 5 (G-5/1) (Ground Floor), Mozambique Islamabad Operation hours: Monday­Friday, 8:30 a.m.­12:30 p.m. and 2:00 p.m.­5:00 p.m. Pakistan Contact: Otacala, Abel Operation hours: Monday­Thursday: 9:00 a.m.­12:00 p.m. and 2:00 p.m.­ E-mail: Aotacala@worldbank.org 4:00 p.m.; Friday, 9:00 a.m.­12:30 p.m. Contact: Altaf, Mariam Sara Namibia E-mail: mariamaltaf@worldbank.org Namibia Development Information Center, Namibia Polytechnic 13 Storch Street, Windhoek West, Papua New Guinea Windhoek Papua New Guinea Development Cooperation Center Namibia Ground Floor, Deloitte Towers, P.O. Box 1877, 00-113 Operation hours: Monday­Friday, 8:00 a.m.­10:00 a.m.; Saturday, 8:00 a.m.­ Port Moresby 1:00 p.m.; Sunday, 2:00 p.m.­8:00 p.m. Papua New Guinea Contact: Seoposengwe, Mmenyane Operation hours: Monday­Friday, 9:00 a.m.­1:00 p.m.and 2:00 p.m.­4:00 p.m. E-mail: mseoposengwe@worldbank.org Contact: Doiwa, Dodi E-mail: ddoiwa@worldbank.org Nepal Nepal Public Information Center Heritage Plaza I, 1st Floor, Kamaladi, Kathmandu Nepal Operation hours: Monday­Friday, 9:00 a.m.­5:00 p.m. Contact: Shrestha, Reena E-mail: rshrestha1@worldbank.org Paraguay ....also Public Information Services Palawan State University Knowledge for Development Center Av. Mcal. López esq/ Saravi UN Building, Graduate School, Law Building, Manalo Campus, Valencia St., 5300 Asunción Puerto Princesa City Paraguay Philippines Operation hours and phone inquiries (+ 595 21 664 000): Monday­Friday, Operation hours: Monday­Friday, 9:00 a.m.­12:00 p.m. and1:00 p.m.­7:00 p.m.; 10:00 a.m.­5:00 p.m. Saturday, 10:00 a.m.­7:00 p.m. Contact: Gonzalez Llamas, Ruth E-mail: rgonzalez2@worldbank.org ....also Ateneo de Naga University Knowledge for Development Center Peru James O'Brien Library, Ateneo Avenue, 4400 Servicio de Información Pública del Banco Mundial Naga City Biblioteca Nacional del Perú--Sala Banco Mundial, Av. de la Poesía 160, San Philippines Borja, Operation hours: Monday­Friday, 9:00 a.m.­7:00 p.m.; Saturday, 9:00 a.m.­ Lima 2:00 p.m. Peru Operation hours: Monday­Friday, 9:00 a.m.­5:00 p.m. ....also Contact: Arzubiaga, Sandra Central Philippine University Knowledge for Development Center E-mail: sarzubiaga@worldbank.org Ground Floor Henry Luce III Library, Lopez Jaena St., Jaro, 5000 Iloilo City Philippines Philippines Philippines Knowledge for Development Center Operation hours: Monday­Friday, 8:00 a.m.­12:00 p.m.; 2:00 p.m.­6:00 p.m.; The World Bank, Ground Floor Taipan Place, F. Ortigas Jr. Road (formerly Saturday, by special arrangement only Emerald), Ortigas Business Center, 1605 Pasig City ....also Philippines House of Representatives Knowledge for Development Center Operation hours: Tuesday­Friday, 10:00 a.m.­7:00 p.m. Congressional Library Bureau Constitution Hills, Contact: Enerva, Moira Quezon City E-mail: menerva@worldbank.org Philippines Operation hours: Monday­Thursday, 8:00 a.m.­7:00 p.m. ....also Asian Institute of Management Knowledge for Development Center Poland Joseph R. McMicking Campus, 123 Paseo de Roxas, 1226 Poland Public Information Center and Services Makati City Central Library of the National Bank of Poland Centralna Biblioteka NBP Ul. Philippines Swietokrzyska 11/21, 00-919 Operation hours: Monday­Friday, 8:00 a.m.­12:00 p.m.; Saturday, 8:00 a.m.­ Warsaw 9:00 p.m. Poland Operation hours: Monday­Friday, 9:00 a.m.­5:30 p.m.; Saturday, 9:00 a.m.­ ....also 1:00 p.m. St. Paul University Philippines Knowledge for Development Center Contact: Dworzynska, Malgorzata 3rd Floor Learning Resource Center, Mabini St., 3500 E-mail: mdworzynska@worldbank.org Tuguegarao City Philippines Romania Operation hours: Monday: 1:00 p.m.­5:00 p.m.; Tuesday­Saturday, 8:00 a.m.­ Romania Public Information Center and Services 5:00 p.m. Central University Library, 1 Boteanu Street, Sector 1, Cod 010027, Bucharest ....also Romania Silliman University Knowledge for Development Center Operation hours: Monday­Friday, 8:30 a.m.­8:00 p.m.; Saturday, 8:30 a.m.­ Silliman University Library, 6200 4:00 p.m.; Sunday, 8:30 a.m.­2:30 p.m. Dumaguete City Contact: Zirimis, Cristina Philippines E-mail: Czirimis@worldbank.org Operation hours: Monday­Saturday, 8:00 a.m.­12:00 p.m. and 2:00 p.m.­ 5:00 p.m.; Sunday, 2:00 p.m.­5:00 p.m. Russian Federation Russian Federation Public Information Center and Services ....also The World Bank Russia Country Office, 36/1 Bolshaya Molchanovka Str., 121069 University of San Carlos Knowledge for Development Center Moscow University Library, P. Del Rosario Street, 6000 Russian Federation Cebu City Operation hours: Monday­Friday, 10:00 a.m.­5:00 p.m; phone inquiries: Philippines 10:00 a.m.­2:00 p.m. and 3:00 p.m.­5:00 p.m. Operation hours: Monday­Saturday, 8:00 a.m.­8:00 p.m. Contact: Kolesnikov, Artem E-mail: akolesnikov@worldbank.org ....also Notre Dame University Knowledge for Development Center ....also Notre Dame University Library, Notre Dame Avenue, 9600 The World Bank Public Information Center Cotabato City Scientific Library, St. Petersburg State University of Economics and Finance, Philippines 30/32 Kanal Griboedov, 191023 Operation hours: Monday­Friday, 7:30 a.m.­7:00 p.m.; Saturday, 7:30 a.m.­ St. Petersburg 5:00 p.m. Russian Federation Operation hours: Monday­Friday, 10:00 a.m.­6:00 p.m. ....also University of Southeastern Philippines Knowledge for Development Center Rwanda University of Southeastern Philippines, Obrero, 8000 Centre public d'information Davao City The World Bank Country Office, SORAS Building, Boulevard de la Revolution Philippines P.O. Box 609, Operation hours: Monday: 9:00 a.m.­12:00 p.m. and 1:00 p.m.­5:00 p.m.; Kigali Tuesday­Friday, 9:00 a.m.­12:00 p.m. and 1:00 p.m.­6:00 p.m.; Saturday, Rwanda 8:00 a.m.­5:00 p.m. Operation hours: Monday­Thursday, 9:00 a.m.­12:00 p.m. and 2:00 p.m.­ 4:30 p.m.; Friday, 9:00 a.m.