NERRA W.J NILoC IncreasIng Impact The year in review 2006 InternatIonal FInanCe CorporatIon 2006 ANNuAL REPoRT VoLuME 2 Volume 2 Contents Management's Discussion and Analysis 2 Responsibility for External Financial Reporting 32 Financial Statements 34 Project Commitments 65 Investment Portfolio 88 Participants in Loan Syndications 142 Technical Assistance and Advisory Projects 143 Board of Governors 170 Board of Directors and Voting Power 175 IFC Management 177 Acronyms, Notes, and Definitions 181 Management's Discussion and analysis I. OVERVIEW International Finance Corporation (IFC or the Corporation) is an international organization, established in 1956, to further economic growth in its developing member countries by promoting private sector development. IFC is a member of the World Bank Group, which also includes the International Bank for Reconstruction and Development (the World Bank), the International Development Association (IDA), and the Multilateral Investment Guarantee Agency (MIGA). It is a legal entity separate and distinct from the World Bank, IDA, and MIGA, with its own Articles of Agreement, share capital, financial structure, management, and staff. Membership in IFC is open only to member countries of the World Bank. As of June 30, 2006, IFC's entire share capital was held by 178 member countries. IFC's principal products are loans and equity investments, with a small guarantee portfolio. Unlike most multilateral development institutions, IFC does not accept host government guarantees of its loans. IFC raises virtually all of the funds for its lending activities through the issuance of debt obligations in the international capital markets, while maintaining a small borrowing window with the World Bank. Equity investments are funded from net worth. During the year ended June 30, 2006 (FY06), IFC had an authorized borrowing ceiling of $2.5 billion (including $0.5 billion to allow for possible prefunding of the funding program for the year to June 30, 2007 (FY07) during FY06). IFC's capital base and its assets and liabilities are primarily denominated in US dollars. The Corporation seeks to minimize market risk (foreign exchange and interest rate risks) by closely matching the currency, rate bases, and maturity of its liabilities in various currencies with assets having the same characteristics. The Corporation controls residual market risk by utilizing currency and interest rate swaps and other derivative instruments. PAGE 2 IFc annual report 2006 II. FINANCIAL SUMMARY Basis of preparation of the Corporation's financial statements The accounting and reporting policies of the Corporation conform to accounting principles generally accepted in the United States (US GAAP). The Corporation has traditionally prepared one set of financial statements and footnotes, complying with both US GAAP and International Financial Reporting Standards (IFRS). However, principally due to material differences between US Statement of Financial Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended by SFAS No. 138, Accounting for Certain Derivatives and Certain Hedging Relationships (collectively SFAS No. 133), and its counterpart in IFRS, IAS No. 39, Financial Instruments Recognition and Measurement, it has not been possible for the Corporation to satisfy the requirements of both US GAAP and IFRS via one set of financial statements since the year ended June 30, 2000. IFC is actively monitoring developments related to accounting standards and the primary basis for preparation of its financial statements, all with a view to the necessary systems and controls to manage its various lines of business. IFC now plans to resume presentation of its financial statements using IFRS upon completion of the evaluation of an Exposure Draft of Proposed Amendments to IAS 32, Financial Instruments: Presentation and IAS 1, Presentation of Financial Instruments ­ Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation, issued in June 2006, and in particular the application of this proposed amendment to IFC's capital stock. Unless stated otherwise, discussions of financial performance herein refer to income after expenditures for technical assistance and advisory service (TAAS), and expenditures for performance-based grants (PBG) (operating income). Operating income excludes the effects of net gains (losses) on non-trading financial instruments pursuant to SFAS No. 133. The effects of SFAS No. 133 on net income are discussed in Section VII. Financial performance summary From year to year, IFC's operating income is affected by a number of factors, principally the magnitude of provisions for losses against its loans and guarantees; impairment of equity investments; loans in nonaccrual status and recoveries of interest on loans formerly in nonaccrual status; and income (dividends and capital gains) generated from its equity portfolio. A significant part of IFC's liquid assets portfolio is invested in fixed income securities, which are also subject to external market factors that affect the value of such securities, adding variability to operating income. Net income also includes net gains and losses on financial instruments other than from trading activities, pursuant to SFAS No. 133. IFC has been consistently profitable since its inception in 1956, and recorded operating income for FY06 of $1,409 million, as compared with $1,953 million for the year ended June 30, 2005 (FY05), and $982 million for the year ended June 30, 2004 (FY04). The $1,953 million of operating income in FY05 was a record high for the Corporation. FY06 operating income continued to reflect strong contributions across each of IFC's main product lines: loans, equities and treasury operations. The Corporation reported net income in FY06, including the effects of SFAS No. 133, of $1,278 million, as compared with record net income of $2,015 million for FY05 and $993 million for FY04. The Corporation's operating income for the past five fiscal years ended June 30 is presented below: 2,000 1,600 1,200 millions 800 U.S.$ 400 0 2002 2003 2004 2005 2006 Fiscal year ended June 30 volume 2PAGE 3 The table below presents selected financial data for the last five fiscal years (in millions of US dollars, except where otherwise stated): As of and for the years ended June 30 2006 2005 2004 2003 2002 Net income highlights: Interest income and financial fees from loans 807 660 518 477 547 Income from liquid asset trading activities 444 358 177 475 524 Charges on borrowings (603) (309) (141) (226) (438) Income from equity investments 1,228 1,365 658 145 160 Of which: Realized capital gains on equity sales 928 723 386 52 288 Dividends and profit participations 327 258 207 147 141 Amortization of UJV conditional asset retirement obligations (8) - - - - Unrealized income from LLPs and certain LLCs 56 191 - - - Changes in carrying value of equity investments - 269 69 (50) (268) Equity investment impairment write-downs (57) (62) - - - Net losses on equity-related derivatives and custody & other fees (18) (14) (4) (4) (1) (Provision for) release of provision for losses on loans & guarantees (15) 261 103 (48) (389) Net other expense (362) (344) (304) (295) (243) Income before expenditures for TAAS, PBG and net (losses) gains on non- 1,499 1,991 1,011 528 161 trading financial instruments Expenditures for TAAS (55) (38) (29) - - Expenditures for PBG (35) - - - - Income after expenditures for TAAS and PBG (operating income) 1,409 1,953 982 528 161 Net (losses) gains on non-trading financial instruments (131) 62 11 (41) 54 Net income 1,278 2,015 993 487 215 Consolidated balance sheet highlights: Total assets 38,420 39,560 32,361 31,543 27,739 Liquid assets, net of associated derivatives 12,730 13,325 13,055 12,952 14,532 Loans and equity investments, net 12,731 11,489 10,279 9,377 7,963 Borrowings withdrawn and outstanding 14,967 15,359 16,254 17,315 16,581 Total capital 11,076 9,798 7,782 6,789 6,304 Of which: Undesignated retained earnings 7,859 6,871 5,193 4,425 3,938 Retained earnings designated for TAAS 487 312 225 - - Retained earnings designated for PBG 215 250 - - - Retained earnings designated for grants to IDA 150 - - - - Capital stock 2,364 2,364 2,361 2,360 2,360 Other 1 1 3 4 6 Key financial ratios: (1) Return on average assets (2) 3.6% 5.4% 3.1% 1.8% 0.6% Return on average net worth (3) 13.7% 22.6% 13.7% 8.2% 2.7% Cash and liquid investments as a percentage of next three years' estimated net cash requirements 112% 142% 116% 107% 109% Debt to equity ratio (4) 1.5:1 1.8:1 2.3:1 2.6:1 2.8:1 Capital adequacy ratio (5) 54% 50% 48% 45% 49% Total reserve against losses on loans to total disbursed loan portfolio (6) 8.3% 9.9% 14.0% 18.2% 21.9% 1. Key financial ratios are generally calculated excluding the effects of SFAS No. 133. 2. Return on average assets is defined as operating income for the fiscal year as a percentage of the average of total assets at the end of such fiscal year and the previous fiscal year. 3. Return on average net worth is defined as operating income for the fiscal year as a percentage of the average of total net worth (excluding payments on account of pending subscriptions) at the end of such fiscal year and the previous fiscal year. 4. Debt to equity ratio is defined as the ratio of outstanding borrowings plus outstanding guarantees to subscribed capital plus retained earnings at the end of the fiscal year. 5. Capital adequacy ratio is defined as the ratio of capital (including paid-in capital, retained earnings, and general loan loss reserve) to risk-weighted assets, both on- and off-balance sheet. 6. Total reserves against losses on loans to total disbursed loan portfolio is defined as reserve against losses on loans as a percentage of the total disbursed loan portfolio at the end of the fiscal year. PAGE 4 IFc annual report 2006 III. CLIENT SERVICES Business overview In partnership with private investors, IFC assists in financing the establishment, improvement, and expansion of private sector enterprises by making investments where sufficient private capital is not otherwise available on reasonable terms. IFC seeks to bring together domestic and foreign private capital and experienced management and thereby create conditions conducive to the flow of private capital (domestic and foreign) into productive investments in its developing member countries. In this way, IFC plays a catalytic role in mobilizing additional project funding from other investors and lenders, either through cofinancing or through loan syndications and guarantees. In addition to project finance (described below) and resource mobilization, IFC offers financial and technical advisory services to private businesses in developing member countries. It also advises member governments on private sector development matters. IFC's investments are normally made in its developing member countries. The Articles of Agreement mandate that IFC shall invest in productive private enterprise. The requirement for private ownership does not disqualify enterprises that are partly owned by the public sector if such enterprises are organized under local commercial and corporate law, operate free of host government control in a market context and according to profitability criteria, and/or are in the process of being totally or partially privatized. The Corporation's main investment activity is project financing. This encompasses "greenfield" projects, expansions, and modernizations. IFC also provides corporate credits to selected companies to finance ongoing programs of investment projects. In addition, the Corporation facilitates financing through financial intermediaries, covering project and general purpose lending and specialized lending products such as leasing, trade, and mortgage finance. These financial intermediaries function either as IFC's borrower, on-lending to private sector companies at their own risk, or as IFC's agent, identifying companies for direct loans from IFC. The Corporation applies stringent tests of enterprise soundness, project viability, and developmental impact in determining the eligibility of projects for its investments. Technical assistance and advisory services IFC has historically delivered its mission primarily through investments. IFC has increased its efforts in frontier markets and sustainable development impact. As a result, the demands on the Corporation for associated advisory work and technical assistance have increased and continue to grow. In FY04, IFC established a funding mechanism for technical assistance and advisory services, funded by designations of IFC's retained earnings. This funding mechanism finances project development facilities, private enterprise partnerships, and similar facilities focused on small and medium-size enterprise development and similar initiatives. Amounts designated for technical assistance and advisory services are determined based on the Corporation's annual operating income in excess of $150 million, contemplating the financial capacity and priorities of the Corporation, and are approved by the Corporation's Board of Directors prior to the issuance of the annual financial statements. Expenditures for the various approved technical assistance and advisory projects are recorded as expenses in the Corporation's income statement in the year in which they occur, beginning in FY05, and have the effect of reducing retained earnings designated for this specific purpose. Prior to FY06, IFC's Board of Directors had approved designations of $350 million of the Corporation's retained earnings. On August 7, 2006, IFC's Board of Directors approved a further designation of $230 million of the Corporation's retained earnings. IFC incurred expenditures for technical assistance and advisory services of $38 million in FY05 and $55 million in FY06, thereby reducing the amount of retained earnings designated for technical assistance and advisory services at June 30, 2006 to $487 million. Additional information on the funding mechanism for technical assistance and advisory services can be found in Notes A and K to the Corporation's FY06 financial statements. Performance-based grants In FY05, IFC began the analysis to create a program to fund performance-based grants, targeted at specific industries in developing countries, particularly frontier areas. The performance-based grants initiative (PBGI) establishes a pool of resources for funding performance-based grants to individual private-sector projects in developing markets. The PBGI furthers IFC's frontier strategy by opening new opportunities to generate developmental impact. volume 2PAGE 5 The initiative had been discussed by IFC's Board of Directors during the second half of FY05 but no decisions on the principles or modalities of the initiative were made at that time. As a result, IFC designated $250 million of retained earnings for the initiative, with further deliberations to occur in FY06 on the principles and specifics of the initiative. On March 30, 2006, IFC's Board of Directors approved an implementation mechanism for the initiative and an initial pilot phase of $65 million. During FY06, IFC provided $35 million to the World Bank's Global Partnership on Output Based Aid under the pilot phase; this amount has been recorded as an expense in FY06, thereby reducing the amount of retained earnings designated for performance-based grants at June 30, 2006 to $215 million. Grants to IDA As part of the efforts of the members of the World Bank Group to increase their cooperation, and in particular to benefit the poorest countries, IFC and IDA have discussed the possibility of providing resources for the benefit of IDA projects in countries which are members of both IFC and IDA. IFC plans to grant monies to IDA to be applied to IDA grant projects that encourage the growth of productive private enterprise in countries that are members of both IFC and IDA. On August 7, 2006, IFC's Board of Directors approved the designation of $150 million to IDA for such purposes. Investment process and portfolio supervision IFC's investment process can be divided into six main stages: Prior to May 15, 2006, the initial four stages were carried out under the Identification and responsibility of the Vice President, Investment Operations. Beginning on May appraisal 15, 2006 they were carried out under the responsibility of the Vice President, Board approval Industries. During FY06, the fifth and sixth stages were overseen by the Vice Document negotiation President, Portfolio and Risk Management. Commitment Disbursement The Corporation carefully supervises its projects to monitor project Supervision performance and compliance with contractual obligations and with IFC's internal policies and procedures. IFC's Board of Directors is informed of such matters and of recommended courses of action at regular intervals. Investment program summary Commitments In FY06, the Corporation entered into new commitments totaling $6.7 billion, compared with $5.4 billion for FY05. Loan and equity investment commitments pending disbursement at June 30, 2006 were $6.9 billion ($5.8 billion at June 30, 2005). Guarantees and client risk management facilities committed but not utilized at June 30, 2006, were $0.8 billion ($0.8 billion at June 30, 2005). FY06 and FY05 commitments comprised the following: 7,000 Guarantees & other 6,000 Quasi-equity 5,000 Equity Loans 4,000 millions 3,000 U.S.$2,000 1,000 0 IFC Participants IFC Participants FY06 FY06 FY05 FY05 Fiscal year PAGE 6 IFc annual report 2006 Disbursements IFC disbursed $4.4 billion for its own account in FY06 ($3.5 billion in FY05). IFC's disbursed and outstanding loan portfolio for its own account, including fair value adjustments for loans in qualifying hedging relationships and unamortized net deferred loan origination fees (disbursed loan portfolio) grew 8.5% to $10.8 billion at June 30, 2006 ($10.0 billion at June 30, 2005). IFC's equity investment portfolio, net of impairment write-downs and including adjustments to investments accounted for under the equity method and unrealized gains on equity investments held by consolidated Variable Interest Entities (VIEs) (disbursed equity portfolio), grew 12.3% to $2.8 billion at June 30, 2006 ($2.5 billion at June 30, 2005). Approvals In FY06, IFC approved new investments for its own account, including guarantees and client risk management facilities, totaling $7.1 billion, representing 286 projects, compared with $6.6 billion in FY05, representing 252 projects. In addition, IFC approved loan participations (B-loans) arranged to be placed with financial institutions (Participants) for loans approved by the Corporation's Board of Directors totaling $2.2 billion in FY06, compared with $1.9 billion in FY05. FY06 and FY05 approvals comprised the following: 7,000 Guarantees & other 6,000 Quasi-equity 5,000 Equity Loans 4,000 millions 3,000 U.S.$2,000 1,000 0 IFC Participants IFC Participants FY06 FY06 FY05 FY05 Fiscal year Approvals pending commitment for IFC's own account at June 30, 2006, including guarantees and client risk management facilities, were $3.6 billion ($3.5 billion at June 30, 2005). Disbursed investment portfolio The Corporation's disbursed investment portfolio is widely diversified by sector and geographic region. The following charts show the distribution of the portfolio (before adjustments to investments accounted for under the equity method, unrealized gains on equity investments held by consolidated VIEs, unamortized net deferred loan origination fees and fair value adjustments for loans in qualifying hedge relationships) as of June 30, 2006 and June 30, 2005: volume 2PAGE 7 Distribution by sector 35 30 25 20 portfolio 15 of % 10 5 0 A B C D E F G H I J K L M N O P Q R S A--Finance and insurance K--Agriculture and forestry FY06 B--Utilities L--Wholesale and retail trade C--Oil, gas, and mining M--Accommodation and tourism services FY05 D--Transportation and warehousing N--Paper and pulp E--Industrial consumer products O--Primary metals F--Nonmetallic mineral product manufacturing P--Textiles, apparel, and leather G--Information Q--Plastics and rubber H--Food and beverages R--Construction and real estate I--Chemicals S--Other J--Collective investment vehicles Distribution by geographic region Europe and Central Asia Latin America and Caribbean Asia Sub-Saharan Africa Middle East and North Africa Other FY06 FY05 Disbursed B-loans The portfolio of disbursed and outstanding B-loans which are serviced by the Corporation at June 30, 2006 totaled $3.9 billion in 172 transactions, compared with $4.4 billion in 204 transactions at June 30, 2005. Additional information on IFC's loans and equity investments as of and for the years ended June 30, 2006 and June 30, 2005 can be found in Notes C, D , E, F and G to the Corporation's FY06 financial statements. Investment products Loans Loans account for the major part of the financing provided by IFC, representing 79% of the Corporation's disbursed investment portfolio as of June 30, 2006, compared with 80% at June 30, 2005. PAGE 8 IFc annual report 2006 Loans will generally have the following characteristics: Term: typically amortizing with final maturities of up to 12 years Currency: primarily in major convertible currencies, principally US dollar, and to a lesser extent, Euro, Swiss franc and Japanese yen Interest rate: fixed or variable Pricing: reflects such factors as market conditions and country and project risks; variable rate loans are generally tied to the 6-month LIBOR index in the relevant currency. IFC offers local currency loan products to certain clients, provided that the Corporation is able to hedge its local currency exposure through mechanisms such as cross-currency swaps or forward contracts. Fixed-rate loans and loans in currencies other than US dollars are normally transformed, using currency and/or interest rate swaps, into US dollar variable rate loans. On June 30, 2006, IFC's disbursed loan portfolio was $10.8 billion ($10.0 billion at June 30, 2005). At June 30, 2006, 76% (81% at June 30, 2005) of the Corporation's disbursed loan portfolio, excluding fair value adjustments for loans in qualifying hedging relationships and unamortized net deferred loan origination fees, was US dollar- denominated. The currency composition of the disbursed loan portfolio, excluding fair value adjustments for loans in qualifying hedging relationships and unamortized net deferred loan origination fees, at June 30, 2006 and June 30, 2005 is shown on the accompanying diagram: 12,000 FY06 10,000 FY05 8,000 millions 6,000 U.S.$ 4,000 2,000 0 U.S. Dollars Euro Other currencies Total Equity Equity investments accounted for 21% of the Corporation's disbursed investment portfolio at June 30, 2006, compared with 20% at June 30, 2005. IFC's equity investments are typically in the form of common or preferred stock and are usually denominated in the currency of the country in which the investment is made. Quasi-equity In addition to traditional equity investments, the Corporation provides financing through a variety of quasi-equity instruments, which constitute a growing portion of its investment portfolio. Quasi-equities include subordinated or convertible loans, asset-backed securities, mortgage-backed securities, and certain common or preferred shares with put and/or call features. Depending upon their characteristics, quasi-equities may be classified as either loans or equity investments in the Corporation's consolidated balance sheet. At June 30, 2006, the Corporation's disbursed quasi-equity portfolio, before fair value adjustments on loans in qualifying hedging relationships, adjustments to investments accounted for under the equity method, unrealized gains on equity investments held by consolidated VIEs, and unamortized net deferred loan origination fees, totaled $1,935 million ($1,768 million at June 30, 2005), of which $1,808 million was classified as loans ($1,638 million at June 30, 2005) and $127 million was classified as equity investments ($130 million at June 30, 2005) in the Corporation's consolidated balance sheet. volume 2PAGE Loan participations (B-loans) IFC finances only a portion, usually not more than 25%, of the cost of any project. All IFC-financed projects, therefore, require other financial partners. The principal direct means by which the Corporation mobilizes such private sector finance is through the sale of participations in its loans, known as the B-loan program. Through the B-loan program, IFC has worked primarily with commercial banks but also with nonbank financial institutions in financing projects since the early 1960s. Over 150 commercial banks and nonbank financial institutions currently participate in IFC's B-loan program. Whenever it participates a loan, IFC will always make a loan for its own account (an A-loan), thereby sharing the risk alongside its loan participants. IFC acts as the lender of record and is responsible for the administration of the entire loan, including the B-loan. IFC charges fees to the borrower at prevailing market rates to cover the cost of the syndication of the B-loan. Since it began its loan syndication program, IFC has placed participations totaling $26 billion. Client risk management products IFC provides clients with access to asset and liability management tools such as currency swaps and interest rate swaps, caps and floors by acting as an intermediary between clients and market counterparties. IFC also provides risk-sharing structures and guarantees that allow its clients to transact directly with market counterparties. Guarantees and partial credit guarantees The Corporation offers partial credit guarantees to clients covering, on a risk-sharing basis, client obligations on bonds and/or loans. The Corporation's guarantee is available for debt instruments and trade obligations of clients and covers commercial as well as noncommercial risks. IFC will provide local currency guarantees, but when a guarantee is called, the client will generally be obligated to reimburse the Corporation in US dollar terms. Guarantee fees are consistent with IFC's loan pricing policies. During FY06, the Corporation signed $0.6 billion of guarantees, $0.2 billion in FY05. Advisory activities The Corporation, on its own or through a department jointly managed with the World Bank, provides three general types of advisory services to member countries and individual enterprises: Special advisory services on project structuring and financial packaging. Financial advisory services provided to member governments or to private sector clients. Policy advice to governments on capital markets development and private sector development, including privatization and foreign investment. The Corporation also assists governments with developing legal frameworks for privatizing their state-owned sectors and selling individual enterprises. Fees are charged for advisory services consistent with market rates charged for comparable services. IFC recorded such fees amounting to $52 million for FY06 ($41 million for FY05 and $41 million for FY04). PAGE 10 IFc annual report 2006 Technical assistance and advisory services Technical assistance and advisory services (TAAS) involve the provision of advice and capacity building support and services to entities external to the Corporation. TAAS are key to IFC's development mission and now form a core line of business that is part of IFC's "branding." IFC's TAAS are central to IFC's mission of improving the private sector in its member countries. IFC's TAAS operations are often the focal point of IFC's engagement in many member countries where investment opportunities are nascent. Currently IFC implements TAAS operations in more than 100 countries. Beginning in FY05, the Corporation established a funding mechanism for TAAS, funded by designations of IFC's retained earnings, in order to address its increased efforts in TAAS. IFC delivers TAAS through mechanisms such as Project Development Facilities and Private Enterprise Partnerships. In FY06, expenditures for TAAS totaled $55 million ($38 million for FY05 and $29 million in FY04). In FY06, such initiatives included: The Private Enterprise Partnership, which provides focused technical assistance, with the goal of helping build successful private businesses in the former Soviet Union region. The Private Enterprise Partnership for Africa, which enhances support to Small and Medium-Size Enterprises (SMEs) through project development and engaging in improving the investment climate. The Private Enterprise Partnership for the Middle East and North Africa (MENA), which provides technical assistance to support private sector development to all countries in the MENA region. The Latin America SME Facility, which promotes private sector growth through SMEs in selected countries in Latin America with the aim of fostering job creation and reducing poverty in the host countries. The Grassroots Business Initiative, which strengthens and expands support to grassroots business organizations. volume 2PAGE 11 IV. TREASURY SERVICES Liquid assets IFC invests its liquidity in highly rated fixed and floating rate instruments issued by, or unconditionally guaranteed by, governments, government agencies and instrumentalities, multilateral organizations, and AAA-rated corporate issuers; these include mortgage- and asset-backed securities, time deposits and other unconditional obligations of banks and financial institutions. The Corporation manages the market risk associated with these investments through a variety of hedging techniques including derivatives, principally currency and interest rate swaps and financial futures. IFC's liquid assets are invested in five separate portfolios. MARKET MANAGED PORTFOLIO VALUE * COMPRISING BY INVESTED IN BENCHMARK P0 $1.2bn Funds awaiting disbursement IFC's Treasury Short-term deposits US overnight Fed ($1.0bn) or reinvestment Department funds P1 $5.2bn Proceeds from market IFC's Treasury Principally global Since January 2001, ($6.7bn) borrowings invested pending Department government bonds, adjusted 3-month disbursement of operational asset-backed securities, US dollar LIBID. ** loans and other AAA-rated Prior to January corporate bonds 2001, 6-month US generally swapped into dollar LIBOR 6-month US dollar LIBOR P2 $4.9bn Primarily the Corporation's IFC's Treasury US Treasuries and other Lehman Brothers ($4.1bn) paid-in capital and Department sovereign and agency Intermediate US accumulated earnings that issues Treasury Index *** have not been invested in equity and quasi-equity investments or fixed-rate loans P3 $1.0bn Proceeds from market External Global government Same as for P1 ($1.1bn) borrowings managers bonds and mortgage- appointed by backed securities IFC P4 $0.4bn An outsourced portion of the External US Treasuries and other Same as for P2 ($0.4bn) P2 portfolio managers sovereign and agency appointed by issues IFC Total $12.7bn * at June 30, 2006 (June 30, 2005) ($13.3bn) ** adjusted 3 month US dollar LIBID=US dollar LIBOR-12.5 basis points. The net duration of the P1 and P3 benchmarks is approximately 0.25 years. ***duration of P2 portfolio plus fixed-rate loans The P3 portfolio is not permitted to exceed 12% of the total value of liquid assets at any time. All portfolios are accounted for as trading portfolios. The Corporation has a flexible approach to managing the liquid assets portfolios by making investments on an aggregate portfolio basis against its benchmark within specified risk parameters. In implementing these portfolio management strategies, the Corporation utilizes derivative instruments, including futures, and options, and takes long or short positions in securities. All liquid assets are managed according to an investment authority approved by IFC's Board of Directors and investment guidelines approved by IFC's Finance and Risk Committee, a subcommittee of the Corporation's Management Group. PAGE 12 IFc annual report 2006 Capitalization The Corporation's capitalization as of June 30, 2006 and June 30, 2005 is as follows: Borrowings from market sources Borrowings from the World Bank Paid-in capital Retained Earnings Other FY06 FY05 Borrowings The major source of IFC's borrowings is the international capital markets. Under the Articles of Agreement, the Corporation may borrow in the public markets of a member country only with approvals from that member and also the member in whose currency the borrowing is denominated. The Corporation borrowed $1.8 billion during FY06 ($2.0 billion in FY05 and $3.0 billion in FY04). In addition, IFC's Board of Directors has authorized the repurchase and redemption of and tender for debt obligations issued by the Corporation. During FY06, the Corporation repurchased and retired $209 million of outstanding debt ($133 million in FY05). IFC diversifies its borrowings by currency, country, source, and maturity to provide flexibility and cost- effectiveness. Outstanding market borrowings have remaining maturities ranging from less than one year to almost 30 years, with a weighted average remaining maturity of 10.7 years at June 30, 2006 (11.6 years at June 30, 2005). Market borrowings are generally swapped into floating-rate obligations denominated in US dollars. As of June 30, 2006 the Corporation had gross payables from borrowing-related currency swaps of $8.5 billion ($9.4 billion at June 30, 2005) and from borrowing-related interest rate swaps in the notional principal amount of $6.7 billion ($6.7 billion at June 30, 2005). After the effect of these derivative instruments is taken into consideration, substantially all of the Corporation's market borrowings at June 30, 2006, and all of the Corporation's market borrowings at June 30, 2005, were US dollar-denominated. The weighted average cost of market borrowings after currency and interest rate swap transactions was 4.9% at June 30, 2006 (3.3% at June 30, 2005). Capital and retained earnings As of June 30, 2006, IFC's net worth (presented as Total Capital in the Corporation's consolidated balance sheet) amounted to $11.1 billion, up from the June 30, 2005 level of $9.8 billion. At June 30, 2006, net worth comprised $2.4 billion of paid-in capital, unchanged from June 30, 2005, and $8.7 billion of retained earnings ($7.4 billion at June 30, 2005). As of June 30, 2006 and 2005, IFC's authorized capital was $2.45 billion, of which $2.36 billion was subscribed at June 30, 2006, unchanged from June 30, 2005. Over 99% of this was paid in ($2.36 billion at June 30, 2006, and June 30, 2005). The Corporation has agreed to defer the payment dates for certain member countries. Pursuant to these arrangements, $1 million of subscribed shares remained unpaid at June 30, 2006, unchanged from June 30, 2005. At June 30, 2006, retained earnings comprised $7.8 billion of undesignated retained earnings ($6.9 billion at June 30, 2005), $0.5 billion of retained earnings for TAAS ($0.3 billion at June 30, 2005), $0.2 billion of retained earnings designated for PBG ($0.3 billion at June 30, 2005), and $0.2 billion of retained earnings designated for grants to IDA ($0 at June 30, 2005). volume 2PAGE 13 V. ENTERPRISE RISK MANAGEMENT In executing its sustainable private sector development business, IFC assumes various kinds of risks. The Corporation's management has defined a comprehensive enterprise risk management framework, within which it recognizes four main risk groupings: strategic risk, credit risk, financial risk, and operational risk. Strategic Risk: IFC Development Mission, Environment & Social, Reputation IFC's Enterprise Credit Risk Financial Risk: Management Risk: Client, Market, Country, & Funding, & Counterparty Liquidity Operational Risk: Operational Risk: People, Systems & Processes People, Systems, & Processes Active management of these risks is a key determinant of the Corporation's success and its ability to maintain a stable capital and earnings base, and is an essential part of its operations. As part of its enterprise risk management framework, the Corporation has adopted several key financial and exposure policies and a number of prudential policies. FY06 enterprise risk highlights The recently created Project Risk Management function (organized as part of IFC's Financial Operations Department) has developed and implemented detailed operational risk management controls and procedures and has implemented these across our most important industry groups. These updated procedures will be implemented in FY07 for all new projects. Also in FY07, this group will establish appropriate staff in the regional centers, thus significantly improving the management of investment project administration and compliance monitoring within the regions. The Corporation initiated policy reviews in two areas: first, of its financial policies, to confirm that these are in line with new business imperatives and best practices in risk management; secondly, of its Safeguard Policies, Policy on Disclosure of Information, and Environmental, Health & Safety (EHS) Guidelines, involving a comprehensive update of its policies and guidelines, subsequent to stakeholder consultation and expert guidance. The Corporation is committed to ensuring that it has timely, effective and efficient risk management controls at each step of its investment process, and in FY06, made the commitment to increase risk management staffing and to place key credit risk managers in the regional hubs to improve the timeliness and quality of the risk decision process. The sophistication of the risk process at IFC necessitates reviews of economic and social risks, corporate governance standards for clients, and reputation risk reviews in addition to the more traditional credit quality and operational concerns. The Corporation believes that this move to put key decision risk makers in the regions will significantly improve the quality of its enterprise risk management, and will implement this strategy in the first quarter of FY07. Strategic risk IFC defines strategic risk as the potential reputational, financial and other consequences of a failure to achieve its strategic mission and, in particular, its sustainable development mandate. The overall management of strategic risk is effected through the definition and implementation of an annual strategy for meeting the Corporation's mission and guidelines for its investment operations and advisory services. The strategy is developed with Senior Management by the Operational Strategy Group, and is approved by the Board of Directors. The Independent Evaluation Group (formerly the Operations Evaluation Group) conducts ex post evaluations of the implementation of the Corporation's investment strategy on an ongoing basis. PAGE 14 IFc annual report 2006 The Corporation's commitment to quality enterprise risk management, particularly on the environment and social front, continues to gain acceptance with our strategic partners as the "Equator Principles" announced in FY05 have now become an established standard for financial institutions engaged in finance in the emerging markets. Responsibility for managing these economic and social risk principles both internally and in liaison with other financial institutions rests with the Environment and Social Development Department. In addition, the Corporation is focused on ensuring the evolving principles of corporate governance are accepted and practiced by our clients, and we place great emphasis on developing these standards as part of our development activities. Responsibility for managing corporate governance both internally and within projects rests with the Corporate Governance Department. More broadly, the responsibility for the management of the fundamental reputational risk associated with the selection of project sponsors and the review of aspects relating to integrity rests with the operational departments, in which they are supported by the Business Risk Department. The key guiding principles and policies established as part of the framework for controlling strategic risk are as follows: Guiding principles for IFC's operations Catalytic role: IFC will seek above all to be a catalyst in facilitating productive investments in the private sector of its developing member countries. It does so by mobilizing financing from both foreign and domestic investors from the private and public sectors. Business partnership: IFC functions like a business in partnership with the private sector. Thus, IFC takes the same commercial risks as do private institutions, investing its funds under the discipline of the marketplace. Additionality: IFC participates in an investment only when it can make a special contribution not offered or brought to the deal by other investors. Environmental and social policies The Corporation has developed a comprehensive set of Guidelines and Safeguard Policies to promote environmentally and socially responsible private sector investments. Project sponsors are given the Safeguard Policies for environmental and social issues to review prior to conducting their assessments, as well as the environmental, health, and safety guidelines specific to the particular industry, sector, and type of project. When making investments, IFC applies its standards to the project and project performance is monitored against those standards. Projects are expected to comply with the applicable policies and guidelines, as well as applicable local, national, and international laws. FY06 strategic risk highlights IFC's Environmental and Social Policies have become widely recognized as best practice when twelve international commercial banks adopted them in the form of the Equator Principles. To date, more than 30 leading international financial institutions have adopted these principles. During FY06, the Business Risk Department has started developing tools to help the Corporation's operational departments analyze broader reputation risks. Credit risk IFC defines credit risk as the potential reduction in value of on- and off-balance sheet assets due to a deteriorating credit profile of its clients, the countries in which it invests, or a financial counterparty. Credit risk is incurred in two areas of the Corporation's operations: (i) in its investment operations, where IFC provides loans, equity investments, guarantees and derivatives for clients in its developing member countries, and (ii) in its treasury operations, where credit risk is incurred with counterparties in IFC's liquid asset investment, borrowing and asset-liability management activities. As part of its mandate, IFC is prohibited from accepting host government guarantees of repayment on its investments and, therefore, incurs commercial and sovereign risk on its investments. volume 2PAGE 15 The Corporation's Risk Management and Financial Policy Department has oversight responsibility for overall credit risk management and, in addition, monitors and controls credit risk arising in IFC's treasury activities. With respect to IFC's credit risk exposures to clients in developing countries, the Credit Review Department plays a key role. At origination of new investments, the Credit Review Department analyzes information obtained from the investment departments and provides an independent review of the credit risk of the transaction. After commitment, the quality of IFC's loan and equity investment portfolio is monitored according to supervision principles and procedures defined in the Operational Policies and Procedures. Responsibility for the day-to-day monitoring and management of credit risk in the portfolio rests with the portfolio management units of individual investment departments. Their assessments are subject to quarterly review, on a sample basis, by the Loss Provisioning Division of the Controller's and Budgeting Department and by the Credit Review Department. The Corporation's investment portfolio is subject to a number of operational and prudential limits, including limitations on single project/client exposure, single country exposure, and segment concentration. Similarly, credit policies and guidelines have been formulated covering treasury operations; these are subject to annual revision by the Risk Management and Financial Policy Department, and approval by the Finance and Risk Committee. Specifically, IFC has adopted the following key exposure policies: Investment operations+ 1. IFC does not normally finance for its own account more than 25% of a project's cost. 2. An equity investment in a company does not normally represent more than 35% of the company's total share capital, provided further that IFC is not the single largest shareholder. Until IFC resumes presentation of its financial statements in accordance with IFRS, IFC's equity investment in a company will not normally represent more than 20% of the company's total share capital. 