23445 Volume 1 BUESINESS` CREAT14G International Finance Corporation WORLD; BANK GR-OU;P [-20:0e ANNU-AL REPORT INTERNATIONAL FINANCE CORPORATION Since its founding in 1956, IFC has committed more than $29 billion of its own funds and has arranged $19.2 billion in syndications and under- writing for 2,446 companies in 136 developing countries. IFC coordinates its activities with the other institutions in the World Bank Group- the International Bank for Reconstruction and Development, the International Development Association, and the Multilateral Investment Guarantee Agency-but is legally and finan- cially independent. Its 174 member countries provide its share capital and collectively deter- mine its policies. Note: Management's discussion and analysis, the audited financial statements, and IFC's fiscal year 2000 investment portfolio appear in volume 2 of the annual report. Currency is given in U.S. dollars throughout unless otherwise specified. IMTERkNATIOMAL FINANCE CORPORATION WORLD BAiMK GROUP CONTlENTS Financial and Portfolio Highlights 2 Letter to the Board of Governors4 Message from the Executive Vice President 5 Building Business, Creating Opportunity 8 Who We Are 20 IFC Activities 214 Regional Reports 30 Managing Change 60 Annual Review 64 Financial Review 65 Portfolio Review 69 Operations Evaluation ~~~~72 Our Mission:To promote private sector Operations Evaluation Project Approvals 73 investment in developing countries, Technical Assistance and Advisory Projects 94 which will reduce poverty and improve Appendixes 105 people's lives. Acronyms, Notes, and Definitions 120 FhancSW and ParffoH MoghUoghts OPERATIONAL RESULTS, FY 2000 APPROVALS New projects approved 259 Total financing approved* $ 5.8 BILLION SYNDICATED Financing approved for IFC's own account $ 3.5 BILLION LOANS/I UNDERWRITING Total financing committed* $ 3.9 BILLION EQUITY AND qUASI-EQUITY Financing committed for IFC's own account $ 2.4 BILLION 0 .5 1.0 1.5 2.0 2.5 3.0 ENLLiONS OF U.S. OGLtARS Total Disbursed Loan and Equity Portfolio' $ 10.9 BILLION Equity as % of Disbursed Portfolio+ 24% COMMITMENTS Loans as % of Disbursed Portfolio' 76% LOAN S RESOURCES AND INCOME SYNDICATED UNDERWRING Net Income $ 380 MILLION EqUITY AND _ QUASI-EQUITY Paid-in Capital $ 2.4 BILLION 0 .5 1.0 1.5 2.0 2.5 3.0 Retained Earnings $ 3.4 BILLION BILLIONS OF U.S. DOLLARS Borrowings for the Fiscal Year $ 4.4 BILLION includes syndications and underwriting + for IFC's own account as of June 30 SECTORAL DISTRIBUTION OF APPROVALS FY1990 AND FY2000 El FY90 rl FYOO 40_- 2 A Financial Services 30- B Infrastructure C Social Services 20- 2 (Health Care, Education) D Chemicals, Petrochemicals, Z 10 Oil, Gas, and Mining r ; E Timber, Pulp, and Paper 0 _ I A S~~ ~ ~ c D E TOTAL PROJECT COSTS APPROVALS, FY1998-2000 25 - <20- n o 15- 6 10 Total financing required for all IFC projects approved each fiscal year. o IFC arranges financing equal to a fraction of total costs. - FY98 FY99 FY00 MIDDLE EAST AND NORTH AFRICA Fy2000 APPROVALS 3 SECTORAL DISTRIBUTION OF FY2000 APPROVALS TOTAL: $85 MILLIONS :~$ 55 Financial Services (65%) El $ 7 Hotels and Tourism (8%) B $ 9 Oil, Gas, and Mining (11%) F] $ 12 Social SeSices (Health Care, Education) (14%) El $ 2 Olher(3%) LATIN AMERICA AND THE CARIBBEAN FV2000 APPROVALS TOTAL: $5.8 BILLION MILLIONS $2,681 Financial Services (45.9%) S 165 SocialServices $ 1,361 Infrastructure (23.3%) (elhCr.Euain 280c EN $ 644 Oil, Gas, and Mining (11%/O) F $ 153 Manufacturing (2.6%) TOTAL: $2,724 [iC n $ 151 Chemicals and Petrochemicals (2.6%) MILLIONS E $ 181 Cement and Construction Materials (3.1%) 0 $ 149 Timber, Pulp, and Paper (2.5%) E 1 S1.347 Financial Seryices (50%) E] $ 172 Food and Agribusiness (2.90/o) .] $ 189 Other* (3.30/) E $ 783 Infrastructure (29Y0) E $ 120 Chemicals and Petrochemicals (4%) *Among other sectors, motor vehicles and components, fertilizers and agricultural chemicals,textiles. hotels C1 S 111 Social Services and tourism, and industrial and consumer services. (Health Care. Education) (4%) El $ 363 Other (13%) SUB-SAHARAN AFRICA ASIA AND THE PACIFIC EUROPE AND CENTRAL ASIA FY2000 APPROVALS FY2000 APPROVALS FY2000 APPROVALS TOTAL: $1,248 TOTAL: $1,064 TOTAL: $659 MILLIONS MILLIONS MILLIONS El $ 593 Financial Services (48%) [3 $ 475 Financial Services (45°b) E3 $ 198 Financial Services (30°b) El $ 177 Infrastnucture (14%) El $ 257 Infrastructure (24%) El $ 90 Infrastructure (14%) El $ 442 Oil, Gas, and Mining (35%) EN $ 95 Oil, Gas, and Mining (9%) $ S 87 Oil, Gas, and Mining (13%) El $ 18 FoodandAgribusiness(1%) El $ 108 Cementand E $ 70 Timber,Pulp,andPaper(11%) El I 1S Other(2%) Construction Materials (10%) El $ 214 Other (32%) El $ 129 Other(12%) Letter to thTe Board ofF Governors NNEMN AILUMMAM August 1, 2000 Khalid . Ai-Saad Mohamed Kamel Amr Yahya Alyahya Abdulrahman Almofadhi the 3oa rd of Directors of the Inte iational Finance oi, o:ation Ruth Bachrn3yer Luc Hu;bloue Ruth Bachmayer Liic Hubioue has had this annua l re:or' fror thne fisca l yea r ended . une 30,-2000, Andrei Bugrov Eugene Miagkov Federico Ferrer Cecilia Ramos prepared in accordance wi the or?orations by-laws. James C. GodfreyGaoseb GirmalAbraham Wolfensolhn, president of F-C and chairman of 1he 3oa,d oi valerianoF.Garcia IvanRivera Directors, has subnitte this with the acco n yn Inaamul Haque Mohamed Dhlf Yuzo Harada Akira Kamitomnai aUdited fin2ncial statemernnts to the oard of Coverniors. Jannes Hutagalung Wan Abdul Aziz Wan Abdulla,h Neff Hyden Lewis D.Hoiden The D!iedtors are pleased ' to repoorM th2t in flscal 2000 ?l-C Matthlas Meyer le rzy Hytewsk I con;tinued to expcnd project financing operations and adviso,y Jean-Claude Milleron Emmanuel Moulin likka Niemi Anna M. Brandt activities in its developing member countries, whiie furthe, Terrie O'Leary Alan David Slusher strengthening its financial position. Franco Passacantando Helena Cordeiro Stephen Pickford Myles Wickstead Jan Piercy (vacant) Mvurilo Portugal Patricio Rubianes Helmut Schaffer Eckhardt Biskup B. RSingh SyedAhmed Pieter Stek Tamara Solyanyk BassaryToure Paulo F. Gomes Zhu Xlan Chen Huan (From left to right) YahyaAlyahya, Patricio Rubianes,EugeneMiagkov lnaamulHaque, Matthias Meyer Zhu Xian, Helmut Schaffer, Ivan Rivera'Franco Passacantando, B.P Singh, Lewis D. Holden'Ruth Bochmayer, Pieter Stek, Terrie O'Leary, Federico Ferrer, Jannes Hutagalung, Satoru Miyamurat, Godfrey Gaooseb, likka Niemi, Paulo F Gomes-Jean- Claude Milleron, Khalid M. Al-Saad, Stephan Pickford. Note: U.S. director absent from photo 'Alternate director tReplaced by Yuzo Harada 0 z 0 0~~~~~~~~~~~~077 Message from the Executive Voce res$dent PUSH - PULL MORE IMPACT The past year was a successful one, with gross approvals increasing by more than 10 percent-led by a record for new 5 investments in Sub-Saharan Africa, where dollar volume tripled. We realized our second-highest-ever annual net income of $380 million, reinforcing our belief that profitable business can be pursued in the developing world. We also saw a significant resurgence in commercial bank lending through our syndications program, which signed $ 1.5 billion in Executive Vice President Peter Woicke cnd President Jomes D. Wolfensohn loans, nearly double the previous year. Jim Wolfensohn and I are proud of these other international financial institutions. The question of so-called corporate welfare- accomplishments. premise behind the recommendations is that that is, should public funds be used to back But during FY 2000 IFC also felt the push the world has changed dramatically since the private enterprises? of reformers and critics, the most extreme creation of those institutions. Increased avail- While we recognize a compelling need to of whom suggested we shut our doors. ability of private capital and investment in correct inaccuracies put forward about our We felt the effects too of a changing mar- developing countries, the argument goes, work, legitimate concerns need to be ketplace. Most of all, though, we felt the has made IFC's role as a provider of private addressed. Clearly, globalization has not pull of the needs of businesses large and sector project finance obsolete. brought benefits-yet-to milhons of poor small in our developing member countries. While specific recommendations have not people. Clearly, environmental problems We look to the public sector-through gained widespread support, the issues are not being adequately resolved. And it is instituting good policies, sound regulatory raised deserve serious consideration. Some fully appropriate that we be held accountable practices, clean governance, and investments of our shareholder governments are like- for producing results on the ground. in human capital-to make a thriving wise asking whether the greater availability We have an opening here that we can use- private sector possible. But we look to the of commercial capital has rendered IFC's fully exploit. Greater attention to the plight private sector to build economic activity and provision of financing to private enterprises of the poor and the environment can hasten provide jobs-jobs that are the path out of in middle-income countries unnecessary. beneficial change. We are relentlessly seek- poverty. Private enterprises create more than In the midst of this debate, antiglobalization ing this type of opportunity. But our critics ten employment opportunities for every one protesters in Seattle, Washington, and else- and other concerned constituencies must that is generated through the public sector. where have articulated concerns ranging do their part and strive to deliver more in from the environment, labor standards, and the way of constructive ideas and help us A FIRM PUSH.. the impact of economic reforms on the poor collectively focus on practical alternatives. In March 2000, a report to the U.S. Congress to what are seen as the exploitative practices To those with positive ideas for change, issued recommendations for the future of large corporations. Some critics raise the our door has been and will remain open. activities of the IMF, World Bank Group, and A STRONGER PULL... In this context, yes, we face major bank in the Balkans, we will continue to Alongside this push is the gravitational pull challenges, but we also have exciting expand our work in this area. generated by our clients-the people who opportunities to make things better. Infrastructure services-power water supply reside in the developing world. We feel the DOING WHAT WE DO BEST and sanitation, transportation, and telecom- pull of 3 billion people living on less than The push and the pull compel us to align munications-are fundamental to the quality $2 per day and of 1.4 billion who lack access ofltour activities with our clients' needs and our of hfe m the developmg world. Without to clean water. IFC, in particular, feels the own strengths. The keys to success include reliable and reasonably priced access to these pull of the millions of potential or existing being more selective in what we do and services, people suffer and companies have entrepreneurs-and their ideas-without where we intervene, supporting sustainable difficulty surviving. On another level, link- access~ ~ ~ ~ ~ ~whr we intervene supportin sutanal yunig access to advice, markets, or funding. private sector development more actively, ing the developing world to the Internet Despite the growth of private capital flows, and delivering our products and services on a mass scale is critical to the conduct of most companies in the developing world more effectively. However, in cases where commerce and the spread of knowledge. lack access to venture capital or affordable private investors are prepared to work alone, IFC will continue to support private sector credit. The problem is especially acute our job is to step aside and focus instead infrastructure, where projects during the beyond the dozen or so larger markets that on more difficult areas where we have a past fiscal year amounted to 23 percent of attract most foreign investment. Even in clear role and can add significant value. investment approvals. We have no desire to countries like Argentina, Brazil, and China compete with private investment, but to What we do best matches up well with the where foreign investment plays a major partner with it where needed so it can then most critical needs of our developing member role, that investment reaches only a few follow without us. countries. As an example, we are increasing companies and sectors. A pressing need support for small and medium enterprises. We will also seek out private investment in remains for long-term, risk-tolerant invest- This effort is particularly important as state- the social sectors-particularly health care ment capital that will permit businesses to owned enterprises downsize and continue and education. Such investments sometimes survive, grow, and employ. Urgent needs to be privatized. Small businesses hold vast raise questions about IFC activity in a demand urgent responses: potential for growth, but only with access to domain previously reserved primarily for * to bridge the digital divide that capital and know-how. The up-front costs are the public sector. We believe, however, that threatens to leave much of the higher than we have previously accepted, selected investments can supplement inade- developing world behind but we are prepared to pay them to achieve quate public resources and improve quality, * to strengthen domestic financial greater long-term benefits. accessibility, and efficiency. markets to serve local entrepreneurs and hedge against future financial crises If entrepreneurial initiative is to be rewarded, Underling these torafrontiemasesi * to address the lack of basic employment created, and the quality of life infrastructure services improved, two sectors require special atten- those developing countries with little access 6 tion-financial markets and infrastructure, to international capital markets and weak * to improve access to health care and financialnistitutionssWenarenalssimplement funancial institutions. We are also implement- education, where privately owned and Over 45 percent-a record-of IFC invest- ing a more selective approach to middle- managed operations can help raise the ment approvals during the past fiscal year in quality and ease the public burden income countries, tightening our focus on were in the financial sector. From investing ,, ~~~~~~~~~~~~~~~~~~~~~~~where we are needed most. Our successes 4 * to improve the environmental and social in the development of a secondary mortgage E sustainability of private enterprises, m i A sin Africa this past year attest to the reality sustinablityof pivat entrpries.market in Argentina to a microenterprise of this shift. ADJUST TO LEAD Advisor/Ombudsuman. Ms. Meg Taylor, Each of these product or practice groups Through our willingness to take risk, success who has been with us for about a year, is a represents a particularly strong marriage of in siiobihizing resources from others through conduit for hearing and acting on the con- public policy and private entrepreneurship. our syndicated loan program, and ability to cerns of local communities affected by our IFC's people remain its strength, its 7 complete financially complex transactions, projects. We believe that this approacb will intellectual capital. I remain committed to we have demonstrated the profitability of set a new standard of accountability for mobilizing our most important resource doing business in the developing world. At multilateral organizations. more effectively. We continue to flatten its best, our example encourages others to ADJUST AND DELIVER our management structure to improve follow us into risky but rewarding markets. We have been inaking changes in recent decision-making and accountability. If we do not maintain that standard, we will months to ensure that we achieve our goals We have adopted a more teamn-oriented find ourselves on the margin, through service to clients. Perhaps foremost approach to doing business. Honest per- With the World Bank, IFC has a leadership among these changes is an effort to work formance appraisal, leadership traininlg, role to play in promoting best practice more closely with the World Bank and to and career development opportunities are environmental and social standards, as well leverage our comparative strengths. being significantly enhanced to make IFC as good corporate governance. We have no The Bank's advantage hes in providing a more rewarding place to work and one monopoly on wisdom or practice and can policy advice to governments, supporting that delivers the best possible product. learn from and partner with an emerging institutional development and ethical gov- We have made dear progress over the past group of companies that are also leading the ernance, and investing in the social sectors. year, but our work is not done. Throughout private sector in this area. Those efforts help create an environment its history WFC has continually adjusted by IFC now has in place leading-edge environ- that allows private enterprise to grow and learning from its successes and failures to mental and social policies, and we work prosper. IFC's expertise in project finance maintain its effectiveness as a development hard to ensure that our projects comply. The transactions enriches the policy work of the institution. Yet we know that some of our next step is to move beyond compliance- Bank Group. And as IFC's activities become toughest obstacles lie ahead. or do no harm-to use our experience in more firmly linked to policy reform efforts, The push and the pull are strengthening a way that influences the private sector reform will become more sustainable. The and informing the adjustments we are beyond the immediate range of our own Bank and IFC now collaborate in the for- making. I am confidcnt that we will con- transactions. We will. for example, soon mulation of country asssstance strategies tinue to grow in our support of private publish a community development manual, that guide our collective work. sector development and increase the and the next in our Lessons of Experience To provide institutional structural support impact of our contribution to the reduc- series will be focused on the environment. for these objectives, the World Bank and IFC tion of poverty. These follow our earlier guidance document liave established five joindy managed depart- on public consultation and disclosure. ments: Oil, Gas, and Chemicals; Mining; Another initiative that bears out IFC's lead- Global Information and Communication ership is the establishment of the post of Technologies; Private Sector Advisory environmental and social Compliance Services; and Small anTd Medium Enterprise. 6 Peter Woicke, Executive Vire Presedent I~Ai 1 -- MARK FALLANDER k~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ RICHARD LORD s.a r2gtne e?cc^ts ;!.c gr-w- g cL!mg rc FSS .re,: e-l .asLlt2 _o ve,st. Fce . .. _ eCt5 E . _:. >}Sve .5;Ef a SOT2 i>it psAcjA;t.j ; g SX F C. Z77~~~~~~~~~~~~~~~~~~~MRKFLLNE . _.: uo ._b V5Letteri c;I;M- gn cr acvte wPh f CL reriP rs,_ :~~_i The 2e of cur cevei.LaVT.Lg0~ rnem&erg couf:e C:' C C U E V 2 .3 Z ~ ~ ~ ~ ND RIAT ETIIE Te ;" tcii ta.ntto i ,v s-n Ste Aft,e ia r A-i- .- a ;j-'s, ti;E ns- W> ;-j a 1_ I 2 f n ti7£ "atl2s yec -,~ I F c 12S frU';1'.£i' -C, !7$'ite-C' 7sct eiai,- -,e O ; £ i- 2 e r c i I g {r; C L' r a; L i v i c i e s w , . . i s !n e; ; c i . * . _ s, e MARKARKFFALAANDE ' s -ii-tter z:ig_n,;iv -v GV'r ae ,ai-tS Gur L ;-20i +Ca"c s .n -e7 vl '.i aeeO.,I'' SeY ,m^; Co, a^ i2s, JOBS CREATED BY PUBLIC AND PRIVATE ENTITIES TURIKEY_ URUGUAY_______ (1987-92) E __ MEXICO _ _ _ _ _ _ _ _ _ (1989-98) BOLI VIA _ _ _ _ _ _ _ _ * Public Sector (1994- 7 EE97) _h Private Sector COSTA RCA * flI * * * * * (1994_98) E GABON _ _ _ _ _ _ _ _ _ _ VIBRANT AND COMPETITIVE PRIVATE FIRMS (1992-96) EU M E__E__UE PROVIDE EMPLOYMENT.WHERE STATISTICS GUATEMALA ARE AVAILABLE,THEY SHOWTHATTHE PUBLIC (1994-98) _ _ E _ _ U _ SECTOR PROVIDES ON AVERAGE LESS THAN KENYA ONE JOB FOR EVERY 10 JOBS CREATED IN THE (1993-98) _ U _ U PRIVATE SECTOR. 0 10 20 30 40 50 60 70 80 90 100 SOURCE: RECENT ECDNOMIC DEVELOPMENTS, IMF PERCENT Bdund'Mg the Financial Sector Abroad and deep domesticfinancal sector is fundamental to ItulidTg loCal businesses, targe and small. Strong, competitive, and b,road- FINANCIAL SECTOR based domestc capital sources must be widely available for PROJECTS APPROVED 30- _companies to start up and grow. Without dornestic financing sources, 2.5- | _businesses rnust rely on 'foreign capitai, and many would-be 2 _0_ entrepreneurs are neveer able to access finan-cing. r 1.5- - s-'lC has more tian doubled aoprovals of loans and invest4men.cs 2. .O- - in financial institutions since the early goos. The 'inancial sector is C-I,'s single largest sectoral f7ocus, amounting to 4$ percent cf new e O- _3 __ § ap;2 rovals. 1F-C places a high priority on building local financial I FY90 FY95 FY00 institutions, developing local debt and equity markets, and introducing new financing instruments. W&U WMWW,Q.W 10 - 0 S _ A BROAD IMPACT THROUGH FINANCIAL SERVICES IFC cannot reach all the private businesses in developing countries that need capital to grow. But we can support banks that have the potential to make a strong, positive impact throughout an economy. For example, to meet widespread demand for short-term financing IFC is working closely with banks and in the Kyrgyz Republic, we helped establish Kyrgyz Investment & otherfinancial sector companies to bring improved services to Central Asia. Commercial Bank, a commercial bank with $7 million in capital. RULA HALAWANI IFC ARCHIVES A young couple in the West Bank meets AnwarJyousi, assistant manager at Jordan National Bank, to discuss _ a mortgage. An IFC project in West Bank and Gaza wil help a/low securitization of mortgages. which will propel copital market development and strengthen banks. a _ lX ' ' L _ ~ ~ ~ ~~~~~~~ -- ----- ------- ---- -- ------ -- - -- ---- ---- ----- _ _ _ _ _ _ _ _ _ _ _~~~_ c~~ Home mortgages offer a unique develop- and South Africa. In both countries, IFC ment opportunity for the financial sector. worked closely this year with domestic Such loans increase housing availability firms to create securities by pooling but can also propel development of capi- mortgages, thus developing a secondary tal markets. IFC supports institutions that market for home loans. It is a practice specialize in housing finance or others common in developed economies but still that can create sophisticated financial novel in most emerging markets. Through instruments. securitization, mortgage lenders have One IFC project, the Palestine Mortgage more liquid assets and their credit quality and Housing Corporation, marketed the improves. Increased liquidity becomes region's first mortgages to residents an important tool for further develop- Young children on the street of a newly constructed neighborhood in the West Bonk. Many of this generation will enjoy better of West Bank and Gaza this year. IFC's ment of banks, which can enhance their housing and a higher quality of life, in part due to the ability Board also approved an investment in asset-liability management as they sell offinancial institutions to securitize mortgages. the National Development Bank Housing mortgages they previously issued. This - makes further lending possible. . Finance Corporation, a local institution m f l p l that will specialize in mortgage lending. As traders begin dealing in mortgage- 4 The project has the potential to shift the backed securities, they become better housing construction market toward at assessing and valuing risk and may more modest units, increasing home demand more types of asset-backed ownership possibilities and making securities. In the process, more people , m available the loans needed for further are gaining access to housing at better capital market development. rates through a financial sector that - ' serves them more effectively.8 t)\ !. The financial sector strengthens as the sre te m effctiel N pool of home loans increases, as seen . "/ through other IFC projects in Argentina i Because the dearth of high-quality financial services in Central Asia to take a more proactive position toward the Kyrgyz market than its severely constrains the development of the private sector, this bank only private competitor. At the same time, the experienced partners is targeting its lending to private companies, including small and brought together by IFC to complete this deal will help the bank medium enterprises. develop the credit analysis and structuring skills necessary to its By modernizing banking services, KICB will assist private Kyrgyz com- success as a financial institution. panies and stimulate competition with other banks. KICB is expected Developing lnfrastructure to mpronve LUves Whci.~~~~~~~~~~~ L.-e s &0+t ;e,woD . 1ttCLh', e Wsti- E.i E.W as<:; WIF. Mn~cE. mo , c he -00r? TO~ OK he~'bi !an J I.( (-' G. ' THE VALUE OF oi , mS-, e. INFRASTRUCTURE V10oices of the Poor: Does Anyome Henz Us?, pu IHsh e C '.l;s yea.; 'sc -r ' T e rTesus U! teTv"ews wP- iItV S , cooo iw-hcome c-ie wcs 'W c; * ; uesi-Lons a I'cu. Wnuge,,; nwe iPessness, 7nc '-; i.2 -I \~~~~~~~~~~~~~~~~~ .2 SRI~ `: ,) 0x, ;; 0 (t; wS were asxeeU in So C3unLiriTIs. ?eo,i ir. vjewec1 sa:' :n 3Z,2-'1 5'' -'> \:~~~~~~~~~Wne :: : s < 33% Health san i!01 sys:er,s. L"-,F scIuL:u7e was :se cc :c a; a.S'.cs as 37% Education 'nCori, as Pe. I 'L- h a e -_ a. in." W) e .. VaI, y suIL3i, T:va 30% Infrastructure R2 T;O O, &C aSf:el seei_ s-- 'new r 8|l lDr :bvrseVts lCWe7 rD'I.,I,O L CSa c Iv21 se_s _.:1i 'e.. . Mr) E. o-ta 0 ','5iS :s rojects. 1 2 o-0 _2 I Jt ' . X }EXPANDING ACCESS TO PHONES /s '\j; f ^ _ . Z ^ , Since half the world's population has never made a telephone call, improved telephone access can dramatically raise the quality of life in 0 2 ; 7 t 1 ' developing countries. An IFC-backed b ellular phonerproject in thoIn Uganda, for example, there are fewer than three phones for every Bangladesh brings service to rural areans f sucefl that have been poorly served byfixed-line / . li thousand people. Access began to improve only after the successful telephones. Women entrepreneurs can start-up of IFC-financed CelTel's nationwide cellular service. CelTel's start businesses by purchasing phones and making cellular phones available. ,, experience drew investors to the IFC-advised telecom privatization RICARDO FIGUEROA Restored electricity service as a result of an IFC loan helped P people in Varqas State, Venezuela, get back to work more Uurc' quickly and provided flood refugees in afootball stadium d tent village with light. , | ~~~~~~~~~Alr I~~~~~- w__ :___ __ A single four-day period of torrential work and restore services to their homes, 13 rains in December 1999 brought flooding schools, and health clinics. and mudslides to a mountainous coastal "There is no question that these areas area just outside Caracas. Many died, received public lighting and electricity while survivors faced widespread destruc- much quicker, thanks to this loan," said tion of their homes and communities. Andres Gluski, executive vice president Earlier in 1999, IFC had worked with the of EDC. local power utility Electricidad de Caracas to finance the expansion of its network. The established relationship allowed IFC to move just 48 hours after tragedy An employee of Electricidad de Caracas repairs electricity lines in Vargas State, Venezuela. struck. A team of investment officers, engineers, and social specialists set the framework for an emergency $30 million loan to EDC, providing financing that would restore services to those who needed help the most. Much of EDC's equipment was either washed out to sea or buried under tons of mud, amounting to an estimated $100 million in losses. IFC funds were earmarked for rebuilding facilities that would put the residents in predominantly low-income areas back to process in Uganda completed this year and the previous launch of a This year IFC provided more than $20 million through multiple second national operator of fixed and cellular telephones. financing packages to help Mobile Systems and its subsidiaries CelTel was the first African investment for parent company Mobile develop plans for advanced cellular systems in overlooked African Systems International Cellular Investment Holdings. Sensing demand markets, including Chad, Malawi, and the Republic of Congo. Some across the continent, it teamed with IFC on a similar project in Zambia of these projects will provide the first and sole means of communi- in 1998. cations with the outside world for many rural villages. FMnancdng and Adv0ng Small and Mvi ed~um F-nterprses WORLD BANK GROUP SMALL BUSINESS SUPPORT !,FC- }-hels e, tje i re news u c- a n ei, tel r Usiss s W'u ,lil a r7 CA tc O 0 ic 1| . a 1 so cK a' C !i deveecrei; g rn enrn b- Co r.t res. MiVi ce,t e i-,ses ac. te nq2a sources 0o o n se "or C T su! nC 0ner ta e z z -- * ra n no s I ,c, flcu *erio 's. Yei: sim,al 2r_ rne uTr um eCer! 2sZs 2a,-T-, eT',-,s }! Csp n, FY98-00 coi2flt1es typically lack dllnanicIRI zss,sn2!cC- a.c F &'ce. I1Vf s,' e: TOTAL: $3.4 BILLION >ltLals I OJerate in a C:!flcu1t- policy evzn or.nent. -3'ans p2CefCeT to len!cI 'to 12-ge 8 $1,565 IFCFinancing $ 79 Technical Assistance CO-lenj',O.s !c2use ,e raflsac'fon Cs s aetce!ve: T!5.s a-e and Advisory Services U $1,284 WorldBankFinancing lcwen. fiVt'-out access ;o finaIlcing arr iniciustry knoW-20OW, miany $ 423 World Bank Technical reIu emi2 5sOSTt!gL Assistance and veri'rt| al e, zn6 ,lave I L Ie honofe fst-F_, lgr U : Advisory Services * $ 23 MIGAGuarantees expanl' ln.-;0 jurnp-stie,rL t h, z-'4, will al!'3W these ~Lsin ass ;S row -, 0 ffers su -rto n!C'1m e fI Tnaciig lilsElt 1tionS an-"' est)("S'_i: kw E @Im ffxtiar i'12?-As to rn2.e smali an. nmecium busmness leilc.irg Lrocv.aie. 14 Fig.res represe-t pre,i,-irary e,timate, of SME - support during the past three fi,cal years. B D AFRICA: WORKING WITH ENTREPRENEURS The Africa Project Development Facility is one of a series of special- ized entities that help entrepreneurs build businesses around the developing world.The work of APDF includes providing guidance on F fr.. sound business plans that offer entrepreneurs access to financing. In Entrepreneurs seekingfinancefor activities -. ' .. cases APDF provides consultants and technical and managerial rangingfrom agribusiness to computer services needed to operate enterprises, assistance with management services can seek assistance through the srie n to _ e r s ain w-- I Africa Project Development Facility. " * information systems, and development of human resources. MARK FALLNE An ACLEDA cashier prepares Cambodian rielsfor small loan clients, such as durianfarmer Sun Sry (right), at the banks Phnom Penh-Kandal district office. During the past decade, strife and demand as long as it was organized as a Bank of the United Kingdom into the 15 economic stagnation in Cambodia kept nongovernmental organization dependent management team to help launch deposit poverty levels among the highest in the on donor assistance. The only way to taking and other conventional banking world. In this environment the Associa- expand its reach was to evolve into a functions that will serve the poor tion of Cambodian Local Economic licensed, regulated commercial bank, throughout Cambodia. Finally, ACLEDA Development Agencies sought to provide albeit governed by a unique social vision. and its low-income clients are linked relief With 20 branches scattered through- ACLEDA turned to IFC in this difficult to the country's formal financial system, out Cambodia's rural countryside, it transition. We carried out analysis and ACLEDA Bank is on its way to playing supported self-help opportunities for through our donor-supported small and a bigger poverty-fighting role. people who would otherwise have had medium enterprise partner institution, little hope of employment, much less the Mekong Project Development Facility. access to capital. This assistance enabled ACLEDA to raise ACLEDA became a profitable lender its accounting practices and management structures to initernlational commercial Ok Meoun methodically taps away at a silver ornamnent while focusing almost exclusively on in a silversmith village on the outskirts of Phnom Penh. poor clients. It has $14 million in assets bank standards-a key to attracting She borrowedfrom ACLEDA to develop her business. and more than 60, 000 clients, nearly outside capital. We then helped mobilize 90 percent of them women. With loans an international investment group, as low as $25 to individuals and as high including Deutsche Investitions (DEG), as $25,000 to small businesses, ACLEDA Nederlandse Financierings (FMO), and _ has created the largest microfinance and Stichting Triodos-Doen, that has provided small business lending institution in the ACLEDA with $2 million in fresh equity country. Its funds reach businesses as and loans. Those funds will allow it to country Its funds reach2,000 orbusinessesovr as diverse as lotus farmers, noodle producers reach 25,000 more borrowers over the small shopowners, and exporters. next two years alone. Despite its strong start, by 1998 ACLEDA With IFC-arranged Japanese grant funds, ° I' management believed that it would be ACLEDA Bank was able to bring a former P limited in its ability to meet financing senior banker from Standard Chartered APDF draws on the support of 15 donor countries to operate in For example, Fay International Limited, a firm in Ghana manufacturing 34 Sub-Saharan nations, leading to $546 million in investments in hygiene products, received APDF support in planning and securing more than 240 projects since 1986. Recent support was provided to $450,000 in loans needed to buy new machinery and move to a larger projects ranging from fish farming to Internet services to toothpaste factory. That allowed the company to expand its work aimed at production. Each brought a needed boost to the local economy. improving health and hygiene among Ghana's women. Nur1tunfg a New Fconomy IEas'Lei, onnmuniCaion, Iowe7 tansaction cos,-s viirW Cu' mUn unltLi2S, ain2cF distance learning Iewon,s have greiant ;sO'Centra2 neh';;ng sL!UmCLYunt hLV Les ostaser and, mo;;e e2u3.le growth. £UL WILfv1 tiromise c o mZe s s - ess , ,2ai; n rnt Or iCV Ce cs,w.'l- DIGITAL DIVIDE tion o0 revelo,,ing countrlies now has Inteeinet a.-ess. The ten,-is s-' so . so at,-e 1nwe,tec andl com"mrunicac;ions revoluion wi!! no-- Ze fw'uy rea!:zei 40 - u-11i milions Cf eoeplz gain access to anc '3usinesses - - 30 - g _ . -essential invest meients in infastructure. 320 -L IF-C is channeling investments 'L-.owart' comnpznies t;-ia: '- nU * ] i l~~~~~Internet, co;mmerce ano ljulcl mocswemi comtmunricac1ons i;nCras'-g e¢r. -0- 1 1997 1998 1999 InvestmeriL activity can werlc 'towaxr iaising 'ivinig staP,nclais anc1 lndustrializedCountries mAing a . ,1 in ex,;2a.nCn neret access anc ava aiiali:y G. Developing Countries . . . . .. I erne.. services. I nasa mincu^- e.ucami7ai a?'i1ca ic7s naL im rcve ___ _ t-eac'hing t-o ,eo-'!e of a ii agas an commen-n ial a?'caticns tnat na2(e ___i Ta"how-to" knowledge availaYle anci manei-'(s more accessYiie. 16 SOURCE: INTERNATIONAL _ TELECOMMUNICATIONS UNION CROSSING THE DIVIDE WITH SOFTBANK E o >f Global technology companies are reluctant to invest beyond a few I ..7,j favored locations among developing countries. That can change when I \'4? 4 S i ff ;":t partnerships with IFC enable investment to reach into new markets, II demonstrating the viability of high-technology businesses in the Internet cafes are popping up around - poorest regions of the world. the world, giving people in developing Thus the idea for Softbank Emerging Markets came about. IFC's countries unprecedented access to information and services. Board approved a $520 million joint venture with Japanese Internet MARK FALLANDE The Internet portal e-com offers small businesses in the ! Philippines opportunities to grow by tapping new customers and markets. Harnessing the power of the Internet profits by launching commerce-enabled IFC financing to get e-Planters up and 17 can help small and medium businesses Web sites to tap new markets. running was a mere $250,000 of venture and those outside main cities obtain Clients will also gain easy access to online capital. If successful, the experiment has industry knowledge and contact business services such as accounting, pa. ent pro- the potential for replication throughout partners, suppliers, and consultants as cessing, e-banking, and technical support Southeast Asia and beyond. never before. This new technology can that can be costly for small companies help them defend their existing domestic to obtain on their own. The new portal market share and improve their competi- will offer a free on-line resource center tiveness abroad. containing relevant industry news and For that reason, IFC sparked the information, plus time-saving tools for creation of a new small business portal critical needs such as writing business in the Philippines. This start-up company plans and preparing financial statements. pairsSilicon Valley technical partner amanufacturera Workers at Grace Park Industries manufacturing plant pairs Slhcon Valley techmcal partner Grace Park Industries, a manufacturer and near Manila. The company is one of Planters Bank's Vicor with a leading small business . e-commerce clients bank in the Philippines, Planters Bank, nishings, is one of the many Philippine fur- |--- along with two other local content b e businesses expected to benefit from the ,,_=- P providers. Marketed under the name . . Ara l o e new service. Already successful in supply- PlantersBankeCommerce.com, and also ing large retailers in the United States like knowvn as e-Planters, the venture will en- Hm eo,GaePr sloigt able businesses to HomeDepotaGraciPark sclooingct able businesses to engage in e-commerce increase its exports and serve clients better 1* and access advice and information tailored through the Internet. Initial research shows to their needs. Small businesses can set up a market for similar services to at least = virtual storefronts on the World Wide Web 23,000 small and medium businesses. in a matter of hours. The service is afford- IFC played a key role in structuring, ably priced, which will help build client negotiating, and brokering the partnerhip i investment pioneer Softbank to accelerate the information revolution undeveloped markets and finance local projects that could not be in developing countries. The venture will finance entrepreneurs seek- pursued without venture capital. Up to 1oo countries will eventually ing to adapt established business models to start up customized local be targeted for investment. Another $20 million global incubation versions of the world's leading Internet companies. center will facilitate the transfer of the latest Internet technologies The core entity of SBEM is a $200 million global emerging markets and business models from developed countries to emerging markets. incubation center and early funding stage vehicle. It will serve Poneer1ng Corporate Environmental and Social Responsibility GROWING CONCERN O: . S is io ie'CC in 12 ' a Corporate responsibility s. . . , . will influence the decisions scaV --C-I~ TVEtz sec"-a? ".J'Y~iC. En2C1Z R27. I make in the future.