­12:00 p.m. ....also Contact: Nibarere, Therese Western Mindanao State University Knowledge for Development Center E-mail: Tnibarere@worldbank.org College of Public Administration & Development Studies, Normal Road, Baliwasan, 7000 Zamboanga City Philippines Operation hours: Monday­Saturday, 8:00 a.m.­12:00 p.m. and 1:00 p.m.­ 5:00 p.m. ....also Sudan Centre public d'information The Information Center for Development (ICD) Kigali Institute of Education Center, P.O. Box 5039, Development Studies and Research Institute (DSRI), the University of Khartoum, Kigali P.O. Box 321, Rwanda Khartoum Operation hours: Monday­Friday, 8:00 a.m.­10:00 p.m. and Saturday, Sudan 8:00 a.m.­12:00 p.m Operation hours: Sunday­Thursday, 8:30 a.m.-2:00 p.m. Contact: Amin, Nada ....also E-mail: namin@worldbank.org Centre public d'information Library of National University of Rwanda, P.O. Box 117, Swaziland Butare Swaziland Development Information Center Rwanda University of Swaziland, Kwaluseni Campus, Operation hours: Monday­Friday, 8:00 a.m.­12:00 p.m. and1:30 p.m.­ Kwaluseni 12:00 a.m.; Sunday, 8:00 a.m.­1:30 p.m. Swaziland Operation hours: Monday­Friday, 8:30 a.m.­11:00 p.m.; Saturday, 10:00 a.m.­ Senegal 5:00 p.m.; Sunday, 3:00 p.m.­10:00 p.m.; long vacation--Monday­Friday, Centre Public d'Information 8:30 a.m.­4:45 p.m. The World Bank, rue Léon Gontran Damas X Corniche Ouest, Contact: Seoposengwe, Mmenyane Dakar E-mail: mseoposengwe@worldbank.org Senegal Operation hours: Monday­Friday, 9:00 a.m.­1:00 p.m. and 3:00 p.m.­5:00 p.m. Tajikistan Contact: Gueye, Sambagor Tajikistan Public Information Services E-mail: Sgueye@worldbank.org The World Bank, Shevchenko Str. 91-10, 734025 Dushabe Serbia Tajikistan Serbia Public Information e-Center Operation hours and phone inquiries (+992 372 21 07 56): Monday­Friday, The British Council premises, Terazije 8/1st Floor, 11000 9:00 a.m.­5:00 p.m. Belgrade Contact: Kurbanova, Mukaddas Serbia E-mail: mkurbanova@worldbank.org Operation hours: Monday­Friday, 10:00 p.m.­4:00 p.m. Contact: Popovic, Mirjana Tanzania E-mail: mpopovic@worldbank.org Tanzania Development Information Centre and Services IFM Block A, Ground Floor, Shaaban Robert Street, P.O. Box 3918 Sierra Leone Dar es Salaam Sierra Leone Public Information Services Tanzania The World Bank, Africanus House, 13A Howe Street, Operation hours: Monday­Friday, 9:00 a.m.­4:00 p.m. Freetown Contact: Ferrao, Rosalie Sierra Leone E-mail: Rferrao@worldbank.org Operation hours and phone inquiries (+232 22 225459): Monday­Friday, 9:00 a.m.­5:00 p.m. Thailand Contact: Sheriff, Mohamed Public Information Center and Services E-mail: msheriff@worldbank.org The World Bank, 30th Floor, Siam Tower, 989 Rama I Road, Pathumwan, 10300 Bangkok Slovak Republic Thailand Slovak Republic Public Information Center and Services Operation hours: Monday­Friday, 8:00 a.m.­5:00 p.m. c/o Slovak Economic Library, University of Economics, Dolnozemska cesta 1/b, Contact: Sangarun, Buntarika 852 35 E-mail: bsangarun@worldbank.org Bratislava Slovak Republic ....also Operation hours: Monday­Thursday, 8:30 a.m.­6:00 p.m.; Friday, 11:00 a.m.­ International Information Center 6:00 p.m.; Saturday, 8:00 a.m.­1:00 p.m. 5th Floor, Center of Academic Resources, Chulalongkorn University Phayathai Contact: Koleva, Antonia Rd., Pathumwan, 10330 E-mail: Akoleva@worldbank.org Bangkok Thailand South Africa Operation hours: Monday­Friday, 8:00 a.m.­7:00 p.m.; Saturday, 9:00 a.m.­ South Africa Public Information Center Services 4:00 p.m. 44 Rodericks Street, Corner Lynnwood and Rodericks street, Ground Floor, Lynnwood, Tshwane Timor-Leste Pretoria Timor-Leste Public Information Center and Services South Africa The World Bank, Dili Office, Avenida dos Direitos Humanos, Operation hours: Monday­Thursday, 10:00 a.m.­4:00 p.m.; Fridays: 10:00 a.m.­ Dili 1:00 p.m. Timor-Leste Contact: Seoposengwe, Mmenyane Operation hours: Monday­Friday, 9:00 a.m.­12:30 p.m. and 1:30 p.m.­5:00 p.m. E-mail: mseoposengwe@worldbank.org Contact: de Faci Goncalves, Sancho E-mail: sgoncalves@worldbank.org ....also Development Information Center Togo Jan Smuts House, East Campus, University of Witwatersrand, Centre d'information du public de Lomé Johannesburg The World Bank, 169 Boulevard du 13 Janvier, Immeuble BTCI, 9eme Etage, South Africa Lomé Operation hours: Monday and Thursday, 9:00 a.m.­1:00 p.m. and 2:00 p.m.­ Togo 5:00 p.m.; Tuesday and Friday, 2:00 p.m.­5:00 p.m. Operation hours: Monday­Thursday, 8:00 a.m.­12:00 p.m. and 3:00 p.m.­ 5:00 p.m.; Friday, 8:00 a.m.­2:00 p.m. Sri Lanka Contact: Hlomador, Esinam Sri Lanka Public Information Center and Services E-mail: ehlomador@worldbank.org The World Bank, 2nd Floor, DFCC Building 73/5, Galle Road, Colombo 3 ....also Sri Lanka Centre d'information du public de Lomé Operation hours: Monday­Thursday, 9:00 a.m.­4:00 p.m. Espace de Développement Bibliothèque Principale de l'Université de Lomé, B.P. Contact: Peiris, Dilinika 1515, E-mail: dpeiris@worldbank.org Lomé Togo Operation hours: Monday­Friday, 9:00 a.m.­6:00 p.m.; Saturday, 9:00 a.m.­ 1:00 p.m. Tunisia Uruguay Centre public d'information de Tunis Uruguay Public Information Center and Services Bibliotheque de la faculte des sciences economiques et de gestion de Tunis The World Bank, Buenos Aires 570, 3rd Floor, Campus Universitaire, Boulevard du 7 Novembre, 2092 Montevideo Tunis Uruguay Tunisia Operation hours: Monday­Friday, 9:00 a.m.­5:00 p.m. (mornings by Operation hours: Monday­Thursday, 8:30 a.m.­5:30 p.m.; Friday-Saturday, appointment) 8:30 a.m.­1:00 p.m. Contact: Bolla, Valeria Contact: JE-mail, Donia E-mail: vbolla@worldbank.org E-mail: djE-mail@worldbank.org Uzbekistan Turkey Center for Economic Research Development Information Center The World Bank Information Center and Turkey Economic Policy Reserach Development Resource Center & Library (DRCL), 5, 1st Tupik, Usmon Nasir Center (TEPAV) Street, Söütözü Caddesi No:43 TOBB ETÜ Yerlekesi TEPAV Binasi, Söütözü, Tashkent 06700 Uzbekistan Ankara Operation hours: Monday­Friday, 9:00 a.m.