3. Investment in a single obligor may not exceed 4% of IFC's net worth plus general reserves on loans. 4. Equity plus quasi-equity investments in a single obligor may not exceed 3% of the Corporation's net worth plus general reserves on loans, and straight equity investments may not exceed 1.5%. Portfolio Management 1. Review trigger levels of between 2.5% and 10% of net worth plus general reserves on loans are set for each country's outstanding portfolio, net of specific reserves on loans, based on the size of its economy and its risk rating. 2. IFC lender of record disbursed exposure in a country may not exceed 10% for Heavily Indebted Poor Countries and 5% for all other countries. Exceptions for countries with low levels of external debt may be set by the Finance and Risk Committee. Lower trigger levels are set for certain countries. 3. The Corporation's total exposure to a single risk sector may not exceed 12% of net worth plus general reserves on loans. Lower review trigger levels are set for single sectors, and individually for the finance and insurance sector, based on IFC's net worth plus general reserves on loans and the country exposure level. 4. IFC's held guarantees that are subrogated in local currency are limited to $200 million. Treasury operations 1. Counterparties are subject to conservative eligibility criteria, currently restricted to banks and financial institutions with a minimum credit rating of A by leading international credit rating agencies. 2. Exposures to individual counterparties are subject to diversification caps. For derivatives, exposure is measured in terms of "worst case" potential exposure based on simulations of market variables. Institution-specific limits are updated monthly based on changes in counterparty size or credit status. 3. To limit exposure, IFC signs collateral agreements with counterparties that require the posting of collateral when net exposure exceeds certain predetermined thresholds, which decrease as a counterparty's credit rating deteriorates. 4. Because counterparties can be downgraded during the life of a transaction, the agreements provide an option for IFC to terminate all swaps if the counterparty is downgraded below investment grade or if other early termination events occur that are standard in the market. 5. Limits are also imposed on the volume of over-the-counter derivative transactions with individual counterparties. 6. For exchange-traded instruments, IFC limits credit risk by restricting transactions to a list of authorized exchanges, contracts and dealers, and by placing limits on the Corporation's open interest rate position in each contract. PAGE 16 IFc annual report 2006 FY06 credit risk highlights IFC does not recognize income on loans where collectibility is in doubt or payments of interest or principal are past due more than 60 days unless management anticipates that collection of interest is expected in the near future. The amount of nonaccruing loans as a percentage of the disbursed loan portfolio, excluding fair value adjustments for loans in qualifying hedging relationships and unamortized net deferred loan origination fees, a key indicator of portfolio performance, decreased to 4.1% at June 30, 2006 (6.4% at June 30, 2005). The principal amount outstanding on nonaccrual loans totaled $447 million at June 30, 2006, a decrease of $187 million (29%) from the June 30, 2005 level of $634 million. The quality of IFC's loan and equity investment portfolio, as measured by the aggregate risk level, improved further during FY06, continuing the trends noted during FY05 and FY04. As a result, total reserves against losses on loans at June 30, 2006, decreased to $898 million ($989 million at June 30, 2005). This is equivalent to 8.3% of the disbursed loan portfolio, excluding fair value adjustments for loans in qualifying hedging relationships and unamortized net deferred loan origination fees, significantly below the level of 9.9% at June 30, 2005. The five-year trend of reserves against losses on loans as a percentage of the disbursed loan portfolio, excluding fair value adjustments for loans in qualifying hedging relationships and unamortized net deferred loan origination fees, is presented below: 25 20 15 portfolio of 10 % 5 0 FY02 FY03 FY04 FY05 FY06 Fiscal year ended June 30 The Corporation operates under the assumption that the guarantee portfolio is exposed to the same idiosyncratic and systematic risks as IFC's loan portfolio and the inherent, probable losses in the guarantee portfolio need to be covered by an allowance for loss. The allowance at June 30, 2006, was $18 million ($13 million at June 30, 2005), based on the year-end portfolio, and is included in payables and other liabilities on the Corporation's consolidated balance sheet. The increase in allowance for the year, $5 million for FY06 ($3 million reduction for FY05), is included in the provision for losses on loans and guarantees in the consolidated income statement. The Corporation has not suffered credit losses on its exposures to derivatives counterparties in its treasury operations. Financial risk IFC defines financial risk in three components: (a) the potential inability to realize asset values in its portfolio sufficient to meet obligations to disburse funds as they arise (liquidity risk); (b) the potential inability to access funding at reasonable cost (funding risk); and (c) a deterioration in values of financial instruments or positions due to changes in market interest and exchange rates and the volatility thereof (market risk). volume 2PAGE 17 Key financial policies IFC currently operates under a number of key financial policies as detailed below, which have been approved by its Board of Directors: 1. Disbursed equity plus quasi-equity investments (net of impairment write-downs) may not exceed 100% of net worth and disbursed equity (net of write-downs) may not exceed 50% of net worth. 2. Minimum liquidity (liquid assets plus undrawn borrowing commitments from the World Bank) must be sufficient at all times to cover at least 65% of IFC's estimated net cash requirements for the next three years. 3. The currency, rate basis, and maturity of loan assets must be closely matched to borrowings; trigger levels at which foreign exchange and interest rate exposures are hedged are defined. 4. Capital (paid-in capital plus retained earnings plus general loan loss reserves) must equal at least 30% of risk-weighted assets. In addition, under IFC's Articles of Agreement, as long as IFC has outstanding borrowings from the World Bank, IFC's leverage, as measured by the ratio of IFC's debt (borrowings plus outstanding guarantees) to IFC's equity (subscribed capital plus retained earnings), may not exceed 4.0 to 1. Liquidity risk Within the key financial policies described above, in practice the Corporation maintains, as a prudential measure, an operating liquidity target of not less than 70% of three years' net cash requirements, including projected disbursement and debt service requirements. The primary instruments for maintaining sufficient liquidity are the Corporation's liquid asset portfolios. As noted above, IFC distinguishes five such portfolios: P0, which is generally invested in short-dated deposits, money market funds, and tri-party repos, reflecting its use for short-term funding requirements. P1, which is generally invested in: (a) foreign sovereign, sovereign-guaranteed and supranational fixed income instruments (rated AA- or better); (b) US Treasury or agency instruments; (c) asset-backed securities rated AAA by at least two rating agencies and/or other AAA rated notes issued by Corporations; (d) interest rate futures and swaps to manage currency risk in the portfolio, as well as its duration relative to benchmark; and (e) cash deposits. P2, which is generally invested in US Treasuries and other sovereign and agency issues. P3, which comprises a global fixed income portfolio and a mortgage-backed securities portfolio (managed by external managers). P4, which is an outsourced portion of the P2 portfolio (managed by external managers). FY06 liquidity risk highlights At June 30, 2006, the Corporation's liquidity level stood at $12.7 billion, or 112% of its projected net cash requirements for three years ($13.3 billion, and 142% at June 30, 2005). Funding risk The Corporation's primary objective with respect to managing funding risk is, through the adoption of the key financial policies described above, to maintain its AAA credit rating and, thereby, maintain access to funding as needed at the lowest possible cost. Access to funding is maximized, and cost is minimized, by issuing debt securities in various capital markets in a variety of currencies, sometimes using complex structures. These structures include borrowings payable in multiple currencies, or borrowings with principal and/or interest determined by reference to a specified index such as a stock market index, a reference interest rate, a commodity index, or one or more foreign exchange rates. PAGE 18 IFc annual report 2006 FY06 funding risk highlights During FY06, the Corporation raised $1.8 billion ($2.0 billion in FY05) of funding at sub-LIBOR rates. Market risk The Corporation's exposure to market risk is minimized by adopting the matched funding policy noted above and by using a variety of derivative instruments to convert assets and liabilities into 6-month floating rate US dollar assets and liabilities. Investment operations Implementation of the matched funding policy is a two-step process: funds are earmarked at Board approval stage and matched, with respect to interest rate and currency, at disbursement. Interest rate and currency exchange risk associated with fixed rate and/or non-US dollar lending is hedged via currency and interest rate swaps that convert cash flows into variable rate US dollar flows. Exposures to market risk resulting from derivative transactions with clients, which are intended to facilitate clients' risk management, are minimized by entering into offsetting positions with highly rated market counterparties. Liquid asset portfolios Consistent with the matched funding policy, the P0, P1 and P3 portfolios are strictly managed to variable rate US dollar benchmarks, on a portfolio basis. To this end, a variety of derivative instruments are used, including short- term, over-the-counter foreign exchange forwards (covered forwards), interest rate and currency swaps, and exchange-traded interest rate futures and options. The Corporation also takes both long and short positions in securities in the management of these portfolios to their respective benchmarks. The primary source of market risk in the liquid asset portfolios is the P2 and P4 portfolios, which, in contrast, are managed to a three-year duration US dollar benchmark, with additional flexibility to deviate from the benchmark. P2 represents the portion of IFC's capital not disbursed as equity investments, and the benchmark reflects the chosen risk profile for this uninvested capital. P4 represents an outsourced portion of the P2 portfolio. Borrowing activities Market risk associated with fixed rate obligations and structured instruments entered into as part of the Corporation's funding program is generally mitigated by using derivative instruments to convert them into variable rate US dollar obligations, consistent with the matched-funding policy. Asset-liability management While IFC's matched-funding policy provides a significant level of protection against currency and interest rate risk, the Corporation can be exposed to residual market risk in its overall asset and liability management. This residual market risk is monitored by the Asset-Liability Management group within the Treasury Department. Residual currency risk arises from events such as changes in the level of non-US dollar loan loss reserves. This risk is managed by monitoring the aggregate position in each lending currency and hedging the exposure when the net asset or liability position exceeds $5 million equivalent, through spot sales or purchases. Residual interest rate risk may arise from two sources: Assets that are fully match-funded at inception, which can become mismatched over time due to write-downs, prepayments, or rescheduling; and Differing interest rate reset dates on assets and liabilities. This residual risk is managed by: first, synchronizing interest rate reset dates on assets and liabilities at a portfolio level; and second, measuring the sensitivity of the present value of assets and liabilities in each currency to each basis point change in interest rates, with an action trigger of $50,000 on this measure. volume 2PAGE 1 FY06 market risk highlights Total liquid asset returns (comprising interest, realized and unrealized gains and losses, and translation adjustments) were $444 million in FY06 ($358 million in FY05 and $177 million in FY04), of which $378 million was attributable to the P0, P1 and P3 portfolios ($212 million in FY05 and $156 million in FY04), and $66 million was attributable to the P2 and P4 portfolios ($146 million in FY05 and $21 million in FY04). Currency translation gains on non-trading activities for FY06 were $6 million ($7 million loss in FY05 and $4 million gain in FY04). Operational risk IFC defines operational risk as the potential for loss resulting from events involving people, systems and processes. These include both internal and external events, whether caused by a lack of controls, documentation, or contingency planning, or by breakdowns in information systems, communications, physical safeguards, business continuity, supervision, transaction processing, or in the execution of legal, fiduciary, and agency responsibilities. As such, operational risk covers the risks emanating from the manner in which an entity is operated as opposed to the way it is financed. Consistent with the Basel II Capital Adequacy guidelines, IFC is developing a matrix framework to analyze operational risk by identifying, for each area (people, systems and processes), which risks IFC will: (i) manage internally, as part of its ongoing business; (ii) alleviate through contingency planning; or (iii) insure externally, whether by subcontracting, outsourcing or hedging, including insurance. Responsibility for the development of the framework for managing and monitoring operational risk now rests with the Business Risk Department, and for contingency planning for recovery from emergencies with the Controller's Department. In respect of insurable operational risk, IFC's Insurance Services Group performs insurance reviews to identify the risks and assess the adequacy of existing insurance policies and limits. IFC seeks to mitigate the risks it manages internally by maintaining a comprehensive system of internal controls that is designed not only to identify the parameters of various risks but also to monitor and control those areas of particular concern. Key components of this effort are: Key components of operational risk management The Corporation has adopted the COSO1 control framework and a control self-assessment methodology to evaluate the effectiveness of its internal controls in people, systems and processes, and it has an ongoing program in place to cover all significant business operations. In addition, the COBIT2 methodology is used to supplement the COSO review of the information technology function. The program includes compliance testing of key internal controls assuring the reliability of external financial reporting and has been applied to Donor Funded Operations as well. The Internal Audit Department of the World Bank Group performs ongoing independent review of the effectiveness of IFC's internal controls in selected key areas and functions. To promote data integrity, the Corporation has formulated a Data Management Policy. The policy is enforced by the Information Quality Group within the Controller's Department and through a network of Departmental Data Stewards. The Corporation has a New Products/Initiatives Assessment Group, with representation from key business and support functions, to ensure that processes and controls are in place to manage the risks in new products and initiatives before they are executed. 1. COSO refers to the Internal Control - Integrated Framework formulated by the Committee of Sponsoring Organizations of the Treadway Commission, which was convened by the US Congress in response to the well-publicized irregularities that occurred in the financial sector in the United States during the late 1980s. 2 .COBIT refers to Control Objectives for Information and Related Technology, first released in 1996, updated to the 3rd edition released in July 2000, sponsored by the Information Systems Audit and Control Association (ISACA). PAGE 20 IFc annual report 2006 FY06 operational risk highlights IFC continues to focus on its preparedness to react to an emergency situation that disrupts its normal operations. During FY06, the Corporation has: Added applications and capabilities to back-up facilities available for its key strategic financial and support systems and continued extensive testing thereof. As part of the IFC's avian flu contingency plans, all departments reinforced and extended home computing arrangements for essential staff. Extended the Emergency Management Team (EMT) concept to IBRD. The combined World Bank Group EMT conducted simulation exercises to test the adequacy of the avian flu contingency plan, and reinforced the roles and responsibilities of the EMT. The Corporation plans to extend the EMT structure to all regions during FY07. The Corporation is continuing a multiyear effort to analyze and develop enhanced methodologies for measuring, monitoring and managing operational risk in its key activities. During FY06, IFC has: Continued a process-mapping exercise to identify potential areas of exposure to operational risk in its investment and advisory services processes and to provide a basis for quantifying potential risks; and Developed a beginning framework for IFC's strategic and operational risk functions within the newly established Business Risk Department; and Mapped out IFC's current risk management functions in order to further align these functions with the more regionalized business operations of IFC. In FY06, IFC continued with its voluntary practice of conducting an annual assessment of its internal control over external financial reporting based on the criteria for effective internal control over external financial reporting described in COSO. Based upon this assessment, Management believes that IFC maintained effective internal control over external financial reporting presented in conformity with US GAAP, as of June 30, 2006. In light of recent developments concerning changes in auditing standards by which the Corporation's external auditors have historically provided an attestation to Management's assertion, Management did not seek an attestation report from the Corporation's external auditors for FY06. Management has carried out an evaluation of internal controls over external financial reporting for the purposes of determining if there were any changes made in internal controls during the year ended June 30, 2006, that had materially affected, or would be reasonably likely to materially affect, IFC's internal control over external financial reporting. As of June 30, 2006, no such significant changes occurred. Internal controls and procedures are those processes which are designed to ensure that information required to be disclosed is accumulated and communicated to management, as appropriate to allow timely decisions regarding required disclosure by IFC. Management believes that these controls and procedures were effective as of June 30, 2006. volume 2PAGE 21 VI. CRITICAL ACCOUNTING POLICIES The Notes to the Corporation's FY06 financial statements contain a summary of the Corporation's significant accounting policies, including a discussion of recently issued accounting pronouncements. Certain of these policies are considered to be "critical" to the portrayal of the Corporation's financial condition, since they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. These policies include: (i) determining the level of the allowance for losses in the loan portfolio; (ii) determining the level of impairment of equity investments; and (iii) determining the valuation of certain financial instruments with no quoted market prices. Additional information about these policies can be found in Notes A, C, O and P to the FY06 financial statements. Reserve against losses on loans The Corporation considers a loan as impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the loan's contractual terms. The reserve against losses for impaired loans reflects management's judgment of the present value of expected future cash flows discounted at the loan's effective interest rate. The reserve against losses for loans includes an estimate of probable losses on loans inherent in the portfolio but not specifically identifiable. The reserve is established through periodic charges to income in the form of a provision for losses on loans. Loans written-off, as well as any subsequent recoveries, are recorded through the reserve. The assessment of the adequacy of total reserves against losses for loans is highly dependent on management's judgment about factors such as geographical concentration, industry, regional and macroeconomic conditions, and historical trends. Due to the inherent limitation of any particular estimation technique, management utilizes three different and independent methods to provide estimates for the total loan loss reserve balance: (1) a simulation model, (2) country risk ratings and probability of crisis associated with those risks, and (3) a model of the Corporation's long-term historical loan portfolio experience. Changes in these estimates could have a direct impact on the provision and could result in a change in the reserve balance. The reserve against losses on loans is separately reported in the consolidated balance sheet as a reduction of the Corporation's total loans. Increases or decreases in the reserve level are reported in the income statement as provision for losses or release of provision for losses on loans, and guarantees. The reserve against losses on loans relates only to the Client Services segment of the Corporation (see Note R to the FY06 financial statements for further discussion of the Corporation's business segments). Equity impairment The Corporation assesses all equity investments for impairment each quarter. When impairment is identified and is deemed to be other than temporary, the equity investment is written down to its impaired value, which becomes the new cost basis in the equity investment. The Corporation has elected to assume that all impairments shall be deemed to be other than temporary. Impairment losses are not reversed for subsequent recoveries in value of the equity investment until it is sold. Prior to March 31, 2005, the Corporation had carried reserves against losses on the equity investment portfolio. During the year ended June 30, 2005, the Corporation changed its process of estimating impairment on equity investments to adopt an impairment methodology based largely on fair value estimates. As a result, the Corporation recorded a change in carrying value of the equity investment portfolio. In this regard, the Corporation determined that all impairments and changes in carrying value were deemed to be other than temporary. This change in carrying value of the equity portfolio was reflected in net income from equity investments in the FY05 consolidated income statement and in equity investments in the consolidated balance sheet. PAGE 22 IFc annual report 2006 Valuation of financial instruments with no quoted market prices As part of its compliance with SFAS No. 133, the Corporation reports at fair value all of its derivative instruments and certain borrowings that the Corporation has designated as components of fair value hedges. In addition, certain features in various loan agreements, equity investment agreements, and borrowing contracts contain embedded derivatives that, for accounting purposes, are separately accounted as either derivative assets or liabilities, including puts, caps, floors, and forwards. Few of these instruments have a ready market valuation. Therefore, the fair values of the financial instruments with no quoted market prices are estimated using sophisticated pricing models of the net present value of estimated future cash flows. Management makes numerous assumptions in developing the pricing models, including the appropriate discount rates, interest rates, and related volatility and expected movement in foreign currency exchange rates. Changes in assumptions could have a significant impact on the amounts reported as assets and liabilities and the related gains and losses reported in the income statement. The fair value computations affect both the Client Services and Treasury segments of the Corporation (see Note R to the FY06 financial statements for further discussion of the Corporation's business segments). Additional information can be found in Notes A, O and P to the FY06 financial statements. volume 2PAGE 23 VII. RESULTS OF OPERATIONS Overview The main elements of IFC's net income, and influences on the level and variability of operating and net income from year to year, are: ELEMENTS SIGNIFICANT INFLUENCES Operating income: Spread on interest earning assets Nonaccruals and recoveries of interest on loans formerly in nonaccrual status and income from participation notes Liquid asset income Realized and unrealized gains and losses on the liquid asset portfolios Income from the equity investment portfolio Performance of the equity portfolio (principally dividends, capital gains) Provisions for losses on loans and guarantees Level of provisions for losses on loans and guarantees Equity impairment write-downs Amount of impairment write-downs Noninterest income and expense Level of technical assistance and advisory services provided by the Corporation to its clients, the level of expense from the staff retirement and other benefits plans, and the approved administrative and other budgets Net income: Net (losses) gains on non-trading financial instruments Principally, differences between changes in fair values of derivative instruments and changes in fair value of hedged items in fair value hedging relationships The following paragraphs detail significant variances between FY06 and FY05, and FY05 and FY04, covering the periods included in the Corporation's FY06 financial statements. As disclosed in Note A to the Corporation's FY06 financial statements, certain amounts in FY05 and FY04 have been reclassified to conform to the current year's presentation. Where applicable, the following paragraphs reflect reclassified prior year comparative information. Such reclassifications had no effect on operating income, net income or total assets. FY06 versus FY05 Operating income The Corporation's income before expenditures for TAAS and PBG and net (losses) gains on non-trading financial instruments for FY06 was $1,499 million. Expenditures for TAAS for FY06 were $55 million, and expenditures for PBG for FY06 were $35 million, resulting in operating income for FY06 of $1,409 million. The continued strong operating performance in FY06, following from FY05's record year, was mainly attributable to continued significant equity income (principally capital gains and dividends) and a continued overall improvement in the quality of the loan and equity investment portfolio, as measured by portfolio impairment and portfolio risk levels, although at a slower pace than in FY05. The aggregate risk level within the portfolio has been reduced principally due to: (i) the successful restructuring or rescheduling of problem projects; (ii) the growth in the outstanding portfolio in new investments with better risk ratings; (iii) the write-off of investments with worse risk ratings than the average risk rating of the portfolio; and (iv) an overall improvement in country risk ratings. This improvement began during the latter stages of FY03 and continued through FY04, FY05 and FY06. The Corporation's liquid asset portfolios yielded strong positive contributions to the Corporation's operating income. A more detailed analysis of the components of IFC's operating income follows. Interest and financial fees from loans IFC's primary interest earning assets is its loan portfolio. Interest and financial fees from loans (including guarantee fees) for FY06 totaled $807 million, compared with $660 million in FY05, an increase of $147 million, or 22%. PAGE 24 IFc annual report 2006 Interest income increased from $574 million in FY05 to $743 million in FY06, an increase of $169 million, or 29%. The growth in the loan portfolio and the overall increase in average interest rates during FY06, when compared with FY05, contributed $231 million, including net interest income on lending-related swaps, of the increase in interest income. Recoveries of interest on loans being removed from non-accrual status, net of reversals of income on loans being placed in nonaccrual status, were $20 million lower in FY06, compared to FY05. Income from the Corporation's participation notes, over and above minimum contractual interest, was $25 million lower in FY06 than in FY05. Interest income from loans serving as collateral under secured borrowing arrangements totaled $6 million in FY06 ($0 in FY05). Commitment and financial fees fell to $64 million in FY06 from $86 million in FY05, principally reflecting the change in accounting principle concerning the deferral of net loan origination fees which offset the growth attributable to strong commitments and disbursements. Charges on borrowings The Corporation's charges on borrowings increased by $294 million, from $309 million in FY05 to $603 million in FY06, largely reflecting the increased US dollar interest rate environment, when comparing FY06 and FY05. Charges on borrowings in FY06 includes $6 million in respect of interest expense on secured borrowings ($0 in FY05). The weighted average cost of the Corporation's borrowings outstanding from market sources, after the effects of borrowing-related derivatives, rose during the year from 3.3% at June 30, 2005 to 4.9% at June 30, 2006. The borrowings portfolio, net of borrowing-related derivatives and before the effects of SFAS No. 133, decreased by $0.7 billion in FY06 from $16.0 billion at June 30, 2005, to $15.3 billion at June 30, 2006. Income from liquid asset trading activities Income from liquid asset trading activities comprises interest from time deposits and securities, net gains and losses on trading activities, and a small currency translation effect. The liquid assets portfolio, net of derivatives and securities lending activities, decreased from $13.3 billion at June 30, 2005, to $12.7 billion at June 30, 2006. Liquid asset income totaled $444 million in FY06 ($358 million in FY05). In a year when interest rates rose, the Corporation has still been able to increase income. In FY06, all of IFC's liquid asset portfolios outperformed their respective benchmarks. The majority of liquid asset income in FY06 was attributable to the Corporation's P1 portfolio, which is actively managed against a variable rate benchmark. This portfolio generated income of $288 million in FY06, a return of 5.20% ($162 million in FY05, a return of 2.24%). The P3 portfolio, managed against the same variable rate target returned $43 million in FY06, $17 million higher than in FY05. The P2 and P4 portfolios delivered 156 and 54 basis points of excess return versus their Lehman Brothers Intermediate US Treasury Index. With rates on the rise, the benchmark actually lost 0.19% in FY06. The P2 and P4 portfolios returned $64 million (1.38%) and $2 million (0.35%) in FY06, respectively, as compared to $130 million (3.73%) and $16 million (4.51%) in FY05. The positive performance of the P2 portfolio was achieved due to directional and yield curve strategies designed specifically to take advantage of the tightening of monetary policy in the United States, Europe and Japan. The Corporation's holdings of US, European and Japanese inflation-indexed securities whose income varies with inflation in the P1and P2 portfolios was a significant contributor to the outperformance relative to benchmark. Income from equity investments Income from the equity investment portfolio decreased by $137 million from $1,365 million in FY05 to $1,228 million in FY06. The Corporation generated realized capital gains on equity sales, including recoveries of previously written-off equity investments and net of losses on sales of equity investments, for FY06 of $928 million, as compared with $723 million for FY05, an increase of $205 million. Realized capital gains on equity sales from 14 investments comprised 50% of the FY06 gains (before write-offs and losses on sales), compared to 19 investments comprising 71% of the FY05 gains. IFC continued to take advantage of buoyant markets throughout most of FY06 to sell equities and take some limited gains in investments where IFC's developmental role was complete, and where pre-determined sales trigger levels had been met. Dividend income was also significantly higher in FY06 at $327 million, as compared with $258 million in FY05. Consistent with FY05, a significant amount of IFC's dividend income in FY06 was due to returns on the Corporation's joint ventures in the oil, gas and mining sectors accounted for under the cost recovery method, which totaled $86 million in FY06, as compared with $106 million in FY05. volume 2PAGE 25 Income from LLPs, certain LLCs, and other investments accounted for under the equity method totaled $56 million in FY06 ($191 million in FY05). Provisions for losses on loans and guarantees As noted above, the quality of the Corporation's loan portfolio continued to improve during FY06 although at a slower pace than in FY05 and FY04. IFC recorded a small provision for losses on loans and guarantees of $15 million in FY06, including $5 million in respect of guarantees. On June 30, 2006, the Corporation's total reserves against losses on loans were 8.3% of the disbursed and outstanding loan portfolio excluding unamortized deferred net loan origination fees and fair value adjustments for loans in qualifying hedge relationships (9.9% at June 30, 2005). Other income Other income of $115 million for FY06 was $36 million higher than in FY05 ($79 