* czm:mI'Cme :2s,- -'i- s:cz .saev Q: Fv:E- r a- s cc -E0 C; ,j~~~~~~~~~~~~~~~~---V ESo,7'm>C*- ss-';,fsi,:ii-IC cn. 0.7 ii->> require a small amount of resources. The process enables FIAS to provide a rapid VWmkA &Utr wnds $mkd m4v ftO X hRaO response to governments. Twelve projects F ftlWllQ~ f dealt with investment law reviews, four served groups of countries trying to p " 0Rn t 4w Xc oW W aW buwb 0. 1040 coordinate investment policies and a 0 b 1 promotion activities, and eight dealt lZ 0 v mfflpk lW h 0 & vw3 9 MOQ8 MM with the reduction of administrative carbFMil QW&Wwom OR Rh0 I&tQ URN barriers to investment. Over half of the an i GM X uP0 W a K ftfe b VW advisory programs during FY00 were gM"Rr Wfl5QItt0 NW3 X S & flXSI & in Africa ( 13) and Asia and the Pacific lM f Ow 1 A$D, a 0 pv &x xmw (14), of which 6 were in the Pacific. WjQ ttttti WAWlI n a nt osftt ~- kv Mtndtt mw v 00O m(0 OWWR WATPt.M UNF 0w Xt W otRtunl FRMW 0 ° muk m u Q8tQ ©ff 0W UR &Obwof t OK's° wn W0Mm WWI X0^ 0. umt f0t dnv" a @pom n* ad hw05 &x0W~ 0w dwmAN mf*0W0 MR 3 IFC DONOR-SUPPORTED TECHNICAL ASSISTANCE PROGRAM CUMULATIVE CONTRIBUTIONS TO IFC-MANAGEO TECHNICAL ASSISTANCE TRUST FUNDS REACHED $525 MILLION, COMPARED WITH A CUMULATIVE TOTAL OF $451 MILLION AT THE END OF FY99. TOTAL: $525 MILLION s 72% Donor Countries* 10% IFC Donor \ l D / N 18°b World Bank Group"t globally (see www.spglobal.com). Its Index Services Unit maintains a AS OF JUNE 30, 2000 wide variety of investable portfolio indexes, including the S&P 1200, the world's first investable global equity index, the S&P 500 for the United States, the S&P/TSE 6o for Canada, the S&P Euro and Euro StX W5Sj1OL "A5 etWw5 R l tshE % 5 * Plus for Continental Europe, and the S&P/TOPIX 150 for Japan. S aitse ffo; We will continue to have a relationship with the Emerging Markets Dg Le :, GWt Data Base through an existing index advisory panel on which S&P 1 3 . . N L*- 0 0 . has invited us to have a representative. 0 0 l tsMbJffiL j 2S :a. i- ttAS0(Wo 0. - 2 MARK FALLANDER RULA HALAWANI CONTENTS Sub-Saharan Africa 32 Asia and the Pacific 38 Europe and Central Asia 44 Latin America and the Caribbean 50 Middle East and North Africa 56 RICHARD FIELD ?POjECT FINANCING FY00 FY99 MILLIONS OF U.S. DOLLARS Financing approved for IFC's account 765 358 Loans 675 182 Equity and quasi-equity* 90 176 Loan syndications & underwritings approved 483 4 TOTAL FINANCING APPROVED 1,248 362 Financing committed for IFC's account 317 242 i Loans 162 164 Equity and quasi-equity* 155 78 Loan syndications & underwritings signed 24 50 TOTAL COMMITMENTS SIGNED 341 292 Financing disbursed for IFC's account 220 189 Loans 146 132 Equity and quasi-equity 74 57 Loan syndications & underwritings disbursed 20 41 TOTAL FINANCING DISBURSED 240 230 Committed portfolio for IFC's account 1,232 1,047 Loans 822 746 Equity 410 301 Committed portfolio held for others 243 283 (loan participations) TOTAL COMMITTED PORTFOLIO 1,476 1,330 Includes loan and equity-type, quasi-equity investments. Economic, political, and social changes underway in key economies in Africa bode well for building the foundation for the sustainable private sector development that has long eluded the region. Many countries continue to face problems that stifle development, but as IFC's regional strategy matured in economies with favorable environ- ments, new investment approvals hit record levels during FY 2000. Some countries made dramatic progress toward stable government over the past year. 32 Elections in Senegal brought a peaceful transition of power, while South Africa ushered in a new generation of leadership in Africa's largest stride toward democratic rule. In Nigeria, the newly elected civilian government strengthened the rule of law by attacking z corruption and limiting the influence of the military in the society. There were serious challenges to private sector investment throughout Africa. Political unrest or civil strife in Angola, Cote d'Ivoire, the Democratic Republic of Congo, (photo top) IFC financial and technical assistance helped Locland Limited expand itsflower and Eritrea, Ethiopia, Sierra Leone, and Zimbabwe continued to disrupt economic and social vegetable export production, providing an addi- tional ioojobs andforeign exchangefor Kenya. development. Price declines in major African exports such as coffee, cocoa, cotton, tea, ANGOLACNTAAVCN Gt toR CSEWON REP5[4 tgW G CHAE*~~~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ . . . *_ $114IN,FS OM&~N CAMEROON CONGO 1EUI p GRO RRANM1P ~ AE CAPE VERtDE fFHE 3M. . ,''.'''''''''... tobacco, copper, gold, bauxite, and formed a "change team," drawing on TANZANIA: PRIVATIZING THE N4ATTiDNAL BANK OF COMMERCE other commodities in 1999 posed representatives from the private sector another development challenge. Overall, and civil society, to implement long- The National Bank of Commerce holds over 4o percent of the assets in Tanzania's banking Sub-Saharan African nations saw nonfuel needed reforms. Assuming continued sector. Its privatization was the key to financial commodity prices decline by over reforms, improved commodity prices, sector liberalization. With the stupport dai the 10 percent in 1999. Floods ravaged and brighter prospects for South Africa World Bank,the governmnt announced general Mozambique, while droughts took their and Nigeria, regional growth is forecast privatization plans but still needed hep In toll on East African rural communities. at 4.2 percent for 2000, increasing to finding strategic partners. AIDS continued to spread across the 4.6 percent in 2001. Here, IFC stepped in. Our participation in the deal continent, contributing to a reversal in provided Amalgamated Bank of South Africa, IFC 'S AFRICA STRATEGY one of the leading banks on the continent, witth some social indicators. Our strategy in Sub-Saharan Africa reflects the comfort needed to acquire NBC. Despite Despite those negative developments, our commitment to develop sectors in ABSAs strength, it was hesitant to expand Into the regional economy proved remarkably individual countries with the potential to Tanzania but receptive to our intensive resilient. During the 1999 calendar year, cornfdence-buildnrtg efforts. become globally competitive. The strategy regional GDP rose 2.2 percent. Excluding Following ABSA's successful bid for NBC, we has three common focal points in all the large economies of South Africa and played another role as an honest broker between countries. First, we wvill support the private Nigeria, where growth was stagnant, the the government and ABSA in the negotiation regional economy expanded at an encour- process. We took a 25 percent equity stake, services-like reliable electricity, modern creating an ongoing role as a balancing force aging 2.9 percent. telecommunications, and clean drinking between ABSA and the government. We are also Africa needs more rapid economic water-are necessary for a modern providing a term loan of up to $3O million to expansion to reduce widespread poverty economy. In this area our work includes expand NBC's long-term funding base, which To achieve that goal, many countries in advising on privatization, providing will In turn Improve and increase the project the region are carrying out structural technical assistance on key projects, and trade finance offerings af the bank. reforms. Notably, the Kenyan government and financing. The project constitutes our single largest expo- sure to a financial institution in Africa and our largest participation to date in the privatization of a financialI institution there. The privatizatlon SUB-SAHARAN AFRICA: is already resulting in a more efficient banking FINANCIAL SECTOR, TOTAL PROJECT APPROVALS 700 - 35 6 Dollar amount of approvals its management systems, strengthening financial 600 - L-30 Number of projects approved controls, introducing new technology, and 500 - 25 4 D 1 expanding its services. With branches across - 400 - _ - 20 z the country, the privatized and revitalized NBC 300 -15 is providing a needed stimulus to financial o 200 - -10 ° sector development. It will help extend banking 2 100 - 1 11 s o servtces in business and conDsumer markets. E O - O FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FYOO SUB-SAHARAN AFRICA: Second, we support broader, deeper IFC ACTIVITIES PROJECTS AND COUNTRIES financial markets. Without access to This fiscal year marked a watershed for FYOO FY99 capital, private businesses cannot grow, our African investments. A small number APPROVALS and even people with jobs have difficulty of large projects accounted for a sizable Number of projects 80 80 Number of countries 25 26 purchasing housing. Our support includes portion of our approvals, but the totals COMMITMENTS activities that strengthen banks and help were still almost double that of any Number of projects 57 46 build other financial institutions, partic- previous year at $765 million on our Number of countries 21 20 ularly those reaching smaller firms and own account, with $1.25 billion in those outside the mainstream, such gross approvals. Our commitments and as microfinance and leasing firms. We are disbursements reached $341 and also committed to building the region's $240 million respectively during FY00. SUB-SAHARAN AFRICA: FINANCING, FY98-00 nascent stock markets and developing ! ~~~~~~~~~~~~~~~~~~~~~Approvals on our own account represent APPROVALS insurance and other financial services. 1,250- a 214 percent increase over FY99 figures. Third, we assist indigenous entrepreneurs As our strategy matures, we are deploying 1,00 - ^who build competitive, creative businesses more resources toward investments in ! 750 - that grow the economy and increase financial markets, infrastructure, and 500soo - 11 ^ employment. This work is carried out by small and medium enterprises. Financial means of investments and technical and sector projects approved amounted to 250 - | advisory assistance from IFC's small and $594 million. Portfolio performance and aE 0- FY98 FY99 FYOO medium enterprise facilities. profitability improved as well, reflecting F9 FY99 FY00 the increasing weight of projects in COMMITMENTS financial markets and infrastructure. We 625- 500- a375 250- @ Syndications and underwriting l | *Financingfor]FC'sownaccount P > z a The solvent extraction process atfacilities z a l. of Zambio Consolidated Copper Mines. mS * ~~I,,w -5 are also increasingly mobilizing resources from other financial institutions through the B-loan program. Approvals for syndi- . I ' . v. cations and underwriting in Africa during FYOO reached $483 million. k In Nigeria, this was our first full year of 35 reengagement following the establishment of a civilian government more hospitable to private sector development in May With iFCsoassistance Kenya sAAR Health Services,pioensrneim,has expanded outpatient medical centers. 1 999. Working with the World Bank, They offer women's health services and preventiveand educanceing, including H/V/AIDS testing and counseling, we are helping to reform and privatize as well as immunization services in poor rural and urban areas. key infrastructure sectors and the oil and gas sector. We began work for the privati- In Mauritania, we initiated advisory tourism sector. FIAS advised the govern- zation of Nigeria Airways and the Lagos services to privatize the national telecom- ment on reducing administrative barriers water system. Credit facilities were munications carrier and supported banking to investment. In C6te d'Ivoire, most extended to five commercial banks to sector development through a credit line new investments have slowed relative to help them finance long-postponed private to G6nerale de Banque de Mauritanie. In previous years, but we proceeded with sector investments. Small and medium Senegal, a series of guarantees for term small enterprise projects already under- enterprises in manufacturing and services credits was extended to boost local bank way They include a new private health received IFC financing, and we began a lending to small and medium businesses. clinic and a palm oil plant developed pilot program with the Lagos Business We approved an investment in a micro- by a farmers' cooperative (see box). School to provide microenterprise training. finance institution and supported the ZAMBIA: COPPER MINING PRIVATIZATION Zambia Consolidated Copper Mines was once the pride of the nation. the deal. I FC worked with Anglo-American and the government to After years of decline, it is being reborn and revitalizing Zambia's come up with a privatization plan and ultimately finance the develop- key industry, ment of substantial untapped reserves in the Konkola Deep Mine. Years ago, ZCCM produced most of the country's foreign exchange For this initial phase to rehabilitate existing assets, we contributed earnings and boasted a place among the world's leading copper $30 million in equity, shareholder loans, and a copper price facility producers. State ownership and low investment, however, led to to cover price fluctuations. poor performance. It became a drag on public finances, requiring We were involved in this complex deal from start to finish. We provided continuous subsidies. reassurance to Anglo-American and the government of Zambia, The government decided to privatize, but ZCCM's primary assets helping mobilize additional external financing. Because of our ability remained in government hands while copper prices sank. Companies to provide environmental and social impact analyses and structured capable of successfully managing this type of mining operation needed environmental compliance, we played a role in shaping more than support before buying a controlling stake and Investing heavily. just the financing. We worked with the World Bank, which undertook Meanwhile, donor funding tied to this reform remained on hold. complementary operations in the copper belt to mitigate the social Finally, In March 2000, a consortium led by global mining house impact of the privatization. Because this deal was successful, thousands Anglo-American PLC, already a minority shareholder and technical of jobs were saved, and the copper sector should again be equipped to contribute to the national economy. partner, won the concession, it needed more than financing to finish COTE D'IVOlRE: A PALM OIL I PRODUCERS' COOPERATIVE MOVES DOWNSTREAM Respondinig to healthy demand for oil in export markets, members of a cooperative of palm oil producers in Cite d'lvoire increased their agricultural production only to find that their nearby palm oil mill could not process w their output. Unable to find other refining outlets with sufficient capacity, they decided to form their own mill through a new company, Soci~t6 Agro-Industrielle du Neka (SANEK). Members sought financial expertise in struc- turing the new company from IFC's country office in C6te d'ivolre. They hired local techni--_____________ cal experts working at companies established business financing through the country'sfirst commercial microfinance honk. following the liberalization of the sector. Together the parties worked out a deal whereby cooperative members contributed annually fromther pofis t fiancetheiniialequty.In Ghana, we made investments in Our activities in South Africa grew signif- commercial banks, microfinance, and icantly, especially in the financial sector. of the $5l million project cost and helped arrange other financing from a regional equity insurance, and supported small and We supported bank lending to regional fund and commercial banks. By working jointly medium businesses. In Togo, IFC financing projects and microfinance institutions to in a cooperative, these small farmers were helped a private Internet service provider make financial services available to the able to maximize their otherwise limited extend its network. We funded the poor. IFC helped build capital markets equity and achieve a reasonable economy of expansion of a microfinance institution through housing loans, mortgage securiti- scale. Palm oil refined at the new mill will beinBi.zaonadthcrpaebndmkt exported, and palm kernel will provide animal feed in the local market. SANEK will make In Cameroon, we advised on the national bn quality control services available to members electricity distribution company's privati- Loans. The South Africa National Parks so they can meet rigorous export standards. zation and supported small tourism and Board appointed us lead adviser in a The project illustrates how the agricultural agribusiness enterprises. In our first project to privatize commercial services sector is expanding and integrating following investment in Chad, the Board approved, in national parks, to which we bring a liberalization and the elimination of state- .. . . World team of environmental and technical jointly with the World Bank, investment sponsored monopolies. The net impact of the in the Chad-Cameroon Petroleum experts capable of reviewing the impact project: Farmers, their workers, and families will all realize higher incomes that will help buoy Development and Pipeline Project, which of development of this important resource. the economy of this rural region of West Africa. will develop oil fields and provide an In Mozambique, floods discouraged most outlet for export (see box). We also new private investments, but we were still 36 financed the first modern dairy in the able to support microfinance and leasing country. In our first investment since institutions and finance small agribusiness z 1990 in Gabon, we provided financing enterprises. We assisted the tourism sector for expanded term lending by a commer- in Botswana and Namibia and began cial bank, Banque Internationale pour le an advisory mandate for the privatization Commerce et l'Industrie du Gabon. of Air Botswana. In Zambia, we helped finance the sale of the country's state- owned copper mines (see box). In z - R --... Malawi, we financed the sale of a leading sector and infrastructure investment and insurer, National Insurance Company, to support for small and medium businesses. its management in a privatization deal. il i - We participated in several regional projects, In Kenya, we supported private infra- such as Mobile Systems International . structure by financing Kipevu II, an Cellular Investments, a holding company '. s - independent power project. Other work with cellular telephone networks in I- included investments in a specialty steel several African countries, and, with the producer and in small and medium busi- participation of a leading foreign bank as nesses in horticulture and agribusiness. well as local African banks, a trade facility S .." In a joint effort with the World Bank, we to support the energy sector. The Africa X a. .I-<, , aZ A plant in Nkana, Zambia, converts waste rock to advised the government on the second Project Development Facility is helping produce roadstone. phase of a privatization program targeted small enterprises grow, while the African at infrastructure services. Management Services Company placed In Tanzania, we supported the privatiza- 200 senior managers in over 60 companies tion of the country's largest bank. Our during FY00. The African Infrastructure investment and advisory activity in Fund, approved during FY99, began Burundi, Madagascar, Rwanda, and evaluating investments. FIAS advised the Uganda included projects spanning the East African Community on the harmoni- . . . ~~zation of investment laws and regulations. range of our regional priorities: financial g THE CHAD-CAMEROON PIPELINE: MEETING A DEVELOPMENT IMPERATIVE The Chad-Cameroon Petroleum Development and Pipeline Project To compensate for that, two large new national parks (approximately offers an economic opportunity to one of the world's poorest regions. 5,ooo square kilometers) will be created in Cameroon, with manage- It will extract oil from Chad's Doba field and transport it through a ment for better biodiversity conservation. 1,070-kilometer pipeline for export through Cameroon, generating Social: About 150 families may be displaced where the oil Is produced, large amounts of foreign currency for both countries. The private sector and the project plan includes compensation for lost Income and lost has been unwilling to finance regional projects of this size-$3.7 billion fruit trees. Communities and civil society groups were consulted in debt and equity. In addition, both governments have weak institu- throughout the planning process. Project sponsors are coordinating tions for managing the funds and the environmental and social impacts. with the national HIV/AIDS programs in both countries to ensure IFC and the World Bank are well placed to help ensure that project that ongoing efforts at improving public health will be undertaken. risks are mitigated by addressing key issues, such as: An international advisory group consisting of independent experts will Revenue Management: Chad agreed to an arrangement whereby lo monitor the project, with special attention to compliance with safe- percent of the funds will be held In trust for future generations and guards on revenue management, and social and environmental issues. 8o percent of the remaining funds will be dedicated to education, Together, IFC and the World Bank were needed to mobilize other health and social services, rural development, infrastructure, and financial institutions to lend to this important project. Otherwise environmental and water resource management. many would not have accepted the political risk engendered by a Environment: Following World Bank Group environmental assessment, cross-border pipeline. We had the technical skills to put together the signiflcant changes were made to the proposed pipeline construction. first syndicated loan for Chad and, when launched, the first bond The pipeline will be buried, rather than above ground. For most of the financing in the international markets for both countries. As the lead route it follows existing infrastructure, so resettlement was not financier, IFC is in a position to monitor carefully the implementation required along the pipeline route. Only a small amount of tropical of the environmental management plans. forest (10-15 square kilometers) will be lost as a result of construction. "AN W - :\k g7 ?POJEC>JT FIN^AXC1¢G FYOO FY99° MILLIONS OF U.S. DOLLARtS Financing approved for IFC's account 927 913 Loans 659 534 Equity and quasi-equity* 268 379 Loan syndications & underwritings approved 137 152 TOTAL FINANCING APPROVED 1,064 1,065 Financing committed for IFC's account 372 798 Loans 239 419 Equity and quasi-equityt 133 379 Loan syndications & underwritings signed 324 164 TOTAL COMMITMENTS SIGNED 696 962 Financing disbursed for IFC's account 453 474 Loans 260 283 Equity and quasi-equityt 193 191 i Loan syndications & underwritings disbursed 343 198 TOTAL FINANCING DISBURSED 796 672 Committed portfolio for IFC's account 3.843 3.923 Loans 2,797 2,904 Equity 1.046 1,019 Committed portfolio held for others 2,850 2.898 (loan participations) TOTAL COMMITTED PORTFOLIO 6,693 6,821 'Figures have been updated to reflect new regional depart- ments at IFCTherefore,figures for this region cannot be compared with figures in previous annual reports. Pincludes loan and equity-type, quasi-equity investments. Led by the remarkable recovery of the crisis-hit East Asian economies, nearly all parts of Asia exhibited economic strength this year. Despite the economic comeback, companies in Asia and the Pacific face vulnerabilities as they restructure to build long-term strength. In that context, IFC continued its work rehabilitating corporate and financial sectors in market economies and assisting the development of market institutions in transition economies. We also initiated a program to enhance the capital and technological 38 base of existing clients and new ventures. Strengthening commercial banks and other financial intermediaries remained a major 2 ., priority of our operations. We developed trade finance facilities, aimed at increasing exports. In addition, we supported new venture funds during the fiscal year. (photo top) Pech Nary among her plants. She borrowedfrom an IFC-backed microfinance bank In Asia's less developed economies (such as Cambodia, the Lao People's Democratic to buy stockfor her plant andflower outlet in Cambodia. Republic, Mongolia, and Nepal), IFC offered financing and technical assistance mainly BANGLADESH INDONESIA MALAYSIA FEDERATED STATES NEPAL PHILIPPINES THAILAND CAMBODIA KIRIBATI MALDIVES OF MICRONESIA PAKISTAN SAMOA TONGA MONGOLIA CHINA REPUBLIC OF KOREA MARSHALL ISLANDS PALAU SOLOMON ISLANDS VANUATU FIJI LAO PEOPLE'S MYANMAR PAPUA NEW GUINEA SRI LANKA VIETNAM DEMOCRATIC INDIA REPUBLIC to small and medium enterprises. Our EAST ASIA SRI LANKA: FINANCING South Pacific Project Facility and Mekong IFC and the World Bank will promote AFFORDABLE HOUSING Project Development Facility continued the private sector in East Asia under joint Asia's growing urban populations require affordable housing, but In the past there to promote lending to small businesses. management. We are putting greater avedbe fou,rces ing fane. resources in the field, will offer better- IFC STRATEGY To address this problem, IFC became an equity coordinated services, and have delegatedpateinhefrtmkt-sdpive In Asia, our work centers on five themes. partner in the first market-based private more authority to field staff. housing finance institution dedicated exclusively First, to help companies deal with the turmoil resulting from the region's recent After focusing for the past few years to making affordable housing available to a omic crsis wr te d on countries most affected by the East wide portion of Sri Lanka's population.The NDB Asian financial crisis, we have shifted E Housing Finance Corporation (NDB Housing) in promoting sound corporate governance ' was established, with the Housing Development and in restructuring. Second, since strong, our emphasis to reflect regional progress Finance Corporation of India and the National deep capital markets are critical to well- toward restoring growth and implement- Development Bank of Sri Lanka as the main functioning economies, our goal is to ing structural change. During FY00 we partners. This project is an outgrowth of our strengthen them. Third, we are looking reduced activity in Korea as the country's long-term relationship with HDFC, which we for new opportunities to finance small credit rating improved. Nevertheless, have advised since its inception. we are actively participating in projects NDB Housing will provide long-term mortgage and medium enterprises. Fourth, we are promotingprivate participation in infra- that promote structural reform and will loans and other new mortgage products in promoting private . . Sri Lanka, By linking with a strong technical structure and social services, areas that continue this activity until the process partner with similar experience in india NDB is~~~~~~~~~~~~~ate witheed simla exprinc nl tnia NomleB have traditionally been the preserve of is completed. We were able to complete Housing will introduce best industry practices the public sector. Finally, we are seeking transactions in the Korean financial sector and provide a model for others. ways to build a knowledge economy that commercial financial institutions are Through NDB Housing we used our ability through information technology, still unwilling to undertake. Such activity to push the frontiers of the domestic financial communications, and software. included the restructuring of the Korea sector to spur development. The project is Development Leasing Corporation, expected to use market forces to encourage the construction industry to build smaller, more affordable units. Since housing construction is an employment-intensive sector, this project ASIA AND THE PACIFIC: will create many jobs. FINANCIAL SECTOR, TOTAL PROJECT APPROVALS 700 - - 35 Dollar amount of approvals 200 -3 00o 300 FY FY91 FY92 PY9 FY4 F9 Y6 F9 Y8 FY99 FY00 - ~ ~ ~ ~~~~~ ' - - ASIA AND THE PACIFIC: PROJECTS AND COUNTRIES ' 4 i, FY00 FY99 XE - APPROVALS Number of projects 54 33 - -.! Number of countries 12 8 COMMITMENTS - _ Number of projects 28 45 f / Number of countries 10 12 ASIA AND THE PACIFIC: FINANCING, FY98-00 APPROVALS enabling it to underwrite new lease (ACLEDA) from a nongovernmental orga- contracts, and a project to establish Korea nization into a commercial microfinance Mortgage Corporation, the country's institution. Support for small and 750 7- - first institution specializing in secondary medium businesses will remain at the mortgage market activity. heart of our strategy in Cambodia, Lao 250- __ _ In China, we supported development in PDR, Mongolia, the Pacific Islands, and the interior, increasing private participation Vietnam. IFC's project development l FY98 FY99 FY00 in infrastructure and strengthening private facilities and accompanying financing financial institutions. To address difficulties lines, the Pacific Island Investment Facility COMMITMENTS in obtaining trade finance in China and and the Mekong Financing Line Fund, allow us to reach smaller businesses. to broaden that market, we established a forfaiting facility. Under this facility, IFC In Indonesia, we restructured three of 8 .t 600 - $shares the exposure of each forfaiting our portfolio companies. The work 0 transaction, which typically consists of included a range of participating financial the purchase of such trade-related instru- institutions, which were able to return a ° 0 ments as letters of credit, promissory notes, these assets to performing status. Looking 0 e: o_ FM dZE s and bills of exchange. We also approved toward the future, we mounted a major lFY98 FY99 FYOO a project to construct and operate a campaign to contact second-tier compa- A Syndications and underwriting multipurpose port terminal at Zhapu nies that we deemed strong candidates 0 Financing for IFC's own account Port on the south-facing coast of Zhejiang for technical and financial strengthening Figures have been updated to reflect new Province. Our Board approved activities as part of a Japanese-funded study on 40 regional departments at IFC.Therefore,flgures for this region cannot be compared with in several new sectors, such as Internet- corporate restructuring. Li figures in previous annual reports. I ~~~~~~~~~~~~related businesses and private health. related businesses and private health. In Thailand, we completed a significant We provided investment and technical restructuring of two of our portfolio z assistance for the transformation of companies, each involving large aggregate the Association of Cambodian Local liabilities and participant banks also with Economic Development Agencies large exposures. We established the Thai n i4' 41 ____ ____.4_:_ _____,,__ _ A riverfront in Bangladesh. IFC supports projects in the country rangingfrom a barge-mounted private power project to a telecom venture to a major -____ _____________________________ ___ _ -----.1 development bank. Equity Fund, dedicated to restructuring specializing in financial services to micro- SOUTH ASIA and recapitalizing Thai enterprises. This is enterprises and small-scale entrepreneurs. Average subregional growth was strong, the first country-specific equity fund to It will initially lend in Davao (located on at nearly 5 percent, but pockets of political be established with internationally Mindanao), where the bank is headquar- strife and instability hampered the healthy accepted management standards since the tered. We also provided long-term progress that the area achieved during the onset of the Asian crisis in mid-1997. funding to a leading Philippine develop- past decade. At the same time, there were In the Philippines, we financed a ment bank that lends to small businesses. encouraging signs that the governments private sector concessionaire to the Land The funding will allow the bank to better are shifting priorities from subsidies and Transportation Office. Bringing modern serve its growing number of clients by other questionable expenditures toward business infrastructure to general govern- offering appropriate term financing. spending on education and health. Some ment services is a growing line of business Through Planters Bank, we made our first governments established regulatory frame- for IFC. We will leverage our impact here investment in an Internet-based enterprise works and institutions that foster by introducing commercial banks to a that makes Web services available to exist- competitive private provision of infra- new line of business through syndicating a ing small retailers to supplement their structure, reducing reliance on public loan to this project. We also supported the conventional distribution channels. sector funds. creation of a joint-venture thrift bank INDIA: BOOSTING POWER DISTRIBUTION IN A LOW-INCOME STATE Like other states in India, Orissa suffers from high distribution losses less than $250, and less than 20 percent of the population has access in the power sector. IFC is lending its sector and structuring expertise to electricity. Over 85 percent of the people live in rural areas. to help two of India's four newly privatized power distribution Financing for the two power distribution companies is tailored to companies address problems that are commonplace but costly. their capacity to generate revenue only in local currency. We provided Western Electricity Supply Company and North Eastern Electricity them with the first guarantees of local currency loans in India so that Supply Company are using an IFC guarantee to borrow funds to the companies can borrow locally rather than incur foreign exchange improve their management and operations. risk. Jointly with the World Bank, we have been working closely More efficient energy delivery is essential to improving power with the state authorities to improve the regulatory framework and distribution quality and service to consumers. By improving overall the privatization process.The reforms aim to make long-term private performance, electricity companies should be able to Increase access investment in the power sector financially attractive In India's second of the poor to electricity. Orissa has a per capita annual income of poorest state. PEASH GIVE US A CHANCE TO SCEKME YU l _ ~~~DEAL DIRECTY_ W11; E . 2 INDIA: EXPORTING CUT FLOWERS India is ai newcomer in theinternational IFCfinanced the private sector conces- India is a newcomer in the internationail_rW I D |-z sionaire to the Land Transportation cut-flower market. Several previous attempts - - Office in the Philippines. Its manage- ment support will help eliminate the to enter the market on a wide scale failed three-to-six-month woitfor renewing despite substantial government support. driver's licenses and motor vehicle despit saregistration through modern manage- Tanflora Infrastructure Park, managed by ment and business systems. CCL Flowers, is one of India's few successful cut-flower ventures and wants to expand by As a consequence, our strategy was to businesses and education related to IT forming a cooperative arrangement with sormalla growers.thve plrangisexpeted wito cresupport private investment in infrastruc- is expected to rise in the coming years. small growers. The plan is expected to create the significant economies of scale that are ture. New opportunities are also opening In Bangladesh, projects approved included crucial for flower exports. And by pooling to private investment in social sector investments in electric power, natural gas, resources, the cooperative spreads out the projects. We are responding by seeking and transportation. The power projects risks associated with further expansion. investments in businesses that can build ensure power supply reliability for several Beyond a small equity participation by IFC, social infrastructure, such as health and rural electricity cooperatives. Together the Tanflora project includes assistance for education services. We are promoting with the World Bank, IFC will mobilize structuring the cooperative agreement with the financial market development and other financial institutions to lend to this growers and advice on environmental issues related to an enlarged enterprise. The project boosting assistance to small and medium project. We also renewed our support for has the potential to earn substantial foreign enterprises to promote stronger, more leasing activities. exchange for India while generating employment stable economies. and income for hundreds of rural families in . . Although the difficult economic situation and income for hundreds of rural families in In India, we are devoting much of our in Pakistan constrained our investment southern India. energy to infrastructure, especially power activities, we concentrated on helping (see box) and transport. Growing demand X____________________________________ Wfrom manufacturing firms for restructuring debt. We also sought to find new ways and modernization offers new prospects to help local companies regain access to for our loans and guarantees. IFC support international markets through the Pakistan for India's information technology Trade Enhancement Facility Moden Industry is penetratingfarther into China's inteaor, but much more slowly than In the coastal areas. DANA DOWNIE U , _ _ iAW .,.,2 _ e - ; .