­6:00 p.m. Turkey Contact: Mukhamedova, Matluba Sancho Operation hours: Monday­Thursday, 9:00 a.m.­1:00 p.m.; Friday, 2:00 p.m.­ E-mail: mmukhamedova@worldbank.org 5:30 p.m. Contact: Arslan, Pelin ....also E-mail: parslan@worldbank.org Uzbekistan Public Information Center and Services The World Bank International Business Center, 15th Floor, 107 B, Amir Timur Turkmenistan Street, 100084 Turkmenistan Public Information Services Tashkent The World Bank, Liaison Office, United Nations Building, World Bank, Galkynysh Uzbekistan Street, 40, 744000 Operation hours: Monday­Friday, 2:00 p.m.­5:00 p.m. Ashgabat Turkmenistan ....also Operation hours and phone inquiries (+ 993 12 350477): Monday­Friday, Public Information Center 9:00 a.m.­4:00 p.m. University Library and Resources Center, Samarkand State University, 15, Navoi Contact: Jepbarov, Serdar square, 102004 E-mail: sJepbarov@worldbank.org Samarkand City Uzbekistan Uganda Operation hours: Monday­Saturday, 9:00 a.m.­6:00 p.m. Uganda Public Information Center and Services Rwenzori House, 1st Floor, Plot 1 Lumumba Avenue, P.O. Box 4463, Venezuela, República Bolivariana de Kampala Venezuela Development Information Center and Services Uganda c/o CAF (Cooperacion Andina de Fomento) Av. Luis Roche, Torre Corporación Operation hours: Monday­Friday, 8:30 a.m. -1:00 p.m. Aandina de Fomento, CAF. Altamira. Mezzanine II, Contact: Gashishiri, Sheila Sancho Caracas E-mail: sgashishiri@worldbank.org Venezuela Operation hours: Tuesday, Thursday, 9:00 a.m.­12:00 p.m.; Monday, Friday, for Ukraine CAF and World Bank staff, 9:00 a.m.­12:00 a.m. and 2:00 p.m.­5:00 p.m. Ukraine Public Information Center and Services Contact: Colmenares, Maria Magdalena c/o British Council Library and Resource Center, 4/12, H. Skoorody Str., 04070 E-mail: mcolmenares@worldbank.org Kyiv Ukraine ....also Operation hours: Monday, Tuesday, Thursday, 3:00 p.m.­6:00 p.m. Public Information Center Contact: Yurova, Yulia Universidad Rafael Belloso Chacín, Biblioteca Dr. Nectario Andrade Labarca, E-mail: yyurova@worldbank.org Circunvalación 2 con Avenida Guajira, frente a la Plaza de Toros de Maracaibo, Maracaibo ....also Venezuela East Ukrainian Center for Innovative Knowledge Operation hours: Monday­Friday, 8:00 a.m.­12:00 p.m. Kharkiv National University of Economics Inzhenerny provulok, 1A, Kharkiv ....also Ukraine Public Information Center Operation hours: Monday­Friday, 8:30 a.m.­7:00 p.m.; Saturday, 8:30 a.m.­ Instituto de Estudios Superiores de Administración (IESA), Biblioteca Lorenzo 5:00 p.m. Mendoza Fleury del IESA, Edificio IESA, Avenida IESA, San Bernardino, Caracas ....also Venezuela South Ukrainian Center for Innovative Knowledge Operation hours: Monday­Friday, 8:00 a.m.­12:00 p.m. Odessa Regional Institute of Public Administration, National Academy of Public Administration, Office of the President of Ukraine, 22 Genuezka Street, 65009 Vietnam Odessa Vietnam Development Information Center and Services Ukraine The World Bank, Ground Floor, 63 Ly Thai To Street, Operation hours: Monday­Friday, 8:30 a.m.­7:00 p.m.; Saturday, 8:30 a.m.­ Hanoi 5:00 p.m. Vietnam Operation hours: Monday­Friday, 8:00 a.m.­5:30 p.m. ....also Contact: Tran, Chi Kim West Ukrainian Center of Innovative Knowledge E-mail: ctran@worldbank.org Ivan Franko National University of L'viv, 1, Universytetska Str., L'viv ....also Ukraine Public Information Center Operation hours: Monday­Friday, 9:00 a.m.­7:00 p.m. Can Tho City Library 1 Phan Dinh Phung Street, Can Tho City United States Vietnam InfoShop­Public Information Center and Services Operation hours: Monday­Sunday, 7:00 a.m.­11:00 a.m. and 1:00 p.m.­ The World Bank, 701 18th Street, NW, 20433 5:00 p.m. Washington, DC United States ....also Operation hours: Monday­Friday, 9:00 a.m.­5:00 p.m. Public Information Center Contact: George, Hannah Sancho Ho Chi Minh City General Sciences Library, 69 Ly Tu Triong Street, District 1, E-mail: hgeorge@worldbank.org Ho Chi Minh City Vietnam Operation hours: Tuesday­Sunday, 7:30 a.m.­7:00 p.m. ....also Yemen, Republic of Public Information Center Public Information Center Hue Provincial Library, 29A Le Qui Don Street, University of Sana'a Central Library New Campus, Ring Road, Hue City Sana'a Vietnam Yemen Operation hours: Monday­Saturday, 7:30 a.m.­9:00 p.m. Operation hours: Saturday­Wednesday: 8:00 a.m.­2:00 p.m. Contact: Al Mussaabi, Mujahed Sancho ....also E-mail: malmussaabi@worldbank.org Public Information Center Hue University Learning Resource Center, 20 Le Loi Street, ....also Hue National Information Center Vietnam Training Unit, 60 Meter St., next to Iranian Hospital, Operation hours: Monday­Saturday, 7:30 a.m.­9:00 p.m. Sana'a Yemen ....also Operation hours: Saturday-Wednesday: 8:00 a.m.­2:00 p.m. Public Information Center Can Tho City University Library, 3/2 Street, Zambia Can Tho City Joint Development Information Centre Vietnam The World Bank, Ground Floor Pyramid Plaza, Plot #746 Church Road, 10101 Operation hours: Monday­Saturday, 7:00 a.m.­9:00 p.m. Lusaka Zambia ....also Operation hours: Monday­Thursday, 9:00 a.m.­4:00 p.m. Public Information Center Contact: Simasiku-Sikota, Liseli Danang General Sciences Library Tran Phu/46 Bach Dang, E-mail: lsimasikusikota@worldbank.org Da Nang City Vietnam Zimbabwe Operation hours: Tuesday­Saturday, 7:00 a.m.­11:00 a.m.; 1:30 p.m.­5:00 p.m. Zimbabwe Public Information Center and Services Old Lonrho Building, 88 Nelson Mandela Avenue, West Bank and Gaza Harare West Bank and Gaza Public Information Center and Services Zimbabwe The World Bank Building, mailing address: P.O. Box 54842, Operation hours: Monday­Thursday, 9:00 a.m.