million). Other expenses Administrative expenses (the principal component of other expenses) increased by 8% from $403 million in FY05 to $436 million in FY06, principally reflecting the Corporation's higher budget authority in FY06 when compared to FY05. Administrative expenses include the grossing-up effect of certain revenues and expenses attributable to the Corporation's reimbursable program and jeopardy projects ($37 million in FY06, as compared with $33 million in FY05). The Corporation recorded expense from pension and other postretirement benefit plans in FY06 of $28 million, as compared with $14 million in FY05. Net income As more fully disclosed in Notes A, O and P to the Corporation's FY06 financial statements, the Corporation has designated certain hedging relationships in its borrowing activities and its lending activities as fair value hedges. The Corporation generally matches the terms of its derivatives with the terms of the specific underlying financial instruments hedged, in terms of currencies, maturity dates, reset dates, interest rates, and other features. However, differing valuation methodologies are applied to the derivative and the hedged financial instrument, as prescribed by SFAS No. 133. The resulting ineffectiveness calculated for such relationships is recorded in net (losses) gains on non-trading financial instruments, in net income. The effects of SFAS No. 133 on net income in FY06 and FY05 can be summarized as follows (US$ millions): FY06 FY05 Operating income $ 1,409 $ 1,953 SFAS No. 133 adjustments: Net (losses) gains on non-trading financial instruments (131) 62 Net income $ 1,278 $ 2,015 Net (losses) gains on non-trading financial instruments largely comprises the difference between the change in fair value of derivative instruments and the change in fair value of the hedged item under designated hedging relationships. FY05 versus FY04 Operating income The Corporation's income before expenditures for TAAS and net (losses) gains on non-trading financial instruments for FY05 was $1,991 million. Expenditures for TAAS for FY05 were $38 million, resulting in income after expenditures for TAAS (operating income) for FY05 of $1,953 million, a third consecutive record year. The improvement was mainly attributable to significant equity income (principally capital gains) and a continued overall improvement in the quality of the loan and equity investment portfolio, as measured by portfolio impairment and portfolio risk levels. The aggregate risk level within the portfolio had been reduced principally due to: (i) the successful restructuring or rescheduling of problem projects; (ii) the growth in the outstanding portfolio in new investments with better risk ratings; (iii) the write-off of investments with worse risk ratings than the average risk rating of the portfolio; and (iv) an overall improvement in country risk ratings. This improvement began during the latter stages of FY03 and continued through FY04 and FY05. The Corporation's liquid asset portfolios yielded strong positive contributions to the Corporation's operating income. PAGE 26 IFc annual report 2006 A more detailed analysis of the components of IFC's operating income follows. Interest and financial fees from loans Interest and financial fees from loans (including guarantee fees) for FY05 totaled $660 million, compared with $518 million in FY04, an increase of $142 million, or 27%. Interest income increased from $449 million in FY04 to $574 million in FY05. The growth in the loan portfolio and the overall increase in average interest rates during FY05, when compared with FY04, contributed $118 million, net of interest expense on lending-related swaps, of the increase in interest income. Recoveries of interest on loans being removed from non-accrual status, net of reversals of income on loans being placed in nonaccrual status, were $8 million lower in FY05, compared to FY04, at $31 million in FY05 ($39 million in FY04). Income from the Corporation's participation notes, over and above minimum contractual interest, totaled $55 million in FY05 ($40 million in FY04). Commitment and financial fees also grew to $86 million in FY05 from $69 million in FY04, reflecting strong commitments and disbursements. Charges on borrowings The Corporation's charges on borrowings increased by $168 million, from $141 million in FY04 to $309 million in FY05, largely reflecting the increased US dollar interest rate environment, when comparing FY05 and FY04. As the Corporation's borrowings generally reprice every six months, the effect of the significant rise in the interest rate environment in the fourth quarter of FY04 adversely impacted FY05 charges on borrowings. The weighted average cost of the Corporation's borrowings outstanding from market sources, after the effects of borrowing- related derivatives, rose during the year from 1.0% at June 30, 2004 to 3.3% at June 30, 2005. The borrowings portfolio, net of borrowing-related derivatives and before the effects of SFAS No. 133, decreased by $0.4 billion in FY05 from $16.4 billion at June 30, 2004, to $16.0 billion at June 30, 2005. Income from liquid asset trading activities Income from liquid asset trading activities comprises interest from time deposits and securities, net gains and losses on trading activities, and a small currency translation effect. The liquid assets portfolio, net of derivatives and securities lending activities, increased from $13.1 billion at June 30, 2004, to $13.3 billion at June 30, 2005. Liquid asset returns totaled $358 million in FY05. Income from equity investments Income from the equity investment portfolio increased by $707 million from $658 million in FY04 to $1,365 million in FY05. The Corporation generated realized capital gains on equity sales for FY05 of $723 million, as compared with $381 million for FY04, an increase of $342 million. Realized capital gains on equity sales from 19 investments comprised 71% of the FY05 gains, compared to seven investments comprising 64% of the FY04 gains. IFC continued to take advantage of buoyant markets to sell equities and take some limited gains in investments where IFC's developmental role was complete, and where pre-determined sales trigger levels had been met. Dividend income was also significantly higher in FY05 at $258 million, as compared with $207 million in FY04. Consistent with FY04, a significant amount of IFC's dividend income in FY05 was due to returns on the Corporation's joint ventures in the oil, gas and mining sectors, which totaled $106 million in FY05, as compared with $65 million in FY04. Beginning in FY05, the Corporation's investments in its LLPs and certain LLCs are accounted for under the equity method. As a result, IFC's FY05 income from equity investments includes income from its investments in LLPs and certain LLCs in the amount of $191 million ($0 in FY04). Release of provisions for losses on loans and guarantees As noted above, the quality of the Corporation's investment portfolio improved during FY05, continuing the trend noted in FY03 and FY04. As a result, IFC recorded a release of provisions for losses on loans and guarantees of $261 million in FY05, including a release of $3 million in respect of guarantees, a significant improvement over FY04 when the Corporation recorded a release of $103 million ($14 million in respect of guarantees). On June 30, 2005, the Corporation's total reserves against losses on loans were 9.9% of the disbursed and outstanding loan portfolio (14.0% at June 30, 2004). Other income Other income of $79 million for FY05 was substantially unchanged from FY04. volume 2PAGE 27 Other expenses Administrative expenses (the principal component of other expenses) increased by 12% from $360 million in FY04 to $403 million in FY05, principally reflecting the Corporation's higher budget authority in FY05 when compared to FY04. Administrative expenses include the grossing-up effect of certain revenues and expenses attributable to the Corporation's reimbursable program and jeopardy projects ($33 million in FY05, as compared with $34 million in FY04). The Corporation recorded expense from pension and other postretirement benefit plans in FY05 of $14 million, as compared with $19 million in FY04. Net income As more fully disclosed in Notes A, O and P to the Corporation's FY06 financial statements, the Corporation has designated certain hedging relationships in its borrowing activities and its lending activities as fair value hedges. The Corporation generally matches the terms of its derivatives with the terms of the specific underlying financial instruments hedged, in terms of currencies, maturity dates, reset dates, interest rates, and other features. However, differing valuation methodologies are applied to the derivative and the hedged financial instrument, as prescribed by SFAS No. 133. The resulting ineffectiveness calculated for such relationships is recorded in net (losses) gains on non-trading financial instruments, in net income. The effects of SFAS No. 133 on net income in FY05 and FY04 can be summarized as follows (US$ millions): FY05 FY04 Operating income $ 1,953 $ 982 SFAS No. 133 adjustments: Net gains on non-trading financial instruments 62 11 Net income $ 2,015 $ 993 Net gains on non-trading financial instruments largely comprises the difference between the change in fair value of derivative instruments and the change in fair value of the hedged item under designated hedging relationships. PAGE 28 IFc annual report 2006 VIII. GOVERNANCE Management Changes Mr. Assaad Jabre was Acting Executive Vice President (EVP) since the retirement of the Corporation's EVP, Mr. Peter Woicke effective January 31, 2005. Effective January 15, 2006, Mr. Lars H. Thunell was appointed EVP of the Corporation. Mr. Declan Duff was appointed Vice President, Industries effective May 15, 2006. Ms. Farida Khambata was appointed Regional Vice President for Asia and Latin America effective July 1, 2006. Mr. Edward Nassim was appointed Regional Vice President for Europe, Africa, and the Middle East effective July 1,2006. Board of Directors In accordance with its Articles of Agreement, members of IFC's Board are appointed or elected by their member governments. These Directors are neither officers nor staff of IFC. The President is the only management member of the Board, serving as a non-voting member and as Chairman of the Board. The Board has established several Committees including: Committee on Development Effectiveness Audit Committee Budget Committee Personnel Committee Ethics Committee Committee on Governance and Administrative Matters The Board and its Committees function in continuous session at the principal offices of the World Bank Group, as business requires. Each Committee's terms of reference establish its respective roles and responsibilities. As Committees do not vote on issues, their role is primarily to serve the full Board in discharging its responsibilities. Audit Committee Membership The Audit Committee consists of eight members of the Board. Membership on the Committee is determined by the Board, based upon nominations by the Chairman of the Board, following informal consultation with the Directors. In addition, membership of the Committee is expected to reflect the economic and geographic diversity of IFC's member countries. Other relevant selection criteria include seniority, continuity and relevant experience. Some or all of the responsibilities of individual Committee members are performed by their alternates or advisors. Generally, Committee members are appointed for a two-year term; reappointment to a second term, when possible, is desirable for continuity. Audit Committee meetings are generally open to any members of the Board who may wish to attend, and non-Committee members of the Board may participate in the discussion. In addition, the Chairman of the Audit Committee may speak in that capacity at meetings of the Board with respect to discussions held in the Audit Committee. Key responsibilities The Audit Committee is appointed by the Board to assist it in the oversight and assessment of IFC's finances and accounting, including the effectiveness of financial policies, the integrity of financial statements, the system of internal controls regarding finance, accounting and ethics (including fraud and corruption), and financial and operational risks. The Audit Committee also has the responsibility for reviewing the performance and recommending to the Board the appointment of the external auditor, as well as monitoring the independence of the external auditor and meeting with it in executive session. The Audit Committee participates in oversight of the internal audit function, including reviewing the responsibilities, staffing and the effectiveness of internal audit. The Committee also reviews the annual internal audit plan and meets with the Auditor General in executive session. In the execution of its role, the Committee discusses with management, the external auditors, and the internal auditors financial issues and policies which have a bearing on the Corporation's financial position and risk-bearing capacity. The Audit Committee monitors the evolution of developments in corporate governance and the role of audit committees on an ongoing basis and revised its terms of reference in FY04. volume 2PAGE 2 Communications The Audit Committee communicates regularly with the Board through distribution of the following: The minutes of its meetings. Reports of the Audit Committee prepared by the Chairman, which document discussions held. These reports are distributed to the Directors, Alternates, World Bank Group Senior Management and Vice Presidents of IFC. "Statement(s) of the Chairman" and statements issued by other members of the Committee. The Annual Report to the Board, which provides an overview of the main issues addressed by the Audit Committee over the year. The Audit Committee's communications with the external auditor are described in the Auditor Independence section, below. Executive sessions Members of the Audit Committee may convene in executive session at any time, without management present. Under the Committee's terms of reference, it meets separately in executive session with the external and internal auditors. Access to outside resources and to management Throughout the year, the Audit Committee receives a large volume of information, which supports the preparation of the financial statements. The Audit Committee meets both formally and informally throughout the year to discuss financial and accounting matters. Directors have complete access to the management of the Corporation. The Audit Committee reviews and discusses with management the quarterly and annual financial statements. The Committee also reviews with the external auditor the financial statements prior to their publication and recommends them for approval to the Board of Directors. The Audit Committee has the capacity, under exceptional circumstances, to obtain advice and assistance from outside legal, accounting or other advisors as deemed appropriate. Code of Ethics The World Bank Group strives to foster and maintain a positive work environment that supports the ethical behavior of its staff. To facilitate this effort, the World Bank Group has a Code of Professional Ethics in place. The Code (Code of Professional Ethics ­ Living our Values) applies to all staff (including managers, consultants, and temporary employees) worldwide. The Code is available in nine languages on the World Bank Group's Web site, www.worldbank.org. Staff relations, conflicts of interest, and operational issues, including the accuracy of books and records, are key elements of the Code. In addition to the Code, an essential element of appropriate conduct is compliance with the obligations embodied in the Principles of Staff Employment, Staff Rules, and Administrative Rules, the violation of which may result in disciplinary action. In accordance with the Staff Rules, senior managers must complete a confidential financial disclosure instrument with the Office of Ethics and Business Conduct. Guidance for staff is also provided through programs, training materials, and other resources. Managers are responsible for ensuring that internal systems, policies, and procedures are consistently aligned with the World Bank Group's ethical goals. In support of its efforts on ethics, the World Bank offers a variety of methods for informing staff of these resources. Many of these efforts are headed by the following groups: The Office of Ethics and Business Conduct provides leadership, management and oversight for the World Bank Group's ethics infrastructure including the Ethics Help Line, a consolidated conflicts of interest disclosure/ resolution system, financial disclosure, ongoing training to both internal and external audiences, and communication resources. The Department of Institutional Integrity is charged with investigating allegations of fraud and corruption within the World Bank Group. The Department also investigates allegations of misconduct by World Bank Group staff, and trains and educates staff and clients in detecting and reporting fraud and corruption in World Bank Group-funded projects. The Department reports directly to the President and is composed of professionals from a range of disciplines including financial analysts, researchers, investigators, lawyers, prosecutors, forensic accountants, and World Bank Group staff with operational experience. PAGE 30 IFc annual report 2006 The World Bank Group has in place procedures for the receipt, retention and treatment of complaints received regarding accounting, internal controls and auditing matters. The World Bank Group offers both the Ethics Help Line and a Fraud and Corruption hotline run by an outside firm staffed by trained specialists. This third-party service offers numerous methods of communication in addition to a tollfree hotline in countries where access to telecommunications may be limited. In addition, there are other methods by which the Department of Institutional Integrity may receive allegations, including directly by email, anonymously, or through confidential submission through its Web site, as well as the postal service and telephone. Auditor Independence In FY03, the Board adopted a set of principles applicable to the appointment of the external auditor for IFC. Key features of those principles include: Prohibition of the external auditor from the provision of all non audit-related services; All audit-related services must be pre-approved on a case-by-case basis by the Board, upon recommendation of the Audit Committee; Mandatory rebidding of the external audit contract every five years; Prohibition of any firm serving as external auditor for more than two consecutive five-year terms; Mandatory rotation of the senior partner after five years; and An evaluation of the performance of the external auditor at the mid-point of the five year term. In FY04, IFC's external auditor, Deloitte and Touche LLP, began a new five-year term and will have served eleven years as external auditor upon completion of that term, pursuant to a one-time grandfathered exemption from the above-referenced ten-year limit. Even within a five-year term the service of the external auditors is subject to recommendation by the Audit Committee for annual reappointment and approval of a resolution by the Board. As a standard practice, the external auditor is present as an observer at virtually all Audit Committee meetings and is frequently asked to present its perspective on issues. In addition, the Audit Committee meets periodically with the external auditor in private session without management present. Communication between the external auditor and the Audit Committee is ongoing, as frequently as is deemed necessary by either party. IFC's external auditors follow the communication requirements with audit committees set out under U.S. generally accepted auditing standards. In keeping with these standards, significant formal communications include: Quarterly and annual financial statement reporting; Annual appointment of the external auditors; Presentation of the external audit plan; Presentation of control recommendations and discussion of the COSO attestation and report; and Presentation of a statement regarding independence. In addition to Committee meetings, individual members of the Audit Committee have independent access to the external auditor. volume 2PAGE 31 responsibility for external Section Start Financial reporting PAGE 32 IFc annual report 2006 volume 2PAGE 33 Financial Statements PAGE 34 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION CONSOLIDATED BALANCE SHEET as of June 30, 2006 and June 30, 2005 (US$ millions) 2006 2005 Assets Cash and due from banks ........................................................................................................ $ 159 $ 139 Time deposits .............................................................................................................................. 2,959 1,799 Trading securities ­ Note B ........................................................................................................ 16,286 14,561 Securities purchased under resale agreements ................................................................... 1,190 6,282 Loans ........................................................................................................................................... 10,817 9,973 Less: Reserve against losses on loans .................................................................................. (898) (989) Net loans.............................................................................................................................. 9,919 8,984 Equity investments ..................................................................................................................... 2,812 2,505 Total loans and equity investments disbursed and outstanding ­ Note C................... 12,731 11,489 Derivative assets ­ Note P.......................................................................................................... 1,128 1,516 Receivables and other assets ­ Note H .................................................................................. 3,967 3,774 Total assets .........................................................................................................................$ 38,420 $ 39,560 Liabilities and capital Liabilities Securities sold under repurchase agreements and payable for cash collateral received ............................................................................................ $ 8,805 $ 9,321 Borrowings withdrawn and outstanding ­ Note I From market sources ......................................................................................................... 14,887 15,304 From International Bank for Reconstruction and Development ................................ 80 55 Total borrowings ............................................................................................................ 14,967 15,359 Derivative liabilities ­ Note P ................................................................................................. 1,288 2,332 Payables and other liabilities ­ Note J................................................................................. 2,284 2,750 Total liabilities ..................................................................................................................... 27,344 29,762 Capital Capital stock, authorized 2,450,000 shares of $1,000 par value each ­ Note K Subscribed .......................................................................................................................... 2,365 2,365 Less: Portion not yet paid ................................................................................................ (1) (1) Total capital stock ........................................................................................................ 2,364 2,364 Accumulated other comprehensive income ................................................................... 1 1 Retained earnings ................................................................................................................. 8,711 7,433 Total capital ....................................................................................................................... 11,076 9,798 Total liabilities and capital ...............................................................................................$ 38,420 $ 39,560 The notes to the consolidated financial statements are an integral part of these statements. volume 2PAGE 35 INTERNATIONAL FINANCE CORPORATION CONSOLIDATED INCOME STATEMENT for the three years ended June 30, 2006 (US$ millions) 2006 2005 2004 Interest and financial fees from loans ­ Note C....................................................... $ 807 $ 660 $ 518 Income from liquid asset trading activities ­ Note B .............................................. 444 358 177 Charges on borrowings ­ Note I ................................................................................ (603) (309) (141) Income from equity investments ­ Note E................................................................. 1,228 1,365 658 (Provision for) release of provision for losses on loans and guarantees ­ Note C (15) 261 103 Income from loans, equity investments and liquid asset trading activities, after (provision for) release of provision for losses on loans and guarantees............................................................................................................. 1,861 2,335 1,315 Other income Service fees ............................................................................................................... 52 41 41 Net translation adjustments on non-trading activities ........................................ 6 (7) 4 Other ­ Note L ........................................................................................................... 57 45 34 Total other income ............................................................................................... 115 79 79 Other expenses Administrative expenses ­ Notes T and U ............................................................. 436 403 360 Expense from pension and other postretirement benefit plans ­ Note S ....... 28 14 19 Other........................................................................................................................... 13 6 4 Total other expenses ........................................................................................... 477 423 383 Income before expenditures for technical assistance and advisory services, expenditures for performance-based grants and net (losses) gains on non-trading financial instruments........................................................................... 1,499 1,991 1,011 Expenditures for technical assistance and advisory services ­ Note M ............... (55) (38) (29) Expenditures for performance-based grants - Note N............................................ (35) - - Income after expenditures for technical assistance and advisory services, expenditures for performance-based grants and before net (losses) gains on non-trading financial instruments........................................................................... 1,409 1,953 982 Net (losses) gains on non-trading financial instruments ­ Note O......................... (131) 62 11 Net income.....................................................................................................................$ 1,278 $ 2,015 $ 993 The notes to the consolidated financial statements are an integral part of these statements. PAGE 36 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION INTERNATIONAL FINANCE CORPORATION CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the three years ended June 30, 2006 for the three years ended June 30, 2006 (US$ millions) (US$ millions) 2006 2005 2004 Net income ....................................................................................................................$ 2006 1,278 $ 2005 2,015 $ 2004993 Net income ....................................................................................................................$ Other comprehensive loss 1,278 $ 2,015 $ 993 Reclassification to net income of net interest accruals on swaps in Othercash comprehensive loss flow hedging relationships at June 30, 2000 .......................................... - (1) (2) Reclassification to net income of net interest accruals on swaps in Total comprehensive income ............................................................................$ cash flow hedging relationships at June 30, 2000 .......................................... 1,278- $ 2,014 (1) $ 991 (2) Total comprehensive income ............................................................................$ 1,278 $ 2,014 $ 991 The notes to the consolidated financial statements are an integral part of these statements. The notes to the consolidated financial statements are an integral part of these statements. volume 2 PAGE 37 INTERNATIONAL FINANCE CORPORATION INTERNATIONAL FINANCE CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL for the three years ended June 30, 2006 for the three years ended June 30, 2006 (US$ millions) (US$ millions) Retained earnings Designated for technical Retained earnings Accumulated De gnated assistance Designated for other for technical and advisory performance- Designated for comprehensive Capital Accumulated Total Undesignatedand assistance services Designated for based grants grants to IDA Total income other stock capital advisory performance- Designated for comprehensive Capital Total At July 1, 2003 ..................$Undesignated $services - 4,425 based grants- grants to IDA $ $ - $ 4,425 $ Total income 4 $stock $ 2,360 capital 6,789 At July 1, 2003 ..................$ Year ended June 30, 2004 4,425 $ - $ - $ - $ 4,425 $ 4 $ 2,360 $ 6,789 Year ended June 30, 2004 Net income .................... 993 993 993 Other comprehensive Net income .................... 993 993 993 Other comprehensive income (loss) .............. (2) (2) Designations for technical income (loss) .............. (2) (2) Designations for technical assistance and advisory services - Note K......... (225) 225 - - Payments received on assistance and advisory services - Note K......... (225) 225 - - Payments received on account of pending subscriptions............ 1 1 Payments received for account of pending capital stock subscriptions............ 1 1 Payments received for subscribed.................... capital stock 1 1 At June 30, 2004 ................ subscribed.................... 5,193 225 - - 5,418 2 2,362 1 7,782 1 At June 30, 2004 ................ Year ended June 30, 2005 5,193 225 - - 5,418 2 2,362 7,782 Year ended June 30, 2005 Net income .................. 2,015 2,015 2,015 Expenditures for technical Net income .................. 2,015 2,015 2,015 Expenditures for technical assistance and advisory services - Note M......... 38 (38) - - Other comprehensive assistance and advisory services - Note M......... 38 (38) - (1) - Other comprehensive income (loss) ... (1) Designations for technical income (loss) ... (1) (1) Designations for technical assistance and advisory services - Note K......... (125) 125 - - Designations for assistance and advisory services - Note K......... (125) 125 - - Designations for performance-based grants - Note K.......... (250) 250 - Payments received for performance-based capital stock grants - Note K.......... (250) 250 - Payments received for subscribed................... capital stock 2 2 At June 30, 2005 ............... subscribed................... 6,871 312 250 - 7,433 1 2,364 2 9,798 2 Year ended June 30, 2006 At June 30, 2005 ............... 6,871 312 250 - 7,433 1 2,364 9,798 Year ended June 30, 2006 Net income .................... 1,278 1,278 1,278 Expenditures for technical Expenditures forand Netassistance income .................... 1,278 1,278 1,278 services - Note M.......... technical advisory 55 (55) - - Expenditures for assistance and advisory performance-based services - Note M.......... 55 (55) - - Expenditures for performance-based grants ­ Note N ........... 35 (35) - - Designated for technical assistance and advisory grants ­ Note N ........... 35 (35) - - Designated for technical assistance and advisory services ­ Note K.......... (230) 230 - - Designated for grants services ­ Note K.......... (230) 230 Designated for grants to IDA ­ Note K.......... (150) 150 -- - -- At June 30, 2006 ...............$ to IDA ­ Note K.......... 7,859 (150) $ 487 $ 215 $ 150 $ 150 8,711- $ 1- $ 2,364 $ 11,076- AtCapital 30, 2006 ...............$ 7,859 $ 487 $ 215 $ 150 $ 8,711 $ 1 $ 2,364 $ 11,076 June stock includes payments received on account of pending subscriptions. Capital stock includes payments received on account of pending subscriptions. The notes to the consolidated financial statements are an integral part of these statements. The notes to the consolidated financial statements are an integral part of these statements. PAGE 38 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS for the three years ended June 30, 2006 (US$ millions) 2006 2005 2004 Cash flows from loans and equity investment activities Loan disbursements ................................................................................................. $ (3,717) $ (2,868) $ (2,684) Equity disbursements ............................................................................................... (711) (588) (468) Loan repayments ..................................................................................................... 2,752 2,283 1,935 Equity redemptions .................................................................................................. 2 29 4 Sales of loans and equity investments .................................................................. 1,456 1,338 975 Net cash (used in) provided by investing activities ....................................... (218) 194 (238) Cash flows from financing activities Drawdown of borrowings ....................................................................................... 1,816 1,989 3,047 Repayment of borrowings ...................................................................................... (2,611) (2,497) (3,136) Capital subscriptions................................................................................................. - 2 1 Net cash used in financing activities ............................................................... (795) (506) (88) Cash flows from operating activities Net income ............................................................................................................... 1,278 2,015 993 Adjustments to reconcile net income to net cash provided by operating activities:................................................................................................ Realized capital gains on equity sales ............................................................. (928) (723) (386) Income from LLPs, certain LLCs and other investments accounted for under the equity method..................................................... (56) (191) - Equity investment impairment write-downs ..................................................... 57 62 - Provision for (release of provision for) losses on loans and guarantees....... 15 (261) (103) Changes in carrying value of equity investments........................................... - (269) (69) Translation adjustments, net .............................................................................. (6) 7 (4) Net losses (gains) on non-trading financial instruments ................................ 131 (62) (11) Change in accrued income on loans, time deposits and securities .......... (150) (470) (228) Change in payables and other liabilities ......................................................... (431) 459 (733) Change in receivables and other assets.......................................................... (168) (797) 1,023 Change in trading securities and securities purchased and sold under resale and repurchase agreements ............................................................. 2,416 51 (69) Net cash provided by (used in) operating activities ..................................... 2,158 (179) 413 Change in cash and cash equivalents .................................................................... 1,145 (491) 87 Effect of exchange rate changes on cash and cash equivalents ...................... 35 (32) (12) Net change in cash and cash equivalents ............................................................. 1,180 (523) 75 Beginning cash and cash equivalents ..................................................................... 1,938 2,461 2,386 Ending cash and cash equivalents ...........................................................................$ 3,118 $ 1,938 $ 2,461 Composition of cash and cash equivalents Due from banks ........................................................................................................$ 159 $ 139 $ 74 Time deposits ............................................................................................................ 2,959 1,799 2,387 Total cash and cash equivalents ......................................................................$ 3,118 $ 1,938 $ 2,461 Supplemental disclosure Change in ending balances resulting from exchange rate fluctuations: Loans outstanding ............................................................................................... $ (49) $ (9) $ 83 Borrowings ............................................................................................................. (355) (24) (765) Currency swaps .................................................................................................... (1) - - The notes to the consolidated financial statements are an integral part of these statements. volume 2 PAGE 3 INTERNATIONAL FINANCE CORPORATION STATEMENT OF CAPITAL STOCK AND VOTING POWER as of June 30, 2006 (US$ thousands) Capital stock Voting power Capital stock Voting power Amount Percent Number Percent Amount Percent Number Percent Members paid of total of votes of total Members paid of total of votes of total Afghanistan ......................$ 111 * 361 0.02 Latvia .................................$ 2,150 0.09 2,400 0.10 Albania ............................. 1,302 0.06 1,552 0.06 Lebanon ........................... 135 0.01 385 0.02 Algeria ............................... 5,621 0.24 5,871 0.24 Lesotho ............................. 71 * 321 0.01 Angola .............................. 1,481 0.06 1,731 0.07 Liberia ................................ 83 * 333 0.01 Antigua and Barbuda .... 13 * 263 0.01 Libya .................................. 55 * 305 0.01 Argentina ......................... 38,129 1.61 38,379 1.59 Lithuania ........................... 2,341 0.10 2,591 0.11 Armenia ............................ 992 0.04 1,242 0.05 Luxembourg ..................... 2,139 0.09 2,389 0.10 Australia ............................ 47,329 2.00 47,579 1.98 Macedonia, FYR of ......... 536 0.02 786 0.03 Austria ............................... 19,741 0.84 19,991 0.83 Madagascar .................... 432 0.02 682 0.03 Azerbaijan ........................ 2,367 0.10 2,617 0.11 Malawi .............................. 1,822 0.08 2,072 0.09 Bahamas, The .................. 335 0.01 585 0.02 Malaysia ........................... 15,222 0.64 15,472 0.64 Bahrain .............................. 1,746 0.07 1,996 0.08 Maldives ........................... 16 * 266 0.01 Bangladesh ...................... 