- -- orr-C - s8 Z swf: frr f0 -:1,! H _~~ U '4S -' } In October 1999, we convened a meeting * '1~~~~~~~~~~~~~~~~~~~~3 of leading regional financial sector representatives and specialists in Sri Lanka to discuss and promote South Asian debt markets. Meanwhile, we continued our efforts to hasten diversification and strengthening of the financial sector by providing long-term finance to the National Development Bank of Sri Lanka, which is undergoing a transformation into a universal hank. In the small economies of Nepal and the Maldives, we invested in leasing after providing technical assistance to put appropriate regulatory frameworks in place. Over the longer term we expect An 1ntemet caft in Manila. IFC is promoting ventures throughout Asia that can take advantage to support private sector hanks that ofnew technalogies. lend to small and medium enterprises. CHINA: SUPPORTING BUSINESS IN THE INTERIOR Income per capita in China's inland provinces is less than one-third SIGC's work will be complemented at different levels by the China of that in coastal areas. Robust economic growth is needed to close Project Development Facility, another new IFC initiative. For example, the gap and to mitigate the social costs of ongoing reforms. Small and CPDF will help support small and medium enterprises by preparing, medium enterprises are expected to be the driving force behind structuring, implementing, and monitoring investment projects. sustained income and employment growth. It will provide technical assistance to individual enterprises to help To support those businesses, IFC plans to invest in the Sichuan them overcome internal constraints to growth. In addition, by Investment Credit Guarantee Company, which will finance, and encour- targeting small businesses, financial institutions, and support age others to finance, small and medium enterprises located in China's agencies, the facility will develop local managerial and support interior, primarily Sichuan Province. SIGC will support private sector capacities through training and institutional strengthening. growth and employment and set an example by promoting best Combined, the two projects should broaden the scope for future business and environmental practices. It Will make equity investments development of smaller businesses in China's interior. in local businesses and guarantee local currency loans made by Chinese banks. IFC helped tailor the fund to meet the needs of local businesses. OPPORTUNITY ARISES FROM CRISIS PROJECT FINANCING FYOO' FY99* MIL-ONS Of U.S. DOLLARS Financing approved for IFC's account 494, 772 Loans 344 555 Equity and quasi-equity' 150 217 Loan syndications & underwritings approved 165 225 TOTAL FINANCING APPROVED 659 997 Financing committed for IFC's account 512 750 Loans 397 492 Equity and quasi-equity* 115 258 Loan syndications & underwritings signed 170 247 TOTAL COMMITMENTS SIGNED 682 997 Financing disbursed for IFC's account 502 513 Loans 337 410 Equity and quasi-equity* 165 103 Loan syndications & underwritings disbursed 181 280 TOTAL FINANCING DISBURSED 683 793 Committed portfolio for IFC's account 2,575 2,550 Loans 1.999 1,985 Equity 576 565 Committed portfolio held for others 1,087 1,192 (loan participations) TOTAL COMMITTED PORTFOLIO 3,662 3,742 *Figures for both fiscal years have been updated to reflect new regional departments at IFC.Therefore,figures for this region cannot be compared with figures in previous annual reports.glblcii stuk r iofae *Inclades loan and equity-type, quasi-equity investments. The global financial crisis that struck the region in 1998 faded during this fiscal year amid positive political and economic trends, espe- cially in Russia and Ukraine. New governments there generated optimism and hope for an economic turnaround. Despite a business climate that remains difficult, political change offers new opportunity. CENTRAL AND EASTERN EUROPE IFC has been mainly active in Georgia, Russia, and Ukraine. Throughout the former 44 Soviet Union we are building effective grass-roots programs to help create and strengthen private enterprises through technical assistance in areas such as corporate governance, leasing, and self-sustaining business centers. We aim to provide a demonstration effect through our investments. We want our activity (photo top) IFC provided a loan tofinance the < expansion of Kopex's three existing retailfuel to attract further foreign investment throughout the region and build support for market oI stations in Bosnia, including construction of two '' modern retailfacilities with car wash and other reforms. We have responded to the recent positive signals from Russia quickly and with services, and construction of a central servicel distnribution warehouse with mechanical services. determination. We approved an investment in Moscow by IKEA, a major Scandinavian ALBANIA BULGARIA GEORGIA LITHUANIA ROMANIA TURKEY ARMENIA CROATIA HUNGARY FORMER YUGOSLAV RUSSIAN FEDERATION TURKMENISTAN REPUBLIC OF AZERBAIJAN CYPRUS KAZAKHSTAN MACEDONIA SLOVAK REPUBLIC UKRAINE BELARUS CZECH REPUBLIC KYRGYZ REPUBLIC MOLDOVA SLOVENIA UZBEKISTAN BOSNIA AND ESTONIA LATVIA POLAND TAJIKISTAN HERZEGOVINA furniture producer and distributor (see Union. While Estonia, Hungary, and SOUTHEAST EUROPE: box).We also financed the investment by Poland are moving fast to align their INVIGORATING THE SMALL BUSINESS ENVIRONMENT a Canadian company in a silver mine in legal structures with the EU, the Czech Building small businesses is one of the top eastern Russia. In Georgia we supported, Republic has yet to improve the ownership development priorities in Albania, Bosnia and jointly with the European Bank for structure and establish corporate gover- Herzegovina, FYR Macedonia, and Kosovo. Reconstruction and Development, the nance for privatized industrial enterprises The Balkans Enterprise Facility responds to this AES Telasi power distribution company, and banks. Latvia, Lithuania, and the need. It integrates IFC's hands-on experience the first power sector privatization to Slovak Republic also need to make in regional private investment with experience improve the efficiency and reliability greater progress toward reform to harmo- gained from small enterprise project facilities of Tbilisi's electricity supply. Our efforts nize with the EU. We believe that we still in other parts of the world. The Balkan facility provides investment and to attract foreign investors to the region have a role to play in these countries. business development services, and supports Financial sector activity is an important individual enterprises to develop successful be managed by a major hotel chain in part of our work in Central and Eastern investment programs and sustainable business Yerevan, Armenia. Europe. In Central Europe, we promoted operations. In many cases, however, the cards In Central Europe we were more selective, new financial institutions such as leasing are stacked against small business, a fact that participating in projects only if there was companies and pension funds, and partic- is recognized by this facilityi BEF will work particiating n projcts ony if tere wa companes andpensio fundsrandhprtic-hhroughot othe oegion iosadvie onpiprovin a unique need and when we could push ipated in those bank privatizations where theubusine enion tough surve nd the business environment through surveys and the frontiers of private business activity we could enhance the structure of post- focused research that identify stumbling blocks The need for IFC as an investor is declining privatization ownership. In Russia, we to business success. The surveys will include rapidly. We can, however, provide useful were active in the rehabilitation of the recommendations on areas such as corporate advice on the challenges facing private banking sector following the crisis. governance, collateral and leasing, taxes, and duties. Surveys will be followed up with support sector development and help countries to institutions and associations for capacity prepare for integration into the Europeanbulig building. EUROPE AND CENTRAL ASIA: FINANCIAL SECTOR, TOTAL PROJECT APPROVALS 500 -50 _ Dollar amount of approvals 400 - - 40 Numberof projects approved 300 - - 30 200 - 20 0 Q~~~~~~~~~~~~~~~~~~~~~~~~~~1 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY9 Y0 / /i EUROPE AND CENTRAL ASIA: SOUTHERN EUROPE World Bank. We continued to provide PROJECTS AND COUNTRIES The countries of Southern Europe present long-term financing to second-tier FY00 FY99 a major development challenge. Only companies and technologically advanced APPROVALS APPROVALS Turkey and Croatia have a per capita GNP joint ventures that would prepare Turkish Number of projects 47 61 Number of countries 19 19 of more than $1,500. The environment industry for full integration with the EU. COMMITMENTS for private companies is undeveloped In the financial sector, we pioneered the Number of projects 46 57 and sometimes unwelcoming. Most first transaction involving the securitiza- Number of countries 19 23 economies and the companies active in tion of onshore assets (see box). Our them are small. In all countries of this Earthquake Region Development Facility subregion except Turkey, the private sector assists banks in providing credit to private is relatively new, and entrepreneurs tend businesses promoting economic recovery EUROPE AND CENTRAL ASIA: FINANCING, FY98-00 to be inexperienced. Management skills, in the earthquake-affected region. As APPROVALS corporate governance, marketing strategy, the first step toward reducing the high 2,000- and market access all need strengthening. trade and logistics costs for Turkish i,600 - _ , Most of the countries lack access to importers and exporters, financing was i,.200- _ .:international financing on commercial approved for Belde Port, a modern 03 g ;;g terms. Only three countries-Bulgaria, container-handling port. 800 FY99 800 ->sr,,,,-Romania, and Turkey-are EU accession In Albania, Bosnia and Herzegovina, z 400- _ .d < t candidates. and FYR Macedonia, the Kosovo conflict 0~~~~~~~~~~~~ 0- FY9 FY00 In Turkey, after the April 1999 elections, resulted in large numbers of refugees the new government decided to embark on and economic dislocation. Investor COMMITMENTS a major fiscal adjustment and structural confidence is low. Reform and private reform program with the support of the sector development are still at an early 1,200 - International Monetary Fund and the stage. The economies and the enterprises 900- 0 la 600 2300 _ r. - 0 0 FY98 FY99 FY00 El Syndications and underwriting - El Financing for IFC's own account - Figures for fiscal years have been updated S 4 6 to reflect new regional departments at >C. Therefore, figuresfor this region cannot , h / , < be compared with figures in previous assoai reports. 4",~~~~I o B jR L- IFC is supporting banks throughout Central Asia, including Turkmeniutan's Garashsyzlyk - ..c Bank. They provide private businesses with the capital they need to grow 0 i are small, and the industrial base is the World Bank takes hold. There we This limited. To overcome these problems, focused on building the financial sector , L ,I L we sought to promote commercially and industrial modernization in areas viable enterprises that bring in modern where the country can make use of its technology and management know-how low labor costs and natural resources. This and increase foreign exchange earnings. included support for a privatized electric V We concentrated on strengthening the hoists manufacturer, Podem. With our underdeveloped financial system, which assistance, a local entrepreneur is moder- has been an obstacle to private sector nizing Podem's operations, upgrading its development in these countries. environmental standards, and increasing v The majority of businesses are not large exports to Western markets. and lack access to long-term financing. To improve the level and the quality of i Thus, to assist small and medium water and sewerage services in Romania, enterprises in the region we developed a we advised Bucharest on the privatization IFC provided advice for the privotization of Bucharest's Balkans Enterprise Facility. We helped of its municipal water services. We water utility (see details in Activities chapter). privatize major banks in Albania (National approved a follow-up investment in Mobil Commercial Bank) and FYR Macedonia Rom to help it expand in the growing (Stopanska Banka), and provided credit and competitive telecom sector. lines through suitably tailored financial The new government in Croatia is intermediation (see box). erncouraging foreign direct investment. Bulgaria is becoming more attractive for We supported Croatian pension reform investors as a reform program supported by participating in the establishment by the International Monetary Fund and of a pension plan. Assisting the only large TURKMENISTAN: BANKING SERVICES TO MEET NEW DEMANDS Although rich in natural resources, including some of the world's IFC has contributed by supporting the bank's "Saturday Seminars" largest natural gas reserves,Turkmenistan has been slow in developing program, providing guest lecturers to advise small businesses on its private sector. Today, however, the small and medium enterprise relevant topics and hosting marketing and management forums. sector is starting to grow and demand suitable banking services to During this fiscal year we approved a quasi-equity term financing, finance its needs. and Garashsyzlyk Bank became our first client in Turkmenistan. In January 1999 the merger of two local banks, Caz Bank and Ashgabat In addition to financing, which will strengthen the bank's balance Bank, formed the Garashsyzlyk Bank. The new bank is one of only two sheet and enhance its capital ratios, IFC Is working closely with private, locally owned banks in Turkmenistan. It offers general retail Garashsyzlyk Bank on a comprehensive technical assistance package. and corporate banking services from its headquarters in Ashgabat The bank is seeking in particular to upgrade its Internal audit function, and a small network of branches.Targeting small and medium enter- develop electronic banking services, and improve its information prises, this bank is fostering the development of the private sector technology capacities. Our work will assist the bank in attracting in Turkmenistan with strong, customer-oriented service and a range private capital and support the development of the financial sector of products. of Turkmenistan. TURKEY: PIONEERING ASSET SECURITIZATION IFC closed a securitization transaction with private shipbuilding company in the IFC's approach to private sector develop- Garanti Financial Kiralama in Turkey in country, we helped revitalize an industry ment in Central Asia takes into account December 1999. It was the first emerging that has been crucial to Croatia for more the challenging business environment. market equipment lease securitization com- than 100 years. We provided financial support for small pleted in international markets and the first securitization ever in Turkey. Securitization is In Azerbaijan, IFC provides assistance and medium businesses by budding a powerful financing tool to raise funds for to smaller businesses through credit lines capacity within financial sector firms and emerging market borrowers who are con- financial intermediaries. We aim selectively invested in manufacturing strained by corporate and sovereign ratings. provide postprivatization assistance agribusiness, and natural resource extrac- Completion of this deal allows IFC to use this to construction and steel firms that can tion companies. Since local entrepreneurial mechanism to raise capital for businesses in other developing countries. play a role in modernizing infrastructure experience is limited, we provided tech- The Caranti deal allows the company to origi- in the Caucasus region. nical assistance to local businesses for the development and implementation of new nate more leases. It will also improve Caranti's asset-liability management and build stronger CENTRAL ASIAN REPUBLICS investment projects and support for the financial controls through rigorous operations While significant progress on small-scale adoption of international accounting and management standards. privatization has taken place in Central standards. The need for technical assistance The deal was structured as a limited-recourse Asia, there have been mixed results on far exceeds our capacity to provide it, so financing, Investors will be repaid from a pool the privatization of medium and large IFC and the World Bank are together of lease receivables assigned to IFC to cover enterprises and in the financial sector. developing Central Asian Business Support obligations created by these securities. The Small domestic markets and limited Services, an expanded program to assist securities were fully underwritten by Rabobank ofcurithes N erefuland andesubsequenty placedan buying power impose the need to develop local entrepreneurs. We are also working withe Neuhero ands instit bsequt invsto. Taed export markets; yet the lack of regional closely with the World Bank, the Inter- with European institutional investors. The transaction was named by Euromoney as the cooperation and geographic isolation from national Monetary Fund, and other "Emerging Markets Securitization Deal of major markets have blocked such efforts. international financial institutions to the Year." The nascent private sector faces entrenched accelerate reforms of the legal and regula- government bureaucracies, a shortfall of tory framework that will encourage - skilled managers, and a judicial system investment and economic growth. -. ~~~~~~~~~~~ ~~without experience in the adjudication Strong support from the National Bank and enforcement of commercial agree- and the government has allowed the ments. The financial sector is unprepared financial sector in Kazakhstan to make to provide the medium- and long-term significant progress toward reform. During IFC helps small businesses in Albania, including small-scale vendors, to better manage and grow their businesses through financing needed for private sector FYOO we established credit lines to both access to advice nd finance. modernization and development. Aside local and foreign joint-venture banks. ii , ~ ~ ~~~~~~ from Kazakhstan's oil and gas sector, Increasingly, we will provide investment . foreign direct investment has been low, funds and technical assistance to local inlarge measure because of the foreign financial intermediaries in Kazakhstan to investment climate, strengthen such institutions and to channel longer-term financing to small and medium enterprises. "st°4~ - < °5 s 94>.>Q We are providing small businesses in the to a quasi-equity investment, coupled Kyrgyz Republic with direct investment, with institution-building technical preparing the banks to finance them, and assistance (see box). This project should making technical assistance available for serve as a catalyst for banking moderniza- removing impediments to small business tion and development of financial IFC plans to provide financial support to TAMO, a marble development including support for industries to channel funds to emerging company in Tajikistan, to expand its existing manufactur- Kyrgyz Investment & Commercial Bank small businesses. ing unit that produces decorative items. 49 (see page I 0). We also gave technical In Uzbekistan, we continued to assist small - -,;.t assistance to mobilize new investment in a m i e t direct and medium enterprises through direct d11 9f agribusiness and tourism, investment and financial intermediation. C- 1l A 1998 peace accord combined with a Investments approved during the year government commitment to economic included OSIYO Granite, a locally owned _ reform has improved the prospects for marble and granite company; and equity private sector development in Tajikistan, financing for Uzbek Leasing. Technical , - where three loans were approved during assistance was provided for tourism, FY00. The slow pace of privatization and agribusiness, construction materials, and - , structural reform has limited opportunities small and medium businesses. - . for IFC investment in Turkmenistan, but x / the private sector is slowly developing, prompting approvals of IFC's first two a. projects in the country. IFC worked closely with the ownership of Garashsyzlyk Bank on a revised financial structure that led RUSSIA: FURNISHING THE ENVIRONMENT FOR DEVELOPMENT For many foreign retailers, Russia's volatile market remains off limits. and follow-up investments in, Russian furniture manufacturers. IKEA But Swedish home furnishing retailer IKEA showed Interest in has already identified a chipboard manufacturer in Khimki and is now developing Russian stores. A success could encourage Western retail- looking for local kitchen cabinet suppliers. It is planning to launch ers to follow suit, while supplying the needs of the stores would help two fairs in Moscow this year to attract local producers and select build a modern furniture manufacturing industry in Russia. partners. If the program is successful, the company hopes to find as We arranged financing of a project to construct and operate a new much as 40 percent of its sources for merchandise within the Russian 31,ooo-square-meter IKEA furniture store on the outskirts of Moscow. Federation by 2004. We plan to support IKEA's technical assistance One of the largest IKEA outlets in the world, it is equipped with the program and eventual Investment in local furniture companies. latest technology and follows modern marketing techniques. IKEAs experience in Central Europe, particularly in Poland, indicates While providing direct employment and training opportunities to over that a large IKEA store coupled with a "super shopping complex," 500 Russian nationals, IKEA is creating jobs at the retailers located with space for other retailers, creates the best environment for alongside the store and at manufacturing suppliers. IKEA wants to destination shopping. Once the first complex is fully operational, rely on local sources and intends to provide technical assistance to, IKEA plans to open four more supercenters in and around Moscow. ATACROSSROADS _ _ _ _f _W __ PROJECT F]WANCING FY00 FY99 MILLIONS OF U.S. DOLLARS Financing approved for IFC's account 1,171 1.237 Loans 931 864 Equity and quasi-equity 240 373 * P - Loan syndications & underwritings approved 1,553 1,212 TOTAL FINANCING APPROVED 2,724 2,449 Financing committed for IFC's account 1,038 807 Loans 729 612 Equity and quasi-equity* 309 195 Loan syndications & underwritings signed 973 282 TOTAL COMMITMENTS SIGNED 2,011 1,089 Financing disbursed for IFC's account 955 802 Loans 692 675 Equity and quasi-equity* 263 127 Loan syndications & underwritings disbursed 545 659 TOTAL FINANCING DISBURSED 1,500 1,461 Committed portfolio for IFC's account S,038 4,528 Loans 3,932 3,588 Equity 1,107 940 Committed portfolio held for others 3.793 3.702 (loan participations) TOTAL COMMITTED PORTFOLIO 8,831 8,230 'Includes loan and equity-type, quasi-equity investments. Poised between sustained private sector-led growth and threats to that growth, the Latin America and Caribbean region is at a crossroads. On the positive side, the region is recovering from a recession, which, although not nearly as severe as that caused by the Tequila crisis in 1 995, hit many economies hard. In the year 2000, the regional economy is expected to grow at around 3 percent, and the unemployment rate is leveling off. A decade of reform and liberalization has made the region's economy more resilient, providing the basis for a faster-than-expected recovery and acceleration in growth. Moreover, increased activity in the private sector has raised 50 the efficiency and quality of infrastructure services throughout the region, and the z private sector is expanding its role in many areas, including social services. Private capital flows, which fell to $97.9 billion in 1999 from $126.8 billion in 1998, (photo top) Ecuador's Reybancorp, an IFC- are expected to rebound in 2000 to over $100 billion. Foreign direct investment should financed agribusiness, produces bananas under z the Favorita label and other international brand continue, and large, high-quality private firms in the region are gaining better access to 4 names. It became thefirst banana grower to receive the Rainforest Alliance certification international credit markets. Some countries, notably Mexico with its new investment- of complete compliance with rigorous environ- a mental and social standards. grade credit rating, are already enjoying substantially better access. z ANTIGUA AND BELIZE COSTA RICA EL SALVADOR HONDURAS PARAGUAY TRINIDAD AND BARBUDA BOLIVIA DOMINICA GRENADA JAMAICA PERU TOBAGO ARGENTINA UIRUGUAY BRAZIL DOMINICAN GUATEMALA MEXICO ST. KITTS AND NEVIS BAHAMAS REPUBLIC VENEZUELA, BARBADOS CHILE ECUADOR GUYANA NICARAGUA ST. LUCIA REPUBLICA COLOMBIA HAITI PANAMA BOLIVARIANA DE But serious concerns remain. Foremost are create employment opportunities. Aside DOMINICAN REPUBLIC: IMPROVING continued high unemployment and pov- from slowing the "supply response" to HEALTH CARE FACILITIES erty. Strong, sustained economic growth is liberalization, it has delayed critical second- The Dominican Republic suffers from a shortage still the key to reducing poverty, but growth generation reforms and impeded a private of good health care. Not only do citizens lack access to adequate services, but the livelihoods over the past decade has been too low to sector move into riskier but crucial of those relying on income from the tourism spread the benefits of reform broadly to service areas. As a result, many people do sector are threatened by the problem. Tourism the region's population. Unless all experi- not yet have access to basic infrastructure, in the country has grown significantly, with ence some benefits from growth or social services, and housing, in spite of some 2.3 million arrivals in 1998 generating improved delivery of goods and services, the potential of the private sector to about $2.2 billion in income, or about half of the perception persists that reform favors expand delivery of such services. gross national product. The country's ability the "haves" while the "have-nots" suffer. to expand its tourism sector is limited if visitors This perception weakens the political IFC STRATEGY cannot count on effective treatment in case Lack of credit has created an unprece- of illness. consensus for market-oriented economic policies and for seeing through the dented demand from private firms and The Red Sanitaria Hospiten project calls for a difficult remaining reforms. from governments for multilateral devel- network of four hospitals located in different parts of the country, including the capital, Financial constraints worsen this problem. Santo Domingo, as well as tourist areas. These investment financing to the private sector. hospitals will provide much-needed support In Latin America and the Caribbean, Given our limited resources, we must be to Dominicans and tourists alike in areas where improved access to external financing is selective in our investments and advisory locally available facilities have been lacking. still limited to the strongest firms, and activities and leverage our resources In addition to addressing immediate needs, domestic long-term financing for middle- through mobilization when possible. the project will have a long-term impact on market firms and small enterprises is improving health care through plans to virtually nonexistent. This constraint Our strategy is to help private firms establish a nursing school in collaboration with hampers the ability of all but the largest develop environmentally and socially a local university. Our participation provides firms to invest, modernize, grow, and responsible frontier sectors that have $11 million but also leads private financing by previously been in the hands of mobilizing an additional $11 million in syndica- tions. Private sector support for health care had previously been limited, but now the frontier has been crossed. LATIN AMERICA AND THE CARIBBEAN: FINANCIAL SECTOR, TOTAL PROJECT APPROVALS 1,500 -25 aDollar am.oun Fapprovals. 1,200 20 0 == Number of projecs approved 0 600- 10 o - 5 0~~~~~~~~~~~~~~~~~~~~~~~~~~ FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 LATIN AMERICA AND governments, such as housing finance, resources for the region. B-loan approvals THE CARIBBEAN: PROJECTS AND COUNTRIES transportation, water and sanitation, for Latin America reached $1.6 billion in FY00 FY99 health, and education. Through reform 19 projects this year. l APPROVALS APPROVALS the private sector has the opportunity to Number of projects 58 58 CUTYAPOC Number of countries 15 16 show that it can effectively deliver these COUNTRY APPROACH COMMITMENTS services and visibly affect living standards. Our commitment to path-breaking projects Number of projects 53 50 To help countries with an absence of term and broad-based growth is particularly Number of countries 17 16 credit for local middle-market firms and evident in the larger economies in the small businesses, we have concentrated region. In Argentina, for example, one i on building the domestic financial sector. quarter of the population is poor despite LATIN AMERICA AND We are also directly supporting middle- a high per capita national income. Access THE CARIBBEAN: FINANCING, FY98-00 market firms in agribusiness, to basic infrastructure, social services, APPROVALS manufacturing, and services. and housing remains unequal across the 3 000- population. Except for top-tier firms, This strategy for the region translated 2,500 - 2t$>% _Argentine companies lack access to exter- into the approval of 1 8 projects in fron- nal financing or domestic long-term credit. E < 2,000 - _ -l,6,.'. t- tier sectors-5 in education and health, 12 in infrastructure, and I in housing In an improving economic environment, f -,,.; finance-10 projects for improving we have concentrated our support on domestic financial intermediation; 10 high-impact projects. For example, our 9 500~ FY98 FY9 FY0 projects in industry and services for largest investment is in the development middle-market firms and small and of housing finance through support for COMMITMENTS medium enterprises; and 10 projects that the Secondary Mortgage Market Company 2,500 - support midsize businesses in agriculture. (see box). The effect of this investment on 2,000 - 4 We will mobilize substantial additional growth, job creation, and a wider disper- n,, .soo- _ '11,000-_ - 1. 000 0 FY98 FY99 FY00 El Syndicationsandunderwriting * ; Financing for IFC's own account t = - . . 52 Mexican schoolsfinanced by IFC will be based on prototypes already in operation. - sion of benefits is likely to be significant. ''- Argentine consumers are the primary xi / beneficiaries, as many more families gain access to long-term funds to buy a home on affordable terms. . / In Brazil, as in Argentina, the economy / - ) .g) ' ' has slowly resumed growth. To address concerns over whether the benefits will be widespread, we aim to back companies that will create growth, support activity that tangibly demonstrates the benefits of reforms, and improve the physical and financial infrastructure that supports sustained development. Through the - Sepetiba Port Project, we agreed to provide support for private transport ' . ' Girls at a school in Ecuador Throughout Latin America, private social sector projects RICHARD FIELD systems as a first step toward reducing including schools, are being considered and supported by IFC the high cost of inland movement of goods in Brazil. With the largest pool of middle-market companies in the region, Brazil must bolster such businesses to achieve more equitable wealth distribu- tion. In this area, we invested in three midsize companies in manufacturing and MEXICO: PROVIDING QUALITY EDUCATION IN THE PROVINCES Increasing school enrollments have spurred demand for high-quality, The schools are sponsored by one of the more active private affordable private education in Mexico. Although private education educators in Mexico, the Legionnaires of Christ, a 58-year-old religious accounts for only 8 percent of the primary and secondary school order. The legion has long experience in constructing and operating market, parents have been pressing for more private schools in their education centers, currently with more than ioo schools and communities. universities on three continents. In addition to its traditional schools, Proyecto Educaci6n, a $27.7 million greenfield project, will begin the legion operates Mano Amiga schools, which offer primary and construction and operation of five schools throughout Mexico with secondary schooling to underprivileged children free or at a highly the help of a $9.7 million IFC loan. The schools will provide bilingual discounted rate. education in five smaller cities, where access to similar affordable education is either scarce or nonexistent. The project will complement the efforts of the Mexican government to raise the quality of primary and secondary education in the provinces and will include schools in some of the poorer states, such as Oaxaca and Durango. MEXICO: IMPROVING COMMERCIAL RAiL TRANSPORT Winning a privatization concession is just the beginning of the long road to transforming a state-owned business into a successful private 41I sector enterprise. In the case of the Mexican railroad Ferrocarriles Chiapas Mayab, today the : i. C Mexican subsidiary of American short-line oper- | i: ator Genesee & Wyoming, the process began 7 s - ' ' with a 3o-year concession won in May 1999. ' - Over the first two years of the concession 'e- FCCM plans to invest $50 million to transform _ _ . _ the company into a modern freight service IFC approved a $29.4 millionfinancing package to support the newly pnvatized Ferrocarriles Chiapas Mayab. Investment callsfor rehabilitation of railroad infrastructure that will result in increased transport competition, provider. To assist these efforts, IFC approved lower tariffs, and better pricesfor consumers. a financing package of up to $30.2 million, including a $17.7 million syndicated bank loan. agribusiness. We supported two projects line with a domestic commercial bank Investment plans call for rehabilitation of in the health sector and are expanding our and a private equity fund-and through existing railroad infrastructure and rolling stock, activities in both health and education. direct investment in four companies in as well as introduction of intermodal services on the Chiapas and Mayab lines. Local contractors With the achievement of an investment- using locally produced materials will rehabilitate grade credit rating in early 2000, Mexico Our activity continues to be strong in track and rolling stock. Investments in railroad enjoys the best access to international countries that receive less international infrastructure are expected to improve the capital of any emerging market economy. capital, such as Peru and Bolivia. In Peru, company's operational safety and efficiency Yet there remains a gap that prevents three projects received support in agricul- indicators substantially. Intermodal services wndil oresultaintincreased cotermpionalserve a capital flows from positively affecting ture, a priority sector, given the country's wlill result In increased competition and lower tariffs, thus better prices for consumers. the poor. Here again, we have made social natural advantages. We assisted Conservera FCCM will provide efficient transportation services services, infrastructure, the financial Amaz6nica, a producer of hearts of palm to the industrial and agricultural producers in sector, and companies without access that uses an environmentally sustainable the region, where the lack of such services has to financing our priority We provided created obstacles to sustainable growth. Develop- financing for Proyecto Educaci6n to build ment of efficient distribution for agricultural preschools and primary schools at five products will help make food more accessible l i p r locations in poorer regions of Mexico g to all in some of the poorest states of Mexico. o (see box) and for a project to expand Efficient intermodal service will also benefit con- sumers in Guatemala and foster trade between a private hospital. In infrastructure, we Mexico and Central American countries. That invested in Ferrocarriles Chiapas Mayab, increase in trade is expected to contribute to a privatized railway in the State of political and economic stability in the region. Chiapas, one of the poorest in Mexico | (see box). We provided support through the financial sector for small and medium X firms without access to credit-a credit Bolivian entrepreneurs and artisans, like this woman, can benefitfrom IFC-supported microcredit projects. Ei JANNETTE ESGUERRA method. In Bolivia, a project in mining create a regional broadband telecommu- = = = I was approved. nications network, and another that 2i v § T7 In Ecuador and Colombia, economic will establish an equity growth fund. and political uncertainties during the year During FYOO, we added an office in PE --Xv peeoes < B hindered investment activities in the Santo Domingo to serve the Dominican BsA private sector. By providing a loan to a Republic and Haiti; our existing office power utility, we played an important role in Trinidad and Tobago covers the in responding to the emergency situation eastern Caribbean and Guyana. In the arising out of the floods in Venezuela in Dominican Republic, financing was late 1999. The loan helped Electricidad approved for the CodacsaToll Concession IFC-finonced Superunidos market in Costa Rica de Caracas reconnect electricity in low- project, which will upgrade and expand brings low-cost, one-stop shopping to consumers income areas affected by flooding and the eastern and western access routes to in low-income areas. mudslides. the capital. Strong growth has helped In Central America and Panama, we increase private sector activities in the approved 10 projects during FYOO: Dominican Republic, where we financed manufacturing in El Salvador, agribusiness two other projects, in agribusiness and in in Guatemala and Honduras, infrastruc- health. We also approved an agricultural ture in Panama, and the financial project in Belize. A number of technical sector in Nicaragua and Panama. At the assistance projects in both tourism and regional level, we approved three projects financial services are also ongoing in the in infrastructure and financial markets, Caribbean. including support for Convergence Communications, a project that will ARGENTINA: BRINGING BEST PRACTICES TO THE MORTGAGE MARKET IFC and Banco Hipotecario formed the Secondary Mortgage Market our partnership with BH, we aim to bring international best practices Company, whose impact on