­2:00 p.m. Jerusalem Contact: Matewa, Margaret West Bank and Gaza E-mail: mmatewa@worldbank.org Operation hours: Monday­Friday, 8:30 a.m.­4:00 p.m. Contact: Koussa, Mary E-mail: mkoussa@worldbank.org ....also Public Information Center Birzeit University Main Library, P.O. Box 14, Birzeit West Bank and Gaza Operation hours: Monday­Thursday and Saturday, 8:00 a.m.­4:00 p.m. ....also Public Information Center Anl-Najah National University Main Library, P.O. Box 7, Nablus West Bank and Gaza Operation hours: Saturday­Wednesday: 8:00 a.m.­4:00 p.m.; Thursday, 8:00 a.m.­1:00 p.m. ....also Public Information Center Municipality of Gaza Library Palestine Square, P.O. Box 16, Gaza City West Bank and Gaza Operation hours: Saturday­Wednesday: 8:00 a.m.­7:00 p.m.; Thursday, 8:00 a.m.­5:30 p.m. LIST OF PART I AND PART II IDA MEMBER COUNTRIES | JUNE 30, 2009 Part I Members Part II Members Guyana St. Lucia Australia Afghanistan Haiti St. Vincent and the Austria Albania Honduras Grenadines Belgium Algeria Hungary Samoa Canada Angola India São Tomé and Principe Denmark Argentina Indonesia Saudi Arabia Estonia Armenia Iran, Islamic Republic of Senegal Finland Azerbaijan Iraq Serbia France Bahamas, The Israel Sierra Leone Germany Bangladesh Jordan Singapore Greece Barbados Kazakhstan Slovak Republic Iceland Belize Kenya Solomon Islands Ireland Benin Kiribati Somalia Italy Bhutan Korea, Republic of Sri Lanka Japan Bolivia, Plurinational Kosovo, Republic of Sudan Kuwait State of Kyrgyz Republic Swaziland Latvia Bosnia and Herzegovina Lao People's Democratic Syrian Arab Republic Luxembourg Botswana Republic Tajikistan Netherlands Brazil Lebanon Tanzania New Zealand Burkina Faso Lesotho Thailand Norway Burundi Liberia Timor-Leste Portugal Cambodia Libya Togo Russian Federation Cameroon Macedonia, former Tonga Slovenia Cape Verde Yugoslav Republic of Trinidad and Tobago South Africa Central African Republic Madagascar Tunisia Spain Chad Malawi Turkey Sweden Chile Malaysia Uganda Switzerland China Maldives Ukraine United Arab Emirates Colombia Mali Uzbekistan United Kingdom Comoros Marshall Islands Vanuatu United States Congo, Democratic Mauritania Vietnam Republic of Mauritius Yemen, Republic of Congo, Republic of Mexico Zambia Costa Rica Micronesia, Federated Zimbabwe Côte d'Ivoire States of Croatia Moldova Cyprus Mongolia Czech Republic Montenegro Djibouti Morocco Dominica Mozambique Dominican Republic Myanmar Ecuador Nepal Egypt, Arab Republic of Nicaragua El Salvador Niger Equatorial Guinea Nigeria Eritrea Oman Ethiopia Pakistan Fiji Palau Gabon Panama Gambia, The Papua New Guinea Georgia Paraguay Ghana Peru Grenada Philippines Guatemala Poland Guinea Rwanda Guinea-Bissau St. Kitts and Nevis COUNTRY ELIGIBILITY FOR BORROWING FROM THE WORLD BANK | JULY 1, 2009 Income group 2008 GNI and country per capita Countries eligible for IBRD funds onlya Per capita income over $6,465 Korea, Republic of $21,530 Trinidad and Tobago 16,540 Equatorial Guinea 14,980 Slovak Republic 14,540 Antigua and Barbuda 13,620 Croatia 13,570 Poland 11,880 Libya 11,590 St. Kitts and Nevis 10,960 Seychelles 10,290 Mexico 9,980 Russian Federation 9,620 Chile 9,400 Turkey 9,340 Venezuela, República Bolivariana de 9,230 Palau 8,650 Uruguay 8,260 Romania 7,930 Brazil 7,350 Gabon 7,240 Argentina 7,200 Malaysia 6,970 Botswana 6,470 Per capita income over $1,095 Montenegro $6,440 Mauritius 6,400 Lebanon 6,350 Panama 6,180 Kazakhstan 6,140 Costa Rica 6,060 South Africa 5,820 Serbia 5,710 Bulgaria 5,490 Belarus 5,380 Suriname 4,990 Jamaica 4,870 Colombia 4,660 Dominican Republic 4,390 Algeria 4,260 Namibia 4,200 Macedonia, former Yugoslav Republic of 4,140 Peru 3,990 Fiji 3,930 Albania 3,840 Belize 3,820 Ecuador 3,640 Iran, Islamic Republic of 3,540 El Salvador 3,480 Jordan 3,310 Tunisia 3,290 Marshall Islands 3,270 Ukraine 3,210 Thailand 2,840 Turkmenistan 2,840 China 2,770 Guatemala 2,680 Morocco 2,580 Income group 2008 GNI and country per capita Swaziland 2,520 Micronesia, Federated States of 2,340 Paraguay 2,180 Syrian Arab Republic 2,090 Indonesia 2,010 Philippines 1,890 Egypt, Arab Republic 1,800 Iraq n.a. Countries eligible for a blend of IBRD and IDA fundsb Per capita income over $1,095 Grenada $5,710 St. Lucia 5,530 St. Vincent and the Grenadines 5,140 Dominica 4,770 Bosnia and Herzegovina 4,510 Azerbaijan 3,830 Armenia 3,350 Cape Verde 3,130 Georgia 2,470 Bolivia, Plurinational State of 1,460 Per capita income $1,095 or less India $1,070 Papua New Guinea 1,010 Pakistan 980 Per capita income $935 or less Uzbekistan $910 Zimbabwe n.a. Countries eligible for IDA funds onlyb Per capita income over $1,095 Maldives $3,630 Angola 3,450 Samoa 2,780 Tonga 2,560 Timor-Leste 2,460 Vanuatu 2,330 Kiribati 2,000 Congo, Republic of 1,970 Bhutan 1,900 Honduras 1,800 Sri Lanka 1,790 Mongolia 1,680 Moldova 1,470 Guyana 1,420 Solomon Islands 1,180 Nigeria 1,160 Cameroon 1,150 Djibouti 1,130 Sudanc 1,130 Per capita income $1,095 or less Lesotho $1,080 Nicaragua 1,080 São Tomé and Principe 1,020 Côte d'Ivoire 980 Senegal 970 Yemen, Republic of 950 Zambia 950 Income group 2008 GNI and country per capita Per capita income $935 or less Vietnam $890 Mauritania 840 Kenya 770 Comoros 750 Lao People's Democratic Republic 750 Kyrgyz Republic 740 Benin 690 Ghana 670 Haiti 660 Cambodia 600 Tajikistan 600 Mali 580 Chad 530 Bangladesh 520 Burkina Faso 480 Tanzania 430 Uganda 420 Central African Republic 410 Madagascar 410 Rwanda 410 Nepal 400 Togo 400 Gambia, The 390 Guinea 390 Mozambique 370 Niger 330 Sierra Leone 320 Eritrea 300 Malawi 290 Ethiopia 280 Guinea-Bissau 250 Liberia 170 Congo, Democratic Republic of 150 Burundi 140 Afghanistan n.a. Kosovo n.a. Myanmarc n.a. Somaliac n.a. Note: n.a. = estimates that are available in range only. a. World Bank Atlas methodology; 2008 per capita GNI (gross national income, formerly GNP) figures are in