9,037 0.38 9,287 0.39 Mali .................................... 451 0.02 701 0.03 Barbados .......................... 361 0.02 611 0.03 Malta ................................. 1,615 0.07 1,865 0.08 Belarus ............................... 5,162 0.22 5,412 0.22 Marshall Islands ................ 663 0.03 913 0.04 Belgium ............................. 50,610 2.14 50,860 2.11 Mauritania ........................ 214 0.01 464 0.02 Belize ................................. 101 * 351 0.01 Mauritius ............................ 1,665 0.07 1,915 0.08 Benin .................................. 119 0.01 369 0.02 Mexico .............................. 27,589 1.17 27,839 1.16 Bhutan................................ 720 0.03 970 0.04 Micronesia, Fed. States of 744 0.03 994 0.04 Bolivia ................................ 1,902 0.08 2,152 0.09 Moldova ........................... 784 0.03 1,034 0.04 Bosnia and Herzegovina 620 0.03 870 0.04 Mongolia .......................... 144 0.01 394 0.02 Botswana .......................... 113 * 363 0.02 Morocco ........................... 9,037 0.38 9,287 0.39 Brazil ................................... 39,479 1.67 39,729 1.65 Mozambique ................... 322 0.01 572 0.02 Bulgaria ............................. 4,867 0.21 5,117 0.21 Myanmar .......................... 666 0.03 916 0.04 Burkina Faso ..................... 836 0.04 1,086 0.05 Namibia ............................ 404 0.02 654 0.03 Burundi .............................. 100 * 350 0.01 Nepal ................................ 822 0.03 1,072 0.04 Cambodia ........................ 339 0.01 589 0.02 Netherlands ...................... 56,131 2.37 56,381 2.34 Cameroon ........................ 885 0.04 1,135 0.05 New Zealand ................... 3,583 0.15 3,833 0.16 Canada ............................ 81,342 3.44 81,592 3.39 Nicaragua ........................ 715 0.03 965 0.04 Cape Verde ..................... 15 * 265 0.01 Niger .................................. 147 0.01 397 0.02 Central African Republic 119 0.01 369 0.02 Nigeria ............................... 21,643 0.92 21,893 0.91 Chad.................................. 1,364 0.06 1,614 0.07 Norway ............................. 17,599 0.74 17,849 0.74 Chile .................................. 11,710 0.50 11,960 0.50 Oman ................................ 1,187 0.05 1,437 0.06 China ................................. 24,500 1.04 24,750 1.03 Pakistan ............................. 19,380 0.82 19,630 0.82 Colombia ......................... 12,606 0.53 12,856 0.53 Palau ................................. 25 * 275 0.01 Comoros ........................... 14 * 264 0.01 Panama ............................ 1,007 0.04 1,257 0.05 Congo, Dem. Rep. of . 2,159 0.09 2,409 0.10 Papua New Guinea ....... 1,147 0.05 1,397 0.06 Congo, Republic of ........ 131 0.01 381 0.02 Paraguay .......................... 436 0.02 686 0.03 Costa Rica ........................ 952 0.04 1,202 0.05 Peru ................................... 6,898 0.29 7,148 0.30 Côte d'Ivoire .................... 3,544 0.15 3,794 0.16 Philippines ......................... 12,606 0.53 12,856 0.53 Croatia .............................. 2,882 0.12 3,132 0.13 Poland ............................... 7,236 0.31 7,486 0.31 Cyprus ............................... 2,139 0.09 2,389 0.10 Portugal ............................ 8,324 0.35 8,574 0.36 Czech Republic ............... 8,913 0.38 9,163 0.38 Romania ........................... 2,661 0.11 2,911 0.12 Denmark ........................... 18,554 0.78 18,804 0.78 Russian Federation .......... 81,342 3.44 81,592 3.39 Djibouti .............................. 21 * 271 0.01 Rwanda ............................ 306 0.01 556 0.02 Dominica .......................... 42 * 292 0.01 Saint Kitts and Nevis ........ 638 0.03 888 0.04 Dominican Republic ....... 1,187 0.05 1,437 0.06 St. Lucia ............................. 74 * 324 0.01 Ecuador ............................ 2,161 0.09 2,411 0.10 Samoa ............................... 35 * 285 0.01 Egypt, Arab Republic of 12,360 0.52 12,610 0.52 Saudi Arabia .................... 30,062 1.27 30,312 1.26 El Salvador ........................ 29 * 279 0.01 Senegal ............................. 2,299 0.10 2,549 0.11 Equatorial Guinea ........... 43 * 293 0.01 Serbia and Montenegro . 1,803 0.08 2,053 0.09 Eritrea ................................ 935 0.04 1,185 0.05 Seychelles ......................... 27 * 277 0.01 Estonia ............................... 1,434 0.06 1,684 0.07 Sierra Leone ..................... 223 0.01 473 0.02 Ethiopia ............................. 127 0.01 377 0.02 Singapore ......................... 177 0.01 427 0.02 Fiji ....................................... 287 0.01 537 0.02 Slovak Republic ............... 4,457 0.19 4,707 0.20 Finland .............................. 15,697 0.66 15,947 0.66 Slovenia ............................ 1,585 0.07 1,835 0.08 France .............................. 121,015 5.12 121,265 5.04 Solomon Islands ............... 37 * 287 0.01 Gabon .............................. 1,268 0.05 1,518 0.06 Somalia ............................. 83 * 333 0.01 Gambia, The .................... 94 * 344 0.01 South Africa ...................... 15,948 0.67 16,198 0.67 Georgia ............................ 861 0.04 1,111 0.05 Spain ................................. 37,026 1.57 37,276 1.55 Germany ......................... 128,908 5.45 129,158 5.36 Sri Lanka ............................ 7,135 0.30 7,385 0.31 Ghana ............................... 5,071 0.21 5,321 0.22 Sudan ................................ 111 * 361 0.02 Greece ............................. 6,898 0.29 7,148 0.30 Swaziland ......................... 684 0.03 934 0.04 Grenada ........................... 74 * 324 0.01 Sweden ............................. 26,876 1.14 27,126 1.13 Guatemala ...................... 1,084 0.05 1,334 0.06 Switzerland ....................... 41,580 1.76 41,830 1.74 Guinea .............................. 339 0.01 589 0.02 Syrian Arab Republic ...... 194 0.01 444 0.02 Guinea-Bissau .................. 18 * 268 0.01 Tajikistan ............................ 1,212 0.05 1,462 0.06 Guyana ............................. 1,392 0.06 1,642 0.07 Tanzania ........................... 1,003 0.04 1,253 0.05 Haiti .................................... 822 0.03 1,072 0.04 Thailand ............................ 10,941 0.46 11,191 0.46 Honduras .......................... 495 0.02 745 0.03 Timor-Leste ........................ 777 0.03 1,027 0.04 Hungary ............................ 10,932 0.46 11,182 0.46 Togo .................................. 808 0.03 1,058 0.04 Iceland .............................. 42 * 292 0.01 Tonga ................................ 34 * 284 0.01 India .................................. 81,342 3.44 81,592 3.39 Trinidad and Tobago ...... 4,112 0.17 4,362 0.18 Indonesia .......................... 28,539 1.21 28,789 1.20 Tunisia ................................ 3,566 0.15 3,816 0.16 Iran, Islamic Republic of . 1,444 0.06 1,694 0.07 Turkey ................................ 14,545 0.62 14,795 0.61 Iraq .................................... 147 0.01 397 0.02 Turkmenistan .................... 810 0.03 1,060 0.04 Ireland ............................... 1,290 0.05 1,540 0.06 Uganda ............................. 735 0.03 985 0.04 Israel .................................. 2,135 0.09 2,385 0.10 Ukraine .............................. 9,505 0.40 9,755 0.41 Italy .................................... 81,342 3.44 81,592 3.39 United Arab Emirates ...... 4,033 0.17 4,283 0.18 Jamaica ........................... 4,282 0.18 4,532 0.19 United Kingdom .............. 121,015 5.12 121,265 5.04 Japan ............................... 141,174 5.97 141,424 5.87 United States .................... 569,379 24.09 569,629 23.65 Jordan ............................... 941 0.04 1,191 0.05 Uruguay ............................ 3,569 0.15 3,819 0.16 Kazakhstan ....................... 4,637 0.20 4,887 0.20 Uzbekistan ........................ 3,873 0.16 4,123 0.17 Kenya ................................ 4,041 0.17 4,291 0.18 Vanuatu ............................ 55 * 305 0.01 Kiribati ................................ 12 * 262 0.01 Venezuela, Rep. Boliv. de 27,588 1.17 27,838 1.16 Korea, Republic of .......... 15,946 0.67 16,196 0.67 Vietnam ............................ 446 0.02 696 0.03 Kuwait ............................... 9,947 0.42 10,197 0.42 Yemen, Republic of ........ 715 0.03 965 0.04 Kyrgyz Republic ............... 1,720 0.07 1,970 0.08 Zambia .............................. 1,286 0.05 1,536 0.06 Lao People's Dem. Rep. . 278 0.01 528 0.02 Zimbabwe ........................ 2,120 0.09 2,370 0.10 Total June 30, 2006 $ 2,363,891 100.00+ 2,408,391 100.00+ Total June 30, 2005 $ 2,363,891 100.00+ 2,408,391 100.00+ * Less than .005 percent. + May differ from the sum of the individual percentages shown because of rounding. The notes to the consolidated financial statements are an integral part of these statements. PAGE 40 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS PURPOSE The International Finance Corporation (IFC or the Corporation), an international organization, was established in 1956 to further economic development in its member countries by encouraging the growth of private enterprise. The Corporation is a member of the World Bank Group, which also includes the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), and the Multilateral Investment Guarantee Agency (MIGA). The Corporation's activities are closely coordinated with and complement the overall development objectives of the other World Bank Group institutions. The Corporation, together with private investors, assists in financing the establishment, improvement, and expansion of private sector enterprises by making loans and equity investments where sufficient private capital is not otherwise available on reasonable terms. The Corporation's share capital is provided by its member countries. It raises most of the funds for its investment activities through the issuance of notes, bonds, and other debt securities in the international capital markets. The Corporation also plays a catalytic role in mobilizing additional project funding from other investors and lenders, either through cofinancing or through loan participations, underwritings, and guarantees. In addition to project finance and resource mobilization, the Corporation offers an array of financial and technical advisory services to private businesses in the developing world to increase their chances of success. It also advises governments on how to create an environment hospitable to the growth of private enterprise and foreign investment. NOTE A ­ SUMMARY OF SIGNIFICANT ACCOUNTING AND RELATED POLICIES The consolidated financial statements include the financial statements of the Corporation and four Variable Interest Entities (VIEs) (see Note W). The accounting and reporting policies of the Corporation conform with accounting principles generally accepted in the United States of America (US GAAP). On August 7, 2006, the Board of Directors of the Corporation (the Board) approved these consolidated financial statements for issue. Consolidated financial statements presentation - Certain amounts in the prior years have been reclassified to conform to the current year's presentation. Use of estimates - The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expense during the reporting periods. Actual results could differ from these estimates. A significant degree of judgment has been used in the determination of: the adequacy of the reserve against losses on loans and impairment of equity investments; estimated fair values of all derivative instruments and related financial instruments in qualifying hedging relationships; and net periodic pension income. There are inherent risks and uncertainties related to the Corporation's operations. The possibility exists that changing economic conditions could have an adverse effect on the financial position of the Corporation. The Corporation uses internal models to determine the fair values of derivative and other financial instruments and the aggregate level of the reserve against losses on loans and impairment of equity investments. The Corporation undertakes continuous review and respecification of these models with the objective of refining its estimates, consistent with evolving best market practices. Changes in estimates resulting from refinements in the assumptions and methodologies incorporated in the models are reflected in net income in the period in which the enhanced models are first applied. Translation of currencies - Assets and liabilities not denominated in United States dollars (US dollars or $), other than disbursed equity investments, are expressed in US dollars at the exchange rates prevailing at June 30, 2006 and June 30, 2005. Disbursed equity investments are expressed in US dollars at the prevailing exchange rates at the time of disbursement. Income and expenses are translated at the rates of exchange prevailing at the time of the transaction. Translation gains and losses are credited or charged to income. Loans - The Corporation originates loans to facilitate project finance, restructuring, refinancing, corporate finance, and/or developmental impact. Loans are recorded as assets when disbursed. Loans are carried at the principal amounts outstanding. Where loans are part of a designated hedging relationship employing derivative instruments, the carrying value is adjusted for changes in fair value attributable to the risk being hedged. These adjustments are reported in net gains and losses on non-trading financial instruments in the consolidated income statement. It is the Corporation's practice to obtain collateral security such as, but not limited to, mortgages and third-party guarantees. Revenue recognition on loans - Interest income and commitment fees on loans are recorded as income on an accrual basis. Beginning in the year ended June 30, 2006, the Corporation began amortizing net loan origination costs and fees over the estimated life of the originated loan to which the fees relate. Prior to the year ended June 30, 2006, loan origination costs were expensed as incurred, and loan origination fees were recognized in income when received. The net of loan origination fees and loan origination costs was considered insignificant. All other fees are recorded as income when received in freely convertible currencies. volume 2 PAGE 41 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Corporation does not recognize income on loans where collectibility is in doubt or payments of interest or principal are past due more than 60 days unless management anticipates that collection of interest will occur in the near future. Any interest accrued on a loan placed in nonaccrual status is reversed out of income and is thereafter recognized as income only when the actual payment is received. Interest not previously recognized but capitalized as part of a debt restructuring is recorded as deferred income, included in the consolidated balance sheet in payables and other liabilities, and credited to income only when the related principal is received. Such capitalized interest is considered in the computation of the reserve against losses on loans and equity investments in the consolidated balance sheet. Reserve against losses on loans - The Corporation recognizes portfolio impairment on loans in the consolidated balance sheet through the reserve against losses on loans, recording a provision or release of provision for losses on loans in net income on a quarterly basis, which increases or decreases the reserve against losses on loans. Management determines the aggregate level of the reserve against losses on loans, taking into account established guidelines and its assessment of recent portfolio quality trends. The guidelines comprise simulation techniques, internal country risk ratings and the impairment potential of the loan portfolio based on the Corporation's historical portfolio write-off and loss reserve experience on mature investments. The reserve against losses on loans reflects estimates of both probable losses already identified and probable losses inherent in the portfolio but not specifically identifiable. The determination of identified probable losses represents management's judgment of the creditworthiness of the borrower and is established through review of individual loans undertaken on a quarterly basis. The Corporation considers a loan as impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the loan's contractual terms. Unidentified probable losses are the aggregate probable losses over a one-year risk horizon, in excess of identified probable losses. The risks inherent in the portfolio that are considered in determining unidentified probable losses are those proven to exist by past experience and include: country systemic risk; the risk of correlation or contagion of losses between markets; uninsured and uninsurable risks; nonperformance under guarantees and support agreements; and opacity of, or misrepresentation in, financial statements. Loans are written-off when the Corporation has exhausted all possible means of recovery, by reducing the reserve against losses on loans. Such reductions in the reserve are offset by recoveries associated with previously written-off loans. Equity investments - The Corporation invests for current income, capital appreciation, developmental impact, or all three; the Corporation does not seek to take operational, controlling, or strategic equity positions within its investees. Equity investments are acquired through direct ownership of equity instruments of investees, as a limited partner in limited liability partnerships (LLPs) and limited liability companies (LLCs), and/or as an investor in a private equity fund. Revenue recognition on equity investments - Direct equity investments in which the Corporation does not have significant influence and certain investments in investment companies are carried at cost less impairment. The Corporation's investments in companies where it has significant influence and certain investments in LLPs and LLCs that maintain specific ownership accounts are accounted for under the equity method. The Corporation's investments in certain private equity funds in which IFC is deemed to be the Primary Beneficiary of a VIE as the presumption of control by the fund manager or the general partner has been overcome are fully consolidated into the Corporation's books. Certain equity investments, for which recovery of invested capital is uncertain, are accounted for under the cost recovery method, such that receipts of freely convertible currencies are first applied to recovery of invested capital and then to capital gains. The cost recovery method is principally applied to the Corporation's investment in its oil and gas unincorporated joint ventures (UJVs). Conditional asset retirement obligations related to investments in UJVs are recorded when the fair value of the obligations can be reasonably estimated. The obligations are capitalized and systemically amortized over the estimated economic useful lives. Dividends and profit participations received on cost method equity investments are generally recorded as income when received in freely convertible currencies. Realized capital gains on the sale or redemption of equity investments are measured against the average cost of the investments sold and are generally recorded as income when received in freely convertible currencies or securities, which are readily convertible into freely convertible currencies. Capital losses are recognized when incurred. The Corporation enters into put and call option agreements in connection with equity investments; these are accounted for in accordance with Statement of Financial Accounting Standards (SFAS) No. 133. Impairment of equity investments - Equity investments are assessed for impairment each quarter. When an impairment is identified and is deemed to be other than temporary, the equity investment is written down to the impaired value, which becomes the new cost basis in the equity investment. Impairment losses are not reversed for subsequent recoveries in value of the equity investment until it is sold. PAGE 42 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Guarantees - The Corporation extends financial guarantee facilities to its clients to provide credit enhancement for their debt securities and trade obligations. Beginning in the year ended June 30, 2001, the Corporation began offering partial credit guarantees to clients covering, on a risk-sharing basis, client obligations on bonds and/or loans. Under the terms of the Corporation's guarantees, the Corporation agrees to assume responsibility for the client's financial obligations in the event of default by the client (i.e., failure to pay when payment is due). Guarantees are regarded as issued when the Corporation commits to the guarantee. Guarantees are regarded as outstanding when the underlying financial obligation of the client is incurred, and this date is considered to be the "inception" of the guarantee. Guarantees are regarded as called when the Corporation's obligation under the guarantee has been invoked. There are two liabilities associated with the guarantees: (1) the stand-ready obligation to perform and (2) the contingent liability. The stand-ready obligation to perform is recognized at the outstanding date unless a contingent liability exists at that time or is expected to exist in the near term. The contingent liability associated with the financial guarantees is recognized when it is probable the guarantee will be called and when the amount of guarantee called can be reasonably estimated. All liabilities associated with guarantees are included in payables and other liabilities, and the receivables are included in other assets on the consolidated balance sheet. When the guarantees are called, the amount disbursed is recorded as a new loan, and specific reserves are established, based on the estimated probable loss. These reserves are included in the reserve against losses on loans on the consolidated balance sheet. Guarantee fees are recorded in income as the stand-ready obligation to perform is fulfilled. Commitment fees on guarantees are recorded as income on an accrual basis. Designations of retained earnings - In the year ended June 30, 2004, IFC established a funding mechanism for technical assistance and advisory services (TAAS) through a designation of retained earnings. In the year ended June 30, 2005, the Corporation established a funding mechanism for performance-based grants (PBG) through a designation of retained earnings. Further, in the year ended June 30, 2006, the Corporation also designated retained earnings for grants to IDA for use by IDA in the provision of grants to further IFC's mandates in certain IDA member countries. Total designations of retained earnings for TAAS, PBG, and grants to IDA are determined based on the Corporation's annual income before expenditures for TAAS, expenditures for PBG, and net (losses) gains on non-trading financial instruments in excess of $150 million, and contemplating the financial capacity and priorities of the Corporation. Expenditures for TAAS, PBG, and grants to IDA are recorded as expenses in the Corporation's consolidated income statement in the year in which they occur, also having the effect of reducing the respective designated retained earnings for such purposes. Expenditures are deemed to have occurred when IFC has ceded control of the funds to the recipient. If the recipient organization is deemed, in accordance with US GAAP, to be controlled by IFC, the expenditure is deemed to have occurred only when the recipient organization expends the funds to a non-related party. On occasion, recipient organizations which are deemed to be controlled by the Corporation will acquire certain investment assets other than cash. These investments have had no material impact on the Corporation's financial position, results of operations, or cash flows. In such cases, the Corporation includes those assets on its consolidated balance sheet, where they remain until the recipient organization disposes of or transfers the asset or the Corporation is deemed to no longer be in control of the recipient organization. Liquid asset portfolio - The Corporation's liquid funds are invested in government and agency obligations, time deposits and asset- backed securities. Government and agency obligations include long and short positions in highly rated fixed rate bonds, notes, bills, and other obligations issued or unconditionally guaranteed by governments of countries or other official entities including government agencies and instrumentalities or by multilateral organizations. The liquid asset portfolio, as defined by the Corporation, consists of: time deposits and securities; related derivative instruments; securities purchased under resale agreements, securities sold under repurchase agreements and payable for cash collateral received; receivables from sales of securities and payables for purchases of securities; and related accrued income and charges. Trading securities are carried at fair value with any changes in fair value reported in income from liquid asset trading activities. Interest on securities and amortization of premiums and accretion of discounts are also reported in income from liquid asset trading activities. The Corporation classifies due from banks and time deposits (collectively, cash and cash equivalents) as an element of liquidity in the statement of consolidated cash flows because they are readily convertible to known amounts of cash within 90 days. Repurchase and resale agreements - Repurchase agreements are contracts under which a party sells securities and simultaneously agrees to repurchase the same securities at a specified future date at a fixed price. Resale agreements are contracts under which a party purchases securities and simultaneously agrees to resell the same securities at a specified future date at a fixed price. It is the Corporation's policy to take possession of securities purchased under resale agreements, which are primarily liquid government securities. The market value of these securities is monitored and, within parameters defined in the agreements, additional collateral is obtained when their value declines. The Corporation also monitors its exposure with respect to securities sold under repurchase agreements and, in accordance with the terms of the agreements, requests the return of excess securities held by the counterparty when their value increases. Repurchase and resale agreements are accounted for as collateralized financing transactions and recorded at the amount at which the securities were acquired or sold plus accrued interest. Securities purchased under resale agreements, securities sold under agreements to repurchase and securities payable for cash collateral received are recorded at fair value. volume 2 PAGE 43 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Borrowings - To diversify its access to funding and reduce its borrowing costs, the Corporation borrows in a variety of currencies and uses a number of borrowing structures, including foreign exchange rate-linked, inverse floating rate and zero coupon notes. Generally, the Corporation simultaneously converts such borrowings into variable rate US dollar borrowings through the use of currency and interest rate swap transactions. Under certain outstanding borrowing agreements, the Corporation is not permitted to mortgage or allow a lien to be placed on its assets (other than purchase money security interests) without extending equivalent security to the holders of such borrowings. Borrowings are recorded at the amount repayable at maturity, adjusted for unamortized premium and unaccreted discount. Where borrowings are part of a designated hedging relationship employing derivative instruments, the carrying amount is adjusted for changes in fair value attributable to the risk being hedged. Adjustments for changes in fair value attributable to hedged risks are reported in net gains and losses on non-trading financial instruments in the consolidated income statement. Interest on borrowings and amortization of premiums and accretion of discounts are reported in charges on borrowings. Risk management, derivative instruments, and hedge accounting - The Corporation enters into transactions in various derivative instruments for financial risk management purposes in connection with its principal business activities, including lending, client risk management, borrowing, liquid asset portfolio management and asset and liability management. The Corporation does not use derivatives for speculative, marketing or merchandising purposes. All derivative instruments are recorded on the consolidated balance sheet at fair value as derivative assets or derivative liabilities. Where they are not clearly and closely related to the host contract, certain derivative instruments embedded in loans, equity investments, and market borrowing transactions entered into on or after January 1, 1999, are bifurcated from the host contract and recorded at fair value as derivative assets and liabilities. The value at inception of such embedded derivatives is excluded from the carrying value of the host contracts on the consolidated balance sheet. Changes in fair values of derivative instruments used in liquid asset portfolio management activities are recorded in income from liquid asset trading activities. Changes in fair values of derivative instruments other than those used in liquid asset portfolio management activities are recorded in net (losses) gains on non-trading financial instruments. Subject to certain specific qualifying conditions in SFAS No. 133, a derivative instrument may be designated either as a hedge of the fair value of an asset or liability (fair value hedge), or as a hedge of the variability of cash flows of an asset or liability or forecasted transaction (cash flow hedge). For a derivative instrument qualifying as a fair value hedge, fair value gains or losses on the derivative instrument are reported in net income, together with offsetting fair value gains or losses on the hedged item that are attributable to the risk being hedged. For a derivative instrument qualifying as a cash flow hedge, fair value gains or losses associated with the risk being hedged are reported in other comprehensive income and released to net income in the period(s) in which the effect on net income of the hedged item is recorded. Fair value gains and losses on a derivative instrument not qualifying as a hedge are reported in net gains and losses on non-trading financial instruments. The Corporation has designated certain hedging relationships in its borrowing and lending activities as fair value hedges. The Corporation generally matches the terms of its derivatives with the terms of the specific underlying financial instruments hedged, in terms of currencies, maturity dates, reset dates, interest rates, and other features. However, the valuation methodologies applied to the derivative and the hedged financial instrument, as prescribed by SFAS No. 133, may differ. The resulting ineffectiveness calculated for such relationships is recorded in net gains and losses on non-trading financial instruments in the consolidated income statement. The Corporation has not designated any hedging relationships as cash flow hedges. The risk management policy for each of the Corporation's principal business activities and the accounting policies particular to them are described below. Lending activities The Corporation's policy is to closely match the currency, rate basis, and maturity of its loans and borrowings. Derivative instruments are used to convert the cash flows from fixed rate US dollar or non-US dollar loans into variable rate US dollars. The impact on net income of changes in fair value of interest rate swaps qualifying for the shortcut method under SFAS No. 133 is exactly offset by a corresponding adjustment to the fair value of the related loans. The Corporation has elected not to designate hedging relationships for all other lending-related derivatives that do not qualify for the shortcut method. Client risk management activities The Corporation enters into derivatives transactions with its clients to help them hedge their own currency, interest rate, or commodity risk, which, in turn, improves the overall quality of the Corporation's loan portfolio. To hedge the market risks that arise from these transactions with clients, the Corporation enters into offsetting derivative transactions with matching terms with authorized market counterparties. Changes in fair value of all derivatives associated with these activities are reflected currently in net income. Though hedge accounting is not applicable to these activities, the matching of terms between the offsetting transactions minimizes the impact on net income. Fees and spreads charged on these transactions are recorded as income on an accrual basis. PAGE 44 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Borrowing activities The Corporation issues debt securities in various capital markets with the objectives of minimizing its borrowing costs, diversifying funding sources, and developing member countries' capital markets, sometimes using complex structures. These structures include borrowings payable in multiple currencies, or borrowings with principal and/or interest determined by reference to a specified index such as a stock market index, a reference interest rate, a commodity index, or one or more foreign exchange rates. The Corporation uses derivative instruments with matching terms, primarily currency and interest rate swaps, to convert such borrowings into variable rate US dollar obligations, consistent with the Corporation's matched funding policy. The Corporation has designated the majority of derivatives associated with borrowing activities as fair value hedges of the underlying borrowings. There are a small number of cash flow-like hedging transactions for which no hedge relationship has been designated. Liquid asset portfolio management activities The Corporation manages the interest rate, currency and other market risks associated with certain of the time deposits and securities in its liquid asset portfolio by entering into derivative transactions to convert the cash flows from those instruments into variable rate US dollars, consistent with the Corporation's matched funding policy. The derivative instruments used include short-term, over-the-counter foreign exchange forwards (covered forwards), interest rate and currency swaps, and exchange-traded interest rate futures and options. As the entire liquid asset portfolio is classified as a trading portfolio, all securities (including derivatives) are carried at fair value, and no hedging relationships have been designated. Asset and liability management In addition to the risk managed in the context of its business activities detailed above, the Corporation faces residual market risk in its overall asset and liability management. Residual currency risk is managed by monitoring the aggregate position in each lending currency and eliminating the net excess asset or liability position through spot sales or purchases. Interest rate risk due to reset date mismatches is reduced by synchronizing the reset dates on assets and liabilities and managing overall interest rate risk on an aggregate basis. Interest rate risk arising from mismatches due to writedowns, prepayments and reschedulings, and residual reset date mismatches, is monitored by measuring the sensitivity of the present value of assets and liabilities in each currency to each basis point change in interest rates. The Corporation monitors the credit risk associated with these activities by careful assessment and monitoring of prospective and actual clients and counterparties. In respect of liquid assets and derivatives transactions, credit risk is managed by establishing exposure limits based on the credit rating and size of the individual counterparty. In addition, the Corporation has entered into master agreements governing derivative transactions that contain close-out and netting provisions and collateral arrangements. Under these agreements, if the Corporation's credit exposure to a counterparty, on a mark-to-market basis, exceeds a specified level, the counterparty must post collateral to cover the excess, generally in the form of liquid government securities. Resource mobilization - The Corporation mobilizes funds from commercial banks and other financial institutions (Participants) by facilitating loan participations, without recourse. These loan participations are administered and serviced by the Corporation on behalf of the Participants. Loan participations serving as collateral under secured borrowing arrangements are included in loans on the Corporation's consolidated balance sheet with the related secured borrowing included in liabilities on the Corporation's consolidated balance sheet. The disbursed and outstanding balances of the loan participations that are considered sales are not included in the Corporation's consolidated balance sheet. Pension and other postretirement benefits - IBRD has a defined benefit Staff Retirement Plan (SRP), a Retired Staff Benefits Plan (RSBP) and a Post-Employment Benefits Plan (PEBP) that cover substantially all of its staff members as well as the staff of the Corporation and of MIGA. The SRP provides regular pension benefits and includes a cash balance plan. The RSBP provides certain health and life insurance benefits to eligible retirees. The PEBP provides pension benefits administered outside the SRP. All costs associated with these plans are allocated between IBRD, the Corporation, and MIGA based upon their employees' respective participation in the plans. In addition, the Corporation and MIGA reimburse IBRD for their share of any contributions made to these plans by IBRD. The net periodic pension and other postretirement benefit income or expense allocated to the Corporation is included in expense from pension and other postretirement benefits in the consolidated income statement. The Corporation includes a receivable from IBRD in receivables and other assets, representing prepaid pension and other postretirement benefit costs. Variable Interest Entities - In January 2003, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 46, Consolidation of Variable Interest Entities - an interpretation of ARB No. 51 (FIN 46). During December 2003, FASB replaced FIN 46 with FASB Interpretation No. 46, Consolidation of Variable Interest Entities - an interpretation of ARB No. 51 (FIN 46R). FIN 46 and FIN 46R define certain VIEs and require parties to such entities to assess and measure variable interests in the VIEs for the purpose of determining possible consolidation of the VIEs. Variable interests can arise from financial instruments, service contracts, guarantees, leases or other arrangements with VIE. An entity that will absorb a majority of VIE's expected losses or expected residual returns is deemed to be the primary beneficiary of the VIE and must include the assets, liabilities, and results of operations of the VIE in its consolidated financial statements. The Corporation has a number of investments in VIEs which it manages and supervises in a manner consistent with other portfolio investments. Note W provides further details regarding the Corporation's variable interests in VIEs. volume 2PAGE 45 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Accounting and financial reporting developments - During