the Argentine housing and financial and technology to the mortgage market in Argentina. SMMC is expected markets is expected to be similar to that of Fannie Mae and Freddie to improve the affordability of housing and lower the cost of mortgage Mac in the United States. BH is a strong local partner with about 30 loans by making longer-term funding available. It will also develop percent control of the Argentine residential mortgage market and Argentine capital markets by selling mortgage-backed securities to is the sole Argentine issuer of mortgage-backed securities in interna- domestic institutional investors. It will improve the efficiency of loan tional capital markets. BH, which was privatized in January 1999, origination and standardization in the primary mortgage market and has a management determined to see the Argentine mortgage strengthen the banking sector by enhancing the liquidity of mortgage market reach its full potential. loans and enabling better asset-liability management. SMMC will purchase qualifying mortgages for long-term investment We intend to provide up to $50 million for our own account in the form and issue mortgage-backed securities through a continuous series of of equity, plus up to $ioo million of credit enhancement to support an offerings. SMMC is expected to cultivate an international investor base expected $i billion capital markets program. The program will have a while developing a domestic institutional investor following. Through combination of mortgage-backed securities and corporate debt issues. MEETING DIVERSE NEEDS ?'ROJECT FJWAWC1iWG FYOO* FY99' MILLIONS OF U.S. DOLLARS Financing approved for IFC's account 83 219 Loans 56 175 Equity and quasi-equity* 27 45 Loan syndications & underwritings approved 2 182 TOTAL FINANCING APPROVED 85 401 Financing committed for IFC's account 66 203 Loans 49 150 Equity and quasi-equity' 17 53 Loan syndications & underwritings signed 40 53 TOTAL COMMITMENTS SIGNED 106 256 Financing disbursed for IFC's account 80 125 Loans 59 85 Equity and quasi-equity' 21 40 Loan syndications & underwritings disbursed 4 16 TOTAL FINANCING DISBURSED 84 141 Committed portfolio for IFC's account 683 702 Loans 470 495 Equity 212 207 Committed portfolio held for others 195 208 (loan participations) TOTAL COMMITTED PORTFOLIO 877 910 *Figures for both fiscal years have been updated to reflect new regional departments at IFC.Therefore,figures for this region cannot be compared with figures in previous annual reports. tincludes loan andequity-type, quasi-equityinvestments. The Middle East and North Africa (MENA) region comprises a diverse group of countries with development challenges to match. Nevertheless, there is a clear trend in this area toward a greater appreciation of the private sector. As governments liberalize markets and new leadership emerges that recognizes the impor- tance of regional integration and emphasizes the role of the private sector, opportunities will open for IFC. 56 Constraints on private enterprise, however, still block economic growth. State dominance in vital infrastructure sectors is commonplace. Along with the World Bank, IFC is helping reduce constraints and, in turn, increasing opportunities for the private sector to partici- 0 pate in the economic development of these countries. < (photo top) IFC backs mortgages throughout the In FY 2000, IFC made a number of fundamental changes. We reconfigured our regional Middle East and North Africa region. Thisyear IFC helped establish Palestine Mortgage and Housing structure to provide sharp focus on the countries of the Middle East and North Africa Corporation to begin marketing mortgages in the ,r, West Bank and Gaza. (in the past the region also included Central Asia and Pakistan). We have significantly AFGHANISTAN ISLAMIC REPUBLIC LEBANON SAUDI ARABIA WEST BANK AND OF IRAN GAZA ALGERIA LIBYA SYRIAN ARAB IRAQ REPUBLIC REPUBLIC OF YEMEN BAHRAIN -MOROCCO JORDAN TUNISIA ARAB REPUBLIC OF OMAN EGYPT KUWAIT UNITED ARAB EMIRATES increased the capacity of two field offices, In line with our global priorities, activities , Cairo and the West Bank and Gaza, to in MENA have centered on building the undertake investment work. The director project pipeline in the financial sector, ) I for MENA now works from Cairo rather small and medium businesses, infrastruc- than Washington, D.C. With these changes ture, and those industries that boost trade in place, we are positioned to make a or employment. greater impact in coming years. We pursued several new directions this A new regional department specializing past fiscal year. We made our first invest- - Sm/all bLusinesses and entreprenieurs are ganinrg brtter in MENA will address more effectively ment in Syria in Adritec, which provides access to finance thiough IFC-stipported projects the unique challenges faced by individual modern drip irrigation systems that countries. The more positive economic maximize water efficiency in agriculture WEST BANK AND GAZA: environment, combined with internal (see box). In a region with scarce water FINANCING SMALL BUSINESS change, should help us respond better to resources, Adritec represents a strategic Small and medium enterprises in the West our clients' needs. investment. Our first investment in Saudi Bank and Gaza have few sources of long-term InFY00,weapr Arabia, Saudi Orix Leasing Company, will financing, yet are the engine of economic l:n FYOO, we approved 16 projects for provide small andx mediumg enterpany,se growth. The building of the financial sector's a total investment of $85 million, of r capacity to support smaller businesses is part which $83 million was for IFC's own access to capital equipment by opening of our strategy to increase jobs and earn account. IFC's new approvals tended up the leasing sector. We are exploring foreign exchange and ultimately encourage toward smaller projects than in previous information technology investments, a sustainable economic development. years. The average size of IFC's net invest- new sector for IFC throughout the region. IFC established an agency line with Cairo Amman Bank, one of the largest banks in Jordan, ments in MENA was $5.2 million, to provide long-term financing for small and compared with $ 1 0 million last year. The medium businesses. With its extensive network total portfolio now equals $683 million in the West Bank and Gaza, Cairo Amman Bank in 9 countries plus West Bank and Gaza. is well placed to administer funds to eligible businesses for projects of between $300,000 and $2.4 million. It is the first such agency line established under the Small Enterprise Fund. MIDDLE EAST AND NORTH AFRICA: FINANCIAL SECTOR, TOTAL PROJECT APPROVALS IFC, with donor support, is providing Cairo 250 25 Amman Bank technical assistance for the EJ Dollar amount of approvals 200 - - 20 development of in-house project-financing , Numberofprojectsapproved capability and improvement in environmental 150 - - 15 and safety guidelines and procedures. Our ,' 100 10 X / - zo ,, staff will lend support during subproject o ..+ _ l _ ,, appr aisals, monitoring, and supervision leading z s0 to increased local capacity to serve smaller FY91 -_ _ _ n _ l _ _ l l - o - businesses through the financial sector. FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 THE FINANCIAL SECTOR equity finance available to develop small /MIDDLE EAST AND NORTH AFRICA: Our investments in the financial sector enterprises. We developed a forfaiting PROJECTS AND COUNTRIEwere closely tied to our goals of institution facility aimed at improving the choice of APPROVALS building and support for small businesses. financial instruments for trade in Egypt, Number of projects 16 22 Our funds are frequently used for on- Jordan, Lebanon, Morocco, and Tunisia. Number of countries 10 8 lending to, or equity and quasi-equity COMMITMENTS investment in, small business through SMALL AND MEDIUM Number of projects 12 19 local banks and other intermediaries. Number of countries 8 8 In MENA, small businesses are particularly In the West Bank and Gaza, we approved important as a means to reduce poverty an agency line with the Cairo Amman by creating new economic opportunities. Bank to provide loan financing to small We prefer to invest indirectly through MIDDLE EAST AND NORTH AFRICA: businesses (see box). Together with financial intermediaries, but we can invest FINANCING, FY98-00 Soci6te G6n6rale Libano-Europ&ene direcdy in small businesses in some cases. APPROVALS 500 - Banque, we invested in the Middle East IFC also provides advisory services and 400 - _ Investment Bank, a Jordanian bank that is using capacity building to support the * 300 - will offer a full range of financial services. development of small and medium enter- o Projects in the financial.sector also prises, especially in the West Bank and 8 ~~~~~~~~~~~Projects in the financial sector also - 200- l b i a Gaza. Financial and advisory assistance , m~~~~~~~~~~iclude cross-border transactions that 0 - . . . to small and medium businesses is a i oo-_, :: encourage regional integration. For 0 o :: n ~~~~~~~~~~~~~~~~~~~growing area for IFC. i 0 - - - - F~9 FY00 example, we invested in two equity FY98 funds, the Framlington Maghreb Fund PRIVATE SECTOR and the Framlington Mediterranean INFRASTRUCTURE COMMITMENTS 250 - Growth Fund. We also invested in the Countries in the Middle East and North 200 - - management company of the Maghreb Africa are opening up to the private sector Fund. These funds will expand the pool of c150 ,o 0~~~~~~~~~~~~ 1250 o 2 50 _ -y - - t 8, FY98 FY99 FY00 El Syndications and underwriting El Financing for IFC's own account 58 Figures for fiscal years have been updated to reflect new regional departments at IFC. Therefore,figures forthis region cannot ; D bequipme compared with figures in previous annual reports.l 0 1 z IFC plans to support Adriter, a Syrian irrigation/ equipment producer with a promising future. provision of infrastructure services. In treatment of mental illness. We also FYOO, we worked on several power and continued to invest in the financial M telecommunications projects and expect sector through Lebanon Credit Insurer, our efforts to result in substantial future SAL, a credit insurance agency. investments in these sectors. These projects During FY00, we put a priority on the need the type of long-term financing, development of new markets, such as including the arrangement of syndicated Algeria and Syria. Morocco and Tunisia loans, that IFC provides... , _,,*- I have increasing access to funding from COUNTRY APPROACHES many sources. We have therefore limited Egypt remains the largest country for our our activities in those countries to invest- ments that are either pioneering or so business in MENA. We see many opportu- large that the available capital sources are nities to make an impact on Egypt's/f\1 -.\ insufficient without our participation. / /'> \/, - - j liberalization program. Our work cuts i.ient w our icipation. across sectors but is concentrated on In Algeria, where access to funds is more / investments where our developmental and difficult, we have a greater role to play. catalytic role is greatest. For example, we In the financial sector, we approved an invested in Alexandria Carbon Black, investment in Algeria Investment where IFC participation ensured long- Partnership, which will make investment ______ IFC is supporting the development of information-based term funding appropriate for this project. banking products and services more and technology businesses in the Middle East and accessible in the Algerian market. Given North Africa. In Lebanon, we made an investment in the opening of various industries to the the health care sector. Approval of the private sector, IFC expects to develop a Institute of Behavioural Medicine Health more significant pipeline in Algeria in Center project marks the first time that we have invested in a hospital for the coming years. SYRIA: AN INVESTMENT MILESTONE FOR WATER Because water is scarce in the Middle East, there is a pressing need This project is expected to have a positive environmental effect by to invest in its efficient use. IFC's Board approved a $i million equity enhancing Syria's capacity to develop irrigation solutions while investment in Arab Drip Irrigation Technology Company Ltd. (Adritec). facilitating farmers' access to advanced techniques. It is expected The deal marks our first investment in Syria and the first World Bank to lower irrigation costs, allow better control of water application, Group project there in 13 years. increase efficiency of water usage, and reduce rainwater depen- Adritec, an affiliate of Adritec Group International-a regional holding dence-thus buffering against the effects of droughts on national company with affiliates in various Arab countries-will further the economic growth. It will also reduce the amount of salt in the soil. conservation of water resources by promoting the use of advanced This project will provide direct employment to about 60 people and irrigation technology. Our investment will finance new production indirect employment to many more. As an export-oriented project, facilities at the company's site in Latakia that will expand and upgrade Adritec will earn much-needed foreign exchange for the country. water-conserving irrigation products and systems. It will also allow We expect that Adritec will demonstrate the viability of private the company to market products to more sophisticated agricultural sector investment in Syria and promote sound and modern business buyers worldwide. practices to create a more business-friendly environment. IFC: REPORTING IFC is instituting changes that will allow medium enterprises, social sector ventures, TO OUR SHAREHOLDERS it to promote development and serve and information technology companies. IFC's 174 member countries, through a Board clients more effectively We are establishing In recent years, IFC investments have of Governors and a Board of Directors, guide our a new vision of our activities targeting programs and activities. Each country appointsabecome more selective as we identify pronegoveram and acties. aternac . Coutrypoints particular sectors and markets bypassed those sectors and markets where we can one governor and one alternate. Corporate powers are vested in the Board of Governors, by the increasing capital flows between have the most impact with our limited which delegates most of its powers to a board countries. A new strategic direction will resources. A closer relationship with the of 24 directors.Their voting power on issues allow us to use our resources, knowledge, World Bank should enhance our effective- brought before them is weighted according and competitive advantages more effec- ness and expand the impact of our to the share capital each director represents. tively As we respond to the changing operations. To ensure that we attract and The directors meet regularly at World Bank Group global investment environment, we will build high-performance investment and headquarters in Washington, D.C., where they maintain our role as a unique financial a h d review and decide on all investment projects avsr em,w aecmitdt institution and as a leader in private equipping our staff with the professional and oversee general management decisions. sector development, skills and knowledge they need to achieve Since 1995, James D. Wolfensohn has been president of the World Bank Group, which To fulfill our mission and address valid IFC's goals in the developing world. comprises the International Bank for concerns about the environmental and Although changes have been underway Reconstruction and Development, the social consequences of development, we for a few years, we know that more must International Development Association, the have made corporate responsibility a top be done. We stepped up efforts during this Multilateral Investment Guarantee Agency,bdoeWespeduefrtdrighs Multilatera Invesnatmentl Gaantee C ragency priority in our investment and advisory fiscal year to modify our organizational and the International Finance Corporation. activities. We structure our investments structure to ensure that our investment, Peter Woicke, who assumed the position of based on technical, environmental, and m d executive vice president of IFC in 1999, oversees prflomngmn,adavsr executive vcprsetosocial review, and we continuously seek operations are more closely aligned with our day-to-day operations. For the first time, IFC's executive vice president is also a managing our strategic priorities. director of the World Bank. In that role he is respond to a dynamic investment context. charged with the Bank's private sector operations As we channel resources in this direction, LEVERAGING LIMITED and with formulation of a coordinated private we set standards for the private sector and RESOURCES sector development strategy for the World touch more directly those who need us Of the organizational changes during Bank Group.The World Bank's vice president for most in developing member countries. FY 2000, the most important was the infrastructure and private sector development, We have also established specialist groups integration of several operations of Nemat Talaat Shafik, reports to Peter Woicke in to promote best practices in critical new IFC and the policy operations of the his capacity as a World Bank managing director. World Bank into newly created, jointly areas of business, such as small and IFC and the World Bank extended the joint management initiative on a regional basis as well. We established joint management J N i; g Sq 1 of private sector operations in East Asia ~~' ' ' 8 / 44^, X \ _ . \ ~~~~~~~~The new coordination between IFC and with the Bank puts the full range of Bank Group instruments and services at clients' j ~~~~~~~~~~~desoslegat cdignmo eqautoity, toas fielditstaf The Management Group overseeing IFC and the private sector development activties of the BRETON LITTLEHALES guarantees, risk insurance, advisory World Bank consists ofPeter Woicke, IFC executive vice president and World Bank managing director services, and knowledge products. As (front, center),four IFC vice presidents (from left to right) Fanida Khambtta, Assaad J Jabre, Dorothy H. Berry and Carol F Lee and Bank vice president Nemat Taloat Shafik (right). our services become more efficient and more varied, we expect stronger partner- managed departments known as Global Sector Advisory Services. To better coordi- ships with the business community and Product Groups. They are responsible for nate our support for smaller businesses more visible impacts of our work. We World Bank Group activities in the with the World Bank, a jointly managed also expect our coordinated approach following areas: Small and Medium Enterprise Department to enrich Bank policy dialogues with o Information and Communication has also been established (see box). Assaad governments by drawing on IFC's private Technologies J. Jabre, IFC vice president for operations, sector transaction experience in a more . Mining Farida Khambata, IFC vice president for systematic manner. * Oil, Gas, and Chemicals. portfolio and risk management, and To manage conflicts of interest in our Our advisory services have been com- Nemat Talaat Shafik, World Bank vice pres- newly created, jointly managed depart- bined with those of the World Bank in ident for infrastructure and private sector ments, an independent Conflicts Office, another jointly managed unit, Private development, jointly share responsibility reporting to the General Counsels of both for these new departments. CAO: BRIDGING GAPS, SOLVING PROBLEMS The Compliance Advisor/Ombudsman for IFC and MIGA-Meg Taylor, of the private sector companies that undertake large investment a lawyer and conservationist with business experience in Papua New projects and the communities that are affected by them. The CAO's Guinea-began publicizing the functions of her office and consulting basic job is to help IFC and MIGA bridge that gap. with companies, nongovernmental organizations, and government The CAO is responsible for assessing compliance with policies and agencies around the world. World Bank President James D. Wolfensohn, procedures as well as receiving and investigating complaints made to whom the CAO reports directly, endorsed guidelines for CAO opera- against projects and officials. The CAO's office also provides advisory tions in April 2000 and paved the way for cases to be addressed services to IFC and MIGA management-a task that has proved to be through this new office. the most time consuming during its first year. Taylor sees this as a pre- "One of the emphases that came out of our six-month consultation ventive function-removing obstacles and correcting problems before on guidelines with stakeholders was that we should focus on solving a compliance assessment is called for or a formal complaint made. problems rather than just attaching blame," says Taylor. She notes that The CAO's new Operational Guidelines can be found on the Web at there is often a huge gap between the resources, power, and cultures www.ifc.org/cao. PROMOTING RESPONSIBLE INVESTMENT Private sector development brings the IFC and the Bank, was established. It will Business Development Department. IFC greatest benefit when it is environmentally provide guidance on assignments that has seven regional investment depart- and socially responsible.Today IFC's Technical might result in potential conflicts ments: Sub-Saharan Africa; East Asia and and Environment Department is leading the between investment and policy work the Pacific; South Asia; Middle East and Corporation's move beyond compliance with "do no harm" requirements toward proactively between IFC and World Bank staff and North Africa; Central and Eastern Europe; influencing its investment partners and administer implementation of the Bank Southern Europe and Central Asia; and promoting successful private sector models Group's conflict of interest guidelines. Latin America and the Caribbean. These of sustainable development. Through jointly managed departments, departments develop IFC's strategies for The department has built a team of over our private sector development activities member countries in their region and pro- 30 environmental and social specialists who will target poverty with greater precision. mote business, cultivate relationships with incorporate best environmental and social practices into our investment activity. Since Already, our more coordinated approach governments and the private sector, and 1998, this team's work has been critical to has resulted in a greater effort to serve coordinate with other parts of the World implementation of IFC's first consolidated set small and medium enterprises in the Bank Group. Each regional department of environmental and social policies, guidelines, least-developed markets, which in turn processes projects in financial markets that and procedures, which establish the require- provide new employment and entrepre- help build domestic institutions, and in ments for all of IFC investments. The department neurial opportunities. And our advisory general manufacturing and services. also maintains a unit that trains and monitors work will benefit from the Bank's rich In addition to the jointly managed Global financial intermediaries that benefit from IFC investments. The Environmental Projects experience in policy and regulatory issues. Product Groups, three investment depart- Unit promotes innovative environmental ments cover specialized sectors worldwide: investments and channels Global Environment IFC CORE BUSINESS Agribusiness, Infrastructure, and Power. MANAGEMENT Facility funds into private sector projects. We also appointed a director for Global UJnder restructuring completed during The department also employs 25 industry FYOO, two vice presidents manage the Financial Markets to provide leadership specialists who provide technical expertise for for IFC's advisory and investment opera- core business areas of IFC. Assaad J. Jabre IFC investments, and focus on new industry IFC inesmetsndfousonnwndstions in this area. We recently established sectors and trends of relevance to IFC activities. oversees new business from the origina- The work in this department allows IFC to tion through the commitment of funds, us to accomplish more by marshaling our leverage its capabilities more effectively by as well as treasury operations, in his role promoting corporate responsibility. The depart- as vice president for operations. Farida technical knowledge and disseminating ment is also building on the theoretical and Khambata, vice president for portfolio industry best practices covering the social practical approach to public consultation and risk management, supervises projects sectors, including health and education. outlined in its Good Practice Manual with already in the portfolio as well as credit During FYOO, the Corporate Planning further guidance on issues such as community durthevelopm ande labor practies.such Pvate sito review, risk management, and trust Department developed the IFC Strategic development and labor practices. Private sector fuioprtnsDreinsPe,whcwllgdeuue businesses have welcomed such guidance as fund operations. Directions Paper, which will guide future they take on more investment challenges in management strategy, and managed the the developing world. OPERATIONS growing trust fund operations. At the end Reporting to the vice president for of the year, the department's functions operations are IFC's investment and were split in two. An Operations Strategy advisory departments, Treasury and the Group, responsible for developing and Syndications and International Securities articulating our operational priorities Group, as well as the Marketing and and strategies, was created, while trust fund management will become the Departments or units reporting to her The Business Informatics Department responsibility of an expanded Trust include: Controller's and Budgeting, oversees all corporate business systems, Funds Department. Credit Review, Financial Operations, technology infrastructure, related training, Treasury Operations carries out the Information Technology, Corporate and support. market borrowings program, handles risk Portfolio and Risk Management, Special The Corporate Portfolio and Risk management products for our clients, and Operations, and Trust Funds. Investment Management Unit is responsible for estab- manages IFC's $12.2 billion liquid asset departments also report to the vice presi- lishing a comprehensive risk framework, portfolio as well as assets and liabilities dent for Portfolio and Risk Management setting financial policies for our treasury on our balance sheet. on all portfolio matters. and business activities, developing portfo- The Syndications and International The Controller's and Budgeting Depart- lio monitoring systems and information, Securities Group mobilizes financing from ment is in charge of the Corporation's and actively managing the loan and outside sources to leverage our resources, financial statements and accounting equity portfolio. particularly through the syndication of B- policies. It also prepares and monitors The Special Operations Unit manages loans, underwritings, private placements, our budgets, coordinates and develops projects that are in credit difficulty, with and collective investment vehicles. the management information system, the objective of improving prospects and oversees internal controls. for recovery The Marketing and Business Development Department oversees the activities of our The Credit Review Department establishes A complete organizational chart and manage- European offices and our Tokyo office. credit standards and provides independent ment list can befound in Appendix D, page iio. review of the credit of individual projects. PORTFOLIO AND RISK The Financial Operations Unit processes MANAGEMENT and settles all investment and borrowing Managing existing business and risk transactions and payments. The unit associated with our operations is the also manages the settlement and custody vice president for portfolio and risk of our liquid asset investment and equity management, Farida Khambata. investment portfolios. HARNESSING RESOURCES FOR SMALL AND MEDIUM ENTERPRISES IFC has hands-on experience working with small and medium conjunction with the Global Financial Markets Group, it will strive to businesses and with intermediaries that serve them. It has a great increase access to capital, relying more on working with financial deal of industry, legal, environmental, capacity building, and financial intermediaries rather than on making direct investments. And markets experience, all of which can be valuable to small and building on the World Bank's policy dialogue, it will aim to improve medium enterprises if delivered effectively. The World Bank has the business environment. unparalleled policy dialogue with many governments, which provides The objectives of the Small and Medium Enterprise Department are an invaluable platform for pursuing improvements in the tax and to effectively deliver the World Bank Group's assistance to businesses regulatory environment. and to improve the impact and efficiency of related programs and The World Bank Group's strategy for supporting small and medium initiatives. For example, the SME Department will develop country enterprises is built around eliminating their key constraints in our strategies and pilot initiatives and provide best-practice reviews. developing member countries. Therefore, the newly created Small and It will strengthen field networks, especially through IFC-managed Medium Enterprise Department will focus on building capacity within project facilities, to provide on-the-ground support and organize businesses and providing access to information and technology. In staff exchanges. COITENTS Financial Review 65 Portfolio Review 69 s. F 4 C ; Operations Evaluation 72 Project Approvals 73 Technical Assistance 94 ' ~~~~~~~~~~~~~~~& Advisory Projects RICHARD FIELD- V a~~~~~~~I IFC earned $380 million in net income in $153 million after administrative expenses shares. IFC's borrowings continued to 65 FY 2000, above the $249 million earned in FY00, comparable to the $ 155 million keep pace with its growing lending in FY99 and $246 million net income in earned in FY99. activities. New borrowings in the interna- FY98 but below the record net income New investment approvals for IFC's tional and emerging markets totaled of $432 million achieved in FY97. The account amounted to $3.5 billion, and an $4.4 billion in FY00. Corporation's operating results in FYOO.:. additional $2.3 billion in loan syndications FINANCIAL PERFORMANCE OF reflected some improvement in portfolio were approved. The disbursed investment MAJOR PRODUCT LINES performance and a lower level of loss pro- portfolio increased from $ 10.0 billion Fueled by continued strong demand visioning compared with the prior two in FY99 to $10.9 billion in FY00. The for IFC's project and corporate finance years, when results were depressed by the Corporation's administrative expenses products, new disbursements advanced financial crises that started in Asia in FY98. increased in FY00 in line with approved in the fiscal year. IFC's loan portfolio Lower levels of loss provisions, coupled budget funding to allow a better response grew strongly in FY00. Disbursed and with performance comparable to the pre- to IFC's development mandate in global outstanding loans (excluding quasi-equi- vious year on the loan, equity, and liquid financial markets that continued to ties) increased by 6 percent from $6.8 asset portfolios, resulted in the return on present significant investment risks. As billion in FY99 to $7.2 billion in FY00. average net worth rising from 4.8 percent a share of average disbursed investment IFC's loan portfolio showed net income in in FY99 to 6.9 percent in FY00. portfolio, total administrative expenses FY00 of $67 million, up from $10 million The loan portfolio generated net income remained at 2.6 percent in FY00, in FY99. IFC's interest collection rate of $67 million in FY00 (after charges for unchanged from FY99. improved to 90.1 percent in FYOO from borrowing costs, nonaccruals, specific loss During FYOO, IFC received $8 million 89.5 percent in FY99. In addition, provisions, and administrative expenses). in capital subscription payments from investment-related service fee income This follows net income of $ 10 million member countries under the general strengthened, and loss provision charges in FY99. Net income from the equity and special capital increases approved by were lower. Net income on the loan and quasi-equity portfolios-that is, the IFC's Board of Governors in 1991 and portfolio was equivalent to a return on portfolios funded from net worth-recov- 1992 and from special allocations of ered to $188 million from $76 million in FY99, mainly because of lower loss provisioning this fiscal year. This included -ILLIOF.S OF U.S. DOLLAIS FY99 FYOO realized capital gains of $ 132 million Interest and financial fees from loan investments 607 694 from sales of equities as well as dividend Dividends and profit participations 99 130 receipts of $ 130 million (compared with Realized gains on equity sales 166 132 Service fees 33 49 $ 166 million and $99 million, Deposits and securities 532 596 respectively, in FY99). Net income from Pension and retirement benefit income 64 47 IFC's invested net worth and treasury Other income 13 31 activities continued to provide a strong, TOTAL 1,514 1,679 dependable source of earnings, totaling NET INCOME AND RETURN ON NET WORTH, FY96-00 of 30 percent, defined under the capital 450-4 -1% adequacy framework adopted by the _ S Net income I _ Board of Directors in May 1994. IFC's v,400 - - 1% , Retum on average _ leverage ratio-which is outstanding o net woth 350 - nX - 9% z borrowings and guarantees measured in 0 300 - _ =g - 6Sro ^ relation to the sum of subscribed capital o o and retained earnings-was 2.6 to 1, 250 n 3n well within the limit of 4.0 to I pre- 200 - _ _ l l l l _ - 0 scribed by the Articles of Agreement. FV96 FY97 FY98 FY99 FYOO FUNDING MANAGEMENT capital employed of 4.7 percent, up from capital to $2.4 billion, while the net In FY00, IFC raised $4.4 billion equiva- 0.8 percent in FY99. income of $380 million increased lent in the international capital markets. In The equity and quasi-equity portfolio, retained earnings to $3.4 billion. FY00, IFC also repurchased and retired IFC's second-largest product line after Subscriptions and payments under the $200 million in outstanding debt. The loans, grew very strongly in FY00, general capital increase (GCI) and the Corporation subsequently refinanced that increasing by 14 percent to $3.7 billion. special capital increase (SCI) closed on debt during the year. The income on this portfolio rose in August 1, 1999, except for members that IFC issued securities in nine currencies- FY00 to $188 million from $76 million subscribed under an extended payment US. dollars, pounds sterling, euros, Hong in FY99, mainly because of lower provi- schedule for reasons of economic hardship; Kong dollars, Singapore dollars, Japanese sioning ($62 million in FY00 compared they may complete payments by August 1, yen, New Zealand dollars, South African with $ 178 million in FY99). This was 2001. The total number of member rand, and Slovak koruna. The largest equivalent to a return on capital employed countries remained unchanged at 174. borrowing of the year was a US$1 billion of 6.3 percent in FY00, up from 2.8 Cumulative payments under the GCI five-year bond issue. This benchmark percent in FY99. totaled $957.2 million. Further payments borrowing was IFC's third $1 billion Total provisions for losses for FY00 were totaling $5 million are due by August 1, transaction since November 1998, but the $215 million, lower than the $333 million 2001, in addition to a $410,000 payment first to be launched as a global bond issue. provided in FY99. The accumulated that is due by December 1, 2000, for a IFC raised 28 percent of total borrowing reserve against losses improved to 18.0 special allocation of shares. As of June 30, through its U.S. dollar benchmark issue, percent of the year-end disbursed and 2000, cumulative payments under the 25 percent in the UK. domestic sterling outstanding portfolio, compared with SCI totaled $118.6 million. Another $9 market, and 26 percent through smaller 18.2 percent in FY99. IFC believes this million for subscriptions remains unpaid structured trades targeted to Japanese level of loss provisioning to be prudent, consisting of $7.4 million due by institutions. All borrowings were swapped 6 6 given the risks to investment in the August 1, 2001, and $1.6 million into floating-rate US. dollars. Most loans current environment. outstanding for membership shares. made by IFC are denominated in U.S. On June 30, 2000, IFC's capital adequacy dollars on a floating-rate basis. The below- CAPITAL AND RETAINED EARNINGS ratio (paid-in capital, retained earnings, LIBOR cost achieved through swaps as 0 z IFC's net worth consists of retained and adjusted general reserves compared well as the income generated through earnings and paid-in capital. Total capital with risk-weighted assets, both on- and debt repurchases also contributed to subscription payments of $8 million off-balance sheet) stood at 46.7 percent. maintaining IFC's low funding cost received in FY00 brought IFC's paid-in This is well above the policy minimum and profitability in FY00. LIQUIDITY MANAGEMENT the types of instruments and entities beginning of FY00, management of the Total liquid assets increased during the eligible for investment. IFC is authorized P2 portfolio was moved in-house to IFC. year from $10.1 billion to $ 12.2 billion, to invest its liquid assets in the obligations This report therefore marks the first full a 21 percent rise. The majority (99 percent) of highly rated governments, agencies, year of its management by IFC treasury. of liquid assets are held in U.S. dollars, corporations, and commercial banks. P2 is managed against a three-year dura- with small euro and yen balances held Within the Authority's framework, IFC's tion benchmark (including the residual to support operational disbursements. senior management has established fixed-rate loan portfolio). The portfolio is The volatility in global financial markets, prudent guidelines for managing the actively managed on a total return basis. which