U.S. dollars. b. Countries are eligible for IDA on the basis of (a) relative poverty and (b) lack of creditworthiness. The operational cutoff for IDA eligibility for FY10 is a 2008 GNI per capita of US$1,135, using Atlas methodology. To receive IDA resources, countries must also meet tests of performance. An exception has been made for small island economies. In exceptional circumstances, IDA extends eligibility temporarily to countries that are above the operational cutoff and are undertaking major adjustment efforts but are not creditworthy for IBRD lending. c. Loans/credits in nonaccrual status as of June 30, 2009. General information on countries with loan/credits in nonaccrual status is available from the Credit Risk Department in Finance (FINCR). DEVELOPMENT COMMITTEE COMMUNIQUÉS | FISCAL 2009 October 12, 2008 The Development Committee met today, October 12, 2008, in Washington DC. 1. Our meeting took place at a critical time for the global economy, with financial markets experiencing unprecedented turmoil. Developing and transition countries (DTCs--many of them already hit hard by current high prices for energy and essential foodstuffs--risk very serious setbacks to their efforts to improve the lives of their populations from any prolonged tightening of credit or sustained global slowdown. The poorest and most vulnerable groups risk the most serious--and in some cases permanent--damage. 2. Against this background, we endorse the commitments made yesterday at the International Monetary and Financial Committee. 3. We stressed that aid volumes need to be consistent with existing commitments and we called for full compliance with these commitments. 4. In support of these concerted actions, we called on the World Bank to join with the IMF in drawing on the full range of its resources--finance, analysis, and advice--to help DTCs strengthen their economies, maintain growth, and protect the most vulnerable groups against the impact of the current crises. 5. The World Bank Group stands ready to help its partner countries: · The Bank's recently announced $1.2 billion rapid financing facility is providing immediate help for countries coping with the impact of high food prices on the poor, and already has $850 million approved or in the pipeline. We urge countries to consider making contributions to this fund. · We encouraged the Bank and its partners to move forward with a planned new program-- Energy for the Poor--that would provide rapid support for countries' efforts to strengthen social safety nets to protect the poor against the impact of high fuel bills. · IBRD has the financial capacity to comfortably double its annual lending to developing countries to meet additional demand from clients. IBRD lending was US$13.5 billion last fiscal year. · We urged IFC to explore options for helping recapitalize banks in developing countries adversely affected by the global liquidity crisis, including the possibility of a fund. We also supported longer-term efforts beyond the immediate crisis, including: · Expanded help for energy-deficit countries to improve energy efficiency and improve domestic production to reduce their vulnerability to future price shocks. · Reforms designed to increase the World Bank's responsiveness to its clients. · A new strategic framework for the World Bank to play a stronger role in helping countries deal with the causes and effects of climate change, and the recent launch of the new Climate Investment Funds. DEVELOPMENT COMMITTEE COMMUNIQUÉS | FISCAL 2009 April 26, 2009 1. The Development Committee met today, April 26, 2009, in Washington, DC. 2. The global economy has deteriorated dramatically since our last meeting. Developing countries face especially serious consequences, as the financial and economic crisis turns into a human and development calamity. Hard-earned progress toward the Millennium Development Goals (MDGs) is now in jeopardy. The crisis has already driven more than 50 million people into extreme poverty, particularly women and children. We must alleviate its impact on developing countries and facilitate their contribution to global recovery. 3. The World Bank Group (WBG) and the IMF have shown leadership and complement each other in helping developing countries respond to the crisis, enabling countercyclical measures, and helping to bridge the huge financing gap, including efforts to revive private capital flows. Multilateral institutions need the resources and capacity for effective crisis response and prevention. We welcomed member countries' commitments to a substantial increase in resources for the IMF. 4. More needs to be done as the crisis unfolds further. We now need to translate our respective commitments, including those made by the participants at the recent London Summit, into concerted action and additional resources. We urged all donors to accelerate delivery of commitments to increase aid, and for us all to consider going beyond existing commitments. 