the year ended June 30, 2006, the Corporation changed its accounting principle with respect to the amortization of loan origination fees and loan origination costs. Prior to the year ended June 30, 2006, the net of loan origination fees and costs was considered to be insignificant. Beginning in year ended June 30, 2006, the Corporation began amortizing loan origination fees and costs on an effective yield basis. The FASB issued SFAS No. 154, Accounting Changes and Error Corrections, a replacement of APB Opinion No. 20 and FASB Statement No. 3. The Corporation early adopted SFAS No. 154 as of July 1, 2005. The adoption had no material impact on the Corporation's financial position, results of operations or cash flows. The FASB issued FASB Interpretation No. 47, Accounting for Conditional Asset Retirement Obligations - an interpretation of FASB Statement No. 143 (FIN 47). The Corporation adopted FIN 47 as of June 30, 2006 and has accrued a liability for its estimated conditional asset retirement obligations in four oil and gas UJVs. The US Accounting Standards Executive Committee issued, and the FASB ratified, Statement of Position (SOP) 03-3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer (SOP 03-3). The Corporation adopted SOP 03-3 as of July 1, 2005, and the adoption had no material impact on the Corporation's financial position, results of operations or cash flows. During the year ended June 30, 2006, the FASB issued SFAS No. 155, Accounting for Certain Hybrid Instruments - an amendment of FASB Statements Nos. 133 and 140 (SFAS No. 155) and SFAS No. 156, Accounting for Servicing of Financial Assets - an amendment of FASB Statement No. 140 (SFAS No. 156). Both SFAS No. 155 and SFAS No. 156 are effective for fiscal years beginning after September 15, 2006, which would be the year ending June 30, 2008 for IFC. The Corporation is presently assessing the possible impact of SFAS No. 155 and SFAS No. 156. In addition, during the year ended June 30, 2006, the FASB issued and/or approved various FASB Staff Positions, EITF Issues Notes, and other interpretative guidance related to Statements of Financial Accounting Standards and APB Opinions. The Corporation analyzed and implemented the new guidance, as appropriate, with no material impact on either the financial position, results of operations or cash flows of the Corporation. PAGE 46 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE B ­ LIQUID ASSET PORTFOLIO The composition of the Corporation's liquid asset portfolio is included in the consolidated balance sheet captions as follows (US$ millions): June 30, 2006 June 30, 2005 Assets Cash and due from banks $ - $ 56 Time deposits 2,911 1,720 Trading securities 16,286 14,561 Securities purchased under resale agreements 1,190 6,282 Receivables and other assets: Receivables from sales of securities 1,466 1,330 Accrued interest income on time deposits and securities 1,226 1,116 Accrued income on derivative instruments 37 42 Derivative assets 189 151 Total assets 23,305 25,258 Liabilities Payables and other liabilities: Due to banks 12 - Payables for purchases of securities 1,352 1,769 Accrued charges on derivative instruments 62 110 Securities sold under repurchase agreements and payable for cash collateral received 8,805 9,321 Derivative liabilities 344 733 Total liabilities 10,575 11,933 Total net liquid asset portfolio $ 12,730 $ 13,325 The liquid asset portfolio is denominated primarily in US dollars; investments in other currencies, net of the effect of associated derivative instruments that convert non-US dollar securities into US dollar securities, represent less than 1% of the portfolio at June 30, 2006 (less than 1% - June 30, 2005). The annualized rate of return on the trading portfolio during the year ended June 30, 2006, was 3.6% (2.6% - year ended June 30, 2005; 1.4% - year ended June 30, 2004). After the effect of associated derivative instruments, the liquid asset portfolio generally reprices within one year. Trading securities The composition of trading securities is as follows: Year ended June 30, 2006 At June 30, 2006 Fair value average Average daily balance Fair value maturity Average (US$ millions) (US$ millions) (years) yield (%) Government and agency obligations $ 9,604 $ 10,182 4.8 3.9 Asset-backed securities 4,554 4,467 27.0 5.6 Corporate securities 1,819 1,318 2.7 4.8 Money market funds 307 319 - 5.2 Total trading securities $ 16,284 $ 16,286 Year ended June 30, 2005 At June 30, 2005 Fair value average Average daily balance Fair value maturity Average (US$ millions) (US$ millions) (years) yield (%) Government and agency obligations $ 7,716 $ 7,923 3.4 3.9 Asset-backed securities 3,518 4,220 24.2 3.9 Corporate securities 2,756 2,300 3.9 4.4 Money market funds 367 118 - 2.6 Total trading securities $ 14,357 $ 14,561 The expected maturity of the asset-backed securities will differ from the contractual maturity, as reported above, due to prepayment features. volume 2 PAGE 47 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Income from liquid asset trading activities Income from liquid asset trading activities for the years ended June 30, 2006, June 30, 2005, and June 30, 2004 comprises (US$ millions): 2006 2005 2004 Interest income $ 673 $ 533 $ 278 Net (losses) gains on trading activities: Realized 72 (80) (38) Unrealized (302) (95) (66) Net (losses) gains on trading activities (230) (175) (104) Translation adjustments 1 - 3 Total income from liquid asset trading activities $ 444 $ 358 $ 177 Collateral The estimated fair value of securities held by the Corporation at June 30, 2006 as collateral, in connection with derivatives transactions and purchase and resale agreements, that may be sold or repledged was $1,313 million ($6,740 million - June 30, 2005). NOTE C ­ LOANS AND EQUITY INVESTMENTS AND RESERVE AGAINST LOSSES ON LOANS The distribution of the disbursed portfolio by sector is as follows (US$ millions): June 30, 2006 June 30, 2005 Equity Equity Loans investments Total Loans investments Total Finance and insurance $ 3,511 $ 1,018 $ 4,529 $ 2,637 $ 845 $ 3,482 Utilities 1,013 255 1,268 1,085 198 1,283 Oil, gas and mining 815 173 988 775 167 942 Transportation and warehousing 758 32 790 757 40 797 Industrial and consumer products 671 83 754 723 66 789 Nonmetallic mineral product manufacturing 703 23 726 529 24 553 Information 463 148 611 460 119 579 Food and beverages 478 63 541 512 62 574 Chemicals 465 63 528 337 73 410 Collective investment vehicles 48 383 431 56 402 458 Agriculture and forestry 367 60 427 207 60 267 Wholesale and retail trade 348 48 396 336 63 399 Accommodation and tourism services 277 30 307 322 43 365 Paper and pulp 237 55 292 266 27 293 Primary metals 233 30 263 350 27 377 Textiles, apparel and leather 152 19 171 181 21 202 Plastics and rubber 52 44 96 93 52 145 Construction and real estate 69 1 70 142 7 149 Other 197 23 220 194 18 212 Total disbursed portfolio 10,857 2,551 13,408 9,962 2,314 12,276 Adjustments to investments accounted for under the equity method - 255 255 - 191 191 Unrealized gains on equity investments held by consolidated VIEs - 6 6 - - - Unamortized deferred loan origination fees, net (46) - (46) - - - Fair value adjustments for loans in qualifying hedge relationships 6 - 6 11 - 11 Carrying value of loans and equity investments $ 10,817 $ 2,812 $ 13,629 $ 9,973 $ 2,505 $ 12,478 PAGE 48 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The distribution of the disbursed loan and equity investment portfolio by geographical region is as follows (US$ millions): June 30, 2006 June 30, 2005 Equity Equity Loans investments Total Loans investments Total Europe and Central Asia $ 3,786 $ 628 $ 4,414 $ 2,847 $ 540 $ 3,387 Latin America and Caribbean 3,475 651 4,126 3,681 618 4,299 Asia 2,055 866 2,921 1,922 737 2,659 Sub-Saharan Africa 792 188 980 677 186 863 Middle East and North Africa 726 125 851 672 107 779 Other 23 93 116 163 126 289 Total disbursed portfolio 10,857 2,551 13,408 9,962 2,314 12,276 Adjustments to investments accounted for under the equity method - 255 255 - 191 191 Unrealized gains on equity investments held by consolidated VIEs - 6 6 - - - Unamortized deferred loan origination fees, net (46) - (46) - - - Fair value adjustments for loans in qualifying hedge relationships 6 - 6 11 - 11 Carrying value of loans and equity investments $ 10,817 $ 2,812 $ 13,629 $ 9,973 $ 2,505 $ 12,478 At June 30, 2006, 20% of the disbursed loan portfolio consisted of fixed rate loans (16% - June 30, 2005), while the remainder was at variable rates. At June 30, 2006, the disbursed loan portfolio included $88 million of loans serving as collateral under secured borrowing arrangements. Loan portfolio The currency composition and average yield of the disbursed loan portfolio are summarized below: June 30, 2006 June 30, 2005 Amount Average Amount Average (US $ millions) yield (%) (US $ million) yield (%) US dollar $ 8,300 8.1 $ 8,074 6.6 Euro 1,498 5.3 1,193 4.8 Other currencies 1,059 8.1 695 8.8 Total disbursed loan portfolio 10,857 7.7 9,962 6.5 Unamortized deferred loan origination fees, net (46) - Fair value adjustments for loans in qualifying hedge relationships 6 11 Carrying value of loans $ 10,817 $ 9,973 After the effect of interest rate and currency swaps, the Corporation's loans are principally denominated in US dollars. Disbursed loans in all currencies are repayable during the years ending June 30, 2007 through June 30, 2011 and thereafter, as follows (US$ millions): 2007 2008 2009 2010 2011 Thereafter Total Fixed rate loans $ 380 $ 336 $ 338 $ 247 $ 226 $ 676 $ 2,203 Variable rate loans 1,200 1,266 1,364 1,153 1,056 2,615 8,654 Total disbursed loan portfolio $ 1,580 $ 1,602 $ 1,702 $ 1,400 $ 1,282 $ 3,291 10,857 Unamortized deferred loan origination fees, net (46) Fair value adjustments for loans in qualifying hedge relationships 6 Carrying value of loans $ 10,817 The Corporation's disbursed variable rate loans generally reprice within one year. Loans on which the accrual of interest has been discontinued amounted to $447 million at June 30, 2006 ($634 million - June 30, 2005). Interest income not recognized on nonaccruing loans during the year ended June 30, 2006 totaled $68 million ($58 million - year ended June 30, 2005; $82 million - year ended June 30, 2004). Interest income recognized on loans in nonaccrual status, related to current and prior years, during the year ended June 30, 2006 was $21 million ($36 million - year ended June 30, 2005; $54 million - year ended June 30, 2004). The average recorded investment in impaired loans during the year ended June 30, 2006, was $931 million ($1,486 million - year ended June 30, 2005). The recorded investment in impaired loans at June 30, 2006 was $671 million ($1,191 million - June 30, 2005). volume 2 PAGE 4 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Reserve against losses on loans Changes in the reserve against losses, on loans for the year ended June 30, 2006, June 30, 2005, and June 30, 2004, are summarized below (US$ millions): June 30, 2006 June 30, 2005 June 30,2004 Beginning balance $ 989 $ 1,367 $ 1,684 Provision for (release of provision for) losses on loans 10 (259) (89) Write-offs (111) (136) (246) Recoveries of previously written-off investments 9 16 2 Translation adjustments on loans 4 4 15 Other adjustments (3) (3) 1 Ending balance $ 898 $ 989 $ 1,367 The provision for losses on loans and guarantees in the consolidated income statement for the year ended June 30, 2006 includes $5 million provision in respect of guarantees ($3 million release - year ended June 30, 2005; $14 million release - year ended June 30, 2004). At June 30, 2006 the accumulated reserve for losses on guarantees, included in the consolidated balance sheet in payables and other liabilities, was $18 million ($13 million - June 30, 2005). Interest and financial fees from loans Interest and financial fees from loans for the years ended June 30, 2006, June 30, 2005, and June 30, 2004 comprise the following (US$ millions): 2006 2005 2004 Interest income $ 743 $ 574 $ 449 Commitment fees 21 17 15 Other financial fees 43 69 54 Total interest and financial fees from loans $ 807 $ 660 $ 518 NOTE D ­ GUARANTEES Under the terms of the Corporation's guarantees, the Corporation agrees to assume responsibility for the client's financial obligations in the event of default by the client, where default is defined as failure to pay when payment is due. Guarantees entered into by the Corporation generally have maturities consistent with those of the loan portfolio. Guarantees signed at June 30, 2006 totaled $1,150 million ($978 million - June 30, 2005). Guarantees of $494 million that were outstanding at June 30, 2006 ($291 million - June 30, 2005) were not included in loans on the Corporation's consolidated balance sheet. The outstanding amount represents the maximum amount of undiscounted future payments that the Corporation could be required to make under these guarantees. NOTE E ­ INCOME FROM EQUITY INVESTMENTS Income from equity investments for the years ended June 30, 2006, June 30, 2005, and June 30, 2004 comprise the following (US$ millions): 2006 2005 2004 Realized capital gains on equity sales $ 928 $ 723 $ 386 Dividends and profit participations 327 258 207 Amortization of UJVs conditional asset retirement obligations (8) - - Income from LLPs, certain LLCs and other investments accounted for under the equity method 56 191 - Changes in carrying value of equity investments - 269 69 Equity investment impairment write-downs (57) (62) - Net losses on equity-related derivatives (15) (12) (2) Custody and other fees (3) (2) (2) Total income from equity investments $ 1,228 $ 1,365 $ 658 Realized capital gains include recoveries and are net of losses on sales of equity investments. PAGE 50 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Dividends and profit participations include $86 million ($106 million - year ended June 30, 2005; $65 million - year ended June 30, 2004) of receipts received in freely convertible cash, net of cash disbursements, in respect of investments accounted for under the cost recovery method. NOTE F ­ PROJECTS APPROVED AND COMMITTED BUT NOT DISBURSED OR UTILIZED Projects approved by the Board of Directors not committed, loan and equity commitments signed but not yet disbursed, and guarantee and client risk management facilities signed but not yet utilized are summarized below (US$ millions): June 30, 2006 June 30, 2005 Projects approved but not committed: Loans $ 2,353 $ 2,333 Equity investments 507 400 Guarantees 679 731 Client risk management facilities 18 19 Total projects approved but not committed 3,557 3,483 Projects committed but not disbursed: Loans 5,550 4,819 Equity investments 1,361 1,013 Projects committed but not utilized: Guarantees 656 687 Client risk management facilities 132 119 Total projects committed but not disbursed or utilized 7,699 6,638 Total projects approved but not disbursed or utilized $ 11,256 $ 10,121 NOTE G ­ RESOURCE MOBILIZATION Loan participations arranged to be placed with Participants in respect of loans approved by the Board of Directors, loan participations signed as commitments for which disbursement has not yet been made and loan participations disbursed and outstanding and serviced by the Corporation for the Participants are as follows (US$ millions): June 30, 2006 June 30, 2005 Loan participations arranged to be placed with Participants approved but not committed $ 2,485 $ 2,194 Loan participations signed as commitments but not disbursed 1,136 901 Loan participations arranged to be placed with Participants approved but not disbursed $ 3,621 $ 3,095 Loan participations disbursed and outstanding which are serviced by the Corporation $ 3,878 $ 4,382 NOTE H ­ RECEIVABLES AND OTHER ASSETS Receivables and other assets are summarized below (US$ millions): June 30, 2006 June 30, 2005 Receivables from sales of securities $ 1,466 $ 1,330 Accrued interest income on time deposits and securities 1,226 1,116 Accrued income on derivative instruments 299 316 Accrued interest income on loans 153 113 Prepaid pension and other postretirement benefit costs 393 348 Headquarters building: Land 89 89 Building 192 184 Less: Building depreciation (43) (38) Headquarters building, net 238 235 Deferred charges and other assets 192 316 Total receivables and other assets $ 3,967 $ 3,774 volume 2 PAGE 51 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE I ­ BORROWINGS Market borrowings and associated derivatives The Corporation's borrowings outstanding from market sources and currency and interest rate swaps, net of unamortized issue premiums and discounts, are summarized below: June 30, 2006 Interest rate swaps Currency swaps notional principal Market borrowings payable (receivable) payable (receivable) Net currency obligation Weighted Weighted Notional Weighted Weighted Amount (US average Amount (US average amount (US average Amount (US average $ millions) cost (%) $ millions) cost (%) $ millions) cost (%) $ millions) cost (%) US dollar $ 6,980 3.9 $ 8,078 4.6 $ 6,334 5.1 $ 14,725 4.9 (6,667) (3.8) - - Japanese yen 4,174 4.2 (4,174) (4.2) - - - - Pound sterling 1,712 5.4 (1,712) (5.4) - - - - South African rand 589 7.2 (589) (7.2) - - - - Hong Kong dollar 552 6.1 (552) (6.1) - - - - Euro 475 6.4 (475) (6.4) - - - - Australian dollar 397 4.7 (397) (4.7) - - - - Canadian dollar 276 1.0 (276) (1.0) - - - - New Zealand dollar 242 6.0 (242) (6.0) - - - - Colombian peso 235 12.5 (235) (12.5) - - - - Chinese renminbi 141 3.4 - - - - 141 3.4 Malaysian ringgit 136 2.9 (136) (2.9) - - - - Moroccon dirham 114 4.5 (114) (4.5) - - - - Swiss francs 91 1.9 (91) (1.3) 80 1.3 - - (80) (2.0) - - Peruvian soles nuevos 46 6.6 (46) (6.6) - - - - Principal at face value 16,160 $ (961) $ (333) $ 14,866 Less: Unamortized discounts, net (605) Total market borrowings 15,555 Fair value adjustments (668) Carrying value of market borrowings $ 14,887 June 30, 2005 Interest rate swaps Currency swaps notional principal Market borrowings payable (receivable) payable (receivable) Net currency obligation Weighted Weighted Notional Weighted Weighted Amount (US average Amount (US average amount (US average Amount (US average $ millions) cost (%) $ millions) cost (%) $ millions) cost (%) $ millions) cost (%) US dollar $ 7,029 3.9 $ 8,872 2.7 $ 6,350 3.2 $ 15,641 3.3 (6,610) (3.8) - - Japanese yen 5,008 3.8 (5,008) (3.8) - - - - Pound sterling 1,713 5.4 (1,713) (5.4) - - - - Hong Kong dollar 745 6.0 (745) (6.0) - - - - South African rand 662 7.5 (662) (7.5) - - - - Euro 514 6.3 (514) (6.3) - - - - Australian dollar 497 4.7 (497) (4.7) - - - - Canadian dollar 284 1.0 (284) (1.0) - - - - Colombian peso 265 12.5 (265) (12.5) - - - - New Zealand dollar 216 5.6 (216) (5.6) - - - - Malaysian ringgit 132 2.9 (132) (2.9) - - - - Moroccon dirham 110 4.5 (110) (4.5) - - - - Swiss francs 78 2.7 (78) (0.4) 78 0.4 - - (78) (2.7) - - Hungarian forints 49 9.0 (49) (9.0) - - - - Peruvian soles nuevos 46 6.6 (46) (6.6) - - - - Principal at face value 17,348 $ (1,447) $ (260) $ 15,641 Less: Unamortized discounts, net (593) Total market borrowings 16,755 Fair value adjustments (1,451) Carrying value of market borrowings $ 15,304 PAGE 52 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The weighted average cost of the Corporation's borrowings outstanding from market sources after currency and interest rate swap transactions was 4.9% at June 30, 2006 (3.3% - June 30, 2005). The weighted average remaining maturity of the Corporation's borrowings from market sources was 10.7 years at June 30, 2006 (11.6 years - June 30, 2005). Charges on borrowings for the year ended June 30, 2006, include $6 million of interest expense on secured borrowings. Net fair value adjustments to the carrying value of market borrowings comprises $(668) million at June 30, 2006 ($(1,451) million - June 30, 2005) representing adjustments to the carrying value of transactions in designated fair value hedging relationships. The net nominal amount receivable from currency swaps of $961 million and the net notional amount receivable from interest rate swaps of $333 million at June 30, 2006 ($1,447 million and $260 million - June 30, 2005), shown in the above table, are represented by currency and interest rate swap assets at fair value of $785 million and currency and interest rate swap liabilities at fair value of $(779) million ($1,270 million and $1,439 million - June 30, 2005), included in derivative assets and derivative liabilities, respectively, on the consolidated balance sheet. Borrowings from IBRD Borrowings outstanding from IBRD are summarized below: June 30, 2006 June 30, 2005 Principal Weighted Principal Weighted amount average amount average (US$ millions) cost (%) (US$ millions) cost (%) Saudi Arabian riyal $ 50 4.5 $ - - US dollar 30 6.4 53 6.4 Euro - - 2 8.1 Total borrowings outstanding from IBRD $ 80 $ 55 The weighted average remaining maturity of borrowings from IBRD was 7.5 years at June 30, 2006 (2.6 years - June 30, 2005). Charges on borrowings for the year ended June 30, 2006 includes $5 million ($5 million - year ended June 30, 2005; $8 million - year ended June 30, 2004) in respect of IBRD borrowings. Maturity of borrowings The principal amounts repayable on borrowings outstanding in all currencies, gross of any premiums or discounts, during the years ending June 30, 2007 through June 30, 2011 and thereafter are summarized below (US$ millions): 2007 2008 2009 2010 2011 Thereafter Total Borrowings from market sources $ 1,843 $ 1,823 $ 1,279 $ 1,856 $ 1,280 $ 8,079 $ 16,160 Borrowings from IBRD 18 8 3 1 - 50 80 Total borrowings, gross $ 1,861 $ 1,831 $ 1,282 $ 1,857 $ 1,280 $ 8,129 16,240 Less: Unamortized discounts, net (605) Fair value adjustments (668) Carrying value of borrowings $ 14,967 After the effect of interest rate and currency swaps, the Corporation's borrowings generally reprice within one year. NOTE J ­ PAYABLES AND OTHER LIABILITIES Payables and other liabilities are summarized below (US$ millions): June 30, 2006 June 30, 2005 Accrued charges on borrowings $ 216 $ 247 Accrued charges on derivative instruments 282 268 Payables for purchases of securities 1,352 1,769 Secured borrowings 88 - Accounts payable, accrued expenses and other liabilities 286 416 Deferred income 60 50 Total payables and other liabilities $ 2,284 $ 2,750 volume 2 PAGE 53 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE K ­ CAPITAL TRANSACTIONS The Corporation's authorized share capital was increased to $2,450 million through two capital increases in 1992. The subscription and payment period for shares then allocated ended on August 1, 1999, but the Corporation has agreed to defer the payment date for certain member countries beyond this date. Pursuant to these arrangements, $1 million of subscribed shares remained unpaid at June 30, 2006 ($1 million - June 30, 2005). During the year ended June 30, 2006, no shares were subscribed and paid by member countries at a par value of $1,000 each (1,615 - year ended June 30, 2005; 720 - year ended June 30, 2004). Under IFC's Articles of Agreement, in the event a member withdraws from IFC, the Corporation and the member may agree on the repurchase of the member's capital stock on such terms as may be appropriate under the circumstances. Such agreement may provide, among other things, for a final settlement of all obligations of the member to IFC. If such an agreement is not made within six months after the member withdraws or such other time as the Corporation and the member may agree, the repurchase price of the member's capital stock shall be the value thereof shown by the books of IFC on the day when the member withdraws. The repurchase of capital stock is subject to certain conditions, including payments in installments, at such times and in such available currency or currencies as the Corporation reasonably determines, taking into account the financial position of the Corporation. IFC's Articles of Agreement also provide for the withdrawing member to repay losses on loans and equity investments in excess of reserves provided on the date of withdrawal. On August 7, 2006, the Board of Directors approved the designation of $230 million of the Corporation's retained earnings for the purposes of the funding mechanism for technical assistance and advisory services. On August 7, 2006, the Board of Directors approved the designation of $150 million of the Corporation's retained earnings for the purposes of grants to IDA. NOTE L ­ OTHER INCOME Other income for the year ended June 30, 2006, predominantly comprises $20 million of fees collected from clients for expenses incurred by the Corporation, included in administrative expenses ($16 million - year ended June 30, 2005; $16 million - year ended June 30, 2004), $17 million of income from consolidated entities ($5 million - year ended June 30, 2005; $0 million - year ended June 30, 2004) and income under other reimbursable arrangements of $10 million ($13 million - year ended June 30, 2005; $10 million - year ended June 30, 2004). NOTE M ­ TECHNICAL ASSISTANCE AND ADVISORY SERVICES As of June 30, 2005, the Corporation had designated retained earnings in the amount of $350 million for TAAS. As of June 30, 2006, the Board of Directors has approved $280 million of proposed expenditures beginning in the year ended June 30, 2005 through the year ending June 30, 2011. Of the amount approved by the Board of Directors as of June 30, 2006, the Corporation has recognized expenditures of $55 million in the year ended June 30, 2006 and $38 million in the year ended June 30, 2005. Prior to the year ended June 30, 2005, from time to time, the Board of Directors approved recommendations under which the Corporation contributed to special programs, comprising the Corporation's Global Small and Medium Enterprise Capacity Building Facility, Technical Assistance Fund and Foreign Investment Advisory Service and other donor-funded operations. During the year ended June 30, 2004, the Corporation contributed a total of $29 million to these facilities. NOTE N ­ PERFORMANCE-BASED GRANTS During the year ended June 30, 2006, the Corporation provided $35 million to IBRD's Global Partnership for Output Based Aid under a pilot phase approved by IFC's Board of Directors in March 2006, which has been recorded as an expense in the year ended June 30, 2006. Also under the pilot phase, IFC's Board of Directors has approved a further $30 million for a future performance-based small and medium-size enterprise initiative for Sub-Saharan Africa. No amounts have been expensed under this initiative in the year ended June 30, 2006. PAGE 54 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE O ­ NET (LOSSES) GAINS ON NON-TRADING FINANCIAL INSTRUMENTS Net (losses) gains on non-trading financial instruments for the year ended June 30, 2006, June 30, 2005, and June 30, 2004, comprise (US$ millions): 2006 2005 2004 Difference between changes in fair value of derivative instruments designated as a fair value hedge and change in fair value of hedged items attributable to risks being hedged $ (63) $ (48) $ 65 Change in fair value of non-trading derivative instruments not designated as a hedge (65) 112 (54) Amortization of difference between fair value and carrying value of hedged items at July 1, 2000 not designated for hedge accounting under SFAS No. 133 (3) (3) (2) Release from accumulated other comprehensive income of transition gain on cash flow-like hedges - 1 2 Net (losses) gains on non-trading financial instruments $ (131) $ 62 $ 11 Of the total net (losses) gains on non-trading financial instruments, unrealized losses of $182 million (gains of $44 million - year ended June 30, 2005; losses $26 million - year ended June 30, 2004) are attributable to borrowings and related derivatives transactions, unrealized gains of $51 million (gains $15 million - year ended June 30, 2005; gains $36 million - year ended June 30, 2004) are attributable to loans and related derivatives transactions, and unrealized gains of $0 million (gains $3 million - year ended June 30, 2005; gains $1 million - year ended June 30, 2004) are attributable to client risk management activities. Upon the adoption of SFAS No. 133 on July 1, 2000, the Corporation recorded a gain of $14 million to accumulated other comprehensive income to adjust the book value to fair value of cross-currency interest rate swaps in cash flow-like hedges. The Corporation elected not to seek hedge accounting for these transactions under SFAS No. 133 and, accordingly, records the cross- currency interest rate swaps at fair value, with the change in fair value included in earnings. The gain recorded in accumulated other comprehensive income upon adoption of SFAS No. 133 is released into earnings over the remaining original hedge term. The amounts released for the years ended June 30, 2006 and June 30, 2005 are shown above; the expected release for the year ending June 30, 2007 is $0 million. NOTE P ­ DERIVATIVE AND OTHER FINANCIAL INSTRUMENTS Many of the Corporation's financial instruments are not actively traded in any market. Accordingly, estimates and present value calculations of future cash flows are used to estimate the fair values. Determining future cash flows for fair value estimation is subjective and imprecise, and minor changes in assumptions or methodologies may materially affect the estimated values. The excess or deficit resulting from the difference between the carrying amounts and the fair values presented does not necessarily reflect the realizable values, since the Corporation generally holds loans, borrowings and other financial instruments to maturity with the aim of realizing their recorded values. The estimated fair values reflect the interest rate environments as of June 30, 2006 and June 30, 2005. In different interest rate environments, the fair value of the Corporation's financial assets and liabilities could differ significantly, especially the fair value of certain fixed rate financial instruments. Reasonable comparability of fair values among financial institutions is not likely, because of the wide range of permitted valuation techniques and numerous estimates that must be made in the absence of secondary market prices. This lack of objective pricing standards introduces a greater degree of subjectivity and volatility to these derived or estimated fair values. Therefore, while disclosure of estimated fair values of financial instruments is required, readers are cautioned in using these data for purposes of evaluating the financial condition of the Corporation. The fair values of the individual financial instruments do not represent the fair value of the Corporation taken as a whole. The methodologies used and key assumptions made to estimate fair values as of June 30, 2006 and June 30, 2005 are summarized below. Liquid assets - The estimated fair value of time deposits and the trading securities portfolio are based on quoted market prices and the present value of estimated future cash flows using appropriate discount rates. Derivative instruments - Fair values for covered forwards were derived by using quoted market forward exchange rates. Fair values for other derivative instruments were derived by determining the present value of estimated future cash flows using appropriate discount rates. Loans and loan commitments - The Corporation generally has not sold its loans from the portfolio, and there is no comparable secondary market. Fair values for fixed rate loans and loan commitments were determined using a discounted cash flow model based on a discount rate comprising the fixed rate loan spread plus the year-end estimated cost of funds. Since rates on variable volume 2 PAGE 55 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS rate loans and loan commitments are generally reset on a quarterly or semiannual basis, the carrying value adjusted for credit risk was determined to be the best estimate of fair value. The Corporation also holds options to convert loans into equity of certain of its investee companies. Fair values of these conversion options are based on quoted market prices or other calculated values of the underlying equity investment. Equity investments - Fair values of equity investments accounted for at cost less impairment were determined using market prices where available, put option prices, book values or cost, certain of which were discounted based upon management's estimate of net realizable value. Where market prices were not available or alternate valuation techniques were not practical, cost was determined to be the best estimate of fair value. Fair values of investments in LLPs and certain LLCs, other equity method investments and equity investments held by consolidated VIEs are not included. Borrowings - Fair values were derived by determining the present value of estimated future cash flows using appropriate discount rates. Estimated fair values of the Corporation's financial assets and liabilities and off-balance sheet financial instruments are summarized below (US$ millions). The Corporation's credit exposure is represented by the estimated fair values of its financial assets. June 30, 2006 June 30, 2005 Carrying Fair value amount adjustments Fair value Fair value Financial assets Due from banks, time deposits, securities and securities purchased under resale agreements $ 20,594 $ - $ 20,594 $ 22,781 Loans 10,817 441 11,258 10,396 Reserve against losses on loans (898) - (898) (989) Net loans 9,919 441 10,360 9,407 Cost method equity investments 2,325 4,232 6,557 4,749 Derivative assets: Liquid asset portfolio-related 189 - 189 151 Loans-related 123 - 123 72 Borrowings-related 785 - 785 1,270 Client risk management-related 29 - 29 23 Equity-related 2 - 2 - Total derivative assets 1,128 - 1,128 1,516 Nonfinancial assets, including equity method and consolidated investments 4,454 - 4,454 4,184 Total assets $ 38,420 $ 4,673 $ 43,093 $ 42,637 Financial liabilities Securities sold under repurchase agreements and payable for cash collateral received $ 8,805 $ - $ 8,805 $ 9,321 Market and IBRD borrowings outstanding 14,967 - 14,967 15,361 Derivative liabilities: Liquid asset portfolio-related 344 - 344 733 Loans-related 135 - 135 139 Borrowings-related 779 - 779 1,439 Client risk management-related 28 - 28 21 Equity-related 2 - 2 - Total derivative liabilities 1,288 - 1,288 2,332 Nonfinancial liabilities 2,284 - 2,284 2,750 Total liabilities $ 27,344 $ - $ 27,334 $ 29,764 June 30, 2006 June 30, 2005 Carrying Fair value amount adjustments Fair value Fair value Off-balance sheet financial instruments Loan commitments $ 5,550 $ 14 $ 5,564 $ 4,831 PAGE 56 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE Q ­ CURRENCY POSITION The Corporation conducts its operations for its loans, time deposits and securities and borrowings in multiple currencies. The Corporation's policy is to minimize the level of currency risk by closely matching the currency of its assets (other than equity investments and quasi-equity investments) and liabilities by using hedging instruments. The Corporation's equity investments in enterprises located in its developing member countries are typically made in the local currency of the country. As a matter of policy, the Corporation carries the currency risk of equity investments and quasi-equity investments and funds these investments from its capital and retained earnings. The following table summarizes the Corporation's exposure in major currencies at June 30, 2006 and June 30, 2005 (US$ millions): June 30, 2006 Japanese Other Fair value US dollar Euro yen currencies adjustments Total Assets Cash and cash equivalents $ 17,718 $ 1,413 $ 89 $ 184 $ - $ 19,404 Securities purchased under resale agreements 1,190 - - - - 1,190 Loans disbursed and outstanding 8,255 1,498 45 1,013 6 10,817 Less: Reserve against losses on loans (707) (107) (4) (80) - (898) Net loans 7,548 1,391 41 933 6 9,919 Equity investments - - - 2,812 - 2,812 Total loans and equity investments disbursed and outstanding 7,548 1,391 41 3,745 6 12,731 Derivative assets 2,725 1,276 4,472 4,147 (11,492) 1,128 Receivables and other assets 3,658 91 88 130 - 3,967 Total assets $ 32,839 $ 4,171 $ 4,690 $ 8,206 $ (11,486) $ 38,420 Liabilities Securities sold under repurchase agreements and payable for cash collateral received $ 8,064 $ 741 $ - $ - $ - $ 8,805 Borrowings 6,681 468 4,177 4,309 (668) 14,967 Derivative liabilities 7,996 2,765 425 977 (10,875) 1,288 Payables and other liabilities 1,997 64 82 141 2,284 Total liabilities $ 24,738 $ 4,038 $ 4,684 $ 5,427 $ (11,543) $ 27,344 June 30, 2005 Japanese Other Fair value US dollar Euro yen currencies adjustments Total Assets Cash and cash equivalents $ 14,020 $ 2,020 $ 199 $ 260 $ - $ 16,499 Securities purchased under resale agreements 5,436 846 - - - 6,282 Loans disbursed and outstanding 8,075 1,193 26 668 11 9,973 Less: Reserve against losses on loans (795) (127) (3) (64) - (989) Net loans 7,280 1,066 23 604 11 8,984 Equity investments - - - 2,505 - 2,505 Total loans and equity investments disbursed and outstanding 7,280 1,066 23 3,109 11 11,489 Derivative assets 2,653 1,629 5,355 4,512 (12,633) 1,516 Receivables and other assets 3,477 69 106 122 - 3,774 Total assets $ 32,866 $ 5,630 $ 5,683 $ 8,003 $ (12,622) $ 39,560 Liabilities Securities sold under repurchase agreements and payable for cash collateral received $ 7,845 $ 1,476 $ - $ - $ - $ 9,321 Borrowings 6,823 508 5,013 4,466 (1,451) 15,359 Derivative liabilities 8,749 3,487 568 887 (11,359) 2,332 Payables and other liabilities 2,414 97 100 139 - 2,750 Total liabilities $ 25,831 $ 5,568 $ 5,681 $ 5,492 $ (12,810) $ 29,762 volume 2 PAGE 57 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE R ­ SEGMENT REPORTING For management purposes, the Corporation's business comprises two segments: client services and treasury services. The client services segment consists primarily of lending and equity investment activities. Operationally, the treasury services segment consists of the borrowing, liquid asset management, asset and liability management and client risk management activities. Consistent with internal reporting, net income (expense) from asset and liability management and client risk management activities in support of client services are allocated to client services segment. The assessment of segment performance by senior management includes net income for each segment, return on assets, and return on capital employed. The Corporation's management reporting system and policies are used to determine revenues and expenses attributable to each segment. Consistent with internal reporting, administrative expenses are allocated to each segment based largely upon personnel costs and segment head counts. Transactions between segments are immaterial and, thus, are not a factor in reconciling to the consolidated data. The accounting policies of the Corporation's segments are, in all material respects, consistent with those described in note A, "Summary of Significant Accounting and Related Policies." An analysis of the Corporation's major components of income and expense by business segment for the years ended June 30, 2006, June 30, 2005, and June 30, 2004 is given below (US$ millions): 2006 2005 2004 Client Treasury Client Treasury Client Treasury services services Total services services Total services services Total Interest and financial fees from loans $ 807 $ - $ 807 $ 660 $ - $ 660 $ 518 $ - $ 518 Income from liquid asset trading activities - 444 444 - 358 358 - 177 177 Charges on borrowings (343) (260) (603) (151) (158) (309) (41) (100) (141) Income from equity investments 1,228 - 1,228 1,365 - 1,365 658 - 658 (Provision for) release