began in FY99, continued through different dimensions of risk inherent in The annualized return for FY00 was FY00, compounded by the U.S. Federal a large, diversified bond portfolio with 5.25 percent versus a benchmark return Reserve's decision to tighten monetary particular regard to market (interest rate) of 4.81 percent. This compares with the policy. Yields rose sharply during the risk and credit risk. FY99 absolute return of 5.80 percent. first half of the fiscal year as fears of For management and reporting purposes, The decrease in absolute return reflects inflation and rapid U.S. Federal Reserve IFC's liquid assets are separated into three the rise in interest rates since July 1999. Bank tightenings grew. As the end of distinct portfolios. The first (P1) consists The 0.44 percent benchmark outperfor- FY00 approached, financial market of funded liquidity, namely, the proceeds mance reflects income from active invest- volatility deepened, exacerbated by of variable-rate borrowings, which are ment and securities-lending strategies the commencement of the US. Treasury invested in matching variable-rate invest- during one of the most volatile periods buy-back program, declines in the U.S. ments pending disbursements of approved for U.S. bonds. Nevertheless, risk as meas- equity market, and continued interest rate loans. IFC's objective is to capture a carry- ured by volatility versus the benchmark hikes by the U.S. Federal Reserve Bank. ing gain on this portfolio with minimal was kept at very low, conservative levels. Despite the volatility, IFC outperformed exposure to market risk. This carrying The third portfolio (P3) consists of its benchmarks on its in-house liquid gain averaged 39 basis points during FY00, borrowed variable-rate funds assigned to asset portfolios. the same as that of FY99. IFC continued external managers to be invested actively The entire liquid asset portfolios to liquidate certain positions opportunis- against a U.S. dollar LIBOR index. Senior generated $153 million in net income, tically. In FY01, IFC intends to adopt a management has approved an increase of with $27 million in spread income from more flexible approach to managing the the capacity of this program to 12 percent funded liquidity and $ 128 million in P1 portfolio by making investments on an of the total liquid asset portfolio. Part of total income from net worth liquidity, aggregate portfolio basis against a US. dollar offset by $2 million in administrative LIBOR benchmark within specified market expenses. This compares with $155 million risk parameters, rather than the current LIOUID ASSET EXPOSURE ALLOCATION during FY99, which included $30 million approach of matching individual assets in spread income from funded liquidity with individual liabilities. This will allow and $ 126 million in total income from IFC to control risk and maintain the strict net worth liquidity, offset by $I million standards of eligible investment criteria, in administrative expenses. while gaining broader opportunities for IFC's liquid assets are invested in line particular investments and strategy with policies and standards set under The second portfolio (P2) corresponds the Investment Authority granted by the primarily to the Corporation's paid-in Board of Directors. The Authority specifies capital and accumulated earnings. At the A 75So 17% 8Rte 1m AAA Rated AARated m A Rated this increase will facilitate a small alloca- All transactions for PI and P2 are input have matching currency and interest rate tion from the P2 portfolio to three or directly into Summit while P3 information characteristics, and residual currency and four external managers during FY0 1. At is added on a monthly basis, thereby interest rate risks are monitored and the end of FY00, the external portfolio providing a central system of record managed on a portfolio basis. constituted about 7.0 percent of the total and history. A centralized data platform liquid assets portfolio. IFC had a total of will facilitate more accurate investment CREDIT RISK $809 million under management by decision-making, risk measurement, total Credit risk in IFC's treasury arises through seven external firms-four global fixed- portfolio valuation and performance, the investment of the Corporation's liquid income managers with $369 million and other reporting. assets in sovereign bonds, corporate bonds, under management and three mortgage- and deposits. Counterparty credit risk is backed securities (MBS) specialists with RISK MANAGEMENT also generated through the use of deriva- $440 million under management. During The measurement and management of tives for hedging purposes. In particular, FY00, the external managers in IFC's P3 financial risk in the IFC treasury comple- IFC uses swaps to create synthetic-LIBOR program had mixed returns, succumbing ment the management of risks that arise funding and investments, to manage loan to the negative pressure of the volatile from the Corporation's investment assets versus underlying liabilities, and to economic environment already described. operations. This function is handled by hedge client risk management products. The MBS portfolio in particular underper- an independent risk management To manage credit risk, IFC sets eligibility formed as a result of the precipitous group to ensure a separation from criteria and credit limits for its counter- widening of swap spreads. The overall risk-taking functions. parties that are approved by the Finance result for the funds under outside man- and Risk Committee, a subcommittee MARKET RISK of the Management Group. IFC closely agement was LIBOR minus 120 basis Market risk in the IFC treasury arises coordinates credit policies relating to points after fees, compared with LIBOR plus 32 basis points during FY99 and primarily from the liquid asset portfolio eligibility criteria and credit limits for LIBOR plus 27 basis points during FY98. (divided into funded liquidity, net derivative counterparties with the IBRD. worth liquidity, and externally managed IFC will continue to seek new managers To protect against deterioration in liquidity). In the funded-liquidity to further diversify the portfolio in both counterparties' creditworthiness after portfolio, IFC minimizes exposure to asset class and style. martfrisk by ringmthat assets undertaking derivatives contracts, IFC market risk by requiring that assets and In FY00, IFC completed its transition to a liabilities are matched by currency and has entered into collateral agreements r ~~~~~~~~~~~~~with a large number of swap counter- new custodian, State Street Bank, for the interest rate characteristics and by market Corporation's equity liquid asset portfo- risk limits. This matched-funding policy parties. Under these agreements, a lios. This has resulted in the centralization provides strong protection against market counterparty is required to post collateral to us when the netted marked-to-market of IFC's global custody and valuation risk, while credit risk is managed as functions in a wholly independent man- described below. The net worth liquidity exposure exceeds predetermined 68 ner. Finally, in FY00, IFC treasury also portfolio is funded by net worth and thresholds (which decline with rating). 3: completed (for the P1 and P2 liquid asset managed against a three-year-duration Through these arrangements, IFC is > . . better able to manage its exposure to portfolios) the implementation of a new benchmark. Finally, the externally managed 5 Integrated Treasury Management System, liquidity portfolio, funded by market counterparties over time, particularly z called Summit. borrowings, is subject to IFC's risk guide- if their credit deteriorates. lines. IFC treasury also hedges the market risks on its loan portfolio. Loans are hedged with swaps or other liabilities that 12T1Ine io Review tO - ,-,esssc:. , . . . . . . . . . . . . . ..........................................,...a l .f.....,.. .C.f.f'......: f...y*6-M.i:.X.q:..v''S IFC's committed portfolio at the end of diversify access to funding and reduce largest volume of new commitments 69 FY 2000 increased by 4.7 percent to borrowing costs. The currency breakdown were financial services with 30 percent, $13.5 billion, from $12.9 billion in of the disbursed loan portfolio on June infrastructure with 20 percent, and chem- FY99; of the committed portfolio 30, 2000, is shown in the notes to the icals and petrochemicals with 14 percent. 74 percent was in loans amounting to financial statements. Off-balance-sheet Disbursements in FY00 were $2.2 billion, $ 10. I billion and 26 percent was in commitments to IFC clients in aggregate similar to the FY99 level. Loan disburse- equity investments amounting to $3.5 contractual amounts for guarantees and ments were $1.7 billion and equity billion. In addition, IFC held and in loan-equivalent amounts for derivative disbursements $491 million. IFC also managed for participants $8.2 billion in products outstanding on June 30, 2000, disbursed $ 1.1 billion on behalf of loans it had syndicated. amounted to $435 million for 68 clients financial institutions participating in The net increase in committed portfolio in 36 countries. The Corporation mini- its syndicated loans. was $610 million after taking into mizes its risk exposure by entering into accounit new commitments, repayments, offsetting swap, option, or forward contract PORTFOLIO MANAGEMENT positions with highly rated market coun- As part of its supervision efforts, IFC sales, cancellations, prepayments, write- offs, and translation, adjustments. Loan terparties and by performing thorough closely monitors compliance with invest- repayments totaled $ 1. I billion, and credit reviews of all counterparties. ment agreements, regularly visits sites to $154 million in equity investments check on project status, and helps find were sold or redeemed. DISBURSEMENTS solutions to problem projects. To The total disbursed portfolio for IFC's New commitments were concentrated strengthen portfolio supervision, the The total disbursed portfolio for IFC s ~~~Corporation has in place portfolio man- own account increased to $10.9 billion in the Latin America and Caribbean at the end of FY00, from $ 1 0.0 billion (44 percent), Europe and Central Asia agement units in all investment depart- in FY99. The disbursed loan and equity (22 percent), and Asia (16 percent) ments, each under a portfolio manager portfolios grew during the fiscal year by regions. The business sectors with the This structure should help 7.4 percent and 14.3 percent, respectively. At the end of FY00, the committed port- folio included loan and equity investments, BREAKDOWN OF 1FC PORTFOLIO risk management products, and guarantees JUEA 30, 2000 ON JUNE 30, 2000 in 1 ,333 companies in 113 countries. MILLIONS OF U.S. DOLLARS Total committed portfolio for IFC's own account 13,526.8 Most of the Corporation's investments Loans 10,051.5 are denominated in U.S. dollars, but IFC Equity 3,475.3 borrows in a variety of currencies to Total disbursed portfolio 10,940.2 Total undisbursed portfolio 2,586.6 Total committed portfolio held for participants 8,206.4 Off-balance-sheet exposure on client risk management products 435.2 COMMITTED PORTFOLIO FOR IFC'S OWN ACCOUNT BY SECTOR ON JUNE 30, 2000 $515 (4%) Timber, Pulp, and Paper $759 (6%) Cement and Construction Materials $430 (3%) - Textiles $110 (1%) - Social Services (Health Care, Education) _ ~~~~~~~$666 (5%) $156 (1%) - Oil Refining . Chemicals and Petrochemicals $194 (1%) - Motor Vehicles and Components $64 C1%5) (including Motorcycles) v;' W V Fertilizers and $1,005 (7%) - Mining and Extraction of Agricultural Chemicals Metals and Other Ores $512 (4%) -.Mining and Extraction of Fuel Mineral $3,929 (29%) ~~~~~~~~ ~~~~~~~Financial Services $907 (7) Manufactring $1,260 (9%) - Food and Agribusiness $2,376 (17%) $424 (3%) - Hotels and Tourism $220 (2%) - Industrial and Consumer Services TOTAL: $13,527 MILLIONS OF U.S. DOLLARS identify problems early and address them projects with particularly severe problems, benefited from a better economic envi- in a timely manner. The adoption of a our Special Operations Unit determines ronment. During FY00, portfolio income more sophisticated risk-rating system also appropriate remedial action. In such situ- of $956 million on both equity and loans supports this process. Furthermore, head- ations, it seeks to negotiate agreements exceeded the budget plan estimate of quarters staff continue to be relocated to with all creditors and shareholders to $85 2 million. The quality of the loan the field, and local staff in IFC offices have share the burden of restructuring, so portfolio improved during the fiscal increasingly been assigned to supervisory that problems can be worked out while year as a result of the improving global tasks. IFC makes special efforts to ensure the project continues to operate. In financial environment. In particular, the that banks participating in IFC loans are exceptional cases, when the parties reach interest collection rate increased to 90.1 kept regularly informed of project devel- an impasse in negotiations, IFC takes percent, from 89.5 percent at the end of 70 - opments through the B-Loan Management all necessary and appropriate measures FY99. Principal outstanding on Division. There is always a close and to protect its interests. nonaccruing loans as a percentage of the O continuing consultation between IFC and After difficult market conditions following disbursed loan portfolio was 11. I percent 0 its participants. the Asia crisis, the portfolio performance on June 30, 2000, unchanged from June Operational departments evaluate projects turned around as many of IFC's markets 30, 1999. During the same period, prin- case by case when difficulties arise. For cipal in arrears as a percentage of the revaluation effect on non-U.S. dollar loss disbursed loan portfolio reached 5.6 reserves and write-offs of $57.3 million. percent, from 5.0 percent. The loss reserves comprise specific The estimated unrealized gains on the reserves for impaired investments as well equity portfolio continued to improve as a general reserve. Management deter- during FY00, surpassing the level reached mines reserves against losses on the basis at the end of FY99. There were significant of portfolio reviews and recommendations improvements in Europe and Latin by the Portfolio Management Units in the America, while Asia experienced more investment departments. For this purpose, volatility. Capital gains of $132 million the entire portfolio is reviewed quarterly were realized, a decline from $166 The Corporation's external auditors million in FY99, and slightly below examine closely the recommendations, budget plan estimates for the year. IFC policies, and methods for determining the received dividends of $1 30 million reserves against losses. compared with $99 million during FY99. This was much higher than the $74 million budget plan, mainly due to commodity price increases. Reserves against losses increased to $2.0 billion in FY00, representing 18.0 percent of the disbursed portfolio, down from 1 8.2 percent in FY99. The increase resulted from $215 million in provisions for losses net of a $10.9 million currency IFC COMMITTED PORTFOLIO FY96-00 14.0 - g IFC's own account 12.0- - 4 Held for others 4.0 - FY96 FY97 FY98 FY99 FY00 A REVIEW OF IFC PROJECTS IFC's participation proved crucial in mobilizing related links throughout the economy would IFC's extensive experience is valuable only funds to fill the financing gap of a new infra- not likely have survived. when management and staff apply lessons a long Civil war and generally neglected by The difficulties emphasized that IFC needs to challenge a sponsor's market risk mitigation learned to new endeavors. To help high- commercial investors at the time of approval. plansevigorously,oevenmwhentthessponsoraison plans vigorously, even when the sponsor is an light the cross-cutting lessons each year, Pioneering the Financial Sector experienced or dominant player Despite market the Operations Evaluation Group provides in a Transition Economy problems, aspects of the project show how the independent review and analysis of mature IFC gave equity support to a project that estab- downside was limited. In this case the company lished the first international factoring joint was able to change production when demand IFC projects self-evaluated by operations venture in a country. It provides the capacity for the initial product was disappointing. The staff. Project evaluations summarized for companies to raise capital by selling export lesson identified is that production facilities below are adapted from OEG's Annual accounts receivables. OEG found that the should allow for cost-competitive conversion. pioneering investment helped viable small The project also proved the value of an escrow and medium business exporters tap into account for environmental remediation: the completed in May 2000, which analyzed receivables financing in cases where they had IFC requirement for such an account ensured 114 IFC projects randomly selected from no other access to working capital financing. that funds were available for rectifying environ- among those approved by the Board dur- The project was successful in introducing a new mental problems that emerged after appraisal. financing product into the market, but because ing the period 1991-93 and evaluated of the company's cautious approach its business Taking the LongView in by staff between 1 996 and 1 998. performance has fallen significantly short of a Depressed Market IFC provided loans and equity to a project that expectations in terms of client base, transaction inovdtecvrsnofamtbldppr volume, and profitability. ivolved the conversion of a mothballed paper PROJECTS WITH volume, and profitability pulp mill into a dissolving viscose pulp mill SUCCESSFUL OUTCOMES The project provided its staff, all nationals for the production of rayon. The project was Strong Development and without prior experience in factoring, with able to turn an idle asset into productive use, Investment Returns the benefit of training from the technical partner but the project faces ongoing challenges due IFC provided equity and loans to support on factoring, information systems, market intel- to prolonged depressed market conditions. construction and operation of a country's first ligence, and credit analysis. IFC played a crucial In this case, IEG was able to protect its loan by cellular telephone network. The highly successful role in getting this type of venture started; with- structuring a project financial support arrange- project exceeded system build-out, subscriber out IFC participation the company could not ment. But the experience shows that in selecting growth, operating, and financial projections. have obtained the necessary operating license. the project, IFC should also have tested the Heavy growth led to another round of financing for further expansion.The project sponsor PROJECTS WITH LESS project's viability in an extended down market. helped the local partner develop excellent SUCCESSFUL OUTCOMES perket anlyi wslmed to bi ad 1eri period, which proved to be inadequate as prices financial management systems and cellular The Perils of a Shifting Market fell below the lowest for that period. technology expertise. An IFC loan was provided for a project that 72 The experience also underscored the value of - The success led to other international cellular modernized and expanded a formerly state- operators entering the , owned working with a committed local sponsor. Even 2 operators entering the market and other local owned automobile wheel factory to increase Im a o tr l w f after the foreign sponsor indicated that it would companies emulating the project's technological annual capacity threefold. It was executed - not provide further support, the local SpOnSOr investment and customer service. Although the by a joint venture comprising a global wheel service was expensive when first introduced, manufacturer and a state-owned steel mill. continues to make fresh financing available to O ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~sustain operations. , prices rapidly aligned with international levels Changes in customer preferences resulted in in anticipation of competition. The company low sales and sustained losses. Nevertheless, OEG's FY99 annual review and those from also plans to bring service to areas where there the foreign sponsor and technical partner remain previous years can be found on its Web page is no fixed-line service. strongly committed. Without this project, the (wwwifc.org/oeg). country's wheel-building industry and the B, - * 73 SUB-SAHARAN AFRICA 79 ASIA AND THE PACIFIC 83 EUROPE AND 87 LATIN AMERICA AND 91 MIDDLE EAST Benin, Botswana, Burundi, Bangladesh, Cambodia, China, CENTRAL ASIA THE CARIBBEAN AND NORTH AFRICA Cameroon, Chad, C6te d'lvoire, India, Indonesia, Republic of Albania, Armenia, Bulgaria, Argentina, Belize, Bolivia, Algeria, Arab Republic of Egypt, Gabon, Ghana, Guinea, Korea, Lao People's Democratic Croatia, Georgia, Kazakhstan, Brazil, Chile, Dominican Jordan, Lebanon, Morocco, Kenya, Madagascar, Malawi, Republic, Pakistan, Philippines, Kyrgyz Republic, Lithuania, FYR Republic, Ecuador, El Salvador, Oman, Saudi Arabia, Syrian Mauritania, Mozambique, Samoa, Sri Lanka,Thailand, Macedonia, Moldova, Poland, Guatemala, Honduras, Mexico, Arab Republic,Tunisia, West Namibia, Nigeria, Rwanda, Vietnam Romania, Russian Federation, Nicaragua, Panama, Peru, Bank and Gaza Senegal, South Africa, Slovak Republic, Tajikistan, Venezuela Swaziland, Tanzania, Togo, Turkey,Turkmenistan, Ukraine, Uganda, Zambia, Zimbabwe Uzbekistan (in millions of U.S. dollars) IFC TotalI IFC IFC ouasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size SUB-SAHARAN AFRICA BEN IN Finadev Microfinance, the first fully commercial microfinance venture in 0.00 0.35 0.00 1.41 0.00 1.76 2.0 Francophone West Africa, will provide credit lines to smaller microfinance institutions, credits for housing finance to employees of large corporations organized in unions or associations, and group lending to microentrepreneurs. BOTSWANA Abercrombie & Kent (Botswana) Limited will replace 16-bed tourist lodge 1.97 0.00 0.00 0.00 0.00 1.97 4.1 (Chilwero Lodge) with new 32-bed lodge on 11.8-hectare site overlooking the Chobe River at Kasane. BURUNDI Vegetables and Flowers Export S.A. will grow high-quality roses in 0.46 0.00 0.00 0.00 0.00 0.46 1.2 greenhouses for export to Europe by air (AEF). CAMEROON Banagri Sarl will develop 500-hectare palm tree plantation and palm oil 0.16 0.00 0.00 0.00 0.00 0.16 0.3 extraction mill in Njombe-Penja, 80 kilometers north of Douala (AEF). Banque Internationale du Cameroun Pour l'Epargne et le Credit, 0.00 0.70 0.00 0.00 0.00 0.70 0.7 country's third largest bank by assets and largest in terms of branch network, will be privatized. Complexe Avicole de Mvog-Betsi will purchase and rehabilitate chick 0.00 0.17 0.00 0.00 0.00 0.17 0.2 hatching and chicken feed parastatal company that was closed for two years (AEF). The Horizon Bilingual Education Complex, private bilingual (English 0.34 0.00 0.00 0.00 0.00 0.34 0.7 and French) school established in 1990, will expand facilities to allow enrollment to increase from 1,220 to 1,700 students (AEF). (in millions of U.S. dollars) IFC Tota I IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size CHAD Demba' Lait Sarl will expand and upgrade milk plant in N'Djamena by 0.28 0.00 0.00 0.05 0.00 0.33 0.8 installing modern dairy equipment. Will process 4,000 liters of milk per day using locally produced raw milk and imported milk powder (SEF). TChad OilTransportation Company, S.A., and Cameroon OilTransportation 100.00 0.00 0.00 0.00 300.00 400.00 3723.9 Company, S.A., three oil fields in the Doba basin in southwestern Chad will be developed. Underground 1,070-km pipeline from Doba oil fields to Cameroon's Atlantic coast at Kribi, three related pumping stations, ancillary facilities, and infrastructure improvements will be built. C6TE D'IVOIRE Omnium Chimique et Cosmetique (COSMIVOIRE) S.A., producer of soap 0.00 1.00 0.00 0.00 0.00 1.00 3.4 and edible oils for the domestic and regional markets, will increase capacity to respond to demand in domestic and export markets. SocieteAgro-Industrielle du Neka will establish a 12-ton-per-hour palm 1.00 0.20 0.00 0.00 0.00 1.20 5.3 oil mill to produce crude palm oil and palm kernel for local market (AEF). Societe Medicale de Moye et d'Equipement will construct and operate 1.10 0.00 0.00 0.00 0.00 1.10 3.4 79-bed hospital in Abidjan (AEF). GABO0N Banque Internationale pour le Commerce et l'Industrie du Gabon (BICIG), 14.36 0.00 0.00 0.00 0.00 14.36 14.4 will provide necessary short-term working capital finance to private sector clients, extend trade financing activities, and strengthen resource base. GHANA Enterprise Life Assurance Company Ltd. (ELAC) will be established as a joint 0.00 0.25 0.00 0.00 0.00 0.25 2.5 venture life insurance company with initial capitalization of GHC 7.5 billion (approximately $2.5 million). Ghana Microcredit Corporation Ltd. will be established to fill heavy demand 0.00 0.20 0.00 0.00 0.00 0.20 0.2 for loans to small and micro businesses. Ghana Telecommunications Company Limited will expand fixed-line network, 40.00 0.00 0.00 0.00 60.00 100.00 216.0 establish nationwide cellular network, and invest in regional submarine cable. Ghanaian Australian Goldfields Limited-IFC is restructuring its 0.00 0.00 0.54 0.00 0.00 0.54 13.5 investments in GAGL to allow it to form a joint venture with a nearby mine and make possible the recovery of IFC's investments. NIIT Computer Training School will be established in Accra under franchise 0.23 0.00 0.00 0.00 0.00 0.23 0.5 74 arrangement with the National Institute of Information Technology Limited of India (AEF). 0 Social Security Bank Limited will finance working capital and investment 10.00 0.00 0.00 0.00 0.00 10.00 10.0 needs of export-oriented private enterprises. 0 (in millions of U.S. dollars) IFC Total IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size GUINEA MATP will provide road maintenance services on donor-funded projects (SEF). 0.50 0.00 0.00 0.00 0.00 0.50 1.3 KENYA AAA Growers will establish a new business to produce french beans for 0.50 0.00 0.00 0.00 0.00 0.50 1.1 export to Europe (AEF). Eustoma Kenya Limited will expand a lisianthus flower farm on Nairobi 0.38 0.00 0.00 0.00 0.00 0.38 0.9 outskirts from 4.3 to 7.3 hectares (AEF). Lesiolo Grain Handlers Limited will establish grain-handling and storage 2.50 0.00 0.00 0.00 0.00 2.50 6.6 facility close to major grain-growing areas of Kenya (AEF). Liki River Farm Ltd. will construct additional 3.5 hectares of greenhouses, 1.00 0.00 0.00 0.00 0.00 1.00 3.6 expand cold storage and central facilities for lisianthus production, and develop further 20 hectares of open-field vegetables (AEF). Mabati Rolling Mills Limited will install a new steel galvanizing line 7.00 0.00 4.50 0.00 0.00 11.50 30.4 with capacity to process cold rolled steel coils into 80,000 tons per year of galvanized and aluminum-zinc (Al-Zn) coils for local and export markets. Magana Flowers (K) Limited will expand existing 7.2-hectare rose farm 1.15 0.00 0.00 0.00 0.00 1.15 3.0 by 4.2 hectares to export product to Europe (AEF). Tsavo Power Company Ltd. will develop, build, and operate 74 MW diesel 17.90 1.08 2.10 1.70 23.53 46.31 90.9 power generating plant in Mombasa, the main seaport and second largest city. Twin Leaves Tea Company Limited will establish, under Export Processing 1.00 0.00 0.00 0.00 0.00 1.00 3.3 Zone Facility, modern tea packaging plant to supply Middle East, Kenya and Common Market for eastern and southern Africa (AEF). MADAGASCAR Bank ofAfrica Madagascar will be created through the privatization of 0.00 1.60 0.58 0.00 0.00 2.18 2.2 Bankin'ny Tantsaha Mpamokatra (BTM), the country's third largest bank by assets and the largest in terms of branch network. Societe Malgache d'Aquaculture will develop a hatchery and 0.70 0.00 0.00 0.00 0.00 0.70 4.4 additional breeding ponds for a shrimp farm located at Ampazoany in Mahajanga Province (AEF). MALAWI National Insurance Company Limited (NICO), the country's largest 0.00 1.07 0.00 0.00 0.00 1.07 1.2 insurance company, will be privatized through a combination of management buyout, strong technical partner support, and IFC warehousing arrangement that will allow for larger local private ownership. MAURITANIA G6n6rale de Banque de Mauritanie pour l'Investissement et le Commerce 7.00 0.00 0.00 0.00 0.00 7.00 7.0 (GBM) will further develop trade finance activities to provide necessary short-term working capital finance for clients in the various sectors. (in millions of U.S. dollars) IFC Total IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size MOZAMBIQUE Ausmoz Farm Holdings, Lda., will develop 1,050 hectares near Chimoio City 0.99 0.00 0.00 0.00 0.00 0.99 2.5 in Manica Province to produce wheat, maize, cotton, soya beans, sunflowers, and tobacco under irrigation (SEF). Banco de Fomento will provide term loans principally to export-oriented 10.00 0.00 0.00 0.00 0.00 10.00 10.0 companies for their capital investment, working capital, and restructuring needs. Banco de Microfinan,as de Mo,ambique, the country's first commercial 0.00 0.30 0.00 0.00 0.00 0.30 1.5 microfinance bank, will be established. Banco Internacional de Mo,ambique-Leasing will establish the country's 2.00 0.30 0.00 0.00 0.00 2.30 2.3 second leasing company and initially focus on offering equipment leases. Banco Internacional de Mo,ambique S.A.R.L. offered rights issue to 0.00 2.50 0.00 0.00 0.00 2.50 10.0 shareholders, which IFC agreed to accept, thus maintaining a 25 percent stake in the bank. Cabo Caju, Lda., will relocate and expand cashew nut processing plant 0.58 0.00 0.00 0.00 0.00 0.58 1.5 to process up to 1,200 tons of raw cashews per year (SEF). Merec Industries, Lda., will set up new plant to process 140 tons of 0.00 0.00 0.00 1.30 0.00 1.30 3.8 imported wheat per day (SEF). NAMIBIA Gateway Hotel and Conference Centre (Pty) Limited will establish new 1.03 0.00 0.00 0.00 0.00 1.03 3.4 70-room, 3-star hotel and conference center inWavis Bay, a main port city (AEF). NIGERIA Capital Alliance Private Equity Fund will be launched as a closed-end 0.00 7.50 0.00 0.00 0.00 7.50 40.0 private equity fund to invest in growing companies in which it provides signifitant guidance on financial management and business strategy. Citibank Nigeria will on-lend IFC funds to private companies in various 40.00 0.00 0.00 0.00 0.00 40.00 40.0 sectors of Nigeria's economy Diamond Bank will on-lend IFC funds to private companies in various 20.00 0.00 0.00 0.00 0.00 20.00 20.0 sectors of Nigeria's economy. FSB International Bank will on-lend IFC funds to private enterprises for 22.50 0.00 0.00 0.00 0.00 22.50 22.5 rehabilitation or restructuring, project finance, trade finance, and working capital purposes. 76 GuarantyTrust Bank Plc. will on-lend IFC funds to private companies 20.00 0.00 0.00 0.00 0.00 20.00 20.0 - in various sectors of Nigeria's economy. o Gurmeet Nigeria Limited will set up the country's first bicycle and 0.70 0.00 0.00 0.00 0.00 0.70 2.3 motorcycle rims manufacturing plant at Ikeja, Lagos City (AEF). Investment Banking and Trust Company Limited will provide private 20.00 0.00, 0.00 0.00 0.00 20.00 20.0 sector enterprises with working capital, trade finance, expansion and rehabilitation, refinancing, and project finance. Oha Motors (Nigeria) Limited, a 23-bus interstate transportation business, 0.90 0.00 0.00 0.00 0.00 0.90 2.3 will acquire six new 55-seat buses for Lagos-Abuja route (AEF). (in millions of U.S. dollars) IFC. Total IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size Safety Center International Limited will establish country's first safety 0.50 0.08 0.00 0.00 0.00 0.58 2.2 training center at Port Harcourt to train fire brigade and safety personnel in use of self-contained breathing apparatus in fires and under other 77 hazardous conditions (AEF). RWAN DA MTN Rwandacell S.A.R.L., a telecommunications company, is establishing 4.00 0.00 2.00 0.00 0.00 6.00 19.4 a nationwide cellular network to help meet urgent need for better service. SENEGAL ACEP-Microfinance Guarantee will use IFC guaranty facility to obtain 0.00 0.00 0.00 0.77 0.00 0.77 1.6 medium-term loans from local banks for about twice the guaranteed amount. The 50 percent nonguaranteed exposure of local banks will ensure ongoing supervision by local banks and pave way for future commercial borrowing by ACEP without IFC guarantee. Banque Internationale pour le Commerce et l'Industrie au Senegal, 0.00 0.00 0.00 10.20 0.00 10.20 10.2 Citibank Senegal, and Societe Generale de Banque au Senegal will expand access to financial services by small and medium enterprises through mechanisms to share credit risk with local banks, technical assistance to improve the financial infrastructure for credit information, and capacity building for participating banks. SOUTH AFRICA ABSA Group Limited will finance cross-border investments, including 100.00 0.00 0.00 0.00 100.00 200.00 200.0 agribusiness, infrastructure, manufacturing, and tourism; finance low-income and small-scale lending; and support emerging second-tier companies. Decentralised Banking Solutions Consult (Pty) Limited will complete . 0.00 0.00 0.75 0.00 0.00 0.75 2.0 the development of software program called eMerge for loan and asset management by microfinance houses and credit unions (AEF). Edu-Loan (Pty) Ltd., a provider of loan finance for tertiary education to 1.62 0.00 1.62 0.00 0.00 3.24 3.2 working students, will expand operations to offer more loans to students. First Rand Bank will catalyze a greater flow of capital and know-how, 50.00 0.00 0.00 0.00 0.00 50.00 50.0 especially from South Africa to other African countries. Kiwane Capital Holdings Limited will be established as the first emerging- 10.30 0.44 0.00 0.00 0.00 10.74 10.4 market local currency collateralized debt obligation vehicle. It will securitize corporate debt originated by banks and finance companies. Kiwane Asset Management (Pty) Limited, a new specialized collateral management company, will manage Kiwane Capital Holdings Limited on a day-to-day basis. South Africa Home Loans (SAHL) will establish country's first specialized 0.00 3.05 0.00 0.00 0.00 3.05 3.1 residential mortgage origination, servicing, and securitization company based in Durban. South Africa Home Loans-Loan Facility will support establishment of 11.77 0.00 0.74 0.00 0.00 12.51 12.1 local currency securitization warehouse facility for South Africa Home Loans (Pty) Limited. (in millions of U.S. dollars) IFC Total IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size Tusk Project Management (Pty) Limited provides contract management 1.91 0.12 0.00 0.00 0.00 2.03 4.2 services and working capital loans to small contractors. The project will enable the company to increase capitalization from about ZAR 10 million to ZAR25 million (AEF). SWAZILAND Swazi Wattle Industries (Pty) Ltd will establish a new plant to process mimosa 0.00 0.28 0.77 0.00 0.00 1.05 2.9 tannin extract powder from the bark of wattle trees for export (AEF). TANZANIA Drop of Zanzibar Ltd will acquire new vehicles, machinery, and equipment 0.20 0.00 0.00 0.00 0.00 0.20 0.5 to improve efficiency of bottling operations and to enable recycling of bottles (AEF). The Indian Ocean Hotel Limited will build and operate a 98-room hotel 2.50 0.00 0.00 0.00 0.00 2.50 8.3 located on scenic coastal location eight kilometers from the center of Dar es Salaam. Hotel will be managed by Golden Tulip Worldwide. National Bank of Commerce (NBC), the largest financial institution 30.00 10.07 0.00 0.00 0.00 40.07 40.0 inTanzania, will be privatized, marking the culmination of country's transition to a principally private sector-owned financial sector. Zanzibar Safari Club Limited will upgrade and expand recently built 0.70 0.00 0.00 0.00 0.00 0.70 2.2 3-star hotel on the island of Zanzibar from 32 to 40 rooms (AEF). TOGO Centre d'Assistance de Formation et d'Etudes-Informatique, a computer 0.00 0.00 0.00 0.38 0.00 0.38 1.1 and information technology company, will renew specialized equipment for providing Internet service and increase capacity of subscribers' connection (AEF). UGANDA CelTel Limited (Uganda), a follow-on investment, will help expand digital 4.00 0.70 0.00 0.00 0.00 4.70 19.5 cellular network to eastern and northern regions of Uganda. Kasambya Coffee Gross Limited will purchase and rehabilitate coffee- 0.99 0.00 0.00 0.00 0.00 0.99 2.5 processing plant in Masaka (AEF). Ladoto Ginners Limited will rehabilitate cotton ginnery in Ladoto (AEF). 0.80 0.00 0.00 0.00 0.00 0.80 2.1 Long Freighters Limited, a long distance heavy haulage company established 0.80 0.00 0.00 0.00 0.00 0.80 1.9 in 1997, will expand existing fleet of 32 prime movers by acquiring 10 Mercedes trucks (AEF). 