5. We welcomed the WBG's efforts to ensure a timely crisis response while maintaining its focus on long-term development challenges, including those posed by climate change and the need to accelerate progress toward the MDGs. We noted the expected trebling of IBRD lending this fiscal year and the fast tracking of IDA 15 commitments. We supported the initiatives the WBG has launched and encouraged their timely implementation: · To protect the poorest, the Bank has set up the Vulnerability Financing Facility, including the Global Food Crisis Response Program and the new Rapid Social Response Program. IFC has also created the Microfinance Enhancement Facility to help poor borrowers. · To reinvigorate trade finance, IFC has expanded its Global Trade Finance Program from $1 billion to $3 billion, and has also launched its Global Trade Liquidity Program, expected to support up to $50 billion of trade over the next three years. · To maintain infrastructure development and create jobs, the Bank has established the Infrastructure Recovery and Assets Platform. The Bank will lend up to $15 billion a year for infrastructure, while IFC has launched the Infrastructure Crisis Facility. · To help support the financial sector, IFC has created the Capitalization Fund to provide additional capital for developing country banks. MIGA has extended guarantees to loans to Eastern Europe for coverage of $500 million. Many of these initiatives are designed to mobilize more resources, both public and private. We welcomed the additional contributions that have been made and urged governments to consider further support. In addition, we called upon the WBG to update as appropriate its policies, instruments, and strategies in light of lessons learned from the crisis. 6. We confirmed our support for making optimal use of IBRD's balance sheet with lending of up to $100 billion over three years. Given the possibility of a slow recovery, we considered the potential need to deploy additional resources and asked the WBG to review the financial capacity, including the capital adequacy, of IBRD and IFC, and the adequacy of the concessional resources going to IDA countries, for our further consideration at the 2009 Annual Meetings. 7. The crisis and the need for a strong multilateral response further highlight the relevance of ensuring enhanced voice and participation of developing and transition countries in the governance of the WBG. Based on agreement at our last meeting for the Board to develop principles, criteria, and proposals for Bank shareholding, we agreed to accelerate work on the second phase of the reform with a view to reaching agreement by the 2010 Spring Meetings. This must involve all shareholders in a transparent, consultative, and inclusive process. 8. We welcomed the Board's review of internal governance and asked the WBG to continue the work, as part of the comprehensive approach to strengthening WBG governance and overall effectiveness. 9. The Committee's next meeting is scheduled for October 5, 2009, in Istanbul. THE WORLD BANK ANNUAL REPORT 2009 YEAR IN REVIEW THE WORLD BANK ANNUAL REPORT 2009 The World Bank Group, among the world's largest development institutions, is a major source of financial and technical assistance to developing countries around the world. The Bank Group advances ideas about international projects on trade, finance, health, poverty, education, infrastructure, governance, climate change, and more to benefit the poor seeking new opportunities. 2 THE WORLD BANK ANNUAL REPORT 2009 AFFILIATES OF THE WORLD BANK GROUP The International Bank for Reconstruction and Development Established 1944 | 186 Members Cumulative lending: $479 billion (effective fiscal 2005, includes guarantees) Fiscal 2009 lending: $32.9 billion for 126 new operations in 42 countries The International Development Association Established 1960 | 169 Members Cumulative commitments: $207 billion (effective fiscal 2005, includes guarantees) Fiscal 2009 commitments: $14 billion for 176 new operations in 63 countries The International Finance Corporation Established 1956 | 182 Members Committed portfolio: $34.4 billion (plus $8 billion in syndicated loans) Fiscal 2009 commitments: $10.5 billion committed and $4 billion mobilized for 447 projects in 103 countries The Multilateral Investment Guarantee Agency Established 1988 | 174 Members Cumulative guarantees issued: $20.9 billion (includes amounts leveraged through the Cooperative Underwriting Program) Fiscal 2009 guarantees issued: $1.4 billion The International Centre for Settlement of Investment Disputes Established 1966 | 143 Members Total cases registered: 292 Fiscal 2009 cases registered: 24 3 THE WORLD BANK ANNUAL REPORT 2009 The World Bank (IBRD and IDA), IFC, and MIGA work together and complement each other's activities to achieve their shared goals of reducing poverty and improving lives. 4 THE WORLD BANK ANNUAL REPORT 2009 President of the World Bank and Chairman of the Board of Executive Directors Robert B. Zoellick Executive Director Alternate Director E. Whitney Debevoise (Vacant) Toru Shikibu Masato Kanda Michael Hofmann Ruediger Von Kleist Susanna Moorehead Stewart James Ambroise Fayolle Frederick Jeske-Schonhoven Konstantin Huber Gino Alzetta Rudolf Treffers Claudiu Doltu José A. Rojas Marta Garcia Jauregui Samy Watson Ishmael Lightbourne Carolina Rentería Rogerio Studart Giovanni Majnoni Nuno Mota Pinto James Hagan Do-Hyeong Kim Pulok Chatterji Kazi M. Aminul Islam Toga McIntosh Hassan Ahmed Taha Svein Aass Jens Haalov Sid Ahmed Dib Javed Talat Michel Mordasini Michal Krupinski Merza H. Hasan Ayman Alkaffas Zou Jiayi Yang Yingming Abdulrahman M. Almofadhi Abdulhamid Alkhalifa Alexey Kvasov Eugene Miagkov Sun Vithespongse Irfa Ampri Dante Contreras Felix Alberto Camarasa Louis Philippe Ong Seng Agapito Mendes Dias 5 THE WORLD BANK ANNUAL REPORT 2009 Fiscal Year Highlights In fiscal 2009, the World Bank Group sponsored 767 projects with a total commitment of $58.8 billion, distributed in credits, loans, grants, and guarantees. 6 THE WORLD BANK ANNUAL REPORT 2009 Fiscal Year Highlights In fiscal 2009, IBRD committed $32.9 billion for 126 new operations in 42 middle-income and creditworthy low-income countries. The World Bank is able to triple its support to IBRD borrowers to up to $100 billion through fiscal 2011 to raise the living standard of the poor, support countries facing large budget shortfalls, and help sustain long-term investment projects. 7 THE WORLD BANK ANNUAL REPORT 2009 Fiscal Year Highlights IDA committed a record $14 billion for 176 new operations in 63 low-income countries, a 25 percent increase over last year's $11.2 billion. 