of provision for losses on loans and guarantees (15) - (15) 261 - 261 103 - 103 Service fees 52 - 52 41 - 41 41 - 41 Administrative expenses (430) (6) (436) (397) (6) (403) (354) (6) (360) Other income (expense) 22 - 22 18 - 18 (14) - (14) Income before expenditures for TAAS, PBG and net (losses) gains on non-trading financial instruments 1,321 178 1,499 1,797 194 1,991 911 71 982 Expenditures for TAAS (55) - (55) (38) - (38) - - - Expenditures for PBG (35) - (35) - - - - - - Net (losses) gains on non- trading financial instruments 49 (180) (131) 18 44 62 37 (26) 11 Net income $ 1,280 $ (2) $ 1,278 $ 1,777 $ 238 $ 2,015 $ 948 $ 45 $ 993 Geographical segment data in respect of client services are disclosed in Note C, and are not relevant in respect of treasury services. NOTE S ­ PENSION AND OTHER POSTRETIREMENT BENEFITS The Corporation, IBRD, and MIGA participate in a defined benefit SRP, a Retired Staff Benefits Plan (RSBP), and a Post-Employment Benefits Plan (PEBP) that cover substantially all of their staff members. The SRP provides regular pension benefits and includes a cash balance plan. The RSBP provides certain health and life insurance benefits to eligible retirees. The PEBP provides certain pension benefits administered outside the SRP. The Corporation uses a June 30 measurement date for its pension and other postretirement benefit plans. PAGE 58 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The amounts presented below reflect the Corporation's respective share of the costs, assets, and liabilities of the plans. All costs, assets, and liabilities associated with these plans are allocated between the Corporation, IBRD, and MIGA based upon their employees' respective contributions to the plans. Costs allocated to IBRD are then shared between IBRD and IDA based on an agreed cost-sharing ratio. The Corporation, IDA, and MIGA reimburse IBRD for their proportionate share of any contributions made to these plans by IBRD. Contributions to these plans are calculated as a percentage of salary. The following table summarizes the benefit costs associated with the SRP, RSBP, and PEBP allocated to the Corporation for the fiscal years ended June 30, 2006, June 30, 2005, and June 30, 2004 (US$ millions): SRP RSBP PEBP 2006 2005 2004 2006 2005 2004 2006 2005 2004 Benefit cost Service cost $ 59 $ 48 $ 43 $ 9 $ 6 $ 5 $ 2 $ 2 $ 2 Interest cost 101 100 84 8 7 5 2 1 1 Expected return on plan assets (157) (145) (122) (10) (8) (6) - - - Amortization of prior service cost 1 3 3 - - - - - - Amortization of unrecog- nized net loss (gain) 9 - 3 4 2 2 - - - Net periodic pension cost $ 13 $ 6 $ 11 $ 11 $ 7 $ 6 $ 4 $ 3 $ 3 The expenses for the SRP, RSBP, and PEBP are included in expense from pension and other postretirement benefit plans. For the fiscal years ended June 30, 2006, June 30, 2005, and June 30, 2004, expenses for these plans of $28 million, $16 million and $20 million, respectively, were allocated to IFC. The Corporation's net expense for these plans reported in the consolidated income statement was $28 million, $14 million, and $19 million for the fiscal years ended June 30, 2006, June 30, 2005, and June 30, 2004, respectively. The following table summarizes the projected benefit obligations, fair value of plan assets, and funded status associated with the SRP, RSBP, and PEBP for the Corporation for the fiscal years ended June 30, 2006, June 30, 2005, and June 30, 2004 (US$ millions). Since the assets for the PEBP are not held in an irrevocable trust separate from the assets of IBRD, they do not qualify for off-balance sheet accounting and are therefore included in IBRD's investment portfolio. IFC has recognized a receivable (prepaid asset) from IBRD and a payable (liability) to IBRD equal to the amount required to support the plan. The assets of the PEBP are invested in fixed income instruments. SRP RSBP PEBP 2006 2005 2004 2006 2005 2004 2006 2005 2004 Projected Benefit Obligation Beginning of year $ 1,631 $ 1,392 $ 1,269 $ 162 $ 103 $ 91 $ 23 $ 15 $ 12 Service cost 59 48 43 9 6 5 2 2 2 Interest cost 101 100 84 8 7 5 2 1 1 Employee contributions 15 14 13 1 2 1 - - - Benefits paid (51) (68) (56) (4) (6) (5) (2) (2) (1) Actuarial (gain) loss (403) 145 39 (15) 50 6 9 7 1 End of year 1,352 1,631 1,392 161 162 103 34 23 15 Fair value of plan assets Beginning of year $ 1,670 $ 1,592 $ 1,328 $ 118 $ 99 $ 80 $ - $ - $ - Employee contributions 15 14 13 1 2 1 - - - Actual return on assets 205 88 284 11 15 16 - - - Employer contributions 53 44 23 16 8 7 - - - Benefits paid (51) (68) (56) (4) (6) (5) - - - End of year 1,892 1,670 1,592 142 118 99 - - - volume 2 PAGE 5 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SRP RSBP PEBP 2006 2005 2004 2006 2005 2004 2006 2005 2004 Funded status Plan assets in excess of (less than) projected benefit obligation $ 540 $ 39 $ 200 $ 19 $ (44) $ (4) $ (34) $ (23) $ (15) Unrecognized net (gain) loss from past experience different from changes in assumptions (202) 258 57 43 62 21 15 6 (1) Unrecognized prior Service cost 10 11 14 - - - 1 - - Prepaid (accrued) Pension cost $ 348 $ 308 $ 271 $ 24 $ 18 $ 17 $ (18) $ (17) $ (16) Accumulated benefit obligation $ 1,024 $ 1,255 $ 1,008 $ 161 $ 162 $ 103 $ 28 $ 20 $ 13 The prepaid SRP cost was $348 million at June 30, 2006 ($308 million - June 30, 2005) and the prepaid RSBP cost was $24 million at June 30, 2006 ($18 million - June 30, 2005). These amounts are included in Receivables and other assets on the consolidated balance sheet. Assumptions The actuarial assumptions used are based on financial market interest rates, past experience, and management's best estimate of future benefit changes and economic conditions. Changes in these assumptions will impact future benefit costs and obligations. The expected long-term rate of return for the SRP assets is a weighted average of the expected long-term (10 years or more) returns for the various asset classes, weighted by the portfolio allocation. Asset class returns are developed using a forward-looking building block approach and are not strictly based on historical returns. Equity returns are generally developed as the sum of expected inflation, expected real earnings growth and expected long-term dividend yield. Bond returns are generally developed as the sum of expected inflation, real bond yield, and risk premium/spread (as appropriate). Other asset class returns are derived from their relationship to equity and bond markets. The expected long-term rate of return for the RSBP is computed using procedures similar to those used for the SRP. The discount rate used in determining the benefit obligation is selected by reference to the year-end AAA and AA corporate bonds. Actuarial gains and losses occur when actual results are different from expected results. Amortization of these unrecognized gains and losses will be included in income if, at the beginning of the fiscal year, they exceed 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets. If required, the unrecognized gains and losses are amortized over the expected average remaining service lives of the employee group. The following tables present the weighted-average assumptions used in determining the projected benefit obligations and the net periodic pension costs for the fiscal years ended June 30, 2006, June 30, 2005, and June 30, 2004: Weighted average assumptions used to determine projected benefit obligation (%) SRP RSBP PEBP 2006 2005 2004 2006 2005 2004 2006 2005 2004 Discount rate 6.50 5.25 6.25 6.50 5.25 6.25 6.50 5.25 6.25 Rate of compensation increase 6.80 5.90 6.40 Health care growth rates -at end of fiscal year 7.60 6.80 7.30 Ultimate health care growth rate 5.00 4.25 4.75 Year in which ultimate rate is reached 2012 2012 2012 PAGE 60 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Weighted average assumptions used to determine net periodic pension cost (%) SRP RSBP PEBP 2006 2005 2004 2006 2005 2004 2006 2005 2004 Discount rate 5.25 6.25 5.75 5.25 6.25 5.75 5.25 6.25 5.75 Expected return on plan assets 7.75 7.75 7.75 8.25 8.25 7.75 Rate of compensation increase 5.90 6.40 5.40 Health care growth rates -at end of fiscal year 6.80 7.30 6.10 -to year 2012 and thereafter 4.25 4.75 3.75 The medical cost trend rate can significantly affect the reported postretirement benefit income or costs and benefit obligations for the RSBP. The following table shows the effects of a one-percentage-point change in the assumed healthcare cost trend rate (US$ millions): One percentage point One percentage point increase decrease Effect on total service and interest cost $ 4 $ (3) Effect on postretirement benefit obligation 33 (27) Investment Strategy The investment policy for the SRP and the RSBP is to optimize the risk-return relationship as appropriate to the respective plan's needs and goals, using a global diversified portfolio of various asset classes. Specifically, the long-term asset allocation is based on an analysis that incorporates expected returns by asset class as well as volatilities and correlations across asset classes and the liability profile of the respective plans. This analysis, referred to as an asset-liability analysis, also provides estimates of potential future contributions and future asset and liability balances. Plan assets are managed by external investment managers and monitored by IBRD's pension investment department. The pension plan assets are invested in diversified portfolios of public equity, fixed income, and alternative investments. The fixed-income and public equity asset classes are rebalanced on a monthly basis. The following table presents the weighted-average asset allocation at June 30, 2006 and June 30, 2005, and the respective target allocation by asset category for the SRP and RSRP (%): SRP RSBP Target % of Plan Target % of Plan Assets Allocation Assets Allocation 2006 2006 2006 2005 2006 2005 Asset Class Fixed Income 40% 40% 40% 30% 30% 31% Public Equity 35 35 40 30 33 37 Alternative Investments 25 25 20 40 37 32 Total 100% 100% 100% 100% 100% 100% Alternative Investments include: Private Equity up to 12% 8.3% 7.1% up to 28% 12.3% 11.2% Real Estate up to 8% 4.7 4.0 up to 18% 4.1% 3.7 Hedge Funds up to 12% 12.0 8.7 up to 23% 20.5% 16.8 volume 2 PAGE 61 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Estimated Future Benefits Payments The following table shows the benefit payments expected to be paid in each of the next five years and subsequent five years. The expected benefit payments are based on the same assumptions used to measure the benefit obligation at June 30, 2006 (US$ millions): SRP RSBP PEBP July 1, 2006 - June 30, 2007 $48 $3 $3 July 1, 2007 - June 30, 2008 54 3 3 July 1, 2008 - June 30, 2009 61 4 3 July 1, 2009 - June 30, 2010 66 4 3 July 1, 2010 - June 30, 2011 71 5 4 July 1, 2011 - June 30, 2015 452 35 22 Expected Contributions The Corporation's contribution to the SRP and RSBP varies from year to year, as determined by the Pension Finance Committee, which bases its judgment on the results of annual actuarial valuations of the assets and liabilities of the SRP and RSBP. The best estimate of the amount of contributions expected to be paid to the SRP and RSBP for the Corporation during the fiscal year beginning July 1, 2006 is $25 million and $9 million, respectively. NOTE T ­ SERVICE AND SUPPORT PAYMENTS The Corporation obtains certain administrative and overhead services from IBRD in those areas where common services can be efficiently provided by IBRD. This includes shared costs of the Boards of Governors and Directors, and other services such as communications, internal auditing, administrative support, supplies, and insurance. The Corporation makes payments for these services to IBRD based on negotiated fees, chargebacks and allocated charges, where chargeback is not feasible. Expenses allocated to the Corporation for the year ended June 30, 2006, were $23 million ($25 million - year ended June 30, 2005; $21 million - year ended June 30, 2004). NOTE U ­ TRUST FUNDS The Corporation uses the services of IBRD to administer funds on behalf of donors that are restricted for specific uses, including technical assistance, feasibility studies and project preparation, global and regional programs and research and training programs. These funds are placed in trust and are not included in the Corporation's assets. The responsibilities of the Corporation are to arrange for services generally not otherwise provided by it, including full project implementation and procurement of goods and services. The distribution of Trust Fund assets by executing agent is as follows (US$ millions): June 30, 2006 June 30, 2005 Total fiduciary Number of Total fiduciary Number of assets active funds assets active funds Executed by the Corporation $ 420 715 $ 287 612 Executed by the recipient - - - - Total $ 420 715 $ 287 612 NOTE V ­ CONTINGENCIES In the normal course of its business, the Corporation is from time to time named as a defendant or co-defendant in various legal actions on different grounds in various jurisdictions. Although there can be no assurances, based on the information currently available, the Corporation's Management does not believe the outcome of any of the various existing legal actions will have a material adverse effect on the Corporation's financial condition or results of operations. PAGE 62 IFc annual report 2006 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE W ­ VARIABLE INTEREST ENTITIES AND OTHER CONSOLIDATED INVESTMENTS An entity is subject to FIN 46R and is called a variable interest entity (VIE) if it lacks: (1) equity that is sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties; or (2) equity investors who have decision- making rights about the entity's operations or who do not absorb the expected losses or receive the expected returns of the entity proportionally to their voting rights. A VIE is consolidated by its primary beneficiary, which is the party involved with the VIE that absorbs a majority of the expected losses or receives a majority of the expected residual returns or both. The primary beneficiary is required to initially measure the assets, liabilities and noncontrolling interests of the VIE at their carrying amounts at the date on which it first became the primary beneficiary. Because certain VIEs were created prior to the issuance of FIN 46R, it may not be practicable to determine the carrying amounts of the assets, liabilities and noncontrolling interests at the initial date, and in such cases, the primary beneficiary must measure the assets, liabilities and noncontrolling interests at their fair values on the date FIN 46R is first applied. The primary beneficiary is also required to disclose information about the nature, purpose, size, and activities of the VIE, and collateral and recourse creditors may have against the VIE. An enterprise may hold significant variable interests in VIEs, which are not consolidated because the enterprise is not the primary beneficiary. In such cases, the enterprise is required to disclose information about its involvement with and exposure to the VIE, and about the nature, purpose, size, and activities of the VIE. An enterprise is not required to apply FIN 46R to certain entities if, after making an exhaustive effort, it is unable to obtain the information necessary to: (1) determine whether the entity is a VIE; (2) determine if the enterprise is the primary beneficiary of the possible VIE; or (3) perform the accounting required to consolidate a possible VIE. In such cases, the enterprise is required to disclose the number of entities to which FIN 46R is not being applied, why the information required to apply FIN 46R is not available, the nature, purpose and activities of the entities to which FIN 46R is not being applied, and the enterprise's maximum exposure to the entities to which FIN 46R is not being applied. The Corporation has identified seven VIEs in which the Corporation is deemed to be the primary beneficiary at June 30, 2006. Four of the VIEs have been consolidated into IFC's financial statements as of June 30, 2006. One consolidated VIE is in the Finance and Insurance sector in the Latin America and Caribbean region. Three consolidated VIEs are in the Collective Investment Vehicles sector in the Latin America and Caribbean region. The remaining three VIEs in which the Corporation is deemed to be the primary beneficiary have not been consolidated into IFC's financial statements, as they are significantly impaired and information required to apply the provisions of FIN 46R is not available. IFC's net investment in these three entities totals $2 million, virtually all in the primary metals sector in the Asia region. Based on the most recent financial data available, total net assets of the three entities is $12 million. As a result of the consolidation of the four investments described above, IFC's consolidated balance sheet at June 30, 2006 includes additional assets of $6 million in equity investments ($0 million - June 30, 2005), $3 million in receivables and other assets ($131 million - June 30, 2005), and additional liabilities of $2 million in payables and other liabilities ($131 million - June 30, 2005). Other income for the year ended June 30, 2006 includes $17 million of income from consolidated entities ($5 million - year ended June 30, 2005; $0 million - year ended June 30, 2004) and other expense includes $10 million of expenses from consolidated entities ($5 million - year ended June 30, 2005; $0 million - year ended June 30, 2004). volume 2 PAGE 63 INTERNATIONAL FINANCE CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Corporation has identified fourteen investments in VIEs in which the Corporation is not the primary beneficiary but in which it is deemed to hold significant variable interests. The Corporation's total investment in and maximum exposure to loss to these entities, comprising both disbursed amounts and amounts committed but not yet disbursed balances, was $108 million at June 30, 2006. The regional and sectoral analysis of the Corporation's investments in these VIEs is as follows (US$ millions): June 30, 2006 Equity Loans investments Total Latin America and Caribbean $ 23 $ 21 $ 44 Asia 10 11 21 Europe and Central Asia 7 3 10 Sub-Saharan Africa - 5 5 Middle East and North Africa 2 - 2 Other - 26 26 Total VIE investments $ 42 $ 66 $ 108 June 30, 2006 Equity Loans investments Total Collective investment vehicles $ - $ 51 $ 51 Finance and insurance 15 12 27 Agriculture and forestry 10 - 10 Food and beverages 8 - 8 Accommodation and tourism services 7 - 7 Oil, gas and mining - 3 3 Textiles, apparel and leather 2 - 2 Total VIE investments $ 42 $ 66 $ 108 Based on the most recent available data from these VIEs, the assets of these VIEs totaled $602 million. NOTE X ­ MATERIAL TRANSACTION On December 21, 2005, the Corporation entered into an agreement to sell its shares in Banca Comerciala Romana S.A. (BCR). The agreement includes provisions that may result in the termination of the agreement prior to closing. In addition, IFC has entered into an agreement which includes certain payment covenants and potential indemnifications with respect to certain conditions and valuations in case such conditions and valuations become applicable. The transaction did not close by June 30, 2006. Should the transaction close in accordance with the agreement, IFC would expect to recognize a significant capital gain in the year ending June 30, 2007, in the range of $669 million to $841 million (based on June 30, 2006 exchange rates). PAGE 64 IFc annual report 2006 Table of Co tents Sub-Saharan africa 65 xx TableasiaContentsPacific E st of and the 68 xx Table of Contents South asia 72 xx Table ofand C Europe Contentsral asia 74 xx T ble america and the Caribbean 79 Latin of Contents xx SectionCommitments Project Start Table ofEast and north africa Middle Contents 85 xx Table of Contents Global 87 xx This table includes projects signed and processed during Fy06. all amounts are given in U.S. dollars, regardless of the currency of the transaction. For the purposes of the table, "iFC Loan" includes loan-type quasi-equity investments; "iFC equity" includes equity-type quasi-equity investments. Under the Global Trade Finance Program, iFC provides guarantee coverage of bank risk in emerging markets, where confirming banks need risk mitigation to support their export clients because of limited capacity for country and bank exposure. Structured finance mobilization is a feature of selected guarantee, loan, and equity transactions, but it is not included in the total committed for these projects. The mobilization number covers the full amount at the project commitment date. Projects marked with an asterisk(*) have been committed and/or have the option to disburse in a non­U.S. dollar currency. note on environmental and social Category: Projects are assigned a category of a, B, or C, in descending order of environmental and social sensitivity, or Fi, in the case of financial institutions that on-lend to clients who may present environmental and social concerns. Category a: Projects expected to have significant adverse social and/or environmental impacts that are diverse, irreversible, or unprecedented. Category B: Projects expected to have limited adverse social and/or environmental impacts that can be readily addressed through mitigation measures. Category C: Projects expected to have minimal or no adverse impacts, including certain financial intermediary projects. Category FI: investments in financial intermediaries that themselves have no adverse social and/or environmental impacts but may finance subprojects with potential impacts. environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization Sub-Saharan afriCa REGIoNAL Capital alliance private equity II, limited will FI -- .62 -- -- -- -- 9.62 invest in businesses in West Africa by partnering with strong management teams and international investors. Coca-Cola sabco pty., ltd. will expand and upgrade B 20.00 -- -- -- -- -- 20.00 its bottling operations in East Africa. la Fayette Investissements* will provide equity, FI -- 2.18 -- -- -- -- 2.18 loans, and technical assistance to microfinance institutions in frontier countries in the region. pan african Investment partners/pan FI -- 5.00 -- -- -- -- 5.00 Commonwealth african partners, a private equity fund, will target regionally expanding companies with proven management and established revenue streams. standard Bank Group limited will expand its FI 75.00 -- -- -- -- -- 75.00 operations in the region to enhance its competitive position and bring best practices and better access to high quality banking services and products. Veolia Water amI* will operate and maintain water B -- 31.34 44.68 -- -- -- 76.02 treatment plants and water distribution services in the region. volume 2 PAGE 65 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization CouNTRy Cameroon aeF 3t Cameroun* will expand its truck fleet, B 1.25 -- -- -- -- -- 1.25 modernize its dispatch and tracking systems, and provide more efficient logistics to its customers in the Douala market. aes sonel,* a recently privatized integrated electric B 8.36 -- -- -- -- -- 89.36 utility, will improve and expand its electricity generation, transmission, and distribution system. Congo, Democratic republic of Kingamyambo musonoi tailings s.a.r.l. will B 0.45 5.45 -- -- -- -- 5.90 cofinance a feasibility study for the retreatment of tailings containing copper and cobalt from the Kolwezi concentrator in the province of Katanga. Ghana Barclays Bank of Ghana limited will support the FI 30.00 -- -- -- -- -- 30.00 development of export-oriented companies and small and medium enterprises. Kenya Barclays Bank of Kenya limited will finance FI 10.00 -- -- -- -- -- 10.00 medium-size companies in need of u.S. dollar- denominated funding and utilize freed-up local currency to fund smaller enterprises. Barclays Bank of Kenya limited, an issuing bank in FI -- -- -- 10.80 -- -- 10.80 the Global Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. Investment & mortgages Bank limited, an C -- -- -- 2.18 -- -- 2.18 issuing bank in the Global Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. Kingdom Hotels Investments will refurbish and B 20.00 -- -- -- -- -- 20.00 rebrand five hotel properties in the country. panari Center limited will refinance its existing debt B 7.30 -- -- -- -- -- 7.30 and upgrade its technical installations to improve its environmental performance. madagascar BFV-societe Generale* will enhance its capacity to FI -- -- 6.17 -- -- -- 6.17 6.33 underwrite new small and medium enterprise loans on a profitable and sustainable basis. BnI-Credit lyonnais madagascar* will increase FI -- -- 6.17 -- -- -- 6.17 6.33 access to finance for small and medium enterprises. Business partners madagascar sme Fund ltd.* FI -- 3.31 -- -- -- -- 3.31 will deliver finance and technical assistance to local small and medium enterprises in a commercially sustainable manner. mauritania Bsa Ciment will invest in a greenfield cement B 10.6 -- -- -- -- -- 10.96 grinding plant in Nouakchott. PAGE 66 IFc annual report 2006 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization Generale de Banque de mauritanie, an issuing bank C -- -- -- 7.5 -- -- 7.59 in the Global Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. seF Hotel Halima,* a three-star, family-owned B 2.11 -- -- -- -- -- 2.11 business hotel, will expand its capacity from 34 to 64 rooms and renovate its existing rooms. mozambique Banco de Desenvolvimento e Comercio, an FI -- -- -- 0.11 -- -- 0.11 issuing bank in the Global Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. nigeria access Bank plc, an issuing bank in the Global Trade FI -- -- -- 81.65 -- -- 81.65 Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. access Bank plc will meet the demand for foreign FI 15.00 -- -- -- -- -- 15.00 currency term finance and provide assistance to the underserved subsector of women entrepreneurs. aeF socketWorks will expand its installation of C 2.50 -- -- -- -- -- 2.50 computer systems to the country's universities. Diamond Bank plc will increase its medium- and FI 20.00 -- -- -- -- -- 20.00 long-term funding for local private investment clients. Diamond Bank plc, an issuing bank in the Global C -- -- -- 42.63 -- -- 42.63 Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. Guaranty trust Bank plc will address the scarcity FI 30.00 -- -- -- -- -- 30.00 of housing, construction, and residential construction term finance in the country. Guaranty trust Bank plc, an issuing bank in the C -- -- -- 22.26 -- -- 22.26 Global Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. Investment Banking & trust Company plc FI 30.00 -- -- -- -- -- 30.00 will focus on lending to the manufacturing, private infrastructure, telecommunications, and energy industries. Investment Banking & trust Company plc , an C -- -- -- 6.44 -- -- 6.44 issuing bank in the Global Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. Zenith Bank plc, an issuing bank in the Global Trade FI -- -- -- 15.00 -- -- 15.00 Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. senegal Kounoune power s.a.* will build, own, and operate B 20.62 -- -- -- -- -- 20.62 a 67.5 MW diesel power plant in the eastern suburbs of Dakar. volume 2 PAGE 67 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization south africa Buffalo City municipality* will invest in infrastruc- C -- -- 6.38 -- -- -- 6.38 40.62 ture improvements such as water and wastewater facilities, electricity networks, and roads. ethos private equity Fund V will make equity FI -- 25.00 -- -- -- -- 25.00 and equity-related investments for control positions in market-leading growth businesses. Hernic Ferrochrome (pty) limited will utilize B 1.52 -- 3.73 -- -- -- 5.25 extra funding to expand its total ferrochrome production capacity. Karsten Farms pty., limited,* a grape exporter, B 7.24 -- -- -- -- -- 7.24 will replant aging vines and orchards, expand into berry production, and establish grape farming activities in Egypt. sphere private equity Fund I* will invest in small FI -- 5.22 -- -- -- -- 5.22 and medium-size companies that have strong management teams and growth potential. uganda uganda microfinance union will access local FI -- -- 1.00 -- -- -- 1.00 currency financing for the expansion of its microloan portfolio to service those who are currently marginalized by the formal financial sector. EaST aSia and ThE PaCifiC REGIoNAL asian lion Fund limited will target equity and FI -- 6.00 -- -- -- -- 6.00 equity-related investments in listed and unlisted mining companies engaged in advanced exploration work in the region. avenue asia special situations Fund IV, l.p. FI -- 50.00 -- -- -- -- 50.00 will invest in senior debt, debt-related instruments, convertible securities, and preferred and common stocks of companies in the region. CouNTRy Cambodia aCleDa Bank plc. will utilize a credit line to on-lend FI 5.00 -- -- -- -- -- 5.00 to small and medium enterprises and wholesale traders in the agribusiness sector. China anhui Conch Cement Company limited* will B 80.12 -- -- -- -- -- 80.12 implement an energy-saving waste heat recovery program and expand its cement production facilities in Eastern and Southern China. anhui Conch Cement Company limited* will C -- 40.38 -- -- -- -- 40.38 attract international investors and convert its legal-person shares into shares that can be publicly listed and traded on the Shanghai stock exchange. asian strategic Investments Corporation Group, C 4.12 -- -- -- -- -- 4.12 the operator of an automotive components group, will make a rights offering to its shareholders. PAGE 68 IFc annual report 2006 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization Babei Group Co., ltd. will expand and relocate its B -- -- -- -- -- 6.00 6.00 existing facilities for production of silk ties and fabrics. Beijing Deqingyuan agriculture technology Co., B -- 2.82 -- -- -- -- 2.82 ltd.* will build additional layer sheds to increase production capacity of high-quality eggs. Capital today China Growth Fund, l.p. will invest FI -- 25.00 -- -- -- -- 25.00 in small and medium-size companies focusing on consumer-driven sectors such as retail, education, manufacturing, and logistics. CDH Venture partners, l.p. will invest in early-stage FI -- 20.00 -- -- -- -- 20.00 small and medium enterprises, enhance their operating efficiencies, and maximize their growth potential on a sustainable basis. Changchun tBK shili auto parts Co., ltd.* will B 4.00 -- -- -- -- -- 4.00 construct a new plant to produce non-asbestos brake linings for commercial vehicles. Chenming paper Co. ltd. will construct a pulp and A -- -- -- -- -- 40.00 40.00 paper mill and associated facilities in Jiangxi Province to produce high-quality lightweight coated paper. China shanshui Cement Group Company, ltd.,* B 2.20 5.50 -- -- -- -- 7.70 a cement producer in Shandong Province, will restructure its debt, expand its capacity, and install energy-efficient technology. China shanshui Cement Group Company, ltd., B 50.00 -- -- -- -- -- 50.00 a cement producer in Shandong Province, will restructure its debt, expand its capacity, and install energy-efficient technology. China utility-Based energy efficiency Finance FI -- -- 24.6 -- -- -- 24.96 32.54 program* will support commercial banks making loans to small and medium enterprises for the purchase of energy-efficient equipment. Chinasoft International limited, an e-government C -- 15.00 -- -- -- -- 15.00 software company, will grow its business to undertake larger scale projects with larger capital requirements and invest in research and development. Guangxi Baise Fenglin Fiberboard Corporation B -- -- -- -- -- 4.00 4.00 ltd. will construct, equip, and operate a fiberboard manufacturing facility in Baise, Guangxi Province. Guangzhou Development Industry Holdings Co., B 50.11 -- -- -- -- -- 50.11 ltd. will invest in new power projects, including the installation of gas desulfurization facilities in the Pearl River power plant. Hisoft technology International limited will expand C -- 4.34 -- -- -- -- 4.34 its software research and development facilities. launch tech Company limited will merge its B -- 8.35 -- -- -- -- 8.35 Shenzhen production facilities into a single new complex, expand its lift equipment facility in Shanghai, and purchase new manufacturing equipment. volume 2 PAGE 6 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization neophotonics Corporation will develop and grow B -- 10.00 -- -- -- -- 10.00 its operations in the optical component industry. renaissance* will restructure and inject new capital C -- 1.77 -- -- -- -- 19.77 into its operations and introduce securities industry international best practices. rongde asset management Co. will act as a joint FI -- 35.00 -- -- -- -- 35.00 venture asset management company to purchase and resolve nonperforming loans. sBCVC Fund II, l.p. will make equity and equity- FI -- 20.00 -- -- -- -- 20.00 related investments in both early- and growth- stage companies in the telecom, media, and technology sectors. shanghai aerospace Computer system C 3.00 1.60 -- -- -- -- 4.60 engineering Co., ltd. will expand its long- distance medical education and training to working medical staff. shanghai International Banking & Finance C -- -- 0.14 -- -- -- 0.14 Institute will provide training to Chinese finance professionals to promote international best practices in banking and finance. sinospring utility Co., ltd. will develop two B -- 20.00 -- -- -- -- 20.00 seawater desalination projects, four wastewater treatment plants, and one water purification project. stora enso oyj, a paper and board producer, will B 50.00 -- -- -- -- 175.00 225.00 utilize a loan facility to develop its timber plantation. tianjin Dagang newspring Co. ltd. will develop, B 25.00 -- -- -- -- -- 25.00 operate, and maintain a seawater desalination plant in the Municipality of Tianjin. united Family Hospitals* will expand and upgrade B 8.02 -- -- -- -- -- 8.02 its operations in Beijing and Shanghai. united rural Cooperative Bank will introduce FI -- 10.85 -- -- -- -- 10.85 international best practices in many key areas of its financial operations. Verisilicon Holdings Co., ltd., a u.S./China-based C -- 1.00 -- -- -- -- 1.00 silicon chip design foundry, will expand its research and development activities and make acquisitions in the design sector. Yantai Changyu Group Company limited* will B -- 0.04 -- -- -- -- 0.04 diversify its ownership, improve corporate gover- nance, and adopt international management practices to prepare itself for increased competition in the domestic wine market. Yunnan Zhongda Yanjin power Generation Co., A 21.2 -- -- -- -- -- 21.92 ltd.* will build, own, and operate three run-of-the- river power stations in yunnan Province. Zhejiang Glass Company, limited,* a float glass B 50.00 25.02 -- -- -- 18.00 93.02 manufacturer, will refinance part of its short-term debt. PAGE 70 IFc annual report 2006 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization Indonesia pt Bank Buana Indonesia tbk will improve its risk FI -- -- -- -- 5.00 -- 5.00 management capabilities and actively promote fixed- rate consumer loans to its customers. pt Bank Danamon Indonesia tbk* will finance FI 150.00 -- -- -- -- -- 150.00 its growing loan portfolio in small and medium enterprises, consumer finance, and microfinance, diversify its funding, and reduce its asset liability maturity mismatches. pt Bank Danamon Indonesia tbk* will utilize a FI -- -- -- -- 5.00 -- 5.00 swap to hedge currency fluctuations to help mitigate foreign currency risks. pt Centralpertiwi Bahari will expand its shrimp feed B 45.00 -- -- -- -- -- 45.00 capacity and shrimp processing operations and fund working capital needs. pt Karunia alam segar will expand its instant B 20.00 -- -- -- -- -- 20.00 noodle production lines. pt makro Indonesia,* a chain of wholesale discount C -- 0.65 -- -- -- -- 0.65 cash and carry distribution stores, will expand its store count to strengthen its presence in the modern wholesale distribution sector. pt tirta alam segar will establish a beverage B 7.00 -- -- -- -- -- 7.00 production plant in Jakarta. Wilmar trading, an edible oil and oilseed processor, C -- -- 13.33 -- -- -- 13.33 will scale up its operations. philippines national Housing mortgage Finance C 0.27 0.16 -- -- -- -- 0.44 Corporation* will restructure its business to transfer its servicing arm to the private sector and enable it to focus on developing the secondary mortgage market. philippine export Development Facility will FI 0.25 -- -- -- -- -- 0.25 provide working capital to small and medium-size furniture manufacturers to enable them to export to the u.S. through outsourcing company APW Trade. Vietnam Coca-Cola sabco pty., ltd. will expand beyond its B 20.00 -- -- -- -- -- 20.00 home markets in South and East Africa to frontier countries in Asia such as Cambodia, Laos, Nepal, Sri Lanka, and Vietnam. paul maitland International, an export company B 8.00 -- -- -- -- -- 8.00 that specializes in high-quality furniture design and manufacture, will expand its permanent working capital and refinance its short-term debt. saigon thuong tin Commercial Joint stock C -- 3.05 -- -- -- -- 3.05 Bank* will strengthen its capital base and institutional capacity. volume 2 PAGE 71 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization SouTh aSia REGIoNAL Cairn energy plc will utilize a credit facility to B 150.00 -- -- -- -- -- 150.00 continue the appraisal and development of its oil and gas discoveries in Bangladesh and India. CouNTRy Bangladesh Dhaka Bank limited, an issuing bank in the Global FI -- -- -- 7.1 -- -- 7.19 Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. eastern Bank limited, an issuing bank in the Global FI -- -- -- 2.5 -- -- 2.59 Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. India apollo Hospitals enterprise limited will improve B -- 5.08 -- -- -- -- 5.08 and expand provision of health care services in the domestic market and internationally. atul limited,* a chemicals manufacturer, will B 16.5 -- -- -- -- -- 16.95 develop new fungicide and herbicide products and expand capacity of export products with high growth potential. Chennai Water Desalination limited will design, B 25.05 -- -- -- -- -- 25.05 construct, operate, and maintain a seawater desalination plant. Continental Carbon India limited* will construct B 7.00 2.00 -- -- -- -- 9.00 and operate a 15 MW power co-generation facility and improve the environmental quality of its existing plant through the replacement of key equipment. DCm shriram Consolidated limited will expand B 15.00 -- -- -- -- -- 15.00 one of its existing sugar mills and build two new sugar mills in the State of uttar Pradesh. Federal Bank limited will provide funding for FI -- 31.50 -- -- -- -- 31.50 on-lending to small and medium enterprises. Global trade Finance limited* will expand C -- 1.00 -- -- -- -- 1.00 its provision of export and domestic factoring services aimed primarily at small and medium enterprise clients. ilabs Investment Fund II, llC will make investments FI -- 20.00 -- -- -- -- 20.00 in early-stage, expansion-stage, and restructuring/ buyout opportunities in a diverse range of sectors. Indecomm Global services will open two new C -- 2.57 -- -- -- -- 2.57 facilities in Mysore and Chennai, expand existing and prospective client relationships, and fund organic and inorganic growth. India Hydropower Development Company* B 8.00 -- -- -- -- -- 8.00 will acquire the Bhandardara hydroelectric power facility and complete refurbishments to improve its performance. PAGE 72 IFc annual report 2006 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization India Hydropower Development Company* B 7.03 -- -- -- -- -- 7.03 will construct three greenfield mini-hydroelectric generation facilities and complete the construction of another. Infrastructure Development Finance Company FI -- -- -- -- -- 100.00 100.00 limited will meet its growing need for financing of infrastructure projects, as well as diversify its borrowing sources. International auto limited,* an automotive B -- .6 -- -- -- -- 9.96 components group, will fund the expansion of its operations. JK paper limited will expand into fast-growing B 15.00 11.50 -- -- -- -- 26.50 and high-margin segments of the domestic paper market and further enhance its environmental management systems. KpIt Cummins Infosystems limited will utilize C -- 2.50 -- -- -- -- 2.50 extra funds for strategic acquisitions, expand its sales initiatives, and build new software development facilities. l.G. Balakrishnan & Bros., limited,* an automotive B 14.67 5.00 -- -- -- -- 19.67 and industrial products manufacturer, will increase its production capacity to respond to the growing volume and quality demands of its clients. lok Investments will provide social impact capital FI -- 2.00 -- -- -- -- 2.00 in the form of equity and debt to qualifying microfinance institutions. nevis networks Inc., a development-stage C -- 4.00 -- -- -- -- 4.00 semiconductor company focused on network security, will offer better hardware solutions to the endpoint security market. psl limited* will expand and upgrade its pipe B 15.00 5.00 -- -- -- -- 20.00 mill facilities. ramky enviro engineers ltd.