78 - ZAMBIA Africa Plantations Company Limited and African Highlands Plantations 2.50 0.00 0.00 0.00 0.00 2.50 8.5 2 Company Limited will rehabilitate and expand three arabica coffee plantations in northern Zambia. Two of the three estates were owned by a t state company, Zambia Coffee Company Limited, until privatization in 1996. Konkola Copper Mines Plc will purchase and rehabilitate mining 0.00 7.20 22.80 0.00 0.00 30.00 334.8 and processing facilities of Konkola, Nchanga, and Nampundwe divisions of Zambia Consolidated Copper Mines Ltd (ZCCM). (in millions of U.S. dollars) IFC Total IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size Marasa Holdings Limited will rehabilitate and refurbish 400-room 4.60 0.00 0.00 0.00 0.00 4.60 18.8 Inter-Continental Hotel in Lusaka. The hotel occupies a prime site in diplomatic and government area of city. 79 QNet Communication Systems Limited was recently established to provide 0.34 0.08 0.00 0.00 0.00 0.42 1.1 Internet and related communication services to about 10,000 subscribers in Lusaka area, the Copperbelt, and Southern Province (AEF). Zamcell Zambia Limited-Follow-up investment will help expand its 3.30 0.44 0.00 0.00 0.00 3.74 11.0 nationwide GSM cellular network. ZIMBABWE Universal Investments (Pvt) Limited will rehabilitate and refurbish 2-star 0.30 0.00 0.00 0.00 0.00 0.30 0.8 hotels in Harare and Marondera (AEF). REGIONAL Mobile Systems International Cellular Investments Holdings, B.V. (MSICIH), 0.00 13.50 0.00 0.00 0.00 13.50 90.5 will construct, expand, and operate mobile cellular telecommunications networks primarily in Africa. Sub-Saharan Africa Petroleum Trade Finance Facility (SAPTFF) will provide 0.00 0.00 0.00 80.00 0.00 80.00 200.0 trade finance through transactions with project partner Credit Lyonnais. ASiA AND THE PACIFIC BANGLADESH AES Haripur (Private) Limited, will develop, own, and operate 360 MW gas- 40.00 0.00 0.00 5.75 14.10 59.85 183.0 fired combined-cycle electric power plant in Haripur, 20 km southeast of Dhaka. Jalalabad Gas Field Project includes development ofjalalabad field and 30.00 0.00 10.00 0.00 30.00 70.00 163.0 exploration, appraisal, and development of blocks 1 3 and 14 in northeast Bangladesh. Lafarge Surma Cement Limited will construct and operate integrated 0.00 0.00 0.00 0.00 15.00 15.00 15.0 cement plant with an annual capacity of 1.2 million tonnes in the far north of Bangladesh. Scancement International Ltd. will construct a clinker grinding plant with 10.00 0.00 0.00 0.00 0.00 10.00 49.5 annual capacity of 680,000 tonnes of cement at Kanchpur near Dhaka. United Leasing Company Limited (ULC) will expand its existing leasing 5.00 0.00 0.00 0.00 0.00 5.00 5.0 business and develop new types of operating leases. United Summit Power Company Ltd. will develop, own, and operate 0.00 3.00 4.00 0.00 0.00 7.00 18.5 small independent power producers, which sell power to a system of rural electric cooperatives. CAMBODIA ACLEDA will transform microfinance NGO into a regulated, commercially 1.00 0.49 0.00 0.00 0.00 1.49 24.3 operated financial institution (SEF). (in millions of U.S. dollars) IFC Total IFC IFC Quasi- IFC Syndi- Projecta Project Description Loan Equity Equity Other cations Financing Size CHINA Bank of Shanghai offered rights to shareholders for strengthening its capital base. 0.00 3.84 0.00 0.00 0.00 3.84 80.0 China Forfaiting Facility will help Chinese enterprises obtain trade financing. 0.00 0.00 0.00 4.00 0.00 4.00 50.0 China Infrastructure Group Holdings PLC and CIG Zhapu International 6.00 3.00 5.00 0.00 0.00 14.00 61.0 Terminal Two Company Limited will construct and operate new container and general cargo-handling terminal at Zhapu Port on the northern half of Hangzhou Bay in Zhejiang Province. It will be the first container terminal in Zhapu Port. CIMIC Tile will expand and upgrade existing ceramic business in Shanghai 15.00 0.00 5.00 0.00 15.00 35.00 97.6 and restructure existing short-term debt. Elkem Carbon (China) Limited Company will restart, upgrade, and expand 6.30 1.70 0.00 0.00 6.00 14.00 23.0 production of a carbon-based products plant in Shizuishan. Jinfeng Company Limited will construct and operate 15,000 tons per 9.00 0.00 0.00 0.00 7.30 16.30 28.0 annum melamine plant and a paper impregnation plant to produce 1 2 million square meters of melamine-formaldehyde impregnated paper and urea-formaldehyde impregnated paper. Plantation Timber Products Holdings Limited, carrying charge of an 0.00 0.03 0.00 0.00 0.00 0.03 0.0 FY97-approved project whose original approved equity was $1.5 million. Sichuan Investment and Credit Guarantee Company (SIGC) will invest 0.00 6.00 0.00 0.00 0.00 6.00 30.0 equity in small- and medium enterprises in the interior region of China, primarily Sichuan Province, and help them obtain local financing by providing credit guarantees. Softbank China Fund I, an equity investment in an Internet fund, aims to 0.00 15.00 0.00 0.00 0.00 15.00 150.0 establish Internet-related businesses in China. Zibo Wan jie Tumor Hospital will carry out a 200-bed expansion of existing 15.00 0.00 0.00 0.00 0.00 15.00 57.3 270-bed cancer facility in Zibo, Shandong Province. Hospital will install and operate a state-of-the-art Proton Treatment System (PTS) to treat patients. INDIA Astha Power Corporation Limited will develop, own, and operate a 26 7.10 1.90 0.00 0.00 0.00 9.00 25.8 MW cogeneration power plant in Andhra Pradesh industrial park. Chinai Chemicals Limited will be the first company in India, and one 1.00 0.00 0.00 0.00 0.00 1.00 5.4 of few companies worldwide, to manufacture benzisothiazolin-3-one 80 (BIT) and dithiodibenzoic acid (DTBA). GlobalTrust Bank is raising additional share capital to meet minimum 0.00 5.00 0.00 0.00 0.00 5.00 34.0 > net worth requirements according to new central bank guidelines, 0 enabling it to enter insurance industry. Henkel SPIC India Ltd. will use funds for acquisitions and long-term 0.00 2.78 0.00 0.00 0.00 2.78 38.2 ° working capital requirement. IndAsia India Fund Advisors Pvt. Ltd. will make equity and quasi-equity 0.00 15.00 0.00 0.00 0.00 15.00 100.0 investments in medium-sized Indian companies. (in millions of U.S. dollars) IFC Tota I IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size Infrastructure Leasing and Financial Services Limited will provide local 0.00 0.00 0.00 40.00 0.00 40.00 40.0 currency loans to private sector clients carrying out infrastructure projects. Moser Baer India Limited will expand capacity to manufacture recordable 23.15 15.00 0.00 0.00 0.00 38.15 292.0 compact discs (CD-Rs) by 570 million per annum, resulting in an aggregate capacity of 760 million CD-Rs per annum. SREI International Finance Limited will expand financing activities 10.00 0.00 4.98 0.00 0.00 14.98 25.0 in the power, transportation, and port sectors. Sundaram Home Finance Limited will establish a specialized housing 0.00 2.30 0.00 0.00 0.00 2.30 11.5 finance company. Tanflora Infrastructure Park Limited will set up a floriculture park 0.00 0.51 0.00 0.00 0.00 0.51 5.5 to provide facilities for the cultivation, packaging, transportation, and finally the marketing of roses at Hosur in Tamil Nadu. Western Electricity Supply Company of Orissa Limited (WESCO) and 0.00 0.00 0.00 39.00 0.00 39.00 99.0 North Eastern Electricity Supply Company of Orissa Limited (NESCO) will rehabilitate and expand electricity distribution system in Orissa. IN DON ESIA Ciluluk Village, a cooperative, will receive working capital and start-up 0.04 0.00 0.00 0.00 0.00 0.04 0.0 expenses to support hand-loom activities. PT. Bank NISPTbk. will expand branch network and business lines, allowing 0.00 5.00 0.00 0.00 0.00 5.00 5.0 it to respond to economic crisis in Indonesia and better compete in consolidated, postcrisis banking sector. PT. Makro Indonesia will expand wholesale distribution operations through 0.00 1.33 0.00 0.00 0.00 1.33 42.5 funds raised ini a rights issue. PT Petrosea will use funds to meet critical needs financing its 2000-2002 15.00 1.80 8.20 0.00 0.00 25.00 83.0 capital expenditure program, creating jobs and expanding benefits. KOREA, REPUBLIC OF Hambrecht & Quist Korea Growth and Recovery Fund will invest in 0.00 5.00 0.00 0.00 0.00 5.00 20.0 small and medium enterprises through funds raised in a rights issue. .Kookmin Bank will strengthen its equity capital base through a rights issue. 0.00 0.75 0.00 0.00 0.00 0.75 316.0 Korea Development Leasing Corporation will be able to initiate 30.00 0.00 17.78 0.00 20.00 67.78 3100.0 underwriting of new lease contracts in an emerging leasing industry, following a comprehensive restructuring program. Korea Mortgage Corporation, the country's first company specializing 0.00 13.52 0.00 85.00 0.00 98.52 100.0 in secondary mortgage market, will develop and deepen Korea's housing finance sector. Shinmoorim Paper Manufacturing Company, Limited, will complete 0.00 1.74 0.00 0.00 0.00 1.74 26.0 financial restructuring program and support the development of its balance sheet through this rights issue. (in millions of U.S. dollars) IFC Tota I IFC IFC Quasi- IFC Syndi- Project Project Description toa n Equity Equity Other cations Financing Size LAO PEOPLE'S DEMOCRATIC REPUBLIC Belmont Hotel Investment (Laos) Ltd. will restructure its existing loans and 0.18 0.00 0.00 0.00 0.00 0.18 0.3 secure additional financing to complete the refurbishing of the hotel (SEF). PAKISTAN D.G. Khan Cement Company Limited will restructure, using an IFC 0.00 0.00 0.00 18.00 0.00 18.00 0.0 guarantee to secure local currency financing. Maple Leaf Cement Factory Limited will restructure, using an IFC 0.00 0.00 0.00 15.00 0.00 15.00 0.0 guarantee to secure local currency financing. Pakistan Trade Enhancement Facility will provide a two-year facility to guarantee documentary credits originated by selected commercial 0.00 0.00 0.00 50.00 0.00 50.00 100.0 banks in Pakistan. PHILIPPINES Asian Hospital Inc. will construct and operate new 247-bed private 14.00 0.00 0.00 0.00 5.00 19.00 88.5 tertiary hospital and doctors' office building in the south of Manila. ePlanters will enable SMEs in the Philippines to grow business by gaining 0.00 0.25 0.00 0.00 0.00 0.25 1.0 wider markets via Internet access at an affordable cost. Mariwasa Manufacturing, Inc., a leading manufacturer of ceramic floor 12.27 0.00 3.00 0.00 0.00 15.27 30.0 and wall tiles, will undertake financial and operational restructuring and complete expansion and relocation of production facilities. PlantersBank will use a financial and technical assistance package to 15.00 0.00 9.37 2.25 0.00 26.62 25.0 support small and medium enterprises. STRADCOM Corporation will improve efficiency of processing of driver's 12.00 0.00 8.00 4.00 20.00 44.00 80.0 license and motor vehicle registration applications through concession for modernization of the Philippine Land Transportation Office. SAMOA National Bank of Samoa Limited, the country's first and only private, locally 0.00 0.00 0.40 0.00 0.00 0.40 0.4 owned commercial bank, will serve private small and medium enterprises (PIIF). SRI LANKA National Development Bank will fund medium- and long-term loans 35.00 0.00 3.50 0.00 0.00 38.50 40.0 to private sector companies. National Development Bank Housing Finance Co. will be established 0.00 1.25 0.00 0.00 0.00 1.25 9.0 82 to target housing finance needs. Suntel Limited, one of two wireless local loop operators, will expand 0.00 7.50 0.00 21.82 0.00 29.32 110.0 > its nationwide network. 0 THAILAND Bu Bumrungrad Medical Center Limited will restructure with support 0.00 0.00 0.00 6.00 0.00 6.00 81.0 of IFC hedging instrument. (in millions of U.S. dollars) IFC Total IFC IFC Quasj I FC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size The Thai Equity Fund will provide equity finance toThai companies 0.00 75.20 0.00 0.00 0.00 75.20 501.0 and financial institutions for restructuring or expanding operations. The Thai Equity Fund Management Company will manage the fund. 83 VIETNAM Interflour (Vietnam) Ltd. will construct and operate flour mill 8.00 0.00 0.00 0.00 5.00 13.00 28.0 and associated vessel discharge facility in southern Vietnam. REGIONAL South Asia Forfaiting Facility will create three country-specific forfaiting 0.00 0.00 0.00 28.00 0.00 28.00 28.0 facilities covering India, Bangladesh, and Sri Lanka. Thailand and Philippines Forfaiting Facility will provide forfaiting 0.00 0.00 0.00 20.00 0.00 20.00 50.0 facilities for commercial banks in Thailand and the Philippines. EUROPE AND CENTRAL ASIA ALBANIA National Commercial Bank Sh.A. will support rehabilitation and 0.00 2.25 0.00 0.00 0.00 2.25 10.0- privatization, a key step for the recovery of the country's financial sector. ARMENIA Armenia Hotel Closed Joint Stock Company will renovate hotel in 0.00 0.00 3.60 0.00 0.00 3.60 38.8 downtownYerevan to international standards. BULGARIA Florina Bulgaria S.A., country's third largest fruit juice producer by sales 3.60 0.00 0.00 0.00 0.00 3.60 12.2 volume, will establish integrated fruit juice and carbonated drinks company. Kronospan Bulgaria EOOD will double capacity of existing particle-board 13.60 0.00 0.00 0.00 10.00 23.60 56.2 production and install additional presses for melamine-phasing. Podem-AD, producer of electrical rope hoists, will reduce costs, increase 3.10 0.00 2.00 0.00 0.00 5.10 12.1 working capital; restructure operations, management, and marketing; refinance debt and share acquisition to complete the privatization; and consolidate Podem's ownership and clear current liabilities. CROATIA Brodogradiliste "Viktor Lenac" d.d., a shipbuilding engineering company, 6.00 1.90 4.20 0.00 9.00 21.10 63.3 will receive assistance with modernization and expansion of production capacity. Raiffeisen will establish Pillar II pension fund management company with 0.00 3.00 0.00 0.00 0.00 3.00 15.0 Raiffeisen Zentralbank Osterreich AG (RZB) as part of Croatian pension reform efforts. GEORGIA AES Telasi JSC, the electricity distribution company serving Tbilisi, will 30.00 0.00 0.00 0.00 0.00 30.00 146.9 improve safety standards and operational efficiency, reduce technical and nontechnical losses, and increase collections. (in millions of U.S dollars) PFC Total IFC IFC Quasi- FC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size Bank of Georgia will use funds solely for real estate-based financing 3.00 0.00 0.00 0.00 0.00 3.00 3.0 and loans secured by a mortgage on the property to be financed. Georgian Glass and Mineral Water Company N.V. will acquire key strategic 0.00 0.36 0.00 0.00 0.00 0.36 2.4 assets and strengthen control over brand name of its product, Borjomi. KAZAKHSTAN ABN-AMRO Bank Kazakhstan will provide medium-term financing 0.00 0.00 0.00 15.00 0.00 15.00 15.0 to Kazakh businesses. Agricultural Leasing Kazakhstan will be established as a specialized agricultural 3.50 0.00 0.00 0.00 0.00 3.50 1 1.5 company focusing on leasing and servicing modern agricultural cultivation, seeding, spraying, and harvesting equipment to local integrated grain companies. Helios LLP, an integrated downstream distributor and retailer of petroleum 2.50 0.00 0.00 0.00 0.00 2.50 6.1 products, will develop a network of fuel stations in Kazakhstan (SEF). LP-GAZ, LLP, will provide liquid petroleum gas in cylinders and bulk tankers 1.50 0.00 0.50 0.00 0.00 2.00 4.0 to domestic consumers for use in home cooking and heating. (SEF). Sazankurak Joint Stock Company and First International Oil Corporation 15.00 0.01 5.00 0.00 0.00 20.01 43 .0 will expand the Sazankurak oil field in western Kazakhstan. KYRGYZ REPUBLIC Kyrgyz Investment & Commercial Bank will provide a full range 0.00 1.40 0.00 0.00 0.00 1.40 7T.0 of commercial banking services to private companies, companies undergoing privatization, and small and medium enterprises (SEF). LITHUANIA AB Drobe Wool will privatize and upgrade fabric forming and finishing 5.20 0.50 0.90 0.00 0.00 6.60 21.3 operations in two phases. AB Klaipedos Kartonas, Lithuania's largest paperboard mill, will modernize 1.25 0.00 3.50 0.00 0.00 4.75 15.0 facilities and expand production capacity. AB Klaipedos Mediena, Lithuania's largest plywood and particleboard mill, will modernize production facilities. Lifosa will modernize, expand, and upgrade export-oriented fertilizer 25.00 0.00 10.00 0.00 10.00 45.00 93.5 complex in Kedainiai. MACEDONIA, FORMER YUGOSLAV REPUBLIC OF Alkaloid A.D Skopje will use IFC financing for business operations 0.00 0.00 0.01 0.00 0.00 0.01 0.0 that correspond with parallel financing provided by EBRD. Stopanska Banka a.d. Skopje, country's largest financial intermediary, 0.00 4.60 0.00 0.00 0.00 4.60 30 0 < will privatize new sponsor and a larger IFC equity commitment than originally planned under previous approval. MOLDOVA Moldindcombank S.A., Mobiasbanca S.A., and FinComBank S.A., three 6.50 0.00 0.00 0.00 0.00 6.50 6.5 small, privately owned banks, will receive comprehensive technical assistance and credit lines to provide term loans to small and medium enterprises. (in millions of U.S. dollars) IFC Total IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size Voxtel S.A. will establish a nationwide cellular network to help meet 0.00 0.07 0.00 0.00 0.00 0.07 1.5 urgent need for better service in emerging business community 85 POLAND Intercell Spolka z.o.o. will fully privatize through shareholder rights issue. 0.00 2.13 0.00 0.00 0.00 2.13 2.1 ROMAN IA Mobil Rom S.A. will expand its nationwide GSM cellular network 15.00 0.00 0.00 0.00 20.00 35.00 84.2 in Romania with follow-on financing. RUSSIAN FEDERATION IKEA MOS (Retail and Property) 000 will construct and operate a 15.00 0.00 0.00 0.00 0.00 15.00 60.0 31,000-square-meter IKEA furniture store in Khimki on the outskirts of Moscow. International Moscow Bank, a majority foreign-owned bank that 0.00 2.85 5.00 0.00 0.00 7.85 70.0 remains one of the strongest banks in Russia, will recapitalize. Sector Capital Fund Limited will recapitalize through a preferred share offering. 0.00 0.00 0.27 0.00 0.00 0.27 1.0 ZAO Serebro Dukat and PanAmerican Silver Corporation will develop the 15.00 17.40 0.00 1.50 33.00 66.90 105.0 Dukat Silver Mine in far eastern Russia to produce silver concentrate for export. SLOVAK REPUBLIC Scametatra a.s. will expand existing plastic injection molding plant (SEF). 1.47 0.00 0.00 0.00 0.00 1.47 6.1 TAJIKISTAN Holland-Tajik Joint Venture M & P will expand an existing supermarket 0.40 0.00 0.00 0.00 0.00 0.40 1.3 called "Holland Supermarket" in Dushanbe (SEF). TAMO Joint Stock Company will expand existing marble manufacturing 0.49 0.00 0.00 0.00 0.00 0.49 1.0 unit that produces decorative items and develop a granite quarry (SEF). Tajik Sodir Ot Bonk will recapitalize and restructure in accordance 0.00 0.50 0.00 0.00 0.00 0.50 1.9 with sound banking principles (SEF). TURKEY Arcelik-LG Klima Sanayi veTicaret A.$. will establish new facility 15.00 0.00 0.00 0.00 10.00 25.00 50.0 to manufacture room air conditioners for the Turkish and Western European markets. Banvit BandirmaVitaminliYem Sanayi A.S., aTurkish integrated poultry 20.00 5.00 0.00 0.00 0.00 25.00 78.4 producer, will implement a modernization and expansion program. The company, which pioneered the outgrower farm system, will expand its outgrower farms from 500 to 800. Belde Liman ijletmeleri ve Depoculuk A.$. will construct and operate 20.00 0.00 5.00 0.00 0.00 25.00 114.8 the first phase of a container and roll-on/roll-off (Ro-Ro) terminal. Erbakir Elektrolitik Bakir Mamiilleri A.S., a large copper wire rod 5.00 0.00 5.00 0.00 0.00 10.00 24.1 manufacturer, will expand and modernize production capabilities. (in millions of U.S. dollars) IFC Tota I IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size Garanti Financial Kiralama A.S. will write leases in the first-ever 7.26 0.00 0.00 0.00 43.33 50.59 80.0 securitization of on-shore assets in Turkey. Ipek Kagit Sanayii ve Ticaret A.S. will expand investments with 0.00 0.00 0.00 0.00 15.00 15.00 0.0 additional financing. IsiklarAmbalaj A.S. will complete Celhart pro)ect in Bulgaria 0.00 0.00 10.00 0.00 0.00 10.00 42.0 and restructuring debt of company Kordsa Kord Bezi Sanayi veTicaret A.$. will increase yarn capacity. 15.00 0.00 5.00 0.00 15.00 35.00 58.2 Pinar Deniz Urunleri A.,. will undertake a modernization and expansion 4.00 0.00 0.00 0.00 0.00 4.00 13.3 of its sea bass and sea bream fish farming and fish processing operations. Pinar Silt Mamullleri Sanayii A.S., leading modernTurkish dairy, will carry 14.92 0.00 0.00 0.00 0.00 14.92 39.2 out modernization and expansion program, involving daily collection of raw milk from 30,000 farmers through network of 125 cooperatives. The Earthquake Region Development Facility will be established. 50.00 0.00 0.00 0.00 0.00 50.00 510.0 The facility is designed to extend credit to private sector enterprises in earthquake-affected region for reconstruction and expansion of physical facilities. TURKM ENISTAN Joint Stock Commercial Bank Garashsyzlyk will import equipment 0.00 0.00 0.2 5 0.00 0.00 0.2 5 u.3 and working capital (SEF). Turkmen-Turkish Joint Venture "Esret" will create a modern facility 2.50 0.00 0.00 0.00 0.00 2.50 4.2 for the production of various types of cheese and ice cream (SEF). UKRAINE Microfinance Bank of Ukraine will establish first Ukrainian 5.00 2.21 0.00 0.00 0.00 7.21 14.4 bank dedicated to lending to micro and small enterprises. UZBEKISTAN OSIYO Granite Ltd. will establish new granite processing plant 1.25 0.00 0.40 0.00 0.00 1.65 5.9 in an existing building in Tashkent (SEF). Uzbek Leasing International A.O. will lease equipment 0.00 0.30 0.00 0.00 0.00 0.3 0 2.9 to small and medium enterprises. REGIONAL AIG Emerging Europe Infrastructure Fund L.P., a closed-end private 0.00 30.00 0.00 0.00 0.00 30.00 1000.0 86 equity fund, will invest in infrastructure-related industries in Central and Eastern Europe and Central Asia. ° NIS Restructuring Facility Limited Partnership will enable selected 0.00 10.00 0.00 0.00 0.00 10.00 66.0 portfolio companies to exploit strategic opportunities present in the post-Russian crisis commercial environment. 0 SEAFTrans-Balkan Fund LLC will invest in small and medium 0.00 5.00 0.00 0.00 0.00 5.00 25.0 enterprises in Balkan countries affected by the Kosovo conflict: primarily Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, and Romania. (in millions of U.S. dollars) IFC Total IFC IFC uasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size LATIN AMERICA AND THE CARIBBEAN ARGENTINA 87 Aguas Provinciales de Santa Fe will provide potable water and 20.00 5.00 0.00 0.00 30.00 55.00 150.7 sewerage services to 15 districts in the province of Santa Fe under a 30-year concession. Argentina Long-Term Enhanced Facility will support 2-year lines of 25.00 0.00 0.00 0.00 150.00 175.00 175.0 credit provided by the domestic operations of foreign banks to selected Argentine second-tier companies. Banco Corporaci6n Financiera Hipotecaria S.A., will establish country's 150.00 50.00 0.00 0.00 700.00 900.00 1,550.0 first secondary mortgage market company. The project will mobilize complementary funding for Banco Hipotecario S.A. Cefas S.A., medium-sized Argentine manufacturer of construction materials, 10.00 0.00 5.00 0.00 0.00 15.00 40.9 will undergo physical restructuring, modernization, and environmental upgrade of facilities. Faplac S.A., large manufacturer of particleboard and finished panels, will 10.00 0.00 5.00 0.00 0.00 15.00 95.5 restructure and construct a plant in Zirate, an industrial zone located in the province of Buenos Aires. Juan Minetti, S.A., will fix future interest rate payments through 0.00 0.00 0.00 4.00 30.00 34.00 34.0 interest rate swap and will expand with loan increase. TheTower Fund, L.P., will contribute to assisting regional SMEs seeking 0.00 5.00 0.00 0.00 0.00 5.00 5.0 risk capital for expansion and modernization. BELIZE Belize Aquaculture Ltd. will construct an integrated shrimp 10.00 0.00 0.00 0.00 0.00 10.00 52.0 farm that is biosecure and integrated from hatchery to processing. BOLIVIA Compafiia Minera del Sur, S.A., a poly-metallic mining company, 10.00 0.00 0.00 0.00 0.00 10.00 22.7 will finance capital expenditure program to achieve production targets and remain a low-cost zinc producer. BRAZIL Banco BBA Creditanstalt S.A. will receive a credit line for on-lending 50.00 0.00 0.00 0.00 50.00 100.00 100.0 to midsize Brazilian exporters. Cerimica Portobello S.A., a high-quality producer of ceramic tiles, 9.00 0.00 7.00 0.00 5.00 21.00 40.5 will expand its operations. Companhia DeTecidos Norte De Minas (Coteminas)-IFC exercised, 0.00 0.53 0.00 0.00 0.00 0.53 63.5 according to its 0.796% shareholding in the Coteminas, preemptive rights in a R$ 122.1 million capital increase of the company. Hospital Samaritano will complete rehabilitation and modernization of facilities. 20.00 0.00 0.00 0.00 0.00 20.00 78.8 (in millions of U.S dollars) IFC Tota I IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size Laboratorio Fleury will expand operations by establishing eight new 9,00 0.00 6.00 0.00 0.00 15.00 58.0 collection and diagnostic centers. Puras do Brasil S. A. will open 120 locations to serve meals to employees 5.00 0.00 0.00 0.00 0.00 5.00 12.6 of clients. Sepetiba Terminal de Conteineres S.A. will complete a container and steel 27.00 6.00 0.00 0.00 18.00 51.00 139.6 products terminal located between the ports of Rio de Janeiro and Santos. CHILE San Antonio Terminal Internacional S.A. will rehabilitate, expand, and 35.00 3.70 0.00 0.00 65.00 103.70 178.2 operate Molo Sur Terminal, a container and a general cargo terminal in the Port of San Antonio located about 100 kilometers west of Santiago. DOMINICAN REPUBLIC Concesionaria Dominica deAutopistas y Carreteras S.A. will rehabilitate, 25.00 1.60 0.00 0.00 35.00 61.60 143.90 expand, operate, and maintain four highways to the east and west of Santo Domingo under a 30-year concession. Pasteurizadora Rica C. por A., a medium-sized juice and milk processor, 12.00 0.00 3.00 0.00 0.00 15.00 40.0 will undertake modernization and expansion program. Red Sanitaria Hospiten will construct four hospitals in Bavaro, 11.00 0.00 0.00 0.00 11.00 22.00 4S.9 Puerto Plata, La Romana, and Santo Domingo. ECUADOR El Rosario, S.A., and Camarones Humboldt Panama S.A. will expand 8.00 0.00 4.00 0.00 0.00 12.00 37.0 shrimp farm operation. EL SALVADOR Cemento de El Salvador, S.A. (CESSA)-Project consisting of the 0.00 0.38 0.00 0.00 0.00 0.38 (3.4 construction of a new cement line, environmental upgrades at the existing cement plants, and provision for working capital. GUATEMALA Frutera del Pacifico will develop a 1,412-hectare banana 7.00 0.00 0.00 0.00 0.00 7.00 19.0 plantation on the southern coast of Guatemala. Orzunil I de Electricidad, Limitada, will enter into an interest rate 0.00 0.00 0.00 1.00 0.00 1.00 1.0 swap related to an FY97-approved geothermal power project. HONDURAS 88 Agroindustrial Palma Real S.A. de C.V will rehabilitate and 7.00 0.00 0.00 0.00 0.00 7.00 21 2 - expand oil palm plantations damaged by Hurricane Mitch. 0 MEXICO c American British Cowdray Medical Center I.A.P. will support hospital's 20.00 0.00 0.00 10.00 14.00 44.00 81.8 second facility and help rationalize hospital's operation by concentrating ° on in-patient services. (in millions of U.S. dollars) IFC Total IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size Banco Mercantil del Norte, S.A., will receive credit enhancement-through 0.00 0.00 0.00 50.00 0.00 50.00 50.0 an IFC partial guarantee-of long-term, non-collateralized U.S.-dollar bond. 89 Central Anihuac S.A. de C.V. will develop, own, and operate 495 MW gas-fired, 50.00 0.00 0.00 0.00 65.00 115.00 234.5 combined-cycle power plant in Valle Hermoso in northeastern Mexico. Central Saltillo S.A. de C.V. will develop, own and operate 250 MW 35.00 0.00 0.00 0.00 45.00 80.00 160.0 gas-fired, combined-cycle power plant in industrial zone of Ramos Arizpe in northern Mexico. Ferrocarriles Chiapas Mayab will rehabilitate, modernize, and operate the 10.50 2.00 0.00 0.00 17.70 30.20 50.2 Chiapas and Mayab rail lines (CML) in the states of Oaxaca and Chiapas. Girsa, S.A. de C.V., will implement corporate investment program involving 45.00 0.00 0.00 0.00 60.00 105.00 240.6 70 subprojects to enhance company's competitiveness in the global and domestic markets. Heller Financial (Mexico) S.A. de C.V. will consolidate position in 0.00 0.32 0.00 0.00 0.00 0.32 5.4 factoring market and take advantage of new business opportunities. Industrias Innopack S.A. de C.V., a medium-size company that manufactures 15.00 15.00 0.00 0.00 0.00 30.00 117.5 one-way PET bottles and caps for domestic soft drinks and bottled water industries, will undertake expansion and financial restructuring program. InverCap S.A. de C.V.-Equity investment in independent mutual fund 0.00 1.00 0.00 0.00 0.00 1.00 1.0 operating company will support development and expansion efforts. Promotora de Centros Educativos S.A. de C.V. will construct and 9.70 0.00 0.00 0.00 0.00 9.70 27.7 operate five K- 12 schools in the states of Oaxaca, Durango, Michoacan, Sinaloa, and Morelos. Teksid de Mexico, S.A., will improve the finishing capacity of plant 25.00 0.00 0.00 0.00 0.00 25.00 62.5 for aluminum blocks and heads for passenger cars. Teksid Hierro de Mxico, S.A. de C.V., plant for the production 15.00 0.00 0.00 0.00 30.00 45.00 78.8 of blocks and heads, will expand capacity from 60,000 to 100,000 metric tons per annum. Tenedora Nemak, S.A. de C.V.-IFC C-loan to the company is structured as 0.00 0.00 0.83 0.00 0.00 0.83 24.8 an unsecured subordinated synthetic equity investment. IFC increased the C-loan in line with an increase in the company equity to maintain its proportionate share holding. Turborreactores S.A. de C.V. will rehabilitate, upgrade, and expand 14.00 0.00 0.00 0.00 4.00 18.00 46.1 plant's facilities for overhaul and repairs of aeronautical jet engines. NICARAGUA Financiera Arrendadora Centroamericana, S.A., one of only three nascent 2.00 0.60 0.00 0.00 0.00 2.60 12.4 leasing companies active in Nicaragua, will develop the leasing industry as a source of medium- and long-term financing for capital goods. (in millions of U.S. dollars) IFC Total IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size PANAMA AES Panama S.A. will rehabilitate existing assets and develop the Esti 45.00 0.00 0.00 0.00 170.00 215.00 335.9 greenfield hydropower project. Banco Del Istmo, S.A. (Banistmo)-IFC's corporate facility will strengthen 0.00 0.00 0.00 0.00 8.00 8.00 8.0 the structure of the bank's balance sheet and indirectly permit the bank to expand its long-term lending, for which there is present steady and growing demand. Banco General S.A. will help a Panamanian-owned private bank 25.00 0.00 0.00 0.00 0.00 25.00 5.0 lengthen the average term of its liabilities vis-a-vis its assets. Manzanillo InternationalTerminal-Panama, S.A., a container terminal 15.00 0.00 0.00 0.00 0.00 15.00 I e2.4 located on the Caribbean coast of Panama, will expand and refinance a portion of its debt. PERU Conservera Amaz6nica, S.A., will develop a commercially and 2.00 0.00 0.00 0.00 0.00 2.00 4.1 environmentally sustainable hearts-of-palm plantation in the Amazon forest, not involving deforestation and land-clearing activities. Empresa Agroindustrial Laredo S.A.A. will rehabilitate and expand 10.00 0.00 5.00 0.00 0.00 15.00 5 1.6 Laredo sugar mill. Minera Quellaveco S.A. will be used to fund the final stage of feasibility program. 0.00 0.60 0.00 0.00 0.00 0.60 3.0 SociedadAgricola Drokasa S.A. will develop a high-value horticulture 6.00 0.00 0.00 0.00 0.00 6.00 20.0 operation based on the exports of asparagus and table grapes. VENEZUELA, REPUBLICA BOLIVARIANA DE Electricidad de Caracas S.A.C.A.-Emergency corporate loan to the 30.00 0.00 0.00 2.00 0.00 32.00 3.!.0 FY99-approved electrical utility for restoration of basic services in low-income neighborhoods and public lighting following the extensive flooding and mudslides of December 1999. The company will also enter into an interest rate swap for the FY99-approved electrical utility project. Elkem Carbon Vegetal C.A.will establish 12,000-hectare plantation 8.00 0.00 0.00 0.00 7.00 15.00 25.0 of eucalyptus trees to supply raw material to 8 carbonization furnaces to produce 48,000 tpa of industrial specialty carbon. ForestalTrillium will develop an integrated forestry products 16.80 6.00 0.00 0.00 38.00 60.80 91.3 project involving the design, construction, and operation of an oriented-strand board mill. 90 - Intersea Farms de Venezuela, C.A., will construct an integrated shrimp 5.00 3.00 0.00 0.00 0.00 8.00 25.0 farm and hatchery 0 Minera Loma De Niquel, C.A.-Subscription to additional rights issue 0.00 0.00 0.30 0.00 0.00 0.30 98.4 to meet a portion of IFC's share of cash calls to fund project cost overruns. 0 Sistema Electr6nico DeTransacciones C.A.-A follow-up investment to 0.00 0.00 0.04 0.00 0.00 0.04 0.0 support a stock exchange service company, which will own, operate, and maintain a new exchange's electronic trading, clearing, and settlement system. (in millions of U.S. dollars) IFC Total IFC IFC Quasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size REGIONAL Central America Growth Fund, a private equity fund focused 0.00 10.00 0.00 0.00 0.00 10.00 50.0 on Central America, will be established. 91 Convergence Communications, Inc., will provide broadband connectivity 0.00 8.25 0.00 0.00 0.00 8.25 60.0 in Central America, Mexico, and Venezuela. DCR Centroamericana Inc., the first institution to provide credit rating 0.00 0.10 0.00 0.00 0.00 0.10 0.5 services on a regionwide basis in Central America, Panama, and the Dominican Republic, will be established. Softbank Latin America Ventures, an Internet fund, will incubate and 0.00 15.00 0.00 0.00 0.00 15.00 150.0 develop Internet businesses in Argentina, Brazil, and Mexico. TCW/ Latin America Partners LLC will make equity investments 0.00 70.00 0.00 0.00 0.00 70.00 350.0 in middle-market companies. MIDDLE EAST AND NORTH AFRICA ALGERIA Algiers Investment Partnership S.P.A. (AIP), first investment and securities 0.00 0.28 0.00 0.00 0.00 0.28 1.5 company in Algiers, will be involved in a broad range of investment banking services, including corporate finance services relating to privatization. ARAB REPUBLIC OF EGYPT Alexandria Carbon Black Company S.A.E. will expand existing 5.00 0.00 0.00 4.00 0.00 9.00 26.0 operations from 110,000 to 148,000 metric tons per year. Knowledge Academies (KA) will implement a pilot project that will deliver 3.75 2.77 0.00 0.00 0.00 6.52 12.5 high-quality education at an affordable cost to middle-income families. Knowlogy International Group Limited (KIG) focuses on development and production of interactive multimedia educational and training products and services, with special emphasis on Middle East and North Africa region. JORDAN Middle East Investment Bank (MEIB) will recapitalize and restructure 0.00 2.20 2.20 0.00 0.00 4.40 27.7 to modernize banking services, enhance competition, and foster greater regional banking relationships and cooperation. LEBANON Institute of Behavioural Medicine S.A.L. will serve as the primary 2.00 0.00 1.00 0.00 2.00 5.00 13.1 mental and behavioral health care provider in Lebanon, as well as a leading provider of psychiatric services in the region. Lebanese Credit Insurer S.A.L. will initially provide both short- 0.00 0.50 0.00 0.00 0.00 0.50 2.5 and medium-term credit insurance and will eventually focus on the short-term business. (in millions of U.S. dollars) IFC Total IFC IFC Quasi- IFC Syndc- Project Project Description Loan Equity Equity Other cations Financing Size MOROCCO Maghreb Invest Management Ltd. and Maghreb Invest Private Equity Fund 0.00 5.02 0.00 0.00 0.00 5.02 30.0 will invest in small and medium enterprises to support their expansion and diversification. Tikida Dunes will construct and operate a 400-room, 4-star hotel 4.45 0.00 2.23 0.00 0.00 6.68 30.3 in Agadir, Morocco's premier resort destination on the Atlantic Ocean. OMAN United Power Company S.A.O.G. offered rights issue for the 180 MW 0.00 1.48 0.00 0.00 0.00 1.48 .33.6 expansion of the FY94-approved gas-fired power plant. SAUDI ARABIA Saudi Orix Leasing Company (SOLC) will support small and medium 0.00 1.60 0.00 0.00 0.00 1.60 36.0 enterprises through financing. SYRIAN ARAB REPUBLIC Arab Drip Irrigation Technology Company Limited (Adritec) will finance 0.00 1.00 0.00 0.00 0.00 1.00 2.7 new production facilities at the company's site in Latakia, expanding and upgrading water-conserving irrigation products and systems, and extending the reach of the company into agricultural markets across the region. TUNISIA Banque Internationale Arabe DeTunisie (BIAT) offered a rights issue 0.00 0.32 0.00 0.00 0.00 0.32 77.0 to help support bank's growth strategy. WEST BANK AND GAZA Cairo Amman Bank will provide long-term financing to small 2.50 0.00 0.00 0.00 0.00 2.50 5.0 and medium-sized enterprises in the West Bank and Gaza (SEF). REGIONAL Framlington Maghreb Fund (FMF)-IFC will exercise its subscription 0.00 1.26 0.00 0.00 0.00 1.26 5.9 rights (warrants) as a unit holder in FMF and subscribe to 122,000 warrants at US$10.35 each for an aggregate cost ofUS$1,262,700. Framlington Mediterranean Growth Fund (FMG) will invest in equity 0.00 5.00 0.00 0.00 0.00 5.00 50.0 and quasi-equity to provide financing for more recapitalization, restructuring, or expansion of private sector enterprises in Egypt, Morocco and Tunisia. The Middle East North Africa Forfaiting Facility (MFF) comprises five 0.00 0.00 0.00 34.00 0.00 34.00 85.0 facilities covering Egypt, Jordan, Lebanon, Morocco, and Tunisia. MFF will develop forfaiting to foster trade by supporting local companies in 21 their access to international markets and will expand the availability of medium-term finance for cross-border trade. u (in millions of U.S. dollars) IFC Total IFC FC OQuasi- IFC Syndi- Project Project Description Loan Equity Equity Other cations Financing Size WORLD Global Incubation Center, an infrastructure and technology vehicle, 0.00 2.50 0.00 0.00 0.00 2.50 20.0 93 will support the incubation of Internet businesses in emerging markets. This vehicle will provide services to the Softbank Emerging Markets incubatee companies, as well as other Internet businesses. Global Microfinance Capacity Building Facility will cofinance the 0.00 13.19 0.00 0.00 0.00 13.19 65.0 creation of 11 microfinance institutions. In addition, Internationale Micro Investitionen Aktiengesellschaft will acquire equity in financial intermediaries in developing countries and transition economies. Softbank Emerging Markets will develop Internet-related businesses in 0.00 50.00 0.00 0.00 0.00 50.00 200.0 emerging markets by leveraging IFC's local knowledge, Softbank's technology investment expertise, and the experience of other strategic investors. Technical Assistance & Advisory Projects 94 SUB-SAHARAN AFRICA 96 ASIA AND THE PACIFIC 99 EUROPE AND 102 LATIN AMERICA AND 103 MIDDLE EAST Botswana, Burkina Faso, Cape Bangladesh, Cambodia, China, CENTRAL ASIA THE CARIBBEAN AND NORTH AFRICA Verde, Congo, Cbte d'lvoire, Fiji, India, Indonesia, Republic Albania, Armenia, Bosnia Bolivia, Chile, Colombia, Costa Arab Republic of Egypt, Eritrea, Ethiopia, Ghana, Kenya, of Korea, Mongolia, Nepal, and Herzegovina, Bulgaria, Rica, Haiti, Nicaragua, Panama Islamic Republic of Iran, Mali, Mauritania, Mozambique, Pakistan, Philippines, Samoa, Croatia, Czech Republic, Kuwait, Lebanon, Qatar, Syria, Nigeria, Senegal, Seychelles, Solomon Islands, Sri Lanka, Estonia, Georgia, Kazakhstan, West Bank and Gaza, Republic Sierra Leone, South Africa, Thailand, Tonga, Vanuatu, Kosovo, Kyrgyz Republic, Latvia, of Yemen Uganda, Zimbabwe Vietnam Lithuania, FYR Macedonia, Moldova, Poland, Romania, Russian Federation, Slovak Republic, Tajikistan, Turkey, Ukraine Region/Country Purpose Description SUB-SAHARAN AFRICA Botswana Privatization Advised government on privatization of national airline, Air Botswana (TATF, CFS). Burkina Faso FDI Provided assistance to reform institutional, administrative, and regulatory framework for private investment, including FDI (FIAS). FDI Assisted government in designing action plan to streamline company registration procedures, revise fee structure, and improve information system (FIAS). Cape Verde FDI Provided assistance to the Investment and Export Promotion Agency to upgrade activities and design new investment promotion strategy (FIAS). Congo SME Undertook study to identify opportunities for working with SME sector (TATF). Cote d'Ivoire Financial Sector Conducted analysis of MFI industry (FM). Eritrea Financial Sector Developed a framework/action plan for implementation of capital market development (private commercial bank project) (TATF). Sector Study Provided technical assistance for development of fisheries-related industries (TATF). Ethiopia FDI Provided training to strengthen Ethiopian Investment Agency (FIAS). 