8 THE WORLD BANK ANNUAL REPORT 2009 Fiscal Year Highlights In fiscal 2009, Latin America and the Caribbean was the Bank Group's top fund recipient, with $14 billion in new commitments, almost triple the previous year's lending to the region. 9 THE WORLD BANK ANNUAL REPORT 2009 Fiscal Year Highlights Note: All dollar amounts used are current U.S. dollars. As a result of rounding, numbers in the following charts may not add to totals and percentages in figures may not add to 100. 10 THE WORLD BANK ANNUAL REPORT 2009 IBRD and IDA Lending by Region Fiscal 2009 Share of Total Lending of $46.9 Billion 11 THE WORLD BANK ANNUAL REPORT 2009 IBRD and IDA Lending by Theme Fiscal 2009 Share of Total Lending of $46.9 Billion 12 THE WORLD BANK ANNUAL REPORT 2009 IBRD and IDA Lending by Sector Fiscal 2009 Share of Total Lending of $46.9 Billion 13 THE WORLD BANK ANNUAL REPORT 2009 Regional Lending by Theme and Sector 14 THE WORLD BANK ANNUAL REPORT 2009 Africa Regional Snapshot Total population 0.8 billion Population growth 2.5% Life expectancy at birth 52 years Infant mortality per 1,000 births 89 Female youth literacy 67% Number of people living with HIV/AIDS 22.3 million 2008 GNI per capita $1,082 GDP per capita index (1998=100) 122 Note: Life expectancy at birth and infant mortality rate per 1,000 live births, female youth literacy, and people living with HIV/AIDS are for 2007; other indicators are for 2008 from the World Development Indicators database. HIV/AIDS data are from the UNAIDS/WHO 2008 Report on the Global AIDS Epidemic. Total Fiscal 2009 Total Fiscal 2009 New Commitments Disbursements IBRD $362 million IBRD $120 million IDA $7,887 milliona IDA $4,317 million a. Includes a HIPC grant of $45.5 million for Cote d'Ivoire. Portfolio of projects under implementation as of June 30, 2009: $29 billion 15 THE WORLD BANK ANNUAL REPORT 2009 More than Half of IDA Lending Went to Africa Share of Total Lending of $14 Billion 16 THE WORLD BANK ANNUAL REPORT 2009 Africa IBRD and IDA Lending by Theme, Fiscal 2009 Share of Total Lending of $8.2 Billion 17 THE WORLD BANK ANNUAL REPORT 2009 Africa IBRD and IDA Lending by Sector, Fiscal 2009 Share of Total Lending of $8.2 Billion 18 THE WORLD BANK ANNUAL REPORT 2009 East Asia and Pacific Regional Snapshot Total population 1.9 billion Population growth 0.8% Life expectancy at birth 72 years Infant mortality per 1,000 births 22 Female youth literacy 98% Number of people living with HIV/AIDS 2.4 million 2008 GNI per capita $2,515 GDP per capita index (1998=100) 207 Note: Life expectancy at birth and infant mortality rate per 1,000 live births, female youth literacy, and people living with HIV/AIDS are for 2007; other indicators are for 2008 from the World Development Indicators database. HIV/AIDS data are from the UNAIDS/WHO 2008 Report on the Global AIDS Epidemic. Total Fiscal 2009 Total Fiscal 2009 New Commitments Disbursements IBRD $6,905 million IBRD $3,275 million IDA $1,247 million IDA $1,254 million Portfolio of projects under implementation as of June 30, 2009: $26 billion 19 THE WORLD BANK ANNUAL REPORT 2009 East Asia and Pacific IBRD and IDA Lending by Theme, Fiscal 2009 Share of Total Lending of $8.2 Billion 20 THE WORLD BANK ANNUAL REPORT 2009 East Asia and Pacific IBRD and IDA Lending by Sector, Fiscal 2009 Share of Total Lending of $8.2 Billion 21 THE WORLD BANK ANNUAL REPORT 2009 South Asia Regional Snapshot Total population 1.5 billion Population growth 1.5% Life expectancy at birth 65 years Infant mortality per 1,000 births 59 Female youth literacy 74% Number of people living with HIV/AIDS 2.6 million 2008 GNI per capita $986 GDP per capita index (1998=100) 164 Note: Life expectancy at birth and infant mortality rate per 1,000 live births, female youth literacy, and people living with HIV/AIDS are for 2007; other indicators are for 2008 from the World Development Indicators database. HIV/AIDS data are from the UNAIDS/WHO 2008 Report on the Global AIDS Epidemic. Total Fiscal 2009 Total Fiscal 2009 New Commitments Disbursements IBRD $1,286 million IBRD $1,202 million IDA $4,148 million IDA $2,792 million Portfolio of projects under implementation as of June 30, 2009: $26 billion 22 THE WORLD BANK ANNUAL REPORT 2009 South Asia IBRD and IDA Lending by Theme, Fiscal 2009 Share of Total Lending of $5.4 Billion 23 THE WORLD BANK ANNUAL REPORT 2009 South Asia IBRD and IDA Lending by Sector, Fiscal 2009 Share of Total Lending of $5.4 Billion 24 THE WORLD BANK ANNUAL REPORT 2009 Europe and Central Asia Regional Snapshot Total population 0.4 billion Population growth 0.3% Life expectancy at birth 70 years Infant mortality per 1,000 births 21 Female youth literacy 99% Number of people living with HIV/AIDS 1.6 million 2008 GNI per capita $7,418 GDP per capita index (1998=100) 170 Note: Life expectancy at birth and infant mortality rate per 1,000 live births, female youth literacy, and people living with HIV/AIDS are for 2007; other indicators are for 2008 from the World Development Indicators database. HIV/AIDS data are from the UNAIDS/WHO 2008 Report on the Global AIDS Epidemic. Total Fiscal 2009 Total Fiscal 2009 New Commitments Disbursements IBRD $8,978 million IBRD $4,887 million IDA $384 million IDA $493 million Portfolio of projects under implementation as of June 30, 2009: $21 billion 25 THE WORLD BANK ANNUAL REPORT 2009 Europe and Central Asia IBRD and IDA Lending by Theme, Fiscal 2009 Share of Total Lending of $9.4 Billion 26 THE WORLD BANK ANNUAL REPORT 2009 Europe and Central Asia IBRD and IDA Lending by Sector, Fiscal 2009 Share of Total Lending of $9.4 Billion 27 THE WORLD BANK ANNUAL REPORT 2009 Latin America and the Caribbean Regional Snapshot Total population 0.6 billion Population growth 1.1% Life expectancy at birth 73 years Infant mortality per 1,000 births 22 Female youth literacy 97% Number of