* will establish a B 4.00 -- -- -- -- -- 4.00 number of waste management facilities throughout the country. ruchi soya Industries limited will increase its B 10.00 10.00 -- -- -- -- 20.00 crushing and refining capacity to meet growing domestic demand for edible oil. tata Iron & steel Company limited will modernize B -- -- -- -- -- 100.00 100.00 and expand its businesses, including a capacity increase in its plant in Jamshedpur. maldives Wataniya telecom maldives private limited will C 20.00 -- -- -- -- -- 20.00 build a nationwide cellular telecommunications network and purchase bandwidth and facilities for a fiber-optic submarine cable connecting the Maldives with other international major fiber routes. volume 2 PAGE 73 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization EuroPE and CEnTraL aSia REGIoNAL emerging europe Convergence Fund II, l.p.,* a FI -- 25.84 -- -- -- -- 25.84 private equity fund, will focus on infrastructure and related industries in Central and Eastern Europe. marbleton property Fund l.p. will invest in a FI -- 20.00 -- -- -- -- 20.00 diversified portfolio of real estate projects in Russia, ukraine, and other countries in the region. SouThERN EuRoPE REGIoN european Fund for southeast europe* will attract FI -- 36.0 -- -- -- -- 36.90 investments from multilateral, bilateral, and private institutional investors to make investments in microfinance institutions in the region. CouNTRy armenia Inecobank will on-lend to small and medium FI 3.00 -- -- -- -- -- 3.00 enterprise clients and develop its housing finance business. narek llC, a wholesale and retail trade company, B 5.20 -- -- -- -- -- 5.20 will refurbish and expand the Airarat shopping and entertainment center in downtown yerevan. azerbaijan azerigazbank will expand its lending and leasing FI 3.00 -- -- -- -- -- 3.00 activities in the small and medium enterprise sector. azerigazbank will expand its on-lending and leasing FI -- 2.30 -- -- -- -- 2.30 operations to small and medium enterprises, local entrepreneurs, and individuals. microfinance Bank of azerbaijan will utilize a credit FI 3.00 -- -- -- -- -- 3.00 line to grow its portfolio to benefit entrepreneurs and small and medium enterprises. uniBank Commercial Bank oJsC will meet the FI 5.00 -- -- -- -- -- 5.00 financing needs of smaller enterprises and establish itself as one of the country's leading players in the leasing market. Belarus CJsC Brewing Company will acquire modern B 2.00 -- -- -- -- -- 2.00 bottling lines, upgrade the malting processes and boiler house, and improve overall product quality. Detroit Belarus Brewing Company will benefit B -- 0.52 -- -- -- -- 0.52 from a rights issuance. Bosnia and Herzegovina mI-Bospo* will expand its microfinance FI 2.55 -- -- -- -- -- 2.55 lending operations. nova Banka a.D.* will utilize extra funding to FI 12.41 -- -- -- -- -- 12.41 on-lend to small and medium enterprises and the consumer retail housing sector. PAGE 74 IFc annual report 2006 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization raiffeisen Bank D.D. Bosnia and Herzegovina* C 1.15 -- -- -- -- -- 19.15 will develop housing finance and energy efficiency products for its clients. Bulgaria epIQ nV,* a contract electronics manufacturer in B 23.43 -- -- -- -- -- 23.43 the automotive sector, will modernize and expand its operations. stomana Industry a.D.,* a steel producer, will B 22.8 -- -- -- -- -- 22.98 install and operate a new hot rolling mill within its existing premises. Croatia agrokor Group,* a diversified agribusiness and B 51.06 -- -- -- -- -- 51.06 retail company, will modernize and expand two of its subsidiaries following their privatization. Georgia taV Holdings will upgrade and expand Tbilisi B 27.00 -- -- -- -- -- 27.00 International Airport to allow it to operate at international standards of safety and efficiency. tBC Bank will gain expertise and know-how in FI -- 8.75 -- -- -- -- 8.75 offering the public new banking products and will access capital to support its growth. Hungary otp Bank Hungary* will facilitate lighting and C -- -- 122.32 -- -- -- 122.32 127.68 heating renovations and improvements in state- supported local institutional schools as well as other municipally supported facilities. Kazakhstan Bta leasing will strengthen its institutional capacity FI 5.00 -- -- -- -- -- 5.00 and expand its leasing operations, particularly to small and medium enterprises Kyrgyz republic micro Credit agency Bai tushum Financial FI 1.20 -- -- -- -- -- 1.20 Foundation will fund its loan portfolio growth as it expands its microfinance lending activities throughout the country. moldova mobiasbanca s.a. will utilize extra funding to on- FI 5.00 -- -- -- -- -- 5.00 lend to small and medium enterprises. romania Banc post s.a.* will utilize extra funding to enhance C -- 6.67 -- -- -- -- 6.67 its operating capacity. Banca Comerciala romana s.a.* will address FI 87.84 -- -- -- -- -- 87.84 maturity mismatches between long-term currency assets and short-term currency liabilities and release funding to support the growth of private sector entities. CnFr navrom Galati s.a.* will upgrade pushers B 16.7 -- -- -- -- -- 16.79 used by its delta cargo shipping company to reduce emissions, reduce shipping time, and save fuel costs. volume 2 PAGE 75 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization s.C. petrotel-lukoil s.a. will modernize and B 35.00 -- -- -- -- 47.00 82.00 revamp its refinery to provide high-quality petroleum products. russian Federation absolut Bank will expand its operations in Moscow FI 15.00 10.00 -- -- -- -- 25.00 and St. Petersburg, and grow its residential mortgage lending program throughout the country. absolut Bank will expand its operations in Moscow FI -- 3.27 -- -- -- -- 3.27 and St. Petersburg and grow its residential mortgage lending program throughout the country. absolut Bank, an issuing bank in the Global Trade FI -- -- -- 10.00 -- -- 10.00 Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. air taxi will acquire and operate a fleet of smaller B 15.00 -- -- -- -- -- 15.00 aircraft to provide air transport to underserved regions of the country. alliance oil Company will expand its retail network B 25.00 -- -- -- -- -- 25.00 and logistics infrastructure, modernize its refineries, and increase its geological exploration activities. Bema Gold Corporation will construct and operate A 3.00 -- -- -- -- -- 39.00 facilities to mine and mill gold and silver ore deposits in the eastern part of the country. Brunswick rail leasing will acquire railcars and B 37.50 7.50 -- -- -- -- 45.00 lease them to large industrial or transport companies on a long-term operating lease basis. CenterInvest Bank will on-lend to energy efficiency FI 4.00 -- -- -- -- -- 4.00 and renewable energy projects. Chuvash republic* will utilize long-term financing FI -- -- 8.40 -- -- -- 8.40 23.60 for essential infrastructure investments in water supply, housing, and road construction projects. Cinema park will expand its operations to develop a B 20.00 -- -- -- -- -- 20.00 nationwide chain of multiscreen movie theaters and a film distribution network. Credit Bank of moscow will expand its small and FI 5.00 -- -- -- -- -- 5.00 medium enterprise lending activities. Credit Bank of moscow, an issuing bank in the FI -- -- -- 1.86 -- -- 1.86 Global Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. Delta leasing* will expand its leasing activity in FI 6.21 -- -- -- -- -- 6.21 Siberia and the eastern part of the country, with a focus on small and medium enterprises. DeltaCredit Bank* will increase its mortgage C 24.00 -- -- -- -- -- 24.00 capacity and expand its branch network throughout the country. DeltaCredit Bank will expand its residential FI -- 6.00 -- -- -- -- 6.00 mortgages business. eurosib, a rail and logistics operator, will construct B 48.00 -- -- -- -- 71.50 119.50 and operate six inland logistics terminals to be located throughout the country. PAGE 76 IFc annual report 2006 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization Forus Bank* will utilize a loan facility to support its FI 6.24 -- -- -- -- -- 6.24 microfinance lending operations. locko Bank* will improve its corporate governance FI 10.7 15.65 -- -- -- -- 26.44 standards and increase its ability to offer longer term loans to small and medium enterprise clients. nBD Bank will strengthen its operating capacity to FI 5.00 -- -- -- -- -- 5.00 provide longer term funding to its small and medium enterprise clients. oJsC pivoindustria primorya,* a brewery in B 8.78 5.31 -- -- -- -- 14.09 Vladivostok, will upgrade its facilities and expand production capacity. omK Group will expand and modernize two of its B 60.00 -- -- -- -- -- 60.00 steel production operations and invest in an environmental improvement program. peter Hambro mining plc* will support its C -- 17.36 -- -- -- -- 17.36 operations in gold mining and the acquisition, exploration, and development of gold properties. ramstore will build two supermarkets with attached B 40.00 -- -- -- -- -- 40.00 shopping malls in Moscow and three hypermarkets with attached malls in Moscow, St. Petersburg, and Togliatti. russian standard Bank* will broaden its distribution C 64.03 -- -- -- -- 60.00 124.03 341.7 network by extending its business to all of the major regions in the country and provide a wider group of customers with a full range of consumer finance products. sibakadembank will expand its small and medium FI 2.00 -- -- -- -- -- 2.00 enterprise and retail lending business through provision of equity, quasi-equity, and Tier II capital. sibakadembank* will expand its small and medium FI 10.00 -- -- -- -- -- 10.00 enterprise and retail lending business through provision of equity, quasi-equity, and Tier II capital. trio Invest llC will build an automated low- B 20.00 -- -- -- -- -- 20.00 temperature warehouse and distribution facility in Moscow for frozen and processed meat products, fish, and vegetables. tV3 russia II will expand its distribution capabilities C 10.00 -- -- -- -- -- 10.00 and enhance its program offering to increase market share. ural-siberian Bank will increase its geographical FI 30.00 -- -- -- -- -- 30.00 diversification and outreach by making credits available to small and medium enterprises throughout the country. serbia and montenegro Banca Intesa a.D. Beograd* will expand its retail FI 76.5 48.6 -- -- -- -- 125.28 and wholesale banking business. Continental Banka a.D.* will expand its retail FI 25.53 -- -- -- -- -- 25.53 and consumer lending to enable it to extend term financing for small and medium enterprises and mortgages volume 2 PAGE 77 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization raiffeisen Bank Kosovo J.s.C.* will develop housing C 12.77 -- -- -- -- -- 12.77 finance and energy efficiency products for its clients. raiffeisen Bank Yugoslavia a.D.* will provide long- C -- 2.46 -- -- -- -- 2.46 term funding to corporate and retail customers. Raiffeisen Bank Yugoslavia a.D.* will provide long- C -- 2.3 -- -- -- -- 2.93 term funding to corporate and retail customers. raiffeisen Bank Yugoslavia a.D.* will develop C 12.67 -- -- -- -- -- 12.67 housing finance and energy efficiency products for its clients. tajikistan First microfinance Bank tajikistan* will provide C -- 0.18 -- -- -- -- 0.18 microcredit and microenterprise services to entrepreneurs throughout the country. turkey acibadem saglik Hizmetleri Ve ticaret a.s.* will B 40.00 -- -- -- -- -- 40.00 expand its health care operations in major cities, acquire existing hospitals, and construct new hospitals and outpatient clinics. assan Demir Ve sac sanayii, a.s., a producer of B -- -- -- -- -- 30.00 30.00 aluminum flat-rolled products and steel galvanizing industries, will restructure its short-term obligations and implement an ongoing modernization of its operations. avea Iletisim Hizmetleri a.s. will meet working B 120.00 -- -- -- -- -- 120.00 capital requirements related to the integration, expansion of capacity, and maintenance of its combined cellular phone network. ekim turizm ticaret ve sanayi a.s.* will diversify C 44.68 -- -- -- -- -- 44.68 its funding base by accessing more competitive and sustainable term funding both in the domestic and international capital markets. Finans lease a.s.* will utilize extra funding to FI 25.53 -- -- -- -- -- 25.53 finance small and medium enterprises. Istanbul Bilgi university will establish a business B 15.00 -- -- -- -- -- 15.00 school and develop its e-learning programs. milli reasurans t.a.s. will strengthen and expand C 50.00 -- -- -- -- -- 50.00 its domestic private reinsurance operations. modern Karton sanayi ve ticaret a.s. will invest in B 40.00 -- -- -- -- 20.00 60.00 a new paper machine to increase its corrugated paper manufacturing capacity. sanko Group will acquire an existing cement plant B 75.00 -- -- -- -- -- 75.00 and construct another facility to expand its operations in the country. standard profil otomotiv sanayi ve ticaret B 1.15 3.57 -- -- -- -- 22.72 anonim sirketi,* a manufacturer of automotive sealing systems, will expand its business under new management. PAGE 78 IFc annual report 2006 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization turk Demir Dokum Fabrikalari a.s.,* a manufac- B 2.75 -- -- -- -- -- 29.75 turer and distributor of heating appliances, will finance its investment program on expansion, modernization, and new product development. ukraine aval Bank will continue to expand its corporate FI 50.00 -- -- -- -- -- 50.00 sector lending and develop its retail business. CJsC sofia Kiev will complete a 234-room hotel B 16.50 -- -- -- -- 13.00 29.50 in Kiev, to be operated by hyatt International. CJsC Zeus Ceramica, a ceramic tile manufacturer, B .00 -- -- -- -- -- 9.00 will expand its production capacity at its plant in Slavyansk. Closed Joint stock Company rise will distribute B 10.00 -- -- -- -- -- 10.00 seeds, fertilizers, crop protection products, and agricultural machinery to farms. euroventures ukraine Fund II l.p. will invest FI -- 7.50 -- -- -- -- 7.50 in midsize private companies in the country and in cross-border transactions involving neighboring countries. Industrial union of Donbass will improve its B 100.00 -- -- -- -- -- 100.00 environmental performance and modernize and streamline its operations to increase competitiveness. llC "CpC" Biocon will expand its existing C 3.50 -- -- -- -- -- 3.50 pharmaceutical wholesale, distribution, and retail business. llC savservice Center will construct a warehouse B 8.00 -- -- -- -- -- 8.00 and customs terminal, acquire and renovate a warehousing center near Kyiv, and invest in new vehicles and a management information system. nova liniya, a do-it-yourself store chain, will expand B 10.00 -- -- -- -- -- 10.00 its operations by opening four new stores in some of the country's largest cities. oJsC Concern Galnaftogas, a network of service B 25.00 -- -- -- -- -- 25.00 stations selling petroleum products and related services in the western part of the country, will expand its network to other regions. sandora llC will modernize and expand its existing B 10.00 -- -- -- -- -- 10.00 juice factory in Mykolayiv and refinance a portion of its existing short-term debt. Velyka Kyshenya Group will expand its chain of B 45.00 -- -- -- -- -- 45.00 supermarkets to major cities outside of Kyiv. LaTin aMEriCa and ThE CaribbEan REGIoNAL advent latin american private equity Fund III l.p. FI -- 20.00 -- -- -- -- 20.00 will invest in companies in the region, adding value through active investment management. volume 2 PAGE 7 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization eCom agroindustrial Corp., ltd. will improve the B 25.00 -- -- -- -- -- 25.00 supply-chain standards, social and environmental practices, and key performance indicators of its coffee suppliers in Central America. Geopark Holdings limited, an oil and gas B -- 10.00 -- -- -- -- 10.00 exploration and production company, will strengthen its capital base and refine its corporate governance practices. Grupo Financiero uno will expand and consolidate C -- -- -- -- -- 58.50 58.50 its retail banking, credit cards, insurance, and asset management services in the region. latin american agribusiness Development FI 30.00 -- -- -- -- -- 30.00 Corporation s.a. will on-lend to export-oriented small and medium-size agribusiness enterprises. paladin realty latin america Investors II, l.p. will FI -- 15.00 -- -- -- -- 15.00 invest in affordable and middle-income housing and income-producing property such as industrial rehabs, retail buildings, and offices. solidus will make quasi-equity type investments in FI -- 3.00 -- -- -- -- 3.00 microfinance institutions in the region. CouNTRy argentina arcor s.a.I.C., a producer of confectionery, B 70.00 -- -- -- -- 210.00 280.00 chocolates, and biscuits, will expand its operations and lengthen the maturity of its existing debt. BaCs Banco de Crédito y securitizacion, s.a. C 25.00 -- -- -- -- -- 25.00 will utilize a credit line to fund the origination and securitization of mortgages and mortgage- backed securities. Compañías asociadas petroleras s.a., an oil B 50.00 -- -- -- -- 20.00 70.00 and gas exploration and production company, will finance its capital expenditures and working capital requirements. noble argentina s.a. will construct and operate a B 18.00 -- -- -- -- 18.00 36.00 grain river port terminal on the lower Parana River. pan american energy llC, an oil and gas explora- B 115.00 -- -- -- 5.50 135.00 255.50 tion and production company, will finance its capital expenditure program focused on its operations in the Golfo San Jorge basin. Bolivia Banco mercantil s.a., an issuing bank in the Global FI -- -- -- 0.05 -- -- 0.05 Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. petroquímica Boliviana s.a. will construct and B 10.50 -- -- -- -- -- 10.50 operate an ammonium nitrate production facility and two blending facilities. Brazil Banco Bahia mariani* will provide a range of FI 50.00 -- -- -- -- -- 50.00 credit and loan products to small and medium- size companies. PAGE 80 IFc annual report 2006 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization Banco Industrial e Comercial s.a., an issuing bank FI -- -- -- 40.77 -- -- 40.77 in the Global Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. Banco mercantil do Brasil s.a., an issuing bank in FI -- -- -- 4.20 -- -- 4.20 the Global Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. Central Geradora termelectrica Fortaleza, s.a. A 62.50 -- -- -- -- 67.50 130.00 will finance, own, and operate a thermal power plant near the Port of Pecém, in the State of Ceara. endesa Brasil s.a. will increase its electricity B -- 50.00 -- -- -- -- 50.00 generation capacity and expand loss reduction programs at its distribution subsidiaries. energias renovaveis do Brasil ltda. will construct, B -- 5.50 -- -- -- -- 5.50 operate, and maintain a 4 MW wind park in the State of Rio Grande do Norte. Fundo de educacao para o Brasil will build and B 12.00 -- -- -- -- -- 12.00 operate a network of private universities in the interior cities of the State of São Paulo. Ipiranga petroquimica s.a., a producer of B 50.00 -- -- -- -- -- 50.00 polyethylene and polypropylene, will enhance its market competitiveness and attract long- term financing in order to take advantage of growth opportunities. Itambe will expand its milk processing capacity and B 15.00 -- -- -- -- -- 15.00 exploit opportunities in the international market. mrs logística s.a. will expand its freight B 50.00 -- -- -- -- 50.00 100.00 capacity and improve the efficiency and safety of its rail network. rio Bravo securitizadora* will expand its residential C -- 1.4 -- -- -- -- 1.49 real estate origination, securitization, and housing finance-related securities placement activities. rio Bravo securitizadora* will expand its C -- -- 22.33 -- -- -- 22.33 residential real estate origination, securitization, and housing finance-related securities placement activities. suzano petroquímica s.a., a thermoplastic resins B 60.00 -- -- -- -- 140.00 200.00 and polypropylene producer, will implement a corporate restructuring aimed at simplifying its group structure. tam airlines will utilize funding for the predelivery B 50.00 -- -- -- -- -- 50.00 purchase of Airbus 320 family aircraft and for ongoing operational requirements. tecon suape s.a. will upgrade and operate two B 6.00 -- -- -- -- -- 6.00 dedicated container terminal berths at the Port of Suape in Recife. triBanco Brazil* will develop new products designed C -- -- -- -- 0.33 -- 0.33 to upgrade or expand the sales outlets of micro and small entrepreneurs. volume 2 PAGE 81 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization Chile Fondo de Inversion Forestal lignum will monetize B -- 6.50 -- -- -- -- 6.50 standing forests and deforested land owned by small land owners and farmers. Hidroelectrica la Higuera will build, own, and A 45.00 -- -- -- -- 115.00 160.00 operate a 155 MW hydropower plant in the Tinguiririca Valley. Colombia Banco Caja social s.a.* will increase the availability C -- 12.70 -- -- -- -- 12.70 and safety of savings products for the poor and increase the availability of formal productive credit to low-income borrowers. Banco Davivienda s.a.* will expand its retail C -- 10.00 0.73 -- -- -- 10.73 business while maintaining a strong presence in the mortgage industry. Banco Davivienda s.a.* will expand its retail FI 35.00 15.00 -- -- -- -- 50.00 business while maintaining a strong presence in the mortgage industry. Carvajal s.a. will benefit from an investment in its B -- 20.00 -- -- -- -- 20.00 paper subsidiary to help the company achieve international competitiveness. Carvajal s.a.,* a paper manufacturing, printing, B 50.00 -- -- -- -- -- 50.00 and packaging business, will modernize its information systems. Colombian Home mortgage Corp.* will acquire C -- -- 3.34 -- -- -- 3.34 12.80 and securitize high-quality residential mortgage loans to develop the country's secondary mortgage market. Colombian Home mortgage Corp.* will acquire C -- -- 0.1 -- -- -- 0.91 21.50 and securitize high-quality residential mortgage loans to develop the country's secondary mortgage market. Fundacion social* will invest in socially responsible FI 50.00 -- -- -- -- -- 50.00 projects and target lower income households as its core clientele. Fundacion WWB Colombia* will expand its working FI .20 -- -- -- -- -- 9.20 capital loans and other essential financial services to microentrepreneurs. Interbolsa s.a.* will issue a local currency medium- C -- -- 14.01 -- -- -- 14.01 7.32 term bond to support its asset management, retail brokerage, and investment banking businesses. petrotesting Colombia s.a., an oil and gas B -- 15.00 -- -- -- -- 15.00 exploration and production company, will strengthen its financial position and adopt best practice corporate systems. promigas s.a. will undertake investments in B 50.00 -- -- -- -- -- 50.00 additional gas transmission and distribution assets in the country and throughout Latin America. WWB-popayan* will expand its business of lending FI 5.60 -- -- -- -- -- 5.60 to microentrepreneurs. PAGE 82 IFc annual report 2006 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization Dominican republic aeropuertos Dominicanos siglo XXI, s.a. will B -- -- -- -- 2.00 -- 2.00 utilize a swap facility to support the completion of its airport infrastructure investments. aeropuertos Dominicanos siglo XXI, s.a. B 15.00 -- -- -- -- -- 15.00 will expand its immigration and customs areas, streamline its duty-free areas, and add new passenger boarding bridges, X-ray equipment, and air-conditioning systems. asociacion Dominicana para el Desarollo de la FI -- 1.00 -- -- -- -- 1.00 mujer, a microfinance institution, will undergo a formalization process to obtain access to cheaper and more diversified funding. Domicem s.a. will utilize extra funding to assume C -- -- -- -- -- 3.75 3.75 full ownership of a captive power plant compared to 50% ownership under the original project cost. el salvador Banco uno el salvador s.a. will consolidate its C -- -- -- -- 0.25 -- 0.25 operations focused on the issuance and processing of consumer credit cards. Guatemala Banco Industrial s.a.* will strengthen its FI 30.00 -- -- -- -- -- 30.00 capital base to play a leading role in the ongoing consolidation of the domestic banking sector. municipality of Guatemala will replace its existing C -- -- 6.61 -- -- -- 6.61 3.5 bus fleet and create dedicated bus lanes, transfer stations, and bus stops. Guyana Guyana Goldfields Inc.* will complete a B -- 4.62 -- -- -- -- 4.62 bankable feasibility study for the development of gold mines, including environmental and social impact assessments. Haiti Digicel Haiti will establish a countrywide mobile C 15.00 -- -- -- -- -- 15.00 cellular telephone network. Honduras metromall s.a. will construct a new shopping B .00 -- -- -- -- -- 9.00 mall in Tegucigalpa. Jamaica Jamaica energy partners will expand the capacity B -- -- -- -- -- 50.00 50.00 of its barge-mounted power generation plant and refinance existing debt with debt of longer maturity. mBJ airports limited will construct a new landside B 20.00 -- -- -- -- 20.00 40.00 terminal facility and renovate the existing landside terminal of Sangster International Airport. mBJ airports limited will construct a new landside B -- -- -- -- 1.20 -- 1.20 terminal facility and renovate the existing landside terminal of Sangster International Airport. volume 2 PAGE 83 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization national Commercial Bank Jamaica will expand its FI 30.00 -- -- -- -- -- 30.00 lending operations to alleviate the lack of mid- and long-term financing for private sector companies. mexico Banco del Bajio, s.a. will expand and consolidate FI -- 45.00 -- -- -- -- 45.00 its small and medium enterprise, agribusiness, and commercial banking operations. Carlyle mexico partners, l.p., a private equity FI -- 20.00 -- -- -- -- 20.00 fund, will invest in buyout or other private equity opportunities in the country. Centro espanol de tampico, a.C. de B.p.* will B 5.00 -- -- -- -- -- 5.00 modernize and expand its hospital facilities to address the growing demand for private health care in Tamaulipas. Coppel, s.a. de C.V. will implement its expansion B 35.00 -- -- -- -- -- 35.00 and corporate governance improvement program. GmaC Financiera* will utilize a credit enhancement C -- -- 5.44 -- -- -- 5.44 184.10 to support its mortgage-backed securities program. Grupo su Casita, s.a. de C.V. will extend C -- .60 -- -- -- -- 9.60 mortgage loans to low-income individuals and provide construction financing to developers of low-income housing. Hipotecaria su Casita, s.a. de C.V.* will provide C 70.08 -- -- -- -- -- 70.08 mortgage loans to the low- to middle-income segment of the country's housing market. universidad tecnologica de mexico s.a.* will B 30.41 -- -- -- -- -- 30.41 construct three new campuses in Guadalajara, Mexico City, and Monterrey and upgrade information technology infrastructure on existing campuses. Vuela Compañía de aviacion, s.a. de C.V. will B 40.00 -- -- -- -- -- 40.00 operate a newly established low-cost airline. nicaragua multiplaza nicaragua s.a. will refinance its B 10.00 -- -- -- -- -- 10.00 existing debt. panama Banco uno panama s.a. will consolidate its C -- -- -- -- 0.50 -- 0.50 operations focused on the issuance and processing of consumer credit cards. panama Canal railway Company will utilize B -- -- -- -- 0.60 -- 0.60 a swap to hedge interest rate volatility associated with the outstanding variable rate. peru Banco de la microempresa, s.a.* will expand its FI 2.00 -- -- -- -- -- 29.00 loan portfolio and offer longer maturities to its microenterprise clients. sociedad agrícola Drokasa s.a., a grower B 15.00 -- -- -- -- -- 15.00 and exporter of asparagus and grapes, will purchase, refurbish, and upgrade an existing asparagus operation. PAGE 84 IFc annual report 2006 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization trinidad and tobago Guardian Holdings limited will expand C 50.00 -- -- -- -- -- 50.00 its life insurance and domestic asset management businesses. republic Bank limited, through an interest rate C -- -- -- -- 1.00 -- 1.00 swap, will transform its existing floating-rate obligation into a synthetic fixed rate obligation. trinidad Cement Company will hedge its floating C -- -- -- -- 1.53 -- 1.53 rate loans through an interest swap that will transform its floating-rate obligation into a synthetic fixed-rate obligation. Venezuela Vinccler oil & Gas C.a. will develop its oil and gas B 24.00 -- -- -- -- -- 24.00 exploration and production operations. MiddLE EaST and norTh afriCa REGIoNAL maghreb private equity Fund II limited* will FI -- 11.71 -- -- -- -- 11.71 invest in a portfolio of commercial and industrial companies in the region. rally energy Corp., an oil and gas company, will B 15.00 -- -- -- -- -- 15.00 expand its exploration, development, and production activities in Egypt and Pakistan. soCo International plc, an international oil and gas B 45.00 -- -- -- -- -- 45.00 exploration and production company, will use a revolving corporate facility to finance its activities in emerging markets in the region. CouNTRy afghanistan areeba afghanistan limited will build a nationwide C 40.00 5.00 -- -- -- -- 45.00 cellular network to provide mobile services through- out the country. First microfinance Bank of afghanistan will FI 3.50 -- -- -- -- -- 3.50 on-lend to microfinance institutions and small and medium enterprises. algeria Fertial, an ammonia-based fertilizer company, B -- 24.24 -- -- -- -- 24.24 will increase productivity and enhance its environmental performance. red med, a local logistics company supporting the B 10.00 -- -- -- -- -- 10.00 country's hydrocarbons sector, will expand its existing services to meet growing customer needs. egypt CIB Investors, llC will provide factoring and C -- 0.72 -- -- -- -- 0.72 forfeiting services for export-oriented businesses. volume 2 PAGE 85 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization Commercial International Bank s.a.e. will grow FI -- 23.28 -- -- -- -- 23.28 organically and through acquisitions in domestic small business and retail lending, as well as capital market products and services. eFG Hermes Holding s.a.e., an investment bank, C 20.00 -- -- -- -- -- 20.00 will secure medium-term resources needed to realize its regional expansion strategy. Gippsland limited* will complete a feasibility study B -- 4.28 -- -- -- -- 4.28 for a greenfield open pit tantalum and tin mine and associated facilities at Abu Dabbab. orix leasing will increase its on-lending activities to FI 4.00 -- -- -- -- -- 4.00 small and medium enterprises. société nationale d'Industries nutritives, a B 14.00 -- -- -- -- -- 14.00 licensed bottler of the Coca-Cola Company, will expand capacity and increase operating efficiencies. Iraq united Cement Corporation will construct and B 0.00 8.30 -- -- -- -- 98.30 operate a greenfield cement plant in the north of the country. Jordan CtI Group Inc., a specialized cement logistics B 15.00 -- -- -- -- -- 15.00 company, will renew and expand its fleet. lebanon Bank of Beirut, an issuing bank in the Global Trade FI -- -- -- 0.78 -- -- 0.78 Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. Banque libano-Française, an issuing bank in the FI -- -- -- .0 -- -- 9.90 Global Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. morocco FonDep microCredit* will reinforce its operations FI -- -- 3.34 -- -- -- 3.34 1.67 and management structure to preempt its eventual transformation into a non-bank financial institution. oman Bank muscat will utilize a long-term subordinated C 100.00 -- -- -- -- -- 100.00 loan to strengthen its capital base and support its long-term mortgage financing business. pakistan engro Chemical pakistan limited* will finance B -- 0.64 -- -- -- -- 0.64 planned projects in its existing fertilizer and dairy business lines, as well as potential projects in the power sector. Habib Bank limited will diversify its funding sources, FI 50.00 -- -- -- -- -- 50.00 strengthen its capital adequacy, and expand its lending activities. metropolitan Bank limited, an issuing bank in the FI -- -- -- 3.01 -- -- 3.01 Global Trade Finance Program, will benefit from IFC guarantees to facilitate its trade finance operations. PAGE 86 IFc annual report 2006 environmental Global trade risk structured and social IFC IFC IFC Finance management Finance project Description (all amounts in U.S. dollars) Category loan equity Guarantee program products syndications total mobilization orix Investment Bank pakistan limited will utilize FI 5.00 -- -- -- -- -- 5.00 a revolving facility to support its lending to medium- size enterprises. orix leasing pakistan will on-lend to small and FI 17.00 -- -- -- -- -- 17.00 medium enterprises in their respective markets in the form of leases or medium-term loans. packages limited, a producer of paper, paperboard B -- 5.00 -- -- -- -- 5.00 and packaging material, will upgrade, expand, and relocate its operations. pakistan International Container terminal will B 8.00 -- -- -- -- -- 8.00 increase its container handling capacity and undertake civil works to increase its capacity to accommodate expected traffic levels. paktel limited will expand its existing cellular phone C 35.00 -- -- -- -- -- 35.00 operations by extending coverage and enhancing network capacity and by increasing resources on marketing and distribution. tameer microfinance Bank* will focus its FI -- 1.01 -- -- -- -- 1.01 microfinance lending operations on urban self-employed small businesses. saudi arabia Kingdom Installment Company will grow its C -- -- 25.00 -- -- -- 25.00 TBD** housing finance operations and establish a market- based housing finance program. saudi orix leasing Company will utilize FI 17.00 -- -- -- -- -- 17.00 extra funding for on-lending to small and medium enterprises. syrian arab republic Bank of syria and overseas* will provide modern C -- 0.03 -- -- -- -- 0.03 commercial banking products and enhance competi- tion in the banking system by creating a model of international best practices. Yemen, republic of national Cement Company will design, construct, B 35.00 -- -- -- -- -- 35.00 and operate a greenfield, integrated cement plant. GLobaL planet Finance* will provide microfinance institu- FI -- 2.7 -- -- -- -- 2.79 tions worldwide with funding and services such as IT support, training, and capacity building. proCredit Holding* will increase the scale of its C -- 13.0 -- -- -- -- 13.09 credit and financial services to individual entre- preneurs, microenterprises, and small businesses. **Mobilizationamounttobedetermined--thisprojecthadnotgonetomarketasofJune30,2006andwillbereportedinFY07. volume 2 PAGE 87 Sub-Saharan africa 90 East asia and the Pacific 101 South asia 109 Europe and Central asia 113 Latin america and the Caribbean 124 investment Portfolio Middle East and north africa 136 Global 141 STaTEMEnT of CuMuLaTivE GroSS CoMMiTMEnTS (at June 30, 2006) Cumulative Commitments1 Cumulative Commitments1 (uS$ thousands) (uS$ thousands) syndications syndications Country, region number of & Guarantee Country, region number of & Guarantee or other area enterprises IFC participants total or other area enterprises IFC participants total Afghanistan 4 56,822 -- 56,822 Ecuador 17 156,506 16,240 172,746 Albania 10 127,38 8,17 136,306 Egypt 5 1,08,241 504,871 1,54,113 Algeria 11 146,418 5,557 151,75 El Salvador 15 247,368 113,500 360,868 Angola 5 13,810 -- 13,810 Eritrea 1 4 -- 4 Argentina 173 3,228,604 2,75,464 5,88,068 Estonia 11 137,806 11,855 14,661 Armenia 5 17,287 -- 17,287 Ethiopia 4 21,848 1,71 23,567 Australia 2 75 -- 75 Fiji 7 25,05 2,500 27,55 Azerbaijan 17 180,875 72,30 253,805 Finland 4 1,233 1,15 3,148 Bangladesh 21 270,872 52,745 323,617 Gabon 5 145,588 110,000 255,588 Barbados 3 8,625 -- 8,625 Gambia, The 8 6,43 -- 6,43 Belarus 5 33,767 -- 33,767 Georgia 4,212 -- 4,212 Belize 3 21,500 11,000 32,500 Ghana 43 363,661 272,000 635,661 Benin 8 2,3 -- 2,3 Greece 7 26,22 41,107 67,400 Bhutan 1 10,000 -- 10,000 Grenada 2 8,000 -- 8,000 Bolivia 28 336,705 140,500 477,205 Guatemala 1 287,685 110,000 37,685 Bosnia and 24 200,135 10,578 210,713 Guinea 33,684 -- 33,684 herzegovina Guinea-Bissau 4 7,246 -- 7,246 Botswana 5 8,63 -- 8,63 Guyana 5 ,530 -- ,530 Brazil 181 4,725,677 3,504,22 8,22,68 haiti 3 16,11 -- 16,11 Bulgaria 20 345,515 86,11 432,426 honduras 8 63,832 7,401 143,233 Burkina Faso 7 5,648 -- 5,648 hungary 30 437,555 70,335 507,80 Burundi 3 6,626 -- 6,626 India 1 3,511,42 25,057 4,436,54 Cambodia 5 2,243 -- 2,243 Indonesia 1 1,83,875 1,15,871 3,035,746 Cameroon 2 32,761 471,500 864,261 Iran, Islamic 11 63,343 8,1 71,542 Cape Verde 5 10,00 -- 10,00 Republic of Chad 3 15,172 13,00 2,072 Iraq 3 108,212 -- 108,212 Chile 44 1,014,2 611,733 1,626,662 Israel 1 10,500 -- 10,500 China 125 2,141,427 657,554 2,78,81 Italy 1 60 -- 60 Colombia 73 1,244,135 487,631 1,731,766 Jamaica 17 264,882 14,64 414,576 Congo Republic 6 115,005 25,000 140,005 Jordan 30 265,848 70,250 336,08 Congo, Democratic 13 81,273 -- 81,273 Kazakhstan 22 372,253 172,17 545,170 Republic of Kenya 66 364,442 5,25 423,736 Costa Rica 16 210,504 ,70 310,213 Korea, Republic of 50 866,44 15,700 1,062,14 Côte d'Ivoire 40 265,016 70,64 335,80 Kyrgyz Republic 10 53,761 -- 53,761 Croatia 12 355,56 7,657 453,253 Lao People's 5 7,247 -- 7,247 Cyprus 6 1,681 645 20,327 Democratic Republic Czech Republic 16 36,808 245,588 642,36 Latvia 6 80,67 35,000 115,67 Dominica 1 700 -- 700 Lebanon 27 336,522 230,430 566,52 Dominican Republic 23 31,8 216,850 608,74 Lesotho 2 454 -- 454 PAGE 88 IFc annual report 2006 STaTEMEnT of CuMuLaTivE GroSS CoMMiTMEnTS (at June 30, 2006) Cumulative Commitments1 Cumulative Commitments1 (uS$ thousands) (uS$ thousands) syndications syndications Country, region number of & Guarantee Country, region number of & Guarantee or other area enterprises IFC participants total or other area enterprises IFC participants total Liberia 3 12,703 -- 12,703 Slovakia 5 115,544 -- 115,544 Lithuania 8 81,637 ,30 0,46 Slovenia 12 225,160 47,383 272,543 Macedonia, Former 11 3,08 25,000 118,08 Somalia 2 75 -- 75 yugoslav Republic of South Africa 4 50,202 15,000 524,202 Madagascar 16 71,428 -- 71,428 Spain 5 1,043 1,685 20,728 Malawi 14 35,854 -- 35,854 Sri Lanka 25 204,265 23,616 227,881 Malaysia 11 54,868 5,38 60,258 Sudan 6 27,268 6,48 33,757 Maldives 5 83,750 8,500 2,250 Swaziland 8 47,77 -- 47,77 Mali 18 3,781 40,000 133,781 Syrian Arab Republic 3 20,31 -- 20,31 Mauritania 13 82,301 ,503 1,803 Tajikistan 11 28,172 -- 28,172 Mauritius 11 38,61 6 38,715 Tanzania, united 3 104,065 13,041 117,105 Mexico 138 3,56,18 2,172,08 5,76,007 Republic of Moldova 77,286 25,000 102,286 Thailand 65 1,277,11 1,701,374 2,7,285 Mongolia 5 10,150 -- 10,150 Togo 7 18,600 -- 18,600 Morocco 2 408,674 515,014 23,688 Trinidad and Tobago 14 21,804 235,000 526,804 Mozambique 22 208,084 -- 208,084 Tunisia 20 135,81 2,281 138,100 Namibia 4 23,878 -- 23,878 Turkey 127 3,088,051 1,676,533 4,764,583 Nepal 6 73,673 36,000 10,673 uganda 3 88,36 1,588 8,85 Nicaragua 2,643 2 30,571 ukraine 22 544,3 13,000 557,3 Niger 1 2,43 -- 2,43 uruguay 12 125,550 20,000 145,550 Nigeria 62 871,726 113,155 84,881 uzbekistan 14 64,64 12,00 77,864 oman 7 223,860 57,000 280,860 Vanuatu 1 5,38 -- 5,38 Pakistan 1,472,647 555,70 2,028,617 Venezuela 3 847,230 703,71 1,551,021 Panama 17 534,633 153,300 687,33 Vietnam 26 252,124 203,375 455,4 Papua New Guinea 3 14,500 -- 14,500 yemen, Republic of 74,517 1,105 75,622 Paraguay 5 30,008 -- 30,008 Zambia 28 150,023 20,286 170,30 Peru 47 647,51 28,621 46,140 Zimbabwe 51 284,262 ,000 383,262 Philippines 86 1,35,11 65,880 2,055,070 Poland 42 411,146 115,317 526,462 regional Investments Portugal 7 51,811 11,000 62,811 Sub-Saharan Africa 34 730,22 1,06 732,18 Romania 2 71,641 241,471 61,111 East Asia and the 20 574,023 -- 574,023 Pacific Russian Federation 110 2,714,753 564,570 3,27,323 South Asia 203,170 -- 203,170 Rwanda 3 5,166 -- 5,166 Europe and Central 33 1,235,426 25,000 1,260,426 Saint Lucia 2 ,40 -- ,40 Asia Samoa 5 1,485 -- 1,485 Latin America and 3 50,52 121,500 712,02 Saudi Arabia 5 123,32 -- 123,32 the Caribbean Senegal 20 120,883 12,38 133,281 Middle East and 10 144,871 -- 144,871 North Africa Serbia and 25 471,635 2,423 564,057 Montenegro other2 17 5,814 1,400 61,214 Seychelles 6 2,35 2,500 31,85 Worldwide 4 1,304,384 508,000 1,812,384 Sierra Leone 4 2,186 -- 2,186 total: 3,531 56,076,657 25,245,164 81,321,821 1. CommitmentsarecomposedoffundstobeprovidedbyIFCforitsownaccount,fundstobeprovidedbyparticipantsthroughthepurchaseofaninterestinIFC'sinvestment,andfundstobeprovidedby otherfinancialinstitutionsinassociationwithIFC,whereIFChasrenderedmaterialassistanceinmobilizingthesefunds.Cumulativecommitmentsarecomposedofdisbursedandundisbursedbalances. Theundisbursedportionisrevaluedatcurrentexchangerates,whilethedisbursedportionrepresentsthecostofcommitmentatthetimeofdisbursement.FromFY04forward,theCorporationincludes guaranteeandriskmanagementproductsincommitments. 