94 Financial Sector Assisted in establishing requirements for a stock exchange in Addis Ababa (TATF). Financial Sector Developed a framework/action plan for implementation of capital market development (leasing commercial bank project). Ghana Project Preparation Assessed viability of establishing a fruit concentrate and juice processing plant (TATF). Project Preparation & Assessed prospects for deep-sea fishing in waters beyond Ghana's Sector Study continental shelf (TATF). Region/Country Purpose Description Kenya FDI Reviewed the draft of the Investment Code (FIAS). Financial Sector Conducted bank mergers/consolidation workshop (FM). 95 Infrastructure Provided legal advice to Kenyan authorities on the privatization of Kenyan railways, Privatization ports, oil pipeline, and electricity sector (CFS). Project Preparation Assisted in preparation of Resettlement Action Plan associated with future investments and projects in power sector (TATF). Project Preparation Conducted a feasibility study on establishing a financial leasing company (TATF). Mauritania Privatization The government has retained IFC as its principal advisor for the privatization of Mauritel, the state-owned incumbent monopoly telecom operator (CFS). Mozambique Financial Sector Supported advisory services to develop legal and regulatory framework for insurance industry (TATF). Financial Sector Developed action plan for capital market development. Nigeria Infrastructure Provided technical, legal, and accounting assistance for privatization of Lagos Privatization water utility (TATF, CFS). Infrastructure Supported series of stakeholder consultations and public information program (TATF). Privatization Privatization Advised on strategic review, due diligence, and review for privatization of Nigeria Airways (TATF, CFS). Senegal FDI Reviewed draft decree for creation of Investment and Export Promotion Agency (FIAS). Securities Markets Provided corporate governance training and company-level governance diagnostics, and assisted in the development of national codes of practice for corporate governance. Seychelles Financial Sector Provided assistance for establishment of a stock exchange (TATF). Sierra Leone FDI Conducted review of administrative and institutional reforms. (FIAS). South Africa Privatization Advised South Africa National Parks Board on private concession sites, including the running of restaurants and shops (TATF, CFS). Uganda Financial Sector Assisted government with development plan for newly established Kampala Stock Exchange (TATF). Project Preparation Conducted strategic assessment of electricity development potential (TATF). Zimbabwe Capacity Building- Provided corporate governance training, undertook diagnostic studies, and assisted SME in developing national codes of practice and manuals for corporate governance. FDI Conducted study to identify bureaucratic impediments to FDI (FIAS). CFS Corporate Finance Services Department FM Regional Financial Markets divisions and SME Small and medium enterprise FDI Foreign direct investment Financial Markets Advisory Department TATF Technical Assistance Trust Funds FIAS Foreign Investment Advisory Service PEP Private enterprise partnership Region/Country Purpose Description Africa Region Corporate Governance Provided corporate governance training and assistance for national code development in C6te d'Ivoire, Mali, and Senegal (TATF). Corporate Governance Provided corporate governance training and assisted in developing national codes of practice in Ghana, Uganda, and Zimbabwe (FM). Environment Conducted feasibility study on establishing a Bio-Diversity Project Development Facilit^,' and a Bio-Diversity Fund for Africa (TATF) . Environment Supported environmental analysis for an Africa Enterprise Fund project (TATF). FDI Participated in seminar to disseminate regional best practice for investment promotion agencies (FIAS). FDI Conducted workshop to assist East African Community with harmonization of investment codes for Uganda, Kenya, and Tanzania (FIAS). Financial Sector Assessed scope, size, and character of debt markets in the UEMOA countries to prepare the groundwork for overall development (FM). Micro, Rural, Conducted a study on the regulatory framework for microfinance. Small Business Finance Micro, Rural, Reviewed the legal issues and options for commercially oriented microfinance Small Business Finance institutions-using Finadev (Benin) investment project as case study SME Provided management assistance and support to SMEs in Mozambique, South Africa, and Uganda (TATF). ASIA AND THE PACIFIC Bangladesh Financial Sector Provided assistance to develop a credit rating agency (FM). Financial Sector Reviewed credit ratings in Bangladesh (FM). Sector Study Conducted study of private business services in Dhaka (TATF). SME Provided strategies for IT products and business planning (FM). Cambodia FDI Assisted government in establishing competitive tax environment for investors (FIAS). Financial Sector Assisted the Cambodian government in setting up viable and transparent legislation for domestic leasing industry (TATF) 96 China Environment Advised on establishing the Energy Services Company (TATF). Environment Conducted technical review to help carbon production plant improve environmental < standards (TATF). z Financial Sector Trained senior and middle management to strengthen newly established urban U commercial banks (FM). Financial Sector Provided advice and training for a private insurance company (FM). Region/Country Purpose Description Financial Sector Assisted in introducing and promoting credit rating in China's domestic capital markets (FM). Infrastructure Conducted assessment of legal and regulatory framework for private sector infrastructure transactions (TATF, CFS). 97 Project Preparation Conducted education sector study and preinvestment financial review (TATF). Sector Study Supported review of private sector health care, including financial review and audit for model hospital (Wan Jie Hospital) (TATF). SME Conducted feasibility study for development of Sichuan Project Development Facility (TATF). Fiji FDI Assisted reform of tax incentive system to promote investment (FIAS). India Education Supported study of education and training sectors (TATF). Environment Conducted feasibility study of converting flyash to commercial building products (TATF). FDI Examined state-level entry procedures for foreign investment, fiscal incentives, and investment promotion arrangements. (FIAS). Financial Sector Conducted study of options for secondary mortgage market development (TATF). Financial Sector Provided technical assistance to strengthen credit operations at Global Trust Bank (TATF). Financial Sector Student loan securitization product design (FM). Infrastructure Supported feasibihty study for an Internet services pilot for schools and remote users based on access to broadband telecommtnications technology (TATF). SME Researched and developed IT-based SME services (FM). Indonesia Environment Supported assessment of social and environmental impacts of integrated bauxite mine and alumina refinery (TATF). FDI Designed program to overcome barriers to FDI in eastern provinces (FIAS). Sector Study Conducted study of private investment opportunities in Indonesia's health care sector (TATF). SME Provided assistance to develop and implement financial and operational restructuring plans for private firms (TATF, CFS). Korea, Republic of Project Preparation Reviewed housing finance sector and assisted in development of secondary market entity (FM). Mongolia Financial Sector Provided assistance for strengthening capital markets access and expansion of microfinance lending facility (TATF). CFS Corporate Finance Services Department FM Regional Financial Markets divisions and SME Small and medium enterprise FDI Foreign direct investment Financial Markets Advisory Department TATF Technical AssistanceTrust Funds PEP Private enterprise partnership FIAS Foreign Investment Advisory Service Region/Country Purpose Description Philippines Financial Sector Provided risk management assessment for private commercial bank, AsianBank (FM). Financial Sector Conducted feasibility study for Philippines Cooperative Finance Corporation, which wi'l help finance capital requirements of electric cooperative (FM). Project Preparation Provided assistance to establish Microenterprise Bank of the Philippines (TATF). Sector Study Developed alternate investment models for promotion of private investments in small-scale renewable energy and energy efficiency projects (TATF). Samoa Financial Sector Provided training and business strategy for National Bank of Samoa (TATF). Solomon Islands FDI Provided drafting guidelines for investment promotion agency and foreign investment legislation (FIAS). Sri Lanka Financial Sector Conducted feasibility study for an investment bank specializing in debt products and debt trading (FM). Project Preparation Conducted feasibility study for a pension fund investment (FM). Thailand FDI Reviewed investment incentives and proposed changes (FIAS). Financial Sector Compared a bank's existing approach with international best practices and provided proven procedures for ensuring effectiveness of human resource function (FM). Tonga FDI Provided guidelines for amending Licenses Act and creating new foreign investment legislation (FIAS). Vanuatu FDI Provided guidelines for a new investment promotion agency (FIAS). Vietnam Equitization Assisted Dak Lak Province to develop a project to accelerate asset equitization and divestiture. FDI Collaborated with the World Bank to advise on proposal to establish Open Economic Zor e regime similar to Special Economic Zones in China (FIAS). Asia and Pacific Region FDI Conducted study for UNDPTumen Secretariat on impediments to cross-border trade and investment in the Tumen Region (FIAS). Financial Sector Advised a supervisory and regulatory framework for housing finance in Bangladesh and Sri Lanka (TATF). Financial Sector Reviewed microfinance sectors in Indonesia and Mongolia (FM). Financial Sector Supported a regional debt market symposium in Bangladesh, Nepal, Pakistan, and Sri Lanka 98 (TATF). z Financial Sector Assisted in identifying potential investment opportunities in insurance sector in the Philippines, Thailand, and Vietnam (FM). C Project Preparation Assisted in appraisal and feasibility study of South Asia Project Development Facility (TATF). I Region/Country Purpose Description EUROPE AND CENTRAL ASIA Albania Sector Study Reviewed Albania's mining sector, identified and prescreened small companies, and prepared investment profiles (TATF). 99 Armenia Financial Sector Conducted feasibility study to establish venture capital fund (TATF, FM). Financial Sector Prepared feasibility study for establishment of leasing company (FM). Bosnia and Herzegovina FDI Provided assistance in development of institutional framework for Foreign Investment Promotion Agency (FIAS). Financial Sector Assisted in rehabilitation of firms in light industry and agribusiness sectors (TATF). Bulgaria FDI Assisted in identifying ways to streamline procedures for new private investments (FIAS). Financial Sector Assisted in development of modern, efficient treasury operations for Bulgarian SME bank (TATF). Financial Sector Reviewed draft laws and regulations (FM). Croatia Financial Sector Conducted diagnostic study of Croatian insurance market. (FM). Financial Sector Provided pension market study (FM). Project Preparation Assisted in feasibility study for establishing a factoring company (TATF). Sector Study Conducted study of opportunities for ventures in tourism sector and helped local authorities improve tourism management (TATF). Czech Republic FDI Developed proposal for program to promote links between foreign direct investors and domestic firms (FIAS). Privatization Advised Czech Revitalization Agency on viability and attractiveness of 30 state-owned industrial companies (TATF). Georgia Financial Sector Provided technical assistance to two client banks to adopt International Accounting Standards (FM). Kazakhstan Environment Assisted in eliminating PCB oils problem (TATF). Kyrgyz Republic Environment Helped develop monitoring advisory group to conduct analysis of cyanide spill (TATF). SME Assessed dairy farm's marketing strategy and capability Latvia Project Preparation Supported feasibility study and preparatory work for private sector hospital project in Riga (TATF). CFS Corporate Finance Services Department FM Regional Financial Markets divisions and SME Small and medium enterprise FDI Foreign direct investment Financial Markets Advisory Department TATF Technical AssistanceTrust Funds FIAS Foreign Investment Advisory Service PEP Private enterprise partnership Region/Country Purpose Description Lithuania FDI Conducted study of administrative barriers to investment (FIAS). Financial Sector Reviewed laws and regulations relevant for leasing; assessed market potential for leasing (FM). Privatization Supported advisory assistance to government on restructuring selected enterprises (TATF). Macedonia, FYR Financial Sector Provided technical assistance for strengthening Stopanska Banka, Skopje (FM). SME Supported pre- and post-financing assistance on marketing, management, and technical skills to promote SMEs (TATF). Moldova FDI Reviewed draft investment policy strategy (FIAS). Financial Sector Assisted in transforming private Moldovan banks into effective SME finance intermediaries (TATF). Project Preparation Prepared feasibility study for tannery modernization (TATF). Poland Infrastructure Advised on design and implementation of pilot health care rationalization projects (TATF). Sector Study Developed alternative investment models for promotion of private investments in small- scale renewable energy and efficiency projects (TATF). Romania Environment Assisted in establishing two municipal cogeneration plants using sale of carbon credits to structure project financing (TATF). FDI Reviewed investment incentives and made proposals for improvements in corporate tax and incentive policies (FIAS). Financial Sector Provided technical assistance to transform second-tier private bank into a sustainable institution (TATF). Financial Sector Reviewed existing national pension system and assisted in development of private pension industry (FM). SME Built financial sector institutions and developed SMEs. Russian Federation FDI Reviewed investment law (FIAS). Financial Sector Supported review of institutional framework for title insurance and assessed market (TATF). Financial Sector Provided assistance to strengthen Agency for Housing Mortgage Lending, a Russian secondary mortgage market institution (TATF). Financial Sector Assisted Probusinessbank in re-engineering program to bring practices, systems, 100 and technologies to international level (TATF). Z Financial Sector Undertook feasibility study to create Farm Finance Centre in Stupina Raion. Privatization Supported participation of electricity privatization experts in workshop in Moscow (TATF). z Project Preparation Assisted with development of business plan to restructure and rationalize heavy machir. cry building parts (TATF). Region/Country Purpose Description Project Preparation Supported financial audit of a leasing company based in St. Petersburg region (TATF). SME Conducted study on viability of establishing business center to assist SMEs and establish SME credit line (TATF). 101 Slovak Republic FDI Reviewed tax laws and the FDI laws and regulations (FIAS). Financial Sector Assisted in revision of legal framework for voluntary supplementary pension system and helped attract top-tier foreign pension fund manager (TATF). Financial Sector Reviewed legal framework for housing market (FM). Tajikistan Environment Conducted environmental audit and impact assessment of gold company (TATF). Infrastructure Provided assistance to establish and finance independent energy supply company (TATF). Infrastructure Sector Provided legal advice on loan negotiations with the project sponsors of rural energy supply company (TATF). Project Preparation Provided pre- and post-investment support to small agribusiness enterprises (TATF). Project Preparation Provided technical assistance to cotton growers (TATF). Turkey Financial Sector Assisted with drafting primary insurance legislation and framework regulations (TATF). Financial Sector Provided regulatory reform advice to Insurance Superintendency in Ankara (FM). Privatization Conducted engineering feasibility study of plant manufacturing acrylic fiber (TATF). Ukraine Corporate Governance Supported corporate governance program in Republic of Crimea (TATF). Financial Sector Assisted privatized enterprises in improving corporate governance. (FM). Privatization Assisted in reorganization of large state and collective farms. Provided training in farm business management (PEP). Privatization Helped food-processing sector companies develop comprehensive business plan and marketing strategy (TATF). Project Preparation Undertook feasibility study of margarine production facility joint venture. SME Researched state of SMEs and barriers to further development. Produced annual survey of SME sector (FM). Europe and Central FDI Developed private enterprise partnership to assist Armenia, Belarus, Georgia, Russia, and Asia Region Ukraine in transition to market economy (PEP,TATF). Financial Sector Advised governments on pension reform and capital market development in Bulgaria, Croatia, Estonia, Latvia, Lithuania, Moldova, and Slovak Repubhc (TATF). CFS Corporate Finance Services Department FM Regional Financial Markets divisions and SME Small and medium enterprise FDI Foreign direct investment Financial Markets Advisory Department TATF Technical Assistance Trust Funds FIAS Foreign Investment Advisory Service PEP Private enterprise partnership Region/Country Purpose Description Financial Sector Conducted study of potential market for life and other insurance in Armenia, Georgia, the Russian Federation, and Ukraine (FM). Financial Sector Helped improve policy environment for leasing companies in Albania, Bosnia and Herzegovina, and FYR Macedonia (FM). Financial Sector Participated in the Corporate Governance Task Force in Armenia and Ukraine (FM, TATF). Project Preparation Undertook multicountry study of Health Care Fund feasibility to finance investments in health services projects (TATF). Project Preparation Reviewed regulatory issues to prepare for advisory and investment projects in Estonia, Latvia, and Lithuania (FM). Sector Study Supported a study of construction and construction materials industries in the Balkans (TATF). Sector Study Developed study of private sector delivery of health care in Albania, Bosnia and Herzegovina, and FYR Macedonia (TATF). Sector Study Supported Internet and electronic-commerce sector study in the Balkans (TATF). Sector Study Conducted study of transport and storage sectors in Albania, Bosnia and Herzegovina, Kosovo, and FYR Macedonia (TATF). SME Helped design program to support education and training initiatives focused on Balkan SMEs (TATF). SME Established small and medium enterprise support facility for the Balkans (FM). SME Provided assistance to undertake demand, availability, and needs assessment for financing SMEs in Albania, Bosnia and Herzegovina, Kosovo, and FYR Macedonia (TATF, FM). SME Assisted in accounting and management information system diagnosis for SMEs (TATF). SME Conducted agribusiness study to identify SME investment opportunities in Central Asia. SME Provided support to improve accounting and information systems of Central Asian small businesses. LATIN AMERICA AND THE CARIBBEAN Bolivia Financial Sector Evaluated new framework for mortgage bonds. Provided policy advice to bank superintendent on proposed mortgage bond system (FM). 102 Financial Sector Advised on securitization legislation and regulation (FM). Z Financial Sector Assisted with leasing market development(FM). 4 Financial Restructuring Assisted in the financial and operational restructuring of farms in the Santa Cruz region (TATF). z SME Undertook feasibility study of mechanisms to support small and medium agricultural enterprises (TATF). Region/Country Purpose Description Chile Financial Sector Advised working group on amended companies' law and securities regulations (FM). Colombia FDI Helped restructure the national investment promotion agency (FIAS). 103 Financial Sector Advised Bogota-Medellin exchanges on creation of exchange for government bonds and interest-rate securities. Advised government on use of derivative products (FM). Costa Rica FDI Provided advice on restructuring national investment promotion agency (FIAS). Haiti Financial Sector Assisted in drafting new insurance law (FM). Nicaragua Financial Sector Conducted feasibility study on establishment of remittance fund (TATF). Financial Sector Provided assistance to develop credit policies and procedures for Finarca, a Nicaraguan leasing company (FM). Infrastructure Supported technical review of alternatives to hydroelectric generation project (TATF). Panama FDI Compiled lessons of experience on investment policy and promotion (FIAS). Latin America and Financial Sector Provided financial services technology, including credit card scoring systems (FM). the Caribbean Region Financial Sector Surveyed potential market for life and other insurance in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama (FM). Financial Sector Conducted study of insurance markets in selected countries in Central America and assessed viability of estabhshing regional insurance company (TATF). Financial Sector Supported a feasibility and design study for new initiative for building SME finance capacity for indigenous community organizations (TATF). Financial Sector Participated in Latin America Corporate Governance Roundtable (FM). SME Initiated market study of microfinance institutions in three countries in the LAC region (FM). MIDDLE EAST AND NORTH AFRICA Arab Republic of Egypt Financial Sector Provided advice on removing impediments to local bond market development (FM). Islamic Republic of Iran FDI Conducted comprehensive review of investment dimate (FIAS). Kuwait FDI Reviewed foreign investment law (FIAS). Lebanon FDI Provided assistance to the Investment Development Authority to establish one-stop investment service (FIAS). Financial Sector Identified legal impediments to establishing a secondary mortgage company based in Lebanon. Revised existing draft securitization law and submitted needed changes (FM). CFS Corporate Finance Services Department FM Regional Financial Markets divisions and SME Small and medium enterprise FDI Foreign direct investment Financial Markets Advisory Department TATF Technical Assistance Trust Funds PEP Private enterprise partnership FIAS Foreign Investment Advisory Service Region/Country Purpose Description Qatar FDI Reviewed foreign investment law (FIAS). Syrian Arab Republic Financial Sector Conducted study on modernization of banking sector (FM). West Bank and Gaza Financial Sector Assisted the Jordan National Bank in establishing microenterprise lending program (TATF). Financial Sector Assisted microenterprise institution (FM). Project Preparation Conducted fact-finding studies on leather goods, stone, and marble industries in preparation for private sector development conference (TATF). Project Preparation Studied viability of establishing an aquaculture project (TATF). Project Preparation Provided advisory services to Cairo Amman Bank, manager of an agency line focused on the SME sector (TATF). Sector Study Reviewed pharmaceutical, textiles, trade, and tourism sectors (TATF). Sector Study Supported industry experts in advising on infrastructure, financial markets, and construction, and appointed project leader to coordinate implementation of multisector private development initiative (TATF). SME Conducted study and advised Gaza Industrial Estate on prospects for SME growth (TATF). SME Conducted feasibility study and prepared business plan to support expansion of labor-intensive agriculture (TATF). SME Conducted feasibility study and prepared business plan to help develop integrated aquaculture and mariculture systems (TATF). Yemen, Republic of FDI Reviewed amendments to investment code in conjunction with IMF (FIAS). Middle East and Project Preparation Assessed consumer credit information flow and possibility of packaging it into a credit North Africa Region bureau established with local investors and IFC and Experian (FM). WORLDWIDE Worldwide Education Appraised and supervised IFC's education investments (TATF). Environment Provided technical assistance to financial institutions on integrating environmental management into standard practice (TATF). Financial Sector Supported final phase of establishing an emerging bond market database index (TATF). 104 z u Appendix A 105 GOVERNORS and ALTERNATES June 30, 2000 Member Governor Alternate A Afghanistan (vacant) (vacant) Albania Anastas Angjeli Fatos Ibrahimi Algeria Abdellatif Benachenhou Omar Bougara Angola Ana Dias Lourenco Job Graca Antigua and Barbuda John E. St. Luce Ludolph Brown Argentina Jose Luis Machinea Pedro Pou Armenia Levon Barkudaryan Karen Chshmarityan Australia Peter Costello Kay Patterson Austria Karl-Heinz Grasser Thomas Wieser Azerbaijan Elman Siradjogly Rustamov Fuad N. Akhundov B Bahamas, The William C. Allen Ruth R. Millar Bahrain Abdulla Hassan Saif Zakaria Abmed Hejres Bangladesh Shah A.M.S. Kibria A.K.M. Masihur Rahman Barbados Owen S. Arthur Erskine R. Griffith Belarus Gennady V Novitsky Vladimir N. Shimov Belgium Didier Reynders Guy Quaden Belize Said W Musa Yvonne S. Hyde Benin Bruno Amoussou Pierre John Igue Bolivia Ronald MacLean Abaroa Bernardo Requena Blanco Bosnia and Herzegovina Mirsad Kurtovic Dragan Covic Botswana Baledzi Gaolathe Serwvalo S.G. Tumelo Brazil Pedro Sampaio Malan Arminio Fraga Neto Bulgaria Muravei Radev Martin Mihaylov Zaimov Burkina Faso Tertius Zongo Patrice Nikiema Burundi Charles Nihangaza Dieudonne Nintunze C Cambodia Keat Chhon Ouk Rabun Cameroon Martin Okouda Daniel Njankouo Lamere Canada Paul Martin Leonard M. Good Cape Verde Antonio Gualberto do Rosario Jose Ulisses Correia e Silva Central African Republic Anicet-Georges Dologuele Jacob Mbaitadjim Chad Ahmed Lamine Ali Etienne Moita Djimram Chile Nicolas Eyzaguirre Mario Marcel China Xiang Huaicheng Jin Liqun Colombia Juan Camilo Restrepo Salazar Mauricio Cardenas Santamaria Comoros Mihidhoir Sagaf Ibrahim Mohained Soule Congo, Democratic Republic of Mawampanga Mwana Nanga Jean-Claude Masangu Mulongo Congo, Repubhc of Mathias Dzon Clement Mierassa Costa Rica Leonel Baruch G. Eduardo Lizano Fait C6te d'lvoire Seydou Diarra Mamadou Koulibaly Croatia Mato Crkvenac Josip Kulisic Cyprus Takis Klerides Andreas Tryfonides Czech Republic Pavel Mertlik Oldrich Dedek D Denmark Jan Trojborg Ellen Margrethe Loj Djibouti Yacin Elmi Bouh Nouh Omar Miguil Dominica Ambrose George Ambrose M.J. Sylvester Dominican Republic Hector Manuel Valdez Albizu Luis Manuel Piantini M. E Ecuador Luis G. Iturralde M. Alonso Perez-Kakabadse Egypt, Arab Republic of Medhat Hassanein Ahmed Mahrous El-Darsh El Salvador Juan Jose Daboub Jose Luis Trigueros Equatorial Guinea Fortunato Ofa Mbo Rosendo Otogo Meneng Eritrea Gebreselassie Yosief Gabriel Fassil Ogbazghy Estonia Siim Kallas Mihkel Parnoja Ethiopia Sufian Ahmed Girma Birru F Fiji Mahendra Pal Chaudhry Savenaca Narube Finland Sauli Niinisto Satu Hassi France Laurent Fabius Jean-Pierre Jouyet G Gabon Casimir Oye-Mba Claude Ayo Iguendha Gambia, The Famara L. Jatta Dodou B. Jagne Georgia Zurab Nogaideli Vladhmer Papava Germany Heidemarie Wieczorek-Zeul Caio K. Koch-Weser Ghana Richard Kwame Peprah Victor Selormey Greece Yannos Papantoniou Christos Pachtas Grenada Anthony Boatswain Timothy Antoine Guatemala Manuel Hiram Maza Castellanos Lizardo Arturo Sosa Lopez Guinea Cheick Ahmadou Camara Cellou Dalein Diallo Guinea-Bissau Purna Bia Verissirno Nancassa Guyana Bharrat Jagdeo Saisnarine Kowlessar H Haiti Fred Joseph Fritz Jean Honduras Gabriela Nunez de Reyes Victoria Asfura de Diaz Hungary Zsigmond Jarai Werner Riecke I Iceland Halldor Asgrimsson Geir Hilmar Haarde India Yashwant Sinha E.A.S. Sarma Indonesia Bambang Sudibyo Achjar lljas Iran, Islamic Republic of Hossein Namazi Mohammad Mehdi Navab Motlagh Iraq Issam Rashid Hwaish Hashim Ali Obaid Ireland Charlie McCreevy John Hurley Israel David Klein Avi Ben-Bassat Italy Antonio Fazio Mario Draghi J Jamaica Omar Lloyd Davies Wesley George Hughes Japan Kiichi Miyazawa Masaru Hayami Jordan Jawad Hadid Jamal M. Salah K Kazakhstan Erzhan A. Utembayev Zhaksybek A. Kulekeev Kenya Chrysanthus Barnabas Okemo Martin Luke Oduor-Otieno Kiribati Beniamina Tinga Bureti Williams Korea, Republic of Hun-Jai Lee Chol-Hwan Chon Kuwait Ahmed Abdullah Al-Ahmed Al-Sabah Bader Meshari Al-Humaidhi Kyrgyz Republic Sultan Mederov Urkaly Isaev L Lao People's Democratic Republic Boungnang Vorachith Phouphet Khamphounvong Latvia Roberts Zile Aigars Kalvitis LebanoDn Georges Corm Nasser Saidi Lesotho Kelebone Albert Maope Molelekeng E. Rapolaki Liberia Lami Kawah M. Nathaniel Barnes Libya Mohamed A. Bait Elmal Ali Ramadan Shnebsh Lithuania Vytautas Dudenas Arvydas Kregzde Luxembourg Luc Frieden Jean Guill M Macedonia, former Yugoslav Republic of Nikola Gruevski Trajko Slavevski Madagascar Pierrot J. Rajaonarivelo Simon Constant Horace Malawi Mathews A.P Chikaonda Mapopa Chipeta Malaysia Daim Zainuddin Samsudin bin Hitam Maldives Fathulla Jameel Adam Maniku Mali Bacari Kone Toure Alimata Traore Marshall Islands Tony de Brum David Blake Mauritania Mohamed Ould Nany Abdallah Ould Hormtallah 106 Mauritius Rundheersing Bheenick Philippe Ong Seng Mexico Jose Angel Gurria Trevino Carlos Noriega Curtis Micronesia, Federated States of John Ehsa Sebastian L. AnefaL E Moldova Mihail Manoli Dumitru Ursu 2 Mongolia Yansanjav Ochirsukh Jigjid Unenbat a Morocco Fathallah Oualalou Ahmed Lahlimi Alami Mozambique Adriano Afonso Maleiane Manuel Chang Myanmar Khin Maung Them Soe Lin N Namibia Saara Kuugongelwa Usutuaije Maamberua Nepal Mahesh Acharya Bimal P Koirala Netherlands Gerrit Zalm Eveline Herfkens New Zealand Michael Cullen Alan Bollard Nicaragua Esteban Duque Estrada David Robleto Niger Ali Badjo Gamatie Maliki Barhouni Nigeria Adamu Ciroma Samuel Chukwuma Nwokedi Norway Anne Kristin Sydnes Sigrun Mogedal 0 Oman Ahmed Bin Abdulnabi Macki Mohammed bin Nasser Al-Khasibi p Pakistan Shaukat Aziz Nawid Ahsan Palau Tommy Remengesau, Jr. Elbuchel Sadang Panama Victor Juliao Ricardo Quijano 107 Papua New Guinea Mekere Morauta Koiari Tarata Paraguay Federico Antonio Zayas Chirife Anibal Fernando Paciello Rodriguez Peru Efrain Goldenberg Alfredo Jahlie Awapara Philippines Jose T Pardo Rafael B. Buenaventura Poland Hanna Gronkiewicz-Waltz Ryszard Kokoszczynski Portugal Joaquim Pina Moura Antonio Nogueira Leite R Romania Decebal Traian Remes Emil Iota Ghizari Russian Federation Viktor Khristenko Andrei Shapovaliants Rwanda Donald Kaberuka Jean Marie Karekezi S St. Kitts and Nevis Denzil Douglas Timothy Harris St. Lucia Kenny D Anthony Bernard La Corbiniere Samoa Tuilaepa S. Malielegaoi Hinauri Petana Saudi Arabia Ibrahim A. Al-Assaf Jobarah Al-Suraisry Senegal Makhtar Diop Oumar Khassimou Dia Seychelles Jeremie Bonnelame Alain Butler-Payette Sierra Leone James OC. Jonah James Bucknall Singapore Richard Hu Tsu Tau Lim Siong Guan Slovak Republic Ivan Miklos Marian Jusko Slovenia Zvonko Ivanusic Irena Sodin Solomon Islands Alpha Kimata George Kiriau Somalia (vacant) (vacant) South Africa Trevor Andrew Manuel Mandisi Bongani Mpah1vva Spain Rodrigo de Rato Figaredo Juan Costa Climent Sri Lanka Chandrika Bandaranaika Kumaratunga PB. Jayasundera Sudan Mohamed Kheir Ahmed El Zubeir Sabir Mohamed Hassan Swaziland Majozi Sithole Musa D. Fakudze Sweden Bosse Ringholm Maj-lnger Klingvall Switzerland Pascal Couchepin Joseph Deiss Syrian Arab Republic Mohammed Khaled Al-Mahayni Mohamad Bittar T Tajikistan Safarali Najmuddinov Sharif Rakhimov Tanzania Nassoro W Malocho Raphael 0. Mollel Thailand Tarrin Nimmanahaeminda Suphachai Phisitvanich Togo Simfeitcheou Pre Kossi Assimaidou Tonga Kinikinilau Tutoatasi Fakafanua 'Aisake V Eke Trinidad and Tobago Brian Kuei Tung Monica Clement Tunisia Fethi Merdassi Abdelhamid Triki Turkey Selcuk Demiralp Ferhat Emil Turkmenistan Seitbay Kandymov Serdar Bairiev U Uganda Gerald M. Ssendaula Emmanuel Tumusiime-Mutebile Ukraine YriyYekhanurov Sergiy L. Tigipko United Arab Emirates Hamdan bin Rashid Al-Maktoum Mohammed Khalfan Bin Khirbash United Kingdom Clare Short Gordon Brown United States Lawrence H. Summers Alan P Larson Uruguay Alberto Bension Ariel Davrieux Uzbekistan Bakhtiyar Sultanovich Khamidov Akram Mukhidov V Vanuatu Stevens Morking latika Jeffry Wilfred Venezuela, Repuiblica Bolivariana de Jorge Antonio Giordani Cordero Jose Alejandro Rojas Ramirez Vietnam Le Duc Thuy Duong Thu Huong y Yemen, Republic of Ahmed Mohamed Sofan Anwar Rizq Al-Harazi z Zambia James Mwalimu Mtonga Stella M. Chibanda Zimbabwe Herbert M. Murerwa Leonard Ladislas Tsumba Appendix B DiRECTORS and ALTERNATES and THEIR VOTING POWER June 30, 2000 Percent Director Alternate Director Casting Votes of Total Votes ot Total Appointed Jan PTercy (vacant) United States 569,629 23.73 Yuzo Harada Akira Kamitomaia Japan 141,424 5.89 Helmut Schaffer Eckhardt Biskup Germany 129,158 5.38 Jean-Claude Milleron Emmanuel Moulin France 121,265 5.05 Stephen Pickford Myles Wickstead United Kingdom 121,265 5.05 Elected Ruth Bachmayer Luc Hubloue Austria, Belarus, Belgium, Czech Republic, Hungary, Kazakhstan, 125,221 5 22 (Austria) (Belgium) Luxembourg, Slovak Republic, Slovenia, Turkey Franco Passacantando Helena Cordeiro Albania, Greece, Italy, Portugal 98,866 4.12 (Italy) (Portugal) B. P Singh Syed Ahmed Bangladesh, India, Sri Lanka 98,264 4.09 (India) (Bangladesh) Federico Ferrer Cecilia Ramos Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, 97,375 4.06 (Spain:) (Mexico) Spain, Venezuela (Repuiblica Bolivariana de) Terrie O'Leary Alan David Slusher Antigua and Barbuda, The Bahamas, Barbados, Belize, Canada, Dominica, 92,944 3.87 (Canada) (Belize) Grenada, Guyana, Ireland, Jamaica, St. Kitts and Nevis, St. Lucia Ilkka Niemib Anna M. Brandt Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, Sweden 86,693 3.61 (Finland) (Sweden) Pseter Stek Tamara Solyanyk Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Georgia, 86,262 3.59 (Netherlands) (Ukraine) Israel, Macedonia (formerYugoslav Republic of), Moldova, Netherlands, Romania, Ukraine Andrei Bugrov Eugene Msagkov Russian Federation 81,592 3.40 (Russian Federation) (Russian Federation) Murilo Portugal Patricio Rubianes Brazil, Colombia, Dominican Republic, Ecuador, Haiti, Panama, 75,570 3.15 (Brazil) (Ecuador) Philippines, Trinidad and Tobago Neil Hyden Lewis D. Holden Australia, Cambodia, Kiribati, Korea (Republic of), Marshall Islands, 73,309 3.05 (Australia) (New Zealand) Micronesia (Federated States of), Mongolia, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Vanuatu Valeriano F. Garcia Ivan Rivera Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay 64,144 2.67 (Argentina) (Peru) Matthias Meyer Jerzy Hylewski Azerbaijan, Kyrgyz Republic, Poland, Switzerland, Tajikistan, 60,548 2.52 (Switzerland) (Poland) Turkmenistan, Uzbekistan Jannes Hutagalung Wan Abdul Azlz Wan Abdullah Fiji, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, 59,912 2.50 (Indonesia) (Malaysia) Nepal, Singapore, Thailand, Tonga, Vietnam Godfrey Gaoseb Girmai Abraham Angola, Botswana, Burundi, Eritrea, Ethiopia, The Gambia, Kenya, 58,813 2.45 (Namibia) (Eritrea) Lesotho, Liberia, Malawvi, Mozambique, Namibia, Nigeria, Seychelles, Sierra Leone, South Africa, Sudan, Swaziland, Tanzania, Uganda, 108 Zambia, Zimbabwe Inaamul Haque Mohamed Dhif Algeria, Ghana, Iran (Islamic Republic of), Iraq, Morocco, 46,016 1.92 x (Pakistan) (Algeria) Pakistan, Tunissa zE Khalid M. Al-Saad Mohamed Kamel Amr Bahrain, Egypt (Arab Republic of), Jordan, Kuwait, Lebanon, Libya, 34,079 1.42 (Kuwait) (Arab Republic of Egypt) Maldives, Oman, Syrian Arab Republic, United Arab Emirates, Yemen (Republic of) Percent Director Alternate Director Casting Votes of Total Votes of Total Yahya Alyahya Abdulrahman Almofadhi Saudi Arabia 30,312 1.26 (Saudi Arabia) (Saudi Arabia) Zhu Xian Chen Huan China 24,750 1.03 (China) (China) BassaryToure Paulo F. Gomes Benin, Burkina Faso, Cameroon, Cape Verde, Central African Republic, 22,947 .96 (Mali) (Guinea-Bissau) Chad, Comoros, Congo (Democratic Republic of), Congo (Republic of), 109 Cote d Ivoire, Djibouti, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Madagascar, Mali, Mauritania, Mauritius, Niger, Rwanda, Senegal, Togo In addition to the directors and alternates shown in the foregoing list, the following also served after June 30, 1999: Director End of Period of Service Alternate Director End of Period of Service Khalid H. Alyahya October 31, 1999 KhaledAl-Aboodi January 31, 2000 (Saudi Arabia) (Saudi Arabia) Young-Hoi Lee July 31, 1999 Michael Marek December 3, 1999 (Republic of Korea) (United States) Satoru Miyamura May 21, 2000 Jean Pesme June 2, 2000 (Japan) (France) Surendra Singh July 31, 1999 Zou Jiayi January 31, 2000 (India) (China) Note: Afghanistan (361 votes) and Somalia (333 votes) did not participate in the 1998 Regular Election of Di-ectors. aT To be sttcceeded by Masano-YoshiYda (Japan) effective Aogttst 7, 2000. b. To be succeeded by Hen J-nek (De-mark) effective August 7, 2000. Appendix C BANKING ADVISORY GROUP 2000 Mr. AbdIatifY. Al-Hamad Mr. Toyoo Gyohten Mr. Deepak Parekh Director General/Chairman of the Board President Chairman Arab Fuod for Economic & Institute for International Housing Development Finance Social Development Monetary Affairs Corporation Limited Safat, Kuwait Tokyo, Japan Mumbai, India Sir John Bond Mr. Gerd Hausler Sir David Scholey Group Chairman Member of the Board of Managing Directors Chairman of the Banking Advisory Group HSBC Holdings plc Dresdner Bank AG London, United Kingdom London, United Kingdom Frankfurt am Main, Germany Mr. Isaac Takawira Mrs. Ana Patricia Botin Mr. Rainer Masera Managing Director Banco Santander Central Hispano Managing Director Barclay's Bank of Zimbabwe Madrid, Spain San Paolo IMI Spa Harare, Zimbabwe Mr. Fernao Carlos Botelho Bracher Turin, Italy Mr. Marc Vienot Presidente Mr. Roberto Mendoza Prisident dHonneur Banco BBA Creditanstalt S.A. Vice Chairman Societ& G6nerale Sao Paulo, Brazil JP Morgan Paris, France Mr. Richard Fisher NewYork, NewYork, U.S.A. Mr. Richard Fisher ~~~~~~~~~~Mr. Wang Xuebing Chairman of the Executive Committee President Morgan Stanley Dean Witter & Co. China Construction Bank NewYork, NewYork, U.S.A. Beijing, China BOARD OF GOVERNORS Appendix D BOARD OF DIRECTORS ORGANIZATIONAL MEGTAYLOR CHART AND ComplianceAdvisor JAMES D.WOLFENSOHN CHEIKH IBRAHIMA FALL & Ombudsman' President ~~~~~~~~~~Vice President & IFC MANAGEMENT &Ombudsnan President Corporate SecretarY' PETER L. WOICKE Managing Directorfor World Bank Executive Vice President IFC MARKA.CONSTANTINE WILLIAM E.STEVENSON ANDREAS M.RACZYNSKI 1 GUY PIERRE PFEFFERMANN Manager Director DirectorTechnical Director Corporate Relations Unit Operations Evaluation Group & Environment Department Economics Department NEMAT TALAAT SHAFI K ASSAAD J. JABRE FARIDA KHAMBATA DOROTHY H. BERRY CAROL F. LEE Vice President, Private Sector Vice President Vice President Vice President, Human Vice President & Development & Infrastructure3 Operations Portfolio & Risk Management Resources & Administration General Counsel _ ~ ~~~~~~~ _ _ I I _JI I RASHAD-RUDOLF KALDANY BERNARD SHEAHAN EE MANTE CHRISTIAN GRO5SMANN Director (Bank/lFC) Senior Manager Director Director JENNIFER SULLIVAN Oil, Gas & Chemicals' Operations Strategy Group Agribusiness Controller's & Budgeting Deputy General Counsel HAROLD ROSEN SUELLEN L. LAZARUS DECLAN J. DUFF MARC BABIN Director (Bank/IFC) Director, Syndications Director Director, Corporate Portfolio BARBARA KAFKA Small & Medium Enterprise3 & International Securities Group Infrastructure & Risk Management Conflicts Officer' MOHSEN KHALIL SUMIOTAKEICHI VIVEKTALVADKAR PAUL HINCHEY Director (Bank/IFC), Global Info. Director, Marketing & Director Director & Communication Technologies' Business Development Power Credit Review JAMES BOND NINA SHAPIRO TERESA BARGER JYRKI KOSKELO Director (Bank/lFC) Treasurer Director Senior Manager Mining" Treasury Department Funds Department Special Operations Unit MICHAEL KLEIN JAVED HAMID SIMON V. FOWLER Director (Bank/IFC) Resident Director Senior Manager Private Sector Advisory Services3 East Asia & Pacific' Financial Operations Unit BERNARD C. PASQUIER VACANT Director Director South Asia Trust Funds Department KHOSROW K. ZAMANI GUY-PIERRE DE POERCK Director Chief Information Officer Southern Europe & Central Asia Corporate Business Informatics EDWARD A. NASSIM Resident Director Central & Eastern Europe SAMI HADDAD Resident Director Middle East & North Africa HAYDEE CELAYA Director 110 Sub-Saharan Africa KARL VOLTAI RE' Resident Director zt Latin America & the Caribbean 1 V,ce presidential rank, serves same role for MICA CESARE CALARI a Jointly IFC and IBRD Director 3 World Bank vice president reporting to Peter Wuicke in Global Financial Markets Group his capa-ity as managing director of the Bank 4 Joint IFC-IBRD appointment CLAUDIA MORGENSTERN 5 Also reports to Bank fur East As-a and Pacific DFinanCal MarketsAdvisory B Also leads IFC's global practice group for the social sectur 7 Reports jointly to IBRD and IFC general cuunsels IFC MANAGEMENT President' James D. Wolfensohn Central and Eastern Europe Department' Executive Vice President' Peter L. Woicke Resident Director Edward Nassim Vice President and/Corporate Secretary' Cheikh Ibrahima Fall Associate Director, Portfolio/Credit Unit Robin Glantz Compliance Advisor/Ombudsman' Meg Taylor Regional Head, Financial Markets Ritva Laukkanen Vice President and General Counsel Carol F Lee Manager, General Manufacturing Stephanie von Friedeburg Vice President, Human Resources Dorothy H. Berry Country Manager Richard Ranken and Administration Vice President, Operations Assaad J. Jabre Latin America and the Caribbean Department5 Resident Director Karl Voltaire Vice President, Portfolio Parida Khambata and Risk Management Regional Head, Financial Markets Mary Ellen Iskenderian Vice President, Private Sector Nemat Talaat Shafik Manager, Credit Review Stanley Greig Development and Infrastructure, IBRD Manager, Strategy and Coordination (vacant) Regional Departments South Asia Department' Southern Europe and Central Asia Department Director Bernard Pasquier Director Khosrow Zamani Manager, Credit Review and Portfolio Michael Essex Associate Director, Portfolio/Credit Unit Robin Glantz Country Manager, South Asia Usha Rao-Monari Manager, Portfolio, Financial Markets S. Aftab Ahmed Manager, Business Development Oscar Chemerinsh Regional Head, Financial Markets Mark Alloway Technical Manager Guy Ellena Country Leaders: Regional Head, Financial Markets Georgina Baker Albania, Bosnia, Macedonia Matthew Morrison Manager, Strategy Neil Gregory Croatia, Moldova Sita Ramaswami Bulgaria, Romania Sujata Lamba Azerbaijan, Turkey Antonio David Sub-Saharan AricaDepartment Kazakhstan, Kyrgyz Republic, Director Haydee Celaya Tajikistan, Turkmenistan, Uzbekistan Richard Rutherford H. Allaoua Turkey (based in Istanbul) S. Balasubramanian Associate Director Abdelkader Unit Leader, Strategy Christopher Gass Transactions Group Manager Udayan Wagle Unit Leader, Budget/lIT Thomas Schepani Regional Manager, West and Central Africa Saran Kebet-Koulibaly Middle East and North Africa Department Regional Manager, Southern Africa G. Michael Tiller Resident Director Sami Haddad Regional Manager, Eastern Africa Michael E. H. Hooper Manager, General Manufacturing Vinod Busjeet Portfolio Manager, Financial Markets Portfolio Manager,Financial MarketsAlain Soulard Regional Head, Financial Markets Rohil Hafeez Portfolio Manager, Real Sector Colin Warren Manager, Portfolio Management Michael Essex and Credit Review Manager, Strategy and Coordination (vacant) East Asia and Pacific Department Industry Departments Resident Director Javed Hamid Regional Head, Financial Markets Shidan Derakhshani Agribusiness Department Director Tei Mante Senior Manager, General Manufacturing Ravinder Bugga Manager, Portfolio Management Timothy Krause and Credit Review Manager, Portfolio Management and Credit Review Macodou N'Daw Manager, Strategy Dileep Wagle Financial Markets Advisory Department Manager and Resident Representative Amitava Banerjee Director Claudia J. Morgenstern Head, Corporate Services Arthur Levi Head, Private Equity Monish Dutt Head, Structured Finance Arun Kumar Sharma Oil, Gas, and Chemicals Department7 Credit Review Department Director Rashad-Rudolf Kaldany Director Paul Iiinchey Manager, Chemicals Shilpa Patel Associate Director Sakdiyiam Kupasrimonkol Manager Jerome Sooklal Associate Director Roy Kaiaoglan Senior Manager, Portfolio Farid Dossani Chief Credit Officer Eduardco Abello Manager, Oil and Gas Dimitris Tsitsiragos Chief Credit Officer Mamra Shah Global Financial Markets Group Chief Credit Offficer Maria DaG. Dontingues Director Cesare Calari Chief Credit Officer Vincent Polizatto Mining Department' Economics Department Director James Bond Director and Chief Economic Adviser Guy Pierre Pfeffermann Manager, Investments Azmat Taufique Financial Operations Unit Senior Manager, Portfolio Farid Dossani Senior Manager Simon V oowler Power Department Manager, Loan and Equity Soon-Wan Ooi Director Vivek Talvadkar Manager, Treasury Support Isakli Higa Associate Director Jean-Paul Pinard Human Resources and Administration Manager, Portfolio Management and Credit Review Aptinya Suebsaeng Vice President Dorothy H Berry Infrastructure Department Manager, Facilities and Administration Geoffrey A. Villing Director Declan J. Duff Human Resources Team Manager Jean Bradier Associate Director Francisco Tourreilles Human Resources Team Manager Eva Mennel Manager, Portfolio Management and Credit Review (vacant) Program Manager, Performance Management Saleem Kacimjee Manager, Global Staffing and Recruitment Esteban Altschul Global Information and Communication Technologies Department' Director Mohsen Khalil Program Manager, Training Gail Davenport Manager, Portfolio and Credit Joseph Solan Program Manager, Succession Planning Linda McLaLlghlin Manager, Investments Kent E. Lupberger Corporate Business Informatics Chief Information Officer Guy-Pierre De Foerck Small and Medium Enterprises Department' Director Harold Rosen 9Manager, IT Program Office Wajdi Bisrani Director Harold Rosen ~~~~~~~~~and Business Systems Delivery Group Manager Thomas Davenport Chief Technology Officer Paul Standen Manager Alexander Keyserlingk Legal Department Trust Funds Department Vice President and General Counsel Carol F. Lee Director (vacant) Deputy General Counsel Jennifer A. SUllivan Funds Department Chief Counsel Fernando Cabezas Director Teresa Barger Chief Counsel Victoria C. Choy Chief Counsel David McLean Support Departments Chief Counsel George Springsteen Controller's and Budgeting Department Chief Counsel Christian Philip Director Christian Grossmann Chief Counsel Maher Mahmassani 112 Senior Manager, Budgeting Division Richard Moss Chief Counsel Hugo J. Waszink Manager, Accounting Division Paul Bravery z Manager, Internal Controls and Special Projects Division Allen F. Shapiro Marketing and Business Development Director Sumio Takeichi Corporate Portfolio and Risk Management Unit Director Marc Babin Operations Evaluation Group Director William E. Stevenson Head, Equity Sebastian Thiriez Manager, Risk Management Lakshmi Shyam-Sunder Operations Strategy Group Senior Manager Bernard Sheahan Corporate Relations Unit Manager Mark A. Constantine Syndications & International Securities Group Special Representative ini Europe Douglas Gustafson Director Suellen Lambert Lazarus (London, United Kingdom) Manager, B-Loan Managemnent DavidTerrance Special Representative in Europe (Paris, France) Vikas Thapar Resident Director, Central and Edward Nassim Technical and Environment Department Eastern Europe (Moscow, Russian Federation) Director Andreas M. Raczynski Resident Director, South Asia (New Delhi, India) Bernard Pasquier Associate Director, Environment Martyn Riddle Resident Director, Latin America Karl Voltaire Associate Director, Technical Services Garth Hedley and the Caribbean (Rio dejaneiro, Brazil) 113 Resident Director, Middle East and Sami Haddad Senior Manager, Technical Services Gopi Nath Putt North Africa (Cairo, Egypt) Manager, Technical Services Juan C. Callieri Country Manager, Bangkok, Thailand Timothy Ryan Manager, Environment and Social Review Unit (vacant) Regional Representative in Central Africa Mouhamadou Diop Manager, Environmental Projects Unit Louis Boorstin (Douala, Cameroon) Head, Financial Markets Environmental Services Unit Letitia E Lowe Regional Representative in East Africa (Nairobi, Kenya) Michael Hooper Regional Representative in Islamabad, Pakistan Raymond Chiu Treasury Department Treasurer Nina Shapiro Manager, Regional Mission in Jakarta, Indonesia Amitava Banerjee Unit Manager, Funding Operations John Borthwick Regional Representacive in Manila, Philippines Vipul Prakash Unit Manager, Liquid Assets Management Mark Spindel Head, Regional Office in Harare, Zimbabxve Imoni Akpofure Regional Representative in West Africa Luciano Borin Unit Manager, Client Products Shanker Krishnan (Abidjan, Cte dIvoire) Unit Manager, Applications Development Group Takehisa Eguchi Regional Manager, West Africa Hub Saran Kebet-Koulibaly Resident Representative in Argentina (Buenos Aires) Ileana Boza Other Resident Representative in Brazil (So Paulo) (vacant) Private Sector Advisory Services7 Resident Representative in Central America Yolande Duhem Director Michael Klein and Panama (Guatemala City) Manager, Private Policy andTransactions Denise Leonard Resident Representative in China (Beijing) Karin Finkelston Manager, Private Policy and Transactions Reyaz Ahmed Resident Representative in Korea (Seoul) Deepak Khanna Manager, FIAS Trust Funids Boris Velic Resident Representative in Mexico (Mexico City) Manuel Nudez Manager, Business Environment and Foreign Investment Joseph Battat Resident Representative in Nepal Sudhir Mittal Special Operations Unit Resident Representative in Nigeria (Lagos) Akbar Husain Manager Jyrki Koskelo Regional Manager for Southern Africa (Johannesburg) George M. Tiller Resident Representative in Turkey (Istanbul) S. Balasubramanian Project Development Facilities Resident Representative in Vietnam (Hanoi) Wolfgang Bertelsmeier Africa Project Development Facility IFC Adviser, Australasia (Sydney, Australia) Neil J. Paterson Chief Special Operations Officer, IFC Facilities Alex Keyserlingk IFC Adviser, Scandinavia (Oslo, Norway) Torstein Stephansen Regional Manager, East Africa (Nairobi, Kenya) Mischek Ngatunga Regional Manager, Southern Africa (Harare, Zimbabwe) Kalada Harry Regional Manager, West Africa (Abidjan, C6te d'Ivoire) Henri Rabarijohn I These officers hold the same F-oation in IBRD. Manager, South Africa (johannesburg, South Afiica) John James 2to PAte sector M vnagpmg Dirntoar fos the W-sa1 Bank, we h -paibility for Privte Sector Development acros the Bank Group. Mekong Project Development Facility (Hanoi. Vietnam) 3 Reports directly to lames D.WsIlfo,shn. Manager Mario Fischel 4 Based in Mosc-. South Pacific Project Facility (Sydney, Australia) s Based in Rin de lanei-e. Regional Manager Graeme Rothwell 6 Based in Now Delhi. 7 Repoers so 1BRD Vice Preident, Prvate Sector Denelopm-t and Representatives and Regional Missions IFCVicr Presidents f Operations and Potfolio ond Risk Management. Special Representative in Tokyo Motoharu Fujikura World Bank Group Representative Oltmann Siemens (Frankfurt, Germany) Appendix E FiELD REPRESENTATIVES and CONTACTS Country City Name Title Albania Tirana Elira Sakiqi Program Coordinator Argentina Buenos Aires Ileana Boza Resident Representative Armenia Yerevan (vacant) Australia (FIAS) Sydney Andrew Proctor Regional Manager Australia (SPPF) Sydney Graeme W Rothwell Regional Manager Azerbaijan Baku Aliya Nuriyeva Program Officer Bangladesh Dhaka Hafeezudin Ahmad Sri Investment Officer Belarus Minsk Carl Dagenhart Consultant Bolivia La Paz Juan Carlos Echeverria Investment Officer Bosnia and Herzegovina Banja Luka Mirjana Stojanovic Investment Officer Bosniia and Herzegovina Sarajevo Graham Settle Consultant Brazil Fortaleza Ralph Wally Daniels Sr. Investment Officer Brazil Rio de Janeiro KarlVoltaire Resident Director, Latin America and the Caribbean Brazil Sio Paulo Bruce Leighton Resident Representative Bulgaria Sofia George Alexandrov Program Coordinator Cambodia Phnom Penh (vacant) Cameroon Douala Mohamadou Diop Regional Representative for Central Africa China Beijing Karin Finkelston Resident Representative Cdte d'lvoire Abidjan Luciano Borin Regional Representative for WVest Africa Cote d'Ivoire, APDF Abidjan Henri E. Rabarijohn Sr Investment Officer Croatia ZagTeb Vedran Antoljak Program Coordinator Czech Republic Prague Milos Vecera Chief of Mission Dominican Repubhc Santo Domingo Salem Rohana Investment Officer Egypt, Arab Republic of Cairo Sami Haddad Resident Director Estoisia Tallinn Andrus Viirg Manager Ethiopia Addis Ababa Andrew Danino Sr. Investment Officer France Paris Vikas Thapar Special Representative for Furope, FTrance Georgia Tbilisi Lisa Kaestner Consultant Gerniany Frankfurt Oltmann Siemens Special Representative for Europe, Germany 14 Ghana Accra Yaw Kwakwva Investment Officer Ghana. APDF Accra (vacant) D Guatemala Guatemala City Yolande Duhem Resident Representative, Central America & Panama Hungary Budapest Borbala X. Czako Chief of Mission India Mumbai Prakash Yardi Principal Investment Officer India New Delhi Bernard Pasquier Director, South Asia Indonesia Jakarta Amitava Banerjee Manager Japan Tokyo Motoharu Fujikura Special Representative, Tokyo Kazakhstan Almaty Zhanat Akhmetova Inivestment Officer Kenya Nairobi Michael Hooper Regional Representative, Eastern Africa Kenya, APDF Nairobi Mischeck Ngatunga Regional Representative, Eastern Africa Korea, Republic of Seoul Deepak Khanna Resident Representative Kyrgyz Republic Bishkek (vacant) 115 Lao PDR Vientiane Peter Michener Sr. Investment Officer Latvia Riga Ilze Berzina Program Officer Lithuania Vilnius (vacant) Macedonia, FYR Skopje Rozita Jovanovska Investment Officer Mexico Mexico City Manuel E. Nunez Resident Representative Moldova Chisinau Alla Girjau Program Coordinator Mongolia Ulaanbaatar Shannon Atkeson Investment Officer Mozambique Maputo (vacant) Nepal Kathinandu Sudhir Mittal Resident Representative Nigeria Lagos Akbar Husain Resident Representative Pakistan Islamabad Raymond Chiu Resident Representative Phihippines Manila Vipul Prakash Resident Representative Poland Warsaw Tomasz Telma Sr Investment Officer Romania Bucharest Ana Maria Mihaescu Chief of Mission, Romania Russian Federation Moscow Edward Nassim Resident Director, Central and Eastern Europe Senegal Dakar Souleymane Traore Sr. Investment Officer Singapore Singapore Francois Grossas Principal Investment Officer Slovak Republic Bratislava Pavol Vajda Program Coordinator South Africa Cape Town Henning Amelung Investment Officer South Africa Johannesburg George M. Tiller Regional Manager for Southern Africa South Africa, APDF Johannesburg John James Manager Sri Lanka Colombo Sanjiva Senanayake Country Coordinator Thailand Bangkok Timothy Ryan Country Manager Trinidad and Tobago Port of Spain Kirk Ifill Investment Officer Turkey Istanbul S. Balasubramanian Resident Representative Uganda Kampala Dan Kasirye Projects Officer Ukraine Kiev Elena Voloshina Consultant United Kingdom London Douglas Gustafson Special Representative for Europe Uzbekistan Tashkent Elbek Rikhsiyev Administrative Assistant Vietnair Hanoi Wolfgang Bertelsmeier Resident Representative Vietnam, MPDF Hanoi Mario Fischel Manager, MPDF Vietnam, MPDF Ho Chi Minh City (vacant) West Bank & Gaza Dahiat Al-Bareed Tamara Lansky Sr. Investment Officer Zimbabwe Harare Imoni Akpofure Head, Regional Office Zimbabwe, APDF Harare James Hellerman Projects Manager Appendix F IFC ADDRESSES Headquarters Bosnia and Herzegovina, Croatia, Zagreb Ghana, Accra 2121 Pennsylvania Avenue, N.W Banja Luka Trg.J. F Kennedya 6b/III No. ISOA, Roman Road Washington, DC 20433, U.S.A. Mese Selimovic 33 Zagreb 10000, Croatia Roman Ridge Telephone: (202) 473-9331 Banja Luka 78000, Republika Srpska Telephone: (385-1) 238-7236 Accra, Ghana Facsimile: (202) 974-4384 Telephone: (387-78) 218-579 Facsimile: (385-1) 238-7233 Telephone: (233-21) 778-109 Facsimile: (387-78) 218-680 Facisimile: (233-21) 776-245 Albania, Tirana Czech Republic, Prague Deshmoret e 4 Shkurtit,Vila. 34 Bosnia and Herzegovina, Husova 5 Guatemala, Guatemala City Tirana, Albania Sarajevo 110 00 Prague, Czech Republic 1 3 Calle 3-40, Zona 10 Telephone: (355-42) 40-587/88/89 H. Kresevljakovica 19 Telephone: (420-2) 2440-1402 Edificio Atlantis, Nivel 14 FacsimiLe: (355-42) 40-590 71000 Sarajevo Facsimile: (420-2) 2440-1410 Guatemala City 01010, Guatemala Bosnia and Herzegovina Telephone: (502) 367-2275 Argentina, Buenos Aires Telephone: (387-7) 144-0293 Dominican Republic, Facsimile. (502) 366-9851 Bouchard 547, piso3' Facsimile: (387-7) 144-0108 Santo Domingo Buenos Aires 1106, Argentina c/o World Bank Hungary, Budapest Telephone: (54-1 1) 43 1 5- 1666 Brazil, Fortaleza Calle Virgiho Diaz Ordonez #3 6 Daewoo Bank Building, 5th Floor Facsimile (54- 1) 4312-7184 Rua Oswaldo Cruz, No. 1, Room 1810 esq. Gustavo Mejia Ricart Bajcsy-Zsilinszky utca 42-46 CEP-60125-150 Edificio Mezzo Tempo, Suite 401 H- 1054 Budapest, Hungary Armenia, Yerevan Fortaleza - Ceara, Brazil 4ta. Planta, Santo Domingo, R.D. Telephone: (36-1) 374-9590 Republic Square Telephone: (55-85) 242-4994 Telephone: (809) 566-6815 Facsimile: (36-1) 374-9597 2 Khorhertaranit Street Facsimile: (55-85) 242-4990 Facisimile: (809) 566-7746 Yerevan 10, Armenia India, Mumbai Telephone: Brazil, Rio de Janeiro Egypt, Cairo 25 Maker ChambersVI (374-2) 545-241/42/43/45/46 Av. Rio Branco No. I World Trade Center Bldg. Nariman Point, Mumbai 400 02 , Facsimile: (374-2) 599-542 Room 1610 1191 Corniche El Nil India CEP-20090-003 Boulac, Cairo, Egypt Telephone: (91-22) 285-5262/3 Australia, Sydney (FIAS) Rio de Janeiro, Brazil Telephone: Facsimile: (91-22) 285-5272 Level 18, CML Bldg.. 14 Martin Place Telephone: (55-21) 550-8990 (20-2) 579-9900/6565/5353 Sydney, NSW 2000, Australia Facsimile: (55-21) 550-8999 Facsimile: (20-2) 579-2211 India, New Delhi Telephone: (61-2) 9223-7155 No. 1, Panchseel Marg, Chanakyal-ur Facsimile: (61-2) 9223-7152 Brazil, Sao Paulo Estonia, Tallinn New Delhi 110 021, India Av Roque PetroniJunior, 999 SuurAAmeerika I Telephone: (91-11) 611-1306 Azerbaijan, Baku 8th Floor, Rooms 81/82 Tallinn 15004, Estonia Facsimile: (91-11) 611-2278 91-95 Mirza Mansur Str., Icheri Sheher 04707-910 - Sio Paulo SP, Brazil Telephone: (372-2) 631-1396 Baku 370 004, Azerbaijan Telephone: (55-11) 242-4994 Facsimile: (372-6) 631-1292 Indonesia, Jakarta Telephone: Facsimile: (55-11) 242-4990 Jakarta Stock Exchange Bldg. (994-12) 921-941;922-807 Ethiopia, Addis Ababa Tower 2, 13th Floor Facsimile: (994-12) 921-479 Bulgaria, Sofia c/oWorld Bank JI. Jenderal Sudirman Kav. 52-53 36 Dragan Tzankov Blvd. PO Box SSIS lakarta 12190, Indonesia Bangladesh, Dhaka WorldTrade Center /INTERPRED Addis Ababa, Ethiopia Telephone: (62-21) 5299-3001 c/oWorld Bank 1057 Sofia, Bulgaria Telephone: (251-1) 514-200 Facsimile: (62-21) 5299-3002 3AParmbagh Telephone: (359-2) 9181-4225 Facsimile: (251-1) 511-441 Dhaka 1000, Bangladesh Facsimile: (359-2) 971-2045 Japan, Tokyo Telephone: France, Paris 10th Floor, Fukoku Seimei Buildir.g (880-2) 861-056;966-9301 Cameroon, Douala 66, avenue d'lena 2-2-2, Uchisaiwai-cho Facsimile: (880-2) 867-521 96 Flatters Street 75116 Paris, France Chlyoda-ku Suite 305 Telephone: (33-1) 4069-3060 Tokyo 100-0011,Japan Belarus, Minsk B.P 4616, Bonanjo Facsimile: (33-1) 4720-7771 Telephone: (81-3) 3597-66S7 6A Partizansky Prospeekt Douala, Cameroon Minsk 220033, Belarus Telephone: (237) 428-033;429-451 Georgia, Tbilisi Telephone. (375-172) 132-524/ Facsimile: (237) 428-014 c/o World Bank Kazakhstan, Almaty 281-779 18a Chonkadze Street 41, Kazybek Bi Street, 4th Floor Facsimile: (375-172) 227-440 China, Beijing Tbilisi, Georgia 380 005 Almaty 480100, Kazakhstan 116 9th Floor, Towver B Telephone: (995-32) 990-448 Telephone: (7-3272) 608-580 16 Bolivia, La Paz Fuhua Mansion Facsimile: (995-32) 999-528 Facsimile. (7-3272) 608-581 t2 Edificio Bisa, Piso 9 8 Chaoyangmen Beidajie x Av. 16 deJulio 1628 Beijing 100 027, PR China Germany, Frankfurt Kenya, Nairobi z Banco Mundial, Casilla 8692 Telephone: (86-10) 6554-4191 Bockenheimer Landst. 109 Hill Park Building, Upper Hill Road La Paz. Bolivia Facsimile: (86-10) 6554-4192 D-60325 Frankfurt, Germany PO Box 30577 Telephone: (591-2) 338-110 Telephone: (49-69) 7434-8230 Nairobi, Kenya Facsinmile (591-2) 337-355 Cote d'lvoire, Abidjan Facsimile: (49-69) 7434-8239 Telephone: (254-2) 260-341/720-467 Crnr. Booker Washington & Jacques Facsimile: (254-2) 260-383/717-i90 Aka Cocody Streets 01-B.P 1850 Ahidjan-01, Cote d'lvoire Telephone: (225) 2244-6550 Facsimile: (225) 2244-4483 Korea, Seoul Nigeria, Lagos South Africa, Johannesburg Vietnam, Hanoi 11 th Floor, Youngpoong Building Plot 121 Louis Solomon Close Hyde Park Lane 7th Floor 33, Shurin-dong Maersk House, Off Ahmadu Bello Way Johannesburg 2196, South Africa 63 Ly Thai To, Hoan Kiem Chongro-ku Victoria Island Postal Address: Hanoi,Vietnam Seoul 110-110, Korea Lagos, Nigeria PO Box 41283 Telephone: (84-4) 934-2282 Telephone: (82-2) 399-0905/6 Telephone: Craighall Facsimile: (84-4) 934-2289 Facsimile: (82-2) 399-0915 (234-1) 262-6455/64 (10 lines) Johannesburg 2024, SouthAfrica Facsimile: (234-1) 262-6465/66 Telephone: (27-11) 341-9000 (2 lines) Facsimile: (27-11) 325-0582 West Bank and Gaza, Kyrgyz Republic, Bishkek Dahial Al-Bareed 214 Moskovskaya Street PO Box 54842 720 010 Bishkek, Kyrgyz Republic Pakistan, lslamabad Sri Lanka, Colombo Jerusalem, Israel 117 Telephone: (996-312) 217-744/472 20 A, Shahrah-e-Jamhuriyat c/oWorld Bank Telephone: (972-2) 236-6518 Facsimile: (996-312) 610-356/481 Ramna 5 (G-5/1) 73/5 Galle Road Facsimile: (972-2) 236-6521 PO Box 3033 Colombo 3, Sri Lanka Lalvia, Riga'Islarnabad, Pakistan Telephone: (94-1) 448-070 ext. 325 Latvia, Riga Telephone: (92-51) 279-631/2/3 Facsimile: (94-1) 471-536 Zimbabwe, Harare 1/4, Smfisu Street, Sth Floor Facsimile: (92-51) 824-335/166 101 Union Avenue Rigs LV-1050, Latvis 7th Floor Telephone: (371-7) 229-886/212-148 Thailand, Bangkok PO Box 2960 Facsimile: (371-7) 222-537 Philippines, Manila DiethelmTowerA, 17th Floor Harare, Zimbabwe 11th Floor, Tower One 93/1 Wireless Road Telephone: (263-4) 794-868/869/860 Lithuania, Vilnius Ayala Triangle, Ayala Avenue Bangkok 10330, Thailand Facsimile: (263-4) 793-805 Lithuania, Vilnis IMakati 1200, Manila, Philippines Telephone: (66-2) 650-9253/8 2 8Vilniaus Street Telephone: (63-2) 848-7333/38 Facsimile: (66-2) 650-9259 Vilnius 2600, Lithuania Facsimile: (63-2) 848-7339 Telephone: (370-2) 226-013 Facsimile: (370-2) 226-829 Trinidad and Tobago, Poland, Warsaw Port of Spain Warsawv Financial Center The Mutual Center Macedonia, FYR, Skopje Emili Plater 53, 9th Floor 16 Queen's Park West Leninova 34 00- 113 Warsawv, Poland PO. Box 751 Skopje 91000, Republic of Macedonia Telephone: (48-22) 520-6100 Port of Spain,TrinidadWI. Telephone: (389-91) 117-159 Facsimile: (48-22) 520-6101 Telephone: (868) 628-5074/6 Facsimile: (389-91) 117-627Fasml:86)2210 Facsimile: (868) 622-1003 Mexico, Mexico City Romania, Bucharest Prado Sur 240, Suite 402 83, Dacia Boulevard, Sector 2 Turkey, Istanbul Bucharest, Romania Yildiz Posta Caddesi 17/5 Lomas de Chapultepec Telephone: (40-1) 211-2866 80280 Esentepe, Istanbul,Turkey Del. Miguel Hidalgo Facsimile: (40-1) 211-3141/201-0364 Telephone: (90-212) 212-6535/4513 Mexico O.F., 110O00, Mexico Fciie 9-1)2296 Telephone: (52-5) 520-6191 Facsimile (90-212) 212-9165 Facsimile: (52-5) 520-5659 Russian Federation, Moscow 2 Pushechnaya Street U ganda, Kampala 103012 Moscow, Russia I Lumumba Avenue Moldova, Chisinau Telephone: (7-095) 755-8818 PO Box 4463 MD 2012, Chisinau, Moldova Facsimile: (7-095) 755-8298 Kampala, Uganda Telephone: Telephone: (256-41) 231-061/ (373-2) 237-065/232-737/233-565 Senegal, Dakar 236-825/230-094/232-533 Facsimile: (373-2) 233-908 3 Place de lIndependence Facsimile: (256-41) 230-094/340-386 Bldg. S.D.I.H., 7th Floor, B.P 3296 Mongolia, Ulaanbaatar Dakar, Senegal Ukraine, Kiev c/uo World Bank Telephone: (22-1) 822-9561/6470 4 Bogomoltsa Street 1-A Peace Avenue Facsimile: (22-1) 823-7993 Kiev 01024, Ukraine Ulsanbastar, 210648, Telephone: (380-44) 293-8374/ Mongolia Singapore 0539/7389 Telephone: (976-1) 312-694 10 ShentonWay, #15-08 Facsimle: (380-44) 490-5830 Facsimile: (976-1) 312-696 MAS Building Singapore 079 117 United Kingdom, London Telephone: (65) 324-4823 4 Millbank- Mozambique, Maputo Facsimile: (65) 324-4615 London SWIP 3kA, U.K. Ave. Kenneth Kaunda, ne. 1224 Tlpoe 4-0)2271 Maputo, Mozambique Telephone: (44-207) 222-7711 Telephone: (258-1) 492-841/51 Slovak Republic, Bratislava Facsimile: (44-207) 976-8323 Facsimile: (258-1) 492-893 Michalska 19 811 01 Bratislava, Slovak Republic Uzbekistan, Tashkent Telephone: (42 1-7) 5441-4528 43 Academician Suleimanova Street Nepal, Kathmandu Facsimile: (421-7) 5441-4525 700 Ol7 Tashkent, Uzbekistan c/u World Bank Tlpoi:(9-1 3-15 Yak &Yeti Hotel Complex Telephone: (998-71) 133-2185/ GPO Box 798 South Africa, Cape Town 120-6214 Kathmandu, Nepal I Thibault Square, 13th Floor Facsimile: (998-71) 120-6215/ Telephone: (977-1) 226-793/766 Long Street, PO Box 2452 133-0551 Facsimile: (977-1) 225-112 Cape Tow-n 8000, South Africa Telephone: (27-21) 418-7180 Facsimile: (27-21) 418-7183 PROJECT DEVELOPMENT FACILITIES Africa Project Development South Africa, Johannesburg Mekong Project South Pacific Project Facility Facility (APDF) Ground Floor, Victoria Gate West Development Facility (MPDF) (SPPF) Hyde Park Lane, Hyde Park Johannesburg 2196, South Africa Cameroon, Douala Telephone: (27-11) 325-0720 Cambodia, Phnom Penh Australia, Sydney 96 rue Flatters Facsimile: (27-11) 325-0729/0393 c/o UNDP Service Center Level 18, CML Building PO. Box 4616 164 Pasteur Street 14 Martin Place Douala. Cameroon P.O. Box 877 GPO Box 1612 Telephone: (237) 428-033 Zimbabwe, Harare Phnom Penh, Cambodia Sydney, NSW 2000, Australia Facsimile: (237) 428-014 68-70 Union Avenue Telephone: (855-23) 720-164 Telephone: (61-2) 9223-7773 PO. Box UA 400 Facsimile: (855-23) 720-146 Facsimile. (61-2) 9223-2533 Harare, 7imbabwe Cote d'lvoire, Abidjan Telephone: (263-4) 730-967 Immeuble CCIA, 17th Floor Facsimile: (263-4) 730-959 Lao PDR, Vientiane 01 B.P 8669 Novotel Hotel, Suite 141, Unit 9 Abidjan-01, Cote d'lvoire Samsenthai Road Telephone: (225) 2021-9697 PO. Box 585 Facsimile: (225) 2021-6151 Caribbean and Central America Vientiane, Lao PDR Business Advisory Service (BAS) Tlephone: (856-21) 219-099 Ghana, Accra Facsimile: (856-21) 219-098 No. 150A, Roman House Trinidad and Tobago, Rornan Ridge Poto .pi VI etnam, Hanoi Accra, Ghana Port of Spai 7th Floor, 63 LyThaiTo, Hoan Klem Telephone: Enterprise Development Limited (EDL) Hanoi, Vietnam (233-21) 776-245;778-109 The Mutual Center Telephone: (84-4) 824-7892 Facisimile: (233-21) 776-245 16 Queen's Park West, NW Penthouse Facsimile: (84-4) 824-7898 PO. Box 751 Port of Spain, Trinidad and Tobago Kenya, Nairobi Telephone: (868) 628-5074 Vietnam, Ho Chi Minh City International House Facsimile: (868) 622-1003 Unit 3B P0. Box 46534 Somerset Chancellor Court Nairobi, Kenya 21-23 Nguyen Thi Minh Khai Str. Telephone: (254-2) 2 17-368/9/70 District I Facsimile: (254-2) 339-121/330-436 Ho Chi Minh City, Vietnam Telephone: (84-8) 823-5266 Facsimile: (84-8) 823-5271 118 Appendix G PARTICIPANTS IN LOAN SYNDICATIONS SIGNED IN FY 2000 ABC International Bank plc Caja Madrid Istituto Bancario San Paolo di Torino - Istituto Mobiliare Italiano SpA (San Paolo IMI SpA) ABN AMRO Bankt NV Canada Life Group KBC Bank NV AEGON Insurance Group CIGNA Group Landesbank Hessen-Thuringen Girozentrale Alliance Assurance Company Limited Citibank NA 119 Landesbank Rheinland-Pfalz Girozentrale Allstate Insurance Group Columbia Universal Life Insurance Company Landesbank Saar Girozentrale American General Financial Group Comerica Bank Landesbank Schleswig-Holstein Girozentrale Arab American Bank Commerzbank AG Leonia Bank plc Argentaria Caja Postal y Banco Hipotecario SA Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank Nederland) Lincoln National Life Insurance Company Australia and New Zealand Banking Group Ltd Credit Agricole Indosuez Merita Bank Plc Banca Commerciale Italiana SpA Credit Commercial de France SA (CCF) Natexis Banque Banca Popolare Di Vicenza SCPaRL Banco Bilbao Vizcaya Cr6dit Industriel et Commercial (CIC) National Westminister Bank plc Banco BPI SA Credit Lyonnais Nederlandse Financierings-Maatschappij voor Dai-Ichi Kangyo Bank Limited (DKB) Ontwikkelingslanden NV (FMO) Banco Comercial Portugu&s SA New York Life Insurance Company Den Danske Bank Aktieselskab Banco Espirito Santo SA Norddeutsche Landesbank Girozentrale Banco antaner Cenral HspanoDen norske Bank ASA (Nord/LB) Banco Santander Central Hispano Banco Espafiol de Credito SA Deutsche Bank AG Northwestern Mutual Life Insurance Company Bank Brussels Lambert Deutsche VerkehrsBank AG ORIX Corporation Bank of America NA Development Bank of Singapore Ltd. Pacific Life Insurance Company Bank of NewYork DEXIA Group Pacific Mutual Group Life Bank of Tokyo-Mitsubishi Ltd. Deutsche Genossenschaftsbank AG (DG Bank) Raiffeisen Zentralbank Osterreich AG (RZB- Dresdner Bank AG Austria) Bank One NA Emirates Bank International PJSC N M Rothschild & Sons Limited Bankgesellschaft Berlin AG Equitable Life Assurance Society of the Sakura Bank Ltd. Banque Cantunale de Geneve United States Societe Generale Banque Sudameris Erste Bank der osterreichischen Sparkassen AG Standard Bank London Ltd. Banque Worms SA Executive Risk Group Standard Chartered Bank Barclays Bank PLC Fortis Bank NV/SA Sumitomo Bank Ltd. Bayerische Hypo- und Vereinsbank AG Franklin Life Insurance Company SunAmerica Life Insurance Company Bayeriscbe Landesbank Girozentrale FuiBn,Ld. Bayerisebe Landesbank Girozeorrale Fuji Bank, Ltd. Teachers Insurance and Annuity Association- BfG Bank AG General American Life Insurance Company College Retirement Equities Fund (TIAA-CREF) BHF-BANK Aktiengesellschaft Gulf International Bank BSC Travelers Insurance Company BNP Paribas Group Hamburgische Landesbank-Girozentrale UBAE Arab Italian Bank SpA BRED Banque Populaire Hongkong and Shanghai Banking Corporation UBS AG Caisse des Depots et Consignations Limited Unibank A/S Caisse Centrale des Caisses d'Epargne et de Industrial Bank of Japan Ltd. Union National Bank Prevoyance ING Group NV Westdeutsche Landesbank Girozentrale Caixa Geral de Depositos SA Acronyms, Notes, and Definitions ACRONYMS ADB Asian Development Bank IFCG IFC Global indexes AEF Africa Enterprise Fund IFCI IFC Investable indexes AfDB African Development Bank IMF International Monetary Fund AMSCO African Management Services Company IPO initial public offering APDF Africa Project Development Facility LAC Latin America and the Caribbean ASEAN Association of Southeast Asian Nations LIBOR London interbank offered rate BOT Build-Operate-Transfer MENA Middle East and North Africa BOOT Build-Own-Operate-Transfer MIGA Multilateral Investment Guarantee Agency CFA African Financial Community MPDF Mekong Project Development Facility CLF Caribbean Loan Facility NGO nongovernmental organization EBRD European Bank for Reconstruction and Development OECD Organization for Economic Cooperation and Development EMDB Emerging Markets Data Base OEG Operations Evaluation Group EPU Environmental Projects Unit PIIF Pacific Island Investment Facility ESSA Enterprise Support Services for Africa SADC Southern African Development Community FDI foreign direct investment SCI special capital increase FIAS Foreign Investment Advisory Service SEF Small Enterprise Fund GCI general capital increase SME small and medium enterprise GDP gross domestic product SOE state-owned enterprise GDR global depositary receipt SPPF South Pacific Project Facility GEF Global Environment Facility TATF Technical Assistance Trust Funds GNP gross national product UEMOA West African Economic and Monetary Union IBRD International Bank for Reconstruction and Development UNDP United Nations Development Programme IDA International Development Association USAID United States Agency for International Development IFC International Finance Corporation WTO World Trade Organization NOTES AND DEFINITIONS 1. IFC's fiscal year runs from July 1 to June 30. Thus, FY00 began on July 1, 6. In the Project Approvals tables, the "IFC Other" column contains 1999, and ended on June 30, 2000. guarantees and risk management transactions. 2. The World Bank includes both IBRD and IDA. The World Bank Group 7. A single loan agreement between IFC and the borrower normally stipulates includes IBRD, IDA, IFC, and MIGA. the full amount of financing to be provided by IFC and the participating institutions. The IFC loan is typically in two portions 3. Investment amounts are given in US. dollars, regardless of the currencies The A-loan is IFC's own portion, funded with IFC's own resources and of the investment. Investment amounts in non-US. dollar currencies are subject to its agreed loan terms. revalued on the ending day of the month in which they are approved. The B-loan is funded by participants on terms that may differ from those 4. Figures cited in connection with project financing may refer to the of IFC. following: following: ~~~~~~~~~~~~~~~8. On-lending: The process of lending through intermediaries, such as lo( al 120 Approvals-Loans, syndicated loans, guarantees, equity and quasi-equity On-lendi The proes s of t nterm es, investments, and underwvritings approved by the Board of Directors during c FY00. 9. Quasi-equity instruments incorporate both loan and equity features, Commitments-Loans and investments for which agreements were signed wvhich are designed to provide varying degrees of risk/return trade-off, by IFC during FY00. that lie between those of straight loan and equity investments. Disbursements-Loans and investments actually paid out during FY00. I 0.IFC and participants fully share the commercial credit risks of projects, 5. In some tables, totals may differ from the sum of individual figures but, because IFC is the Lender of Record, participants receive the same berause of rounding. tax and country risk benefits that IFC derives from its special status as a multilateral financial institution. PROJECT MANAGER AND EDITOR ENGLISH PROOFING Desmond Dodd StanleyThawley CHIEF OF PUBLICATIONS TRANSLATION AND PROOFING Dana Lane ARABIC: Al-Ahram Center for Translation and Publishing, Cairo PROJECT ASSISTANT CHINESE: China Financial and Economic Lisa Roman Publishing, Beijing CORPORATE RELATIONS FRENCH AND SPANISH: World Banik CONTRIBUTORS Translation Division (GSDTR), Mark Constantine, Manager; Washington, DC Chitra Alvis, Brigid Janssen, Mary Mbanefo, RUSSIAN: lzdatelstvo VES MIR, Moscow Shawn Miller, Rob Wright PRIMARY IFC STAFF DESIGN CONTRIBUTORS Grafik Marketing Communications, Ltd., Philippe Ahoua Toshiya Masuoka Alexandria. Virginia Teresa Andaya Kathleen McGann Anthony Aylward Linda Morra ILLUSTRATION Marc Babin Judith Apiyo Ombura Stephan Daigle Deborah Barry Lory Camba Opem Joan Bayard Nicholas Pardoe PORTRAIT PHOTOGRAPHY Paul Bravery Feresteh Raissian Jeanine Delay Nadir Rehman Breton Littlehales Gorton De Mond Ellen Schwab David Donaldson Kalim Shah PROJECT PHOTOGRAPHY Kutlay Ebiri Bernard Sheahan Jams mer Soya Tne Markc Fallander, Ricardo Figueroa, James Emery Stoyan Tenev Rula Halawvani, R.L. McCowan Peggy Henderson Jennifer Wishart Rana Karadsheh Jan Peter Wogart Gjergj Konda Wai-Keen Wong PRINTING Jarboe Printing, Washington. DC INTERNS Patrick Graham, Pia Ohlen International Finance Corporation TELEPH-ONE- 2O2-4711-.- - Zi 2 1PENNS LANIA AWE-, FACSIMILE 20 2-$ 4333 :uAS HIN.GO-N, DC 2043S' U-S www.ifC2org v2Fc iSB3N O-8214843-z'