people living with HIV/AIDS 1.9 million 2008 GNI per capita $6,780 GDP per capita index (1998=100) 121 Note: Life expectancy at birth and infant mortality rate per 1,000 live births, female youth literacy, and people living with HIV/AIDS are for 2007; other indicators are for 2008 from the World Development Indicators database. HIV/AIDS data are from the UNAIDS/WHO 2008 Report on the Global AIDS Epidemic. Total Fiscal 2009 Total Fiscal 2009 New Commitments Disbursements IBRD $13,829 million IBRD $7,864 million IDA $202 million IDA $180 million Portfolio of projects under implementation as of June 30, 2009: $26 billion 28 THE WORLD BANK ANNUAL REPORT 2009 Latin America and the Caribbean IBRD and IDA Lending by Theme, Fiscal 2009 Share of Total Lending of $14.0 Billion 29 THE WORLD BANK ANNUAL REPORT 2009 Latin America and the Caribbean IBRD and IDA Lending by Sector, Fiscal 2009 Share of Total Lending of $14.0 Billion 30 THE WORLD BANK ANNUAL REPORT 2009 Middle East and North Africa Regional Snapshot Total population 0.3 billion Population growth 1.8% Life expectancy at birth 70 years Infant mortality per 1,000 births 32 Female youth literacy 86% Number of people living with HIV/AIDS 210,000 2008 GNI per capita $3,242 GDP per capita index (1998=100) 128 Note: Life expectancy at birth and infant mortality rate per 1,000 live births, female youth literacy, and people living with HIV/AIDS are for 2007; other indicators are for 2008 from the World Development Indicators database. HIV/AIDS data are from the UNAIDS/WHO 2008 Report on the Global AIDS Epidemic. Total Fiscal 2009 Total Fiscal 2009 New Commitments Disbursements IBRD $1,551 million IBRD $1,216 million IDA $172 million IDA $183 million Portfolio of projects under implementation as of June 30, 2009: $7 billion 31 THE WORLD BANK ANNUAL REPORT 2009 Middle East and North Africa IBRD and IDA Lending by Theme, Fiscal 2009 Share of Total Lending of $1.7 Billion 32 THE WORLD BANK ANNUAL REPORT 2009 Middle East and North Africa IBRD and IDA Lending by Sector, Fiscal 2009 Share of Total Lending of $1.7 Billion 33 THE WORLD BANK ANNUAL REPORT 2009 Lending by Theme 34 THE WORLD BANK ANNUAL REPORT 2009 ECONOMIC MANAGEMENT IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $2.3 Billion 35 THE WORLD BANK ANNUAL REPORT 2009 ENVIRONMENTAL AND NATURAL RESOURCE MANAGEMENT IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $5.1 Billion 36 THE WORLD BANK ANNUAL REPORT 2009 FINANCIAL AND PRIVATE SECTOR DEVELOPMENT IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $9.7 Billion 37 THE WORLD BANK ANNUAL REPORT 2009 HUMAN DEVELOPMENT IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $6.4 Billion 38 THE WORLD BANK ANNUAL REPORT 2009 PUBLIC SECTOR GOVERNANCE IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $6.1 Billion 39 THE WORLD BANK ANNUAL REPORT 2009 RULE OF LAW IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $15.8 Million 40 THE WORLD BANK ANNUAL REPORT 2009 RURAL DEVELOPMENT IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $4.3 Billion 41 THE WORLD BANK ANNUAL REPORT 2009 SOCIAL DEVELOPMENT, GENDER, AND INCLUSION IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $813.2 Million 42 THE WORLD BANK ANNUAL REPORT 2009 SOCIAL PROTECTION AND RISK MANAGEMENT IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $5.3 Billion 43 THE WORLD BANK ANNUAL REPORT 2009 TRADE AND INTEGRATION IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $3.4 Billion 44 THE WORLD BANK ANNUAL REPORT 2009 URBAN DEVELOPMENT IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $3.5 Billion 45 THE WORLD BANK ANNUAL REPORT 2009 Lending by Sector 46 THE WORLD BANK ANNUAL REPORT 2009 AGRICULTURE, FISHING, AND FORESTRY IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $3.4 Billion 47 THE WORLD BANK ANNUAL REPORT 2009 EDUCATION IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $3.4 Billion 48 THE WORLD BANK ANNUAL REPORT 2009 ENERGY AND MINING IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $6.3 Billion 49 THE WORLD BANK ANNUAL REPORT 2009 FINANCE IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $4.2 Billion 50 THE WORLD BANK ANNUAL REPORT 2009 HEALTH AND OTHER SOCIAL SERVICES IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $6.3 Billion 51 THE WORLD BANK ANNUAL REPORT 2009 INDUSTRY AND TRADE IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $2.8 Billion 52 THE WORLD BANK ANNUAL REPORT 2009 INFORMATION AND COMMUNICATION IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $329.2 Million 53 THE WORLD BANK ANNUAL REPORT 2009 LAW AND JUSTICE AND PUBLIC ADMINISTRATION IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $9.5 Billion 54 THE WORLD BANK ANNUAL REPORT 2009 TRANSPORTATION IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $6.3 Billion 55 THE WORLD BANK ANNUAL REPORT 2009 WATER SANITATION AND FLOOD PROTECTION IBRD and IDA Lending by Region, Fiscal 2009 Share of Total Lending of $4.4 Billion 56 THE WORLD BANK ANNUAL REPORT 2009 Regional Lending History 57 THE WORLD BANK ANNUAL REPORT 2009 AFRICA Total IBRD and IDA Lending, Fiscal 2004 to 2009 (millions of dollars) 58 THE WORLD BANK ANNUAL REPORT 2009 EAST ASIA AND PACIFIC Total IBRD and IDA Lending, Fiscal 2004 to 2009 (millions of dollars) 59 THE WORLD BANK ANNUAL REPORT 2009 SOUTH ASIA Total IBRD and IDA Lending, Fiscal 2004 to 2009 (millions of dollars) 60 THE WORLD BANK ANNUAL REPORT 2009 EUROPE AND CENTRAL ASIA Total IBRD and IDA Lending, Fiscal 2004 to 2009 (millions of dollars) 61 THE WORLD BANK ANNUAL REPORT 2009 LATIN AMERICA AND THE CARIBBEAN Total IBRD and IDA Lending, Fiscal 2004 to 2009 (millions of dollars) 62 THE WORLD BANK ANNUAL REPORT 2009 MIDDLE EAST AND NORTH AFRICA Total IBRD and IDA Lending, Fiscal 2004 to 2009 (millions of dollars) 63 THE WORLD BANK ANNUAL REPORT 2009 www.worldbank.org/annualreport 64