2. Ofthisamount,$9.8millionreperesnetsinvestmentsmadeatatimewhentheauthoritiesonTaiwanrepresentedChinaintheInternationalFinanceCorporation.Thebalancerepresentsinvestmentsin WestBankandGaza. volume 2 PAGE 8 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity Sub-Saharan afriCa angola Enterprise Bank of Angola Finance & Insurance Fy04 0.7 -- -- 0.7 0.7 Fabrica de Bleach Corasol Limitada Chemicals Fy 0.6 -- 0.6 -- 0.6 Nossa Seguros Finance & Insurance Fy05 1.0 -- -- 1.0 1.0 oSEL Construction & Real Estate Fy05 10.0 -- 10.0 -- 10.0 10.6 1.7 12.3 Benin Finadev Microfinance Finance & Insurance Fy01 0.3 -- -- 0.3 0.3 -- 0.3 0.3 Botswana Micro Provident Botswana Limited Finance & Insurance Fy05 3. -- -- 4.0 4.0 -- 4.0 4.0 Burkina Faso SBPh S.A. Accommodation & Tourism Fy05 2.6 -- 2.5 -- 2.5 Services Societe Voltaique de Plastique Sarl Chemicals Fy7 0.5 -- -- 0.1 0.1 (SoVoLPLAS) 2.5 0.1 2.7 Burundi Verreries du Burundi, S.A.R.L. Nonmetallic Mineral Product Fy81, 87 5.7 -- -- 1.0 1.0 Manufacturing -- 1.0 1.0 Cameroon 3T Cameroun Transportation & Warehousing Fy06 1.3 -- 1.3 -- 1.3 AES Sonel S. A. utilities Fy06 8.4 -- 88.0 -- 88.0 Banque Internationale du Cameroun Finance & Insurance Fy01 0.6 -- -- 0. 0. Pour L'Epargne et le Credit Bata Societe Anonyme Camerounaise Textiles, Apparel, & Leather Fy75 0.4 -- -- 0.1 0.1 Cameroon oil Transportation Company oil, Gas, & Mining Fy01 86.1 86.1 53.6 -- 53.6 Complexe Avicole de Mvog-Betsi Agriculture & Forestry Fy6 0.4 -- 0.1 -- 0.1 FME-GAZ Chemicals Fy02 0.3 -- 0.1 -- 0.1 horizon Bilingual Education Complex Education Services Fy01 0.3 -- 0.5 -- 0.5 Nosa Sarl Chemicals Fy05 1.0 -- 1.0 -- 1.0 Notacam S.A. Textiles, Apparel, & Leather Fy7 0. -- 0. -- 0. Pecten Cameroon Company oil, Gas, & Mining Fy2, 6, 7, 8, 03 115.0 235.1 44.0 -- 44.0 Prestige Bottling Company Food & Beverages Fy88 3.4 -- -- 0.3 0.3 Societe Agro-Industrielle et Agriculture & Forestry Fy00 0.4 -- 0.1 -- 0.1 Commerciale du Cameroun Societe Industrielle Laitiere du Food & Beverages Fy87 2.7 -- -- 0.6 0.6 Cameroun "SILAC" 18.6 1. 11.5 PAGE 0 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity Sub-Saharan afriCa Cape Verde Caixa Economica de Cabo Verde, S.A. Finance & Insurance Fy04 6.1 -- 5.7 -- 5.7 Growela Cabo Verde, Lda Textiles, Apparel, & Leather Fy4 1.0 -- 0.2 -- 0.2 5.8 -- 5.8 Chad Finadev Tchad Finance & Insurance Fy03 0.2 -- -- 0.2 0.2 Tchad oil Transportation Company S.A. oil, Gas, & Mining Fy01 13. 13. 8.7 -- 8.7 (ToTCo) 8.7 0.2 8.8 Congo republic Congolaise des Bois Impregnes, S.A. Industrial & Consumer Products Fy87 1.8 -- 2.1 0.3 2.4 Societe d'Etude de la Cellulose Pulp & Paper Fy82 0.2 -- -- 0.2 0.2 du Congo 2.1 0.4 2.6 Congo, Democratic republic of Adastra Minerals Inc oil, Gas, & Mining Fy06 -- -- -- 0.1 0.1 Celtel Congo (RDC) s.p.r.l. Information Fy00, 03 27.0 -- 8.6 -- 8.6 Kingamyambo Musonoi Tailings SARL oil, Gas, & Mining Fy06 5. -- 0.5 4.8 5.3 Pro Credit Bank SARL Finance & Insurance Fy05 0.5 -- -- 0.5 0.5 Societe Financiere de Development Finance & Insurance Fy70 1.3 -- -- 1.3 1.3 Societe Textile de Kisangani S.Z.A.R.L. Textiles, Apparel, & Leather Fy85 6.6 -- 10.5 0.4 10. 1.5 7.0 26.6 Côte d'Ivoire Bank of Africa (Côte d'Ivoire) Finance & Insurance Fy, 03 0.2 -- -- 0.2 0.2 Banque Ivoirienne de Development Finance & Insurance Fy65, 78 0.4 -- -- 0.4 0.4 Industriel, S.A. Cinergy, S.A. utilities Fy 40.5 30.3 22.4 -- 22.4 Devon Côte d'Ivoire Ltd. oil, Gas, & Mining Fy3, 5, 6, 8 63.7 20.0 -- 48.7* 48.7 Drop Ivoire Food & Beverages Fy 1.3 -- 1.4 -- 1.4 Etablissements R. Gonfreville, S.A. Textiles, Apparel, & Leather Fy77, 87 10.7 -- -- 1.7 1.7 Filature et Tissage Gonfreville Textiles, Apparel, & Leather Fy6 -- -- 0.2 -- 0.2 Industrial Promotion Services Industrial & Consumer Products Fy88 0. -- -- 0.8 0.8 (Côte d'Ivoire) S.A. Ivoir-Cafe S.A. Professional, Scientific, & Fy3 0.1 -- -- + + Technical Services Moulin du Sud-ouest Food & Beverages Fy80 3.3 -- -- 0.4 0.4 Multi Produits S.A. Wholesale & Retail Trade Fy4, 7 0.8 -- 0.2 0.4 0.6 omnium Chimique et Cosmetique Food & Beverages Fy87, 4, 7 .1 -- -- 2.4 2.4 (CoSMIVoIRE) S.A. Petro Ivoire S.A. utilities Fy6, 00 2.0 -- 1.2 -- 1.2 S.G.I. Africaine de Bourse S.A. Finance & Insurance Fy00 0.0 -- -- + + Societe Ivoirenne d'Engrais (SIVENG) Chemicals Fy80 6.4 -- -- 1.3 1.3 Societe des Industries Alimentaires et Food & Beverages Fy88, 0 4. -- 3.7 0. 4.5 Laitieres "SIALIM" volume 2 PAGE 1 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity Sub-Saharan afriCa Côte d'Ivoire (continued) Societe hoteliere de la Lagune Accommodation & Tourism Fy00 2.1 -- 1.2 0.4 1.7 Services Societe pour le Developpement Agriculture & Forestry Fy7 2.8 -- 3.8 -- 3.8 Industriel de la Region d'odienne Texicodi S.A. Textiles, Apparel, & Leather Fy6 -- -- 0.3 -- 0.3 Tropical Rubber Côte d'Ivoire Agriculture & Forestry Fy 3.5 -- 1.3 -- 1.3 35.8 57.6 3.4 ethiopia Ethiopian Pulp and Paper, S.C. Pulp & Paper Fy66 1. -- -- 0.8 0.8 -- 0.8 0.8 Gabon Vaalco Gabon (Etame), Inc. oil, Gas, & Mining Fy02, 05 40.0 -- 30.0 -- 30.0 30.0 -- 30.0 Gambia, the Kerr Kande Farm Limited II Agriculture & Forestry Fy8 0.2 -- 0.2 -- 0.2 Lyefish Company Limited Food & Beverages Fy5 0.4 -- 0.4 -- 0.4 Makumbaya Farms Limited Agriculture & Forestry Fy1 1.0 -- -- 0.4 0.4 Ndebaan Medi-Services Company health Care Fy4 0.2 -- 0.2 -- 0.2 Limited Pelican Seafood (GAMBIA) Limited Food & Beverages Fy1 1.1 -- 1.0 -- 1.0 1.8 0.4 2.1 Ghana Appiah Menka Complex Limited Chemicals Fy1 0. -- 0.6 -- 0.6 Anglogold Ashanti Iduapriem Limited oil, Gas, & Mining Fy0, 2, 6, 7 27.2 18.5 -- 2.5 2.5 Barclays Bank of Ghana Finance & Insurance Fy06 30.0 -- 30.0 -- 30.0 CAL Bank Limited Finance & Insurance Fy0, 1, 3 8. -- -- 0. 0. Diamond Cement Ghana Limited Nonmetallic Mineral Product Fy02 6.0 -- 2.5 1.0 3.5 Manufacturing Enterprise Life Assurance Company Finance & Insurance Fy01 0.1 -- -- 0.1 0.1 Ltd. (ELAC) Ghana Aluminum Products Limited Primary Metals Fy2 0.4 -- -- 0.4 0.4 (Ghanal) Network Computer Systems (NCS) Information Fy8 0.7 -- 0.5 -- 0.5 Professional Technical Services Limited Industrial & Consumer Products Fy8 0.3 -- 0.3 -- 0.3 Scancom Limited Information Fy05 40.0 -- 40.0 -- 40.0 Securities Discount Company Finance & Insurance Fy1 0.2 -- -- 0.2 0.2 Shangri-La hotel Accommodation & Tourism Fy5 0.4 -- 0. -- 0. Services Tacks Farms Ghana Limited Agriculture & Forestry Fy7 0.4 -- 0.4 -- 0.4 75.3 5.2 80.5 PAGE 2 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity Sub-Saharan afriCa Guinea Societe Aurifere de Guinee S.A. oil, Gas, & Mining Fy88 8.3 -- + -- + Societe Guineenne d'hotellerie et Accommodation & Tourism Fy5, 4.7 -- 1. 0.6 2.4 d'Investissements (SGhI) Services 1. 0.6 2.4 Guinea-Bissau Agribissau SARL Agriculture & Forestry Fy5 0. -- -- 0.1 0.1 Banco de Africa ocidental, S.A.R.L. Finance & Insurance Fy00 0.3 -- -- 0.3 0.3 -- 0.4 0.4 Kenya AAA Growers Agriculture & Forestry Fy00 0.5 -- 0.2 -- 0.2 Allpack Industries Limited Pulp & Paper Fy87 0.4 -- -- 0.4 0.4 Barclays BK KEN Finance & Insurance Fy06 10.0 -- 10.0 -- 10.0 Ceres Estates Limited Food & Beverages Fy7 0. -- 0. -- 0. Deras Limited Textiles, Apparel, & Leather Fy 1.0 -- 1.0 -- 1.0 Diamond Trust of Kenya Limited Finance & Insurance Fy82 1.0 -- -- 0.8 0.8 Gapco Kenya Transportation & Warehousing Fy02 15.0 -- 12.8 -- 12.8 Industrial Promotion Service (Kenya) Food & Beverages Fy2 0.1 -- -- 0.1 0.1 Ltd.--Premiere Food Industries Ltd. Industrial Promotion Services (Kenya) Textiles, Apparel, & Leather Fy2 0.1 -- -- 0.1 0.1 Ltd.--Novaskins Tannery Ltd. Industrial Promotion Services (Kenya) Transportation & Warehousing Fy2 0.1 -- -- 0.1 0.1 Ltd.--Frigoken Ltd. International hotels (Kenya) Limited Accommodation & Tourism Fy5 6.0 -- 0. -- 0. Services Investment & Mortgages Bank Finance & Insurance Fy05 3.0 -- 3.0 -- 3.0 (Kenya) Ltd. K-Rep Bank Limited Finance & Insurance Fy7, 1.4 -- -- 1.4 1.4 Kongoni River Farm Limited Agriculture & Forestry Fy05 2.0 -- 1. -- 1. Lesiolo Grain handlers Limited Transportation & Warehousing Fy01 2.5 -- 2.5 -- 2.5 Locland Limited Agriculture & Forestry Fy8 0.6 -- 0.1 -- 0.1 Mabati Rolling Mills Limited Industrial & Consumer Products Fy00 11.5 -- 7.0 -- 7.0 Magadi Soda Company Ltd. Chemicals Fy6, 04, 05 35.0 -- 26.0 -- 26.0 Magana Flowers (K) Limited Agriculture & Forestry Fy00 1.2 -- 0.7 -- 0.7 oil Crop Development Limited Agriculture & Forestry Fy86 2.2 -- -- 0.7 0.7 Panafrican Paper Mills (E.A.) Limited Pulp & Paper Fy70, 74, 77, 7, 67.0 3. 25.8 -- 25.8 81, 88, 0, 4, 6 Panari Center Limited Construction & Real Estate Fy06 7.3 -- 7.3 -- 7.3 Redhill Flowers (Kenya) Limited Agriculture & Forestry Fy7 0.3 -- 0.3 -- 0.3 Rift Valley Textiles Limited Textiles, Apparel, & Leather Fy76 .6 1.3 -- 2.5 2.5 TPS Eastern Africa Limited Accommodation & Tourism Fy72 1.6 0.8 -- 2.2 2.2 Services Tsavo Power Company Ltd. utilities Fy00, 01 17.6 23.5 .8 0.8 10.6 110.1 .3 11.4 volume 2 PAGE 3 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity Sub-Saharan afriCa liberia Liberian Bank for Development Finance & Insurance Fy66, 77 0.7 -- -- 0.7 0.7 and Investment Liberian Timber and Plywood Industrial & Consumer Products Fy88 8.5 -- 7.2 -- 7.2 operation Company 7.2 0.7 7. madagascar BNI-Credit Lyonnais Madagascar Finance & Insurance Fy2, 05 8. -- 6.3 2.6 8. Bank of Africa Madagascar Finance & Insurance Fy00 1.3 -- 0.7 0.8 1.5 Business Partners Madagascar Collective Investment Vehicles Fy06 3.3 -- -- 3.5 3.5 SME Fund Ltd La Cotonniere d'antsirabe Textiles, Apparel, & Leather Fy86, 0 7. -- -- 0.2 0.2 (CoToNA), S.A. Grands hotels de Madagascar Accommodation & Tourism Fy8 1.0 -- 0.4 -- 0.4 Services Karibotel Accommodation & Tourism Fy5 0.4 -- 0.2 -- 0.2 Services Societe Textile de Majunga S.A. Textiles, Apparel, & Leather Fy77, 87 15.0 -- 1.8 0.3 2.1 .5 7.4 16. malawi Mwaiwathu Private hospital Limited health Care Fy7 0.8 -- -- 0.8 0.8 National Insurance Company Limited Finance & Insurance Fy00 1.0 -- -- 0.5 0.5 (NICo) -- 1.3 1.3 mali Graphique Industrie S.A. Pulp & Paper Fy (0.0) -- 0.3 -- 0.3 La Societe d'Exploitation des Mines oil, Gas, & Mining Fy5 3.8 25.0 -- 4.8 4.8 d'or de Sadiola S.A. (SEMoS) Societe Industrielle de Karite du Agriculture & Forestry Fy82 2.5 -- 2.2 0.5 2.7 Mali, S.A. Societe Industrielle d'Emballage et de Plastics & Rubber Fy 0.3 -- 0.3 -- 0.3 Conditionnement Societe Malienne de Promotion Accommodation & Tourism Fy4, 8, 03 4.3 -- 1.6 -- 1.6 hoteliere Services 4.4 5.3 .6 mauritania BSA Ciment Nonmetallic Mineral Product Fy06 11.0 -- 11.3 -- 11.3 Manufacturing Generale de Banque de Mauritanie Finance & Insurance Fy8, 00, 04, 05 31.1 -- 24. -- 24. pour l'Investissement et le Commerce SEF hotel halima Accommodation & Tourism Fy06 2.1 -- 2.1 -- 2.1 Services TIVISKI S.A.R.L. Food & Beverages Fy (0.0) -- 0.3 -- 0.3 38.7 -- 38.7 PAGE 4 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity Sub-Saharan afriCa mauritius Mauritius Venture Capital Fund Limited Collective Investment Vehicles Fy6 1.6 -- -- + + Saxon Management Limited and Saxon Accommodation & Tourism Fy0 3.0 -- -- 1.0 1.0 Properties Limited Services Socota Textile Mills Limited Textiles, Apparel, & Leather Fy87 6.0 -- -- 1.0 1.0 -- 2.0 2.0 mozambique Ausmoz Farm holdings, Lda. Agriculture & Forestry Fy01 0.7 -- 0.7 -- 0.7 Auto Body Grand Prix Lda Industrial & Consumer Products Fy03 0.3 -- 0.3 -- 0.3 Cabo Caju, Lda. Food & Beverages Fy00 0.6 -- 0.6 -- 0.6 Companhia de Pescas da Food & Beverages Fy8 1.0 -- 1.0 -- 1.0 Zambezia Lda Empresa Nacional de hidrocarbonetos oil, Gas, & Mining Fy04 18.5 -- -- 18.5* 18.5 de Mocambique Mozambique Aluminum S.A.R.L. Primary Metals Fy8, 01 121.3 -- 8.3 -- 8.3 (MoZAL) 100. 18.5 11.4 namibia Life office of Namibia Limited Finance & Insurance Fy8, 01 1.6 -- -- 1.6 1.6 Novanam Limited Agriculture & Forestry Fy5, 7, 8, 03 1.4 -- 8.0 -- 8.0 8.0 1.6 .6 niger Les Moulines du Sahel, S.A. Food & Beverages Fy82 1. -- -- 0.2 0.2 -- 0.2 0.2 nigeria Abuja International Diagnostic and health Care Fy7 2.5 -- 1.8 0.7 2.5 Medical Center Access Bank Plc Finance & Insurance Fy06 15.0 -- 15.0 -- 15.0 Accion Nigeria Finance & Insurance Fy05 1. -- -- 1. 1. Adamac Industries Limited oil, Gas, & Mining Fy03 25.0 15.0 25.0 -- 25.0 African Reinsurance Corporation Finance & Insurance Fy05 10.4 -- -- 10.4 10.4 Arewa Textiles, Ltd. Textiles, Apparel, & Leather Fy64, 67, 70, 2 6.6 0.7 -- 0.6 0.6 Capital Alliance Private Equity Collective Investment Vehicles Fy00 7.5 -- -- 7.2 7.2 (Mauritius), Ltd. Capital Alliance Private Equity II, Collective Investment Vehicles Fy06 .6 -- -- .6 .6 Limited Diamond Bank Plc Finance & Insurance Fy01, 05, 06 70.0 -- 52.0 -- 52.0 Fidelity Bank (previously FSB Finance & Insurance Fy01 18.0 -- .0 -- .0 International Bank) First Securities Discount house Finance & Insurance Fy3 0. -- -- 0. 0. Global Fabrics Manufacturers Limited Textiles, Apparel, & Leather Fy00 0.3 -- 0.3 -- 0.3 Guaranty Trust Bank Plc. Finance & Insurance Fy01, 04, 05, 06 0.0 -- 76.0 -- 76.0 hercules Tyres Manufacturing Plastics & Rubber Fy00 1.3 -- 1.3 -- 1.3 Nigeria Limited volume 2 PAGE 5 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity Sub-Saharan afriCa nigeria (continued) IBTC Chartered Bank Plc (previously Finance & Insurance Fy01, 06 50.0 -- 50.0 -- 50.0 Investment Banking & Trust Company Plc) Ikeja hotel Limited Accommodation & Tourism Fy81, 85, 88 12.6 -- -- 1.5 1.5 Services Mid-East Nigeria Limited Nonmetallic Mineral Product Fy6 0.1 -- 0.1 -- 0.1 Manufacturing Niger Delta Contractor Revolving Finance & Insurance Fy02 15.0 -- 15.0 -- 15.0 Credit Facility obajana Cement PLC Construction & Real Estate Fy05 75.0 -- 75.0 -- 75.0 oha Motors (Nigeria) Limited Transportation & Warehousing Fy01 0. -- 0.8 -- 0.8 Safety Center International Limited Education Services Fy01 0.6 -- 0.4 0.1 0.5 SocketWorks Ltd. Education Services Fy06 2.5 -- 2.5 -- 2.5 uPDC hotels Ltd Accommodation & Tourism Fy04 11.0 -- 10.6 -- 10.6 Services Vinfessen Industries Limited Plastics & Rubber Fy6 1.0 -- 1.0 -- 1.0 335. 32.8 368.6 rwanda Societe Rwandaise des Allumettes Industrial & Consumer Products Fy88 1.2 -- 1.0 0.2 1.2 (SoRWAL), S.A.R.L. 1.0 0.2 1.2 senegal African Seafood, S.A. Food & Beverages Fy86 3.0 -- -- 0.7 0.7 Banque de L'habitat du Senegal S.A. Finance & Insurance Fy80 0.4 -- -- 0.5 0.5 Bud Senegal, S.A. Agriculture & Forestry Fy72, 74, 76 0. -- -- 0.8 0.8 Ciments du Sahel S.A. Nonmetallic Mineral Product Fy00 17.5 -- 13.1 2.3 15.4 Manufacturing GTi Dakar LLC utilities Fy8 12.3 11.6 7.4 1.7 .1 Kounoune Power S.A. utilities Fy06 20.6 -- 21.4 -- 21.4 Royal Saly S.A. Accommodation & Tourism Fy02 1.0 -- 1.4 -- 1.4 Services Societe Financiere Senegalaise Finance & Insurance Fy74, 85 0.3 -- -- 0.3 0.3 Pour le Developpement de L'Industrie Tourisme 43.3 6.3 4.5 somalia Somali Bad Company Limited Plastics & Rubber Fy85 0.6 -- 1.2 -- 1.2 Somali Molasses Company Limited Transportation & Warehousing Fy81 0.4 -- + -- + 1.3 -- 1.3 south africa AEF Bulwer Timber Ltd. Industrial & Consumer Products Fy -- -- -- 0.2 0.2 African Bank Limited Finance & Insurance Fy02, 04 16.6 -- 2.3 -- 2.3 The Biotech Venture Partners Fund Collective Investment Vehicles Fy02 1.8 -- -- 2.5 2.5 Carosa Farm (PTy) Limited Agriculture & Forestry Fy7 0.6 -- -- 0.1 0.1 PAGE 6 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity Sub-Saharan afriCa south africa (continued) Cheiron health Technologies (Pty) Ltd Professional, Scientific, & Fy00 1.3 -- -- 0.3 0.3 Technical Services Dargle Timber (Pty) Limited/Bulwer Industrial & Consumer Products Fy 0.6 -- 0.4 -- 0.4 Timber (Pty) Limited Decentralised Banking Solutions Information Fy00 0.8 -- -- 0.8 0.8 Consult (Pty) Limited Edu-Loan (Pty) Ltd. Finance & Insurance Fy02 1. -- 1.1 -- 1.1 Ethos Private Equity Fund V Collective Investment Vehicles Fy06 25.0 -- -- 25.0 25.0 FirstRand Limited Finance & Insurance Fy05 27.2 -- 25.3 -- 25.3 Formeset Printers Cape (Pty) Limited Pulp & Paper Fy01 -- -- 1.2 -- 1.2 Foxtrot Meat Processors CC Food & Beverages Fy 0.5 -- 0.3 -- 0.3 hernic Ferrochrome Pty Limited oil, Gas, & Mining Fy04, 06 32.3 -- 25.3 4.7 30.0 Kalahari Diamond Resources PLC oil, Gas, & Mining Fy03 2.0 -- -- 2.0 2.0 Karsten Farms (Pty) Limited Agriculture & Forestry Fy06 7.2 -- 6.3 -- 6.3 Midrand Days Inn Accommodation & Tourism Fy8 1.4 -- -- 0.4 0.4 Services Mvelaphanda Gold (Pty) Limited oil, Gas, & Mining Fy04 27.7 -- 35.0 -- 35.0 New Africa Mining Fund Collective Investment Vehicles Fy03 5.0 -- -- 4.0 4.0 Rubico holding SA (Pty) Ltd. Information Fy01, 02 6.3 -- 1.3 5.0 6.3 SPV--Micawber 325 (Proprietary) oil, Gas, & Mining Fy04 -- -- -- + + Limited South Africa Capital Growth Fund, Ltd. Collective Investment Vehicles Fy6 20.0 -- -- + + South Africa Franchise Equity Fund Collective Investment Vehicles Fy5 2.8 -- -- 0.2 0.2 Limited South Africa home Loans Finance & Insurance Fy00, 01, 02, 03, 12.6 -- 1.2 7.0 8.3 04, 05 South Africa Private Equity Fund III, L.P. Collective Investment Vehicles Fy 35.0 -- -- .6 .6 Sphere Private Equity Fund I Collective Investment Vehicles Fy06 5.2 -- -- 4.4 4.4 Spier Estate hotel Accommodation & Tourism Fy02 12.0 -- 11.8 1. 13.7 Services Standard Bank Group Limited Finance & Insurance Fy06 75.0 -- 75.0 -- 75.0 (South Africa) Tusk Project Management (Pty) Ltd Professional, Scientific, & Fy01 1.8 -- 1.5 0.1 1.6 Technical Services 188.0 68.2 256.1 sudan Cotton Textile Mills, LTD. Textiles, Apparel, & Leather Fy76 10.0 -- 8.1 1.3 .3 Gezira Managil Textile Company Textiles, Apparel, & Leather Fy78 8.4 -- 6.7 1.4 8.1 Limited Khartoum Spinning and Weaving Textiles, Apparel, & Leather Fy64, 72 0.7 1.5 -- 0.3 0.3 Company, Ltd. River Nile Petroleum Company Limited Transportation & Warehousing Fy82 0.3 -- -- 0.3 0.3 Sudan Eagle Cement Company Ltd. Nonmetallic Mineral Product Fy80 0.3 -- -- 0.2 0.2 Manufacturing 14.8 3.5 18.2 volume 2 PAGE 7 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity Sub-Saharan afriCa swaziland Mbabane Concerte Centre oil, Gas, & Mining Fy2 0.7 -- -- 0.3 0.3 (Pty) Limited The Royal Swaziland Sugar Food & Beverages Fy78, 86 .7 -- -- 0.5 0.5 Corporation Limited Swazi Paper Mills Ltd. Pulp & Paper Fy5, 02 8.8 -- 4.1 -- 4.1 Swaziland Industrial Development Finance & Insurance Fy87, 3 3.6 -- -- 1.0 1.0 Company Limited Swazi Wattle Industries (Pty) Ltd Chemicals Fy01 1.1 -- 0.8 0.2 1.0 4. 2.0 6. tanzania, united republic of Bonite Bottlers Limited Food & Beverages Fy05 10.0 -- 10.0 -- 10.0 Boundary hill Lodge Limited Accommodation & Tourism Fy01 0.2 -- 0.2 -- 0.2 Services Exim Bank of Tanzania Finance & Insurance Fy02, 05 6.5 -- 4.8 -- 4.8 highland Soap and Allied Chemicals Fy78 1.8 -- -- 0.4 0.4 Products Limited Indian ocean hotel Limited Accommodation & Tourism Fy00 2.5 -- 2.1 -- 2.1 Services National Bank of Commerce (NBC) Finance & Insurance Fy01 10.0 -- -- 10.0 10.0 Tanzania Breweries Limited Food & Beverages Fy5 6.0 -- -- 3.4 3.4 17.1 13.8 30. togo Societe Togolaise de Products Food & Beverages Fy2, 5 0.3 -- -- 0.1 0.1 Marins (STPM) West African Cement Nonmetallic Mineral Product Fy00 5. -- 0.2 -- 0.2 Manufacturing 0.2 0.1 0.3 uganda Agro Management Limited Chemicals Fy6 1.0 -- 0.3 0.4 0.7 Clovergem Fish and Foods Limited Food & Beverages Fy3 1.0 -- 0.8 -- 0.8 Development Finance Company of Finance & Insurance Fy85, 3, 5, 05 11.0 -- 10.0 -- 10.0 uganda Limited Gomba Fishing Industries Limited Agriculture & Forestry Fy 1.4 -- 0.4 -- 0.4 Tilda (uganda) Limited Agriculture & Forestry Fy 1. -- 0.5 -- 0.5 White Nile Dairies (uganda) Limited Food & Beverages Fy 0.3 -- 0.1 -- 0.1 12.2 0.4 12.6 Zambia Celtel Zambia Limited Information Fy, 00, 04 .1 -- 0.8 1.3 2.1 Chingola hotel Accommodation & Tourism Fy02 1.0 -- 0.4 -- 0.4 Services Development Bank of Zambia Finance & Insurance Fy76 0.5 -- -- 0.5 0.5 Drilltech Engineering Limited oil, Gas, & Mining Fy 0.2 -- 0.1 -- 0.1 PAGE 8 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity Sub-Saharan afriCa Zambia (continued) Masstock (ZAMBIA) Limited Agriculture & Forestry Fy8 2.2 -- 2.2 -- 2.2 Marasa holdings Limited Accommodation & Tourism Fy01 4.6 -- 2. -- 2. Services Michelangelo Executive Lodge Limited Accommodation & Tourism Fy02 0.2 -- 0.1 -- 0.1 Services Mpongwe Development Company Agriculture & Forestry Fy85 1.8 -- -- 0.3 0.3 Limited 6.5 2.1 8.6 Zimbabwe Agflora (Pvt) Limited Agriculture & Forestry Fy7 0.2 -- 0.2 -- 0.2 Bell Medical Centers Limited health Care Fy00 0.8 -- -- 0.8 0.8 Deraswiss Zimbabwe (Pvt) Ltd. Textiles, Apparel, & Leather Fy00 1.0 -- 1.2 -- 1.2 hy-Veld holdings (Pvt) Limited and Food & Beverages Fy 1.3 -- 0.6 -- 0.6 Extraction Incorporated (Pvt) Limited Isfar (Pvt) Limited Textiles, Apparel, & Leather Fy7 0.1 -- 0.1 -- 0.1 Itachi Plastics (Pvt) Limited Plastics & Rubber Fy6 0.4 -- 0.3 0.1 0.3 Lowveld Leather (Pvt) Limited Textiles, Apparel, & Leather Fy7 0.5 -- -- 0.2 0.2 Shagelok Chemicals (Pvt) Ltd. Chemicals Fy7 1.1 -- 0. 0.2 1.0 Stone one holdings Limited, oil, Gas, & Mining Fy6 1.5 -- 1.4 -- 1.4 Zimbabwe Victoria Falls Safari Lodge hotel Accommodation & Tourism Fy4 2.7 -- -- 0.2 0.2 (Pvt) Ltd Services 4.7 1.4 6.1 regional Investment The AIG African Infrastructure Collective Investment Vehicles Fy00 74.8 -- -- 16.8 16.8 Fund L.L.C. AIG African Infrastructure Collective Investment Vehicles Fy00 0.2 -- -- 0.1 0.1 Management LLC Afren Plc oil, Gas, & Mining Fy05 1.0 -- -- 0.8 0.8 Africa Banking Corp Finance & Insurance Fy0, 2, 02 3.0 -- -- 2.0 2.0 Africa International Financial Collective Investment Vehicles Fy03 20.0 -- -- 20.0 20.0 holdings, LLC Africa Media Group Limited Information Fy02, 04 5.2 -- -- 5.2 5.2 Africa Microfinance Ltd. Collective Investment Vehicles Fy02 2.0 -- -- 1.8 1.8 Aureos East Africa Fund, LLC Collective Investment Vehicles Fy03 4.0 -- -- 3. 3. Aureos Southern Africa Fund, LLC Collective Investment Vehicles Fy03 6.0 -- -- 5.8 5.8 Celtel International B.V. Information Fy00, 02, 05 37.4 -- -- 11.8 11.8 Coca Cola SABCo (Pty) Ltd. Food & Beverages Fy02, 06 50.0 -- 40.0 10.0 50.0 Framlington Asset Management Collective Investment Vehicles Fy 0.0 -- -- + + West Africa SA Industrial Promotion Services Collective Investment Vehicles Fy82, 04 5.8 -- -- 5.7 5.7 (Kenya) Limited Kunene Finance Company Industrial & Consumer Products Fy5 -- -- -- 0.7 0.7 LaFayette Investissements Finance & Insurance Fy06 2.2 -- -- 2.0 2.0 MTN Nigeria Communications Limited Information Fy04, 05 85.0 -- 70.0 15.0 85.0 volume 2 PAGE original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity Sub-Saharan afriCa regional Investment (continued) osprey oil and Gas Limited oil, Gas, & Mining Fy03 0.3 -- -- 0.3 0.3 Pan African Investment Partners Ltd. Collective Investment Vehicles Fy04 30.5 -- -- 27.5 27.5 Tullow oil Plc oil, Gas, & Mining Fy04 -- -- -- 14.4 14.4 Veolia Water Africa Middle East India utilities Fy06 31.3 -- -- 31.4 31.4 West Africa Growth Fund Collective Investment Vehicles Fy7 6.4 -- -- 1.8 1.8 110.0 177.0 287.0 total equity and loans 1,402.1 435.7 1,837.8 total guarantees and risk management products 258.2 total IFC portfolio for sub-saharan africa 2,096.0 PAGE 100 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EaST aSia and ThE PaCifiC Cambodia ACLEDA Finance & Insurance Fy00, 04, 06 12.6 -- 10.3 1.6 11.8 Canadia Bank Limited Finance & Insurance Fy05 2.5 -- 2.5 -- 2.5 SEF hagar Soya Food & Beverages Fy03 0.5 -- -- 0.5 0.5 Societe Concessionaire de l'Aeroport Transportation & Warehousing Fy04 10.0 -- .2 -- .2 22.0 2.0 24.0 China ASIMCo International Casting Industrial & Consumer Products Fy00 16.5 -- 12.6 -- 12.6 (Shanxi) Co., Ltd Advantage China holdings Limited Finance & Insurance Fy02, 03 0.7 -- -- 0.7 0.7 Anhui Conch Cement Nonmetallic Mineral Product Fy06 120.5 -- 81.3 40.8 122.1 Company Limited Manufacturing Anjia Group holdings Finance & Insurance Fy04 2.0 -- -- 2.0 2.0 Asian Strategic Investments Industrial & Consumer Products Fy04, 06 14.1 -- 4.1 10.0 14.1 Corporation Group Babei Group Co., Ltd. Textiles, Apparel, & Leather Fy05 16.0 6.0 -- 5.0 5.0 Bank of Beijing (formerly BCCB) Finance & Insurance Fy05 57. -- -- 5.2 5.2 Bank of Shanghai Finance & Insurance Fy00, 02 50.3 -- -- 50.3 50.3 Beijing Deqingyuan Agriculture Agriculture & Forestry Fy06 2.8 -- -- 2. 2. Technology Co. Ltd Beijing united Family hospital health Care Fy06 8.0 -- 8.1 -- 8.1 BioVeda China Fund L.P. Collective Investment Vehicles Fy05 3.0 -- -- 3.0 3.0 CDh China Capital Growth Fund II, L.P. Collective Investment Vehicles Fy05 18.0 -- -- 18.0 18.0 CDh China Fund, L.P. Collective Investment Vehicles Fy02 20.0 -- -- 2.0 2.0 CDh Venture Partners, L.P. Collective Investment Vehicles Fy06 20.0 -- -- 20.0 20.0 CSMC Technologies Corporation Industrial & Consumer Products Fy04 11.5 -- -- 11.5 11.5 CSRC China Corporation Chemicals Fy02, 05 23.0 -- 16.3 3.0 1.3 CT holdings Group Co. Ltd. utilities Fy05 40.0 -- 40.0 -- 40.0 CuNA Mutual Group Finance & Insurance Fy04 12.0 -- -- 12.0 12.0 Capital Today China Growth Fund, L.P. Collective Investment Vehicles Fy06 25.0 -- -- 25.0 25.0 Changchun TBK Shili Auto Parts Industrial & Consumer Products Fy06 4.0 -- 4.0 -- 4.0 Co., Ltd. Changjiang BNP Paribas Peregrine Finance & Insurance Fy03 11.6 -- -- 12.0 12.0 Securities Co., Ltd. Chengdu huarong Chemical Chemicals Fy 10.6 8.6 3.4 3.2 6.6 Company Limited China Dynamic Growth Fund, L.P. Collective Investment Vehicles Fy4 10. -- -- 5.2 5.2 China Green Energy Limited utilities Fy04 20.0 -- 20.0 -- 20.0 China Medicine and Education Education Services Fy06 -- -- -- 1.6 1.6 International holding Co. Ltd. China Minsheng Banking Corp., Ltd. Finance & Insurance Fy03, 05 26.3 -- -- 26.3 26.3 China Re Life Finance & Insurance Fy04 15.3 -- -- 15.4 15.4 China Walden Management Limited Collective Investment Vehicles Fy4 0.0 -- -- + + China Walden Ventures Investment Collective Investment Vehicles Fy4 7.5 -- -- + + Limited Chinasoft International Limited Information Fy06 15.0 -- -- 15.0 15.0 volume 2 PAGE 101 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EaST aSia and ThE PaCifiC China (continued) Five Star home Appliance Co Ltd. Wholesale & Retail Trade Fy05 7.0 -- -- 7.0 7.0 (Nanjing) Global Infotech holdings, Inc. Information Fy03 3.5 -- -- 3.5 3.5 Guangxi Baise Fenglin Fiberboard Industrial & Consumer Products Fy04 21.0 14.7 13. 6.0 1. Corporation Limited Guangzhou Development Industry utilities Fy06 50.1 -- 50.7 -- 50.7 holdings hangzhou Rural Cooperative Bank Finance & Insurance Fy06 10.8 -- -- 10.8 10.8 hiSoft Technology International Limited Information Fy05, 06 8.3 -- -- 8.3 8.3 Industrial Bank Finance & Insurance Fy04 52.2 -- -- 52.2 52.2 Jiangxi Chenming Paper Co., Ltd. Pulp & Paper Fy04 62. 40.0 50.0 12. 62. Jilin huazheng Agribusiness Food & Beverages Fy03 11.6 5.4 11.1 -- 11.1 Development Co., Ltd. Jinan Shanshui Group Nonmetallic Mineral Product Fy06 57.7 -- 52.2 5.5 57.7 Manufacturing Launch Tech Co. Ltd. Industrial & Consumer Products Fy06 8.4 -- -- 8.4 8.4 Minsheng Shipping Transportation & Warehousing Fy05 15.8 -- 15.8 -- 15.8 Nanjing City Commercial Bank Finance & Insurance Fy02 26.6 -- -- 8. 8. Nanjing Kumho Tire Co., Ltd. Plastics & Rubber Fy6, 04 53.7 38.8 31.4 6.0 37.4 Neophotonics, Inc Information Fy06 10.0 -- -- 10.0 10.0 New China Life Insurance Company Finance & Insurance Fy01 23.3 -- -- 5.8 5.8 New hope Finance & Insurance Fy05 45.0 -- -- 45.0 45.0 Newbridge Investment Partners, L.P. Collective Investment Vehicles Fy5 6.7 -- -- 1.8 1.8 Ningxia Darong Chemicals & Chemicals Fy04 11.5 8.0 10.0 1.5 11.5 Metallurgy Co. Ltd. RAK Gao yao Ceramics Limited Nonmetallic Mineral Product Fy05 13.0 -- 13.0 -- 13.0 Manufacturing Rongde Asset Management Co. Finance & Insurance Fy06 35.0 -- -- 35.0 35.0 SBCVC Fund II, L.P. Collective Investment Vehicles Fy06 20.0 -- -- 20.0 20.0 SEAF Sichuan SME Investment Collective Investment Vehicles Fy01 4.5 -- -- 4.5 4.5 Fund LLC SyWG BNP Paribas Asset Management Finance & Insurance Fy03 1. -- -- 2.0 2.0 Co. Ltd. Scana Leshan Machinery Co., Ltd. Primary Metals Fy 5. -- -- 1.4 1.4 Shandong Wanjie high-tech Co., Ltd Textiles, Apparel, & Leather Fy02 -- -- . -- . Shanghai International Banking & Education Services Fy04 0.1 -- -- 0.1 0.1 Finance Institute Shanghai Keji Information Technology Education Services Fy06 -- -- 3.0 -- 3.0 Co., LTD. Shanghai Krupp Stainless Co., Ltd. Primary Metals Fy00 30.0 68.8 1.3 -- 1.3 Shanxi hongAn Coking Technology Primary Metals Fy04 40.0 30.0 38.2 -- 38.2 Co., Ltd. Shenzhen China Bicycles Company Industrial & Consumer Products Fy88, 2, 4 20. -- 8.5 -- 8.5 (holdings) Limited Shenzhen Tai-yang PCCP Nonmetallic Mineral Product Fy3 5.0 -- 3.8 1.0 4.7 Company, Limited Manufacturing SinoSpring utility Co Ltd utilities Fy06 20.0 -- -- 20.0 20.0 PAGE 102 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EaST aSia and ThE PaCifiC China (continued) Southern Aluminum Industry Primary Metals Fy04 12.0 -- 12.0 -- 12.0 (China) Co., Ltd. TianJin Dagang Newspring Co. Ltd. utilities Fy06 25.0 -- 25.0 -- 25.0 uBS Securities, Co, Ltd Finance & Insurance Fy06 1.8 -- -- 20.0 20.0 VeriSilicon holdings Co., Ltd. Professional, Scientific, & Fy06 1.0 -- -- 1.0 1.0 Technical Services Wumart Stores, Inc Wholesale & Retail Trade Fy04 6.5 -- -- 1.6 1.6 Xi'an City Commercial Bank Finance & Insurance Fy03 1. -- -- 20.5 20.5 Xinao Gas holdings Limited utilities Fy04 35.0 -- 25.0 10.0 35.0 yangtze Special Situations Fund L.P. Collective Investment Vehicles Fy04 0.8 -- -- 0.8 0.8 yangtze Special Situations Fund, L.P. Collective Investment Vehicles Fy04 16.1 -- -- 16.1 16.1 yantai Changyu Group Food & Beverages Fy05 17.7 -- -- 18.1 18.1 Company Limited yantai North Andre Juice Co., Ltd. Food & Beverages Fy05 15.0 -- 8.0 7.0 15.0 Zhejiang Babei Necktie Co. Ltd. Textiles, Apparel, & Leather Fy05 -- -- 11.0 -- 11.0 Zhejiang Glass Company Nonmetallic Mineral Product Fy06 75.0 18.0 50.0 25.0 75.0 Manufacturing Zhong Chen Energy Storage Co. Ltd. Transportation & Warehousing Fy04 5.0 -- -- 5.0 5.0 Zhongda yanjin Power Generation utilities Fy06 21. -- 21.6 -- 21.6 Co. Ltd 672. 746.8 1,41.7 Indonesia P.T. Agro Muko Food & Beverages Fy1 12.7 -- -- 2.2 2.2 P.T. Astra otoparts Tbk. Industrial & Consumer Products Fy3, 05 24.0 -- 24.0 1. 25. P.T. Berlian Laju Tanker Transportation & Warehousing Fy8 28.2 25.2 -- 3.3 3.3 P.T. Daralon Textile Manufacturing Textiles, Apparel, & Leather Fy72, 77, 7 5.5 1.7 -- 1.1 1.1 Corporation P.T. Gawi Makmur Kalimantan Food & Beverages Fy03 11.5 4.7 11.1 -- 11.1 P.T. Indorama Synthetics Tbk. Textiles, Apparel, & Leather Fy0, 1, 5, , 146.8 67.5 48.0 11.8 5.8 01, 03, 05 P.T. Kabel Indonesia--KABELINDo Industrial & Consumer Products Fy71 2.2 1.0 -- 0.4 0.4 P.T. Kia Keramik Mas Nonmetallic Mineral Product Fy2, 4, 6 31.1 63.5 18.8 .0 27.8 Manufacturing P.T. Nusantara Tropical Fruit Agriculture & Forestry Fy3 8.6 6.7 10.2 -- 10.2 P.T. South Pacific Viscose Chemicals Fy3, 6, 04 54.5 60.0 17.3 -- 17.3 PT Alumindo Light Metal Industry Tbk. Primary Metals Fy7 15.0 20.0 2.7 -- 2.7 PT Astra International Tbk. Industrial & Consumer Products Fy0, 1, 4, 03 36. -- -- 0.5 0.5 PT Bank Buana Indonesia Tbk Finance & Insurance Fy03, 06 15.4 -- -- -- -- PT Bank Danamon Indonesia TBK Finance & Insurance Fy06 150.0 -- 150.0 -- 150.0 PT Ecogreen oleochemicals Chemicals Fy04, 05 55.0 -- 55.0 -- 55.0 PT Grahawita Santika Accommodation & Tourism Fy6 11.8 -- 3.8 -- 3.8 Services PT KIA Serpih Mas Nonmetallic Mineral Product Fy5 21.2 55.0 15.0 6.2 21.2 Manufacturing volume 2 PAGE 103 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EaST aSia and ThE PaCifiC Indonesia (continued) PT Kalimantan Sanggar Pusaka (KSP) Food & Beverages Fy7 35.0 6.0 .4 -- .4 and Subsidiaries PT Karunia Alam Segar Food & Beverages Fy04, 06 20.0 -- 38.1 -- 38.1 PT Megaplast Jayacitra Industrial & Consumer Products Fy 11.3 -- -- 2.5 2.5 PT Prakarsa Alam Segar Food & Beverages Fy04 35.0 10.0 16. -- 16. PT Sayap Mas utama Chemicals Fy8 10.0 20.0 0.8 -- 0.8 PT Sigma Cipta Caraka Information Fy01 3.0 -- -- 3.0 3.0 PT Sunson Textile Manufacturer Tbk. Textiles, Apparel, & Leather Fy02 12.4 8.2 11.6 -- 11.6 PT Tirta Alam Segar Food & Beverages Fy06 7.0 -- 7.0 -- 7.0 PT Wings Surya Chemicals Fy8 8.7 21.3 0.7 -- 0.7 PT. Bank NISP Tbk. Finance & Insurance Fy8, 01, 02, 04 53.6 -- 35.0 7.7 42.7 PT. Buana Finance Tbk. Finance & Insurance Fy3, 6 20.0 35.0 2.6 -- 2.6 PT. Centralpertiwi Bahari Agriculture & Forestry Fy06 45.0 -- 45.0 -- 45.0 PT. Makro Indonesia Wholesale & Retail Trade Fy3, 00, 06 2.0 -- -- 20.1 20.1 Wahana ottomitra Multiartha Finance & Insurance Fy05 20.0 -- -- 15.8 15.8 yayasan Pendidikan Asian Pasifik Education Services Fy04 1.0 -- 1.0 -- 1.0 yayasan Pendidikan Singapura Education Services Fy04 1.8 -- 1.8 -- 1.8 Indonesia 525.8 85.6 611.3 Korea, republic of Asset Korea Capital Management Collective Investment Vehicles Fy, 02 0. -- -- 0. 0. Co. Ltd. CJ Development Co. Ltd. Finance & Insurance Fy01 -- -- 7.8 -- 7.8 Dae Chang Industrial Company Limited Primary Metals Fy 22.3 .8 4.8 7.1 11. halim & Co., Ltd. Food & Beverages Fy, 05 21.5 -- 14.0 -- 14.0 hana Financial holding Co. Finance & Insurance Fy8 -- -- -- 14.6 14.6 Korea Development Investment Industrial & Consumer Products Fy2 0.2 -- -- 0.2 0.2 Corp.--Dae Boo Battery Company Ltd. Korea Development Investment Textiles, Apparel, & Leather Fy2 0.2 -- -- 0.2 0.2 Corp.--Daemyung Industrial Co., Ltd. Korea Development Investment Industrial & Consumer Products Fy2 0.3 -- -- 0.3 0.3 Corp.--Seoshin Electronics Co., Ltd. Korea Development Investment Industrial & Consumer Products Fy2 0.1 -- -- 0.1 0.1 Corp.--Seoul Cad Mold & Tool Co. Korea Development Investment Industrial & Consumer Products Fy2 0.3 -- -- 0.3 0.3 Corp.--Sewon Electro-Mechanics Co. Ltd. Korea Development Investment Industrial & Consumer Products Fy2 0.2 -- -- 0.2 0.2 Corp.--Shin Chang Precision Co., Ltd. Korea Development Investment Industrial & Consumer Products Fy2 0.1 -- -- 0.1 0.1 Corp.--Sung Kwang Lighting Co., Ltd. Korea Growth and Restructuring Collective Investment Vehicles Fy00 35.0 -- -- 33.3 33.3 Fund, L.P. PAGE 104 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EaST aSia and ThE PaCifiC Korea, republic of (continued) Korea Mortgage Corporation Finance & Insurance Fy01 8.0 -- -- 8.8 8.8 Samgwang Gohachem Co., Ltd. Chemicals Fy2 0.1 -- -- 0.1 0.1 Shinmoorim Paper Manufacturing Pulp & Paper Fy, 00 41.4 8.0 16.2 6.6 22.7 Company, Limited 42.8 72. 115.7 lao people's Democratic republic Belmont hotel Investments (Laos) Ltd. Accommodation & Tourism Fy8, 01 1.2 -- 0.7 -- 0.7 Services Burapha Agro-forestry Company Ltd. Industrial & Consumer Products Fy 0.8 -- 0.8 -- 0.8 Endeavour Embroidery Co. Ltd. Textiles, Apparel, & Leather Fy 0.2 -- 0.1 -- 0.1 Millicom Lao Company Limited Information Fy05 4.0 -- 4.0 -- 4.0 Villa Santi Accommodation & Tourism Fy01 1.2 -- 1.1 -- 1.1 Services 6.7 -- 6.7 mongolia Agricultural Bank of Mongolia Finance & Insurance Fy04 1.2 -- -- 1.2 1.2 G&M Industrial Co. Ltd. Textiles, Apparel, & Leather Fy7 1.3 -- 1.0 0.2 1.2 Trade & Development Bank Finance & Insurance Fy04 4. -- 3.5 1.4 4. of Mongolia XacBank Ltd. Finance & Insurance Fy02 0.4 -- 0.3 -- 0.3 4. 2.8 7.6 papua new Guinea PNG MicroFinance Finance & Insurance Fy05 1.2 -- -- 1.2 1.2 -- 1.2 1.2 philippines Alaska Milk Corporation Food & Beverages Fy7 -- -- -- 0.6 0.6 All Asia Capital Trust (AACT) Finance & Insurance Fy80, 83, 8, 0, 5 31.0 5.0 16.4 2.7 1.1 All AsiaCapital Growth Venture Collective Investment Vehicles Fy6 4.0 -- -- 3.1 3.1 BVI--I, Ltd. All AsiaCapital Managers, Inc. Collective Investment Vehicles Fy6 0.0 -- -- + + Asian Eye Institute health Care Fy03 1.0 -- 0. -- 0. Asian hospital Inc. health Care Fy01 5.0 -- 4.3 -- 4.3 Avalon Professional Web Trade Information Fy01, 02 1.6 -- 0.7 1.0 1.7 Pte. Ltd. Avantex Mill Corporation Textiles, Apparel, & Leather Fy1 13.2 -- -- 2.0 2.0 Bahay Financial Services, Inc Finance & Insurance Fy05 -- -- -- 0.2 0.2 Balikatan housing Finance, Inc. Finance & Insurance Fy05 32.6 -- 33.0 1. 34. Banco de oro universal Bank Finance & Insurance Fy02 20.0 -- 10.0 6.2 16.2 Cagayan Electric Power & Light utilities Fy05 14. -- 15.2 -- 15.2 Co., Inc. Eastwood Cyber one Corporation Professional, Scientific, & Fy02, 05 32.5 -- 27.3 -- 27.3 Technical Services Filinvest Alabang Inc. Wholesale & Retail Trade Fy02 22.0 -- 17.7 -- 17.7 volume 2 PAGE 105 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EaST aSia and ThE PaCifiC philippines (continued) Filinvest Land, Inc. Finance & Insurance Fy05 41.4 -- 42.0 -- 42.0 h&Q Philippines holdings BVI, Inc. Collective Investment Vehicles Fy 5.8 -- -- 5.7 5.7 h&Q Philippines Ventures II, Inc. Collective Investment Vehicles Fy4 2.4 -- -- 1.1 1.1 h&Q Philippines Ventures, Inc. Collective Investment Vehicles Fy8 2.5 -- -- 0.6 0.6 holcim Philippines, Inc. Nonmetallic Mineral Product Fy3 23.8 -- -- 5.6 5.6 Manufacturing Land Registration Systems, Inc. Professional, Scientific, & Fy04 24.7 -- 22.0 2.7 24.7 Technical Services Manila North Tollways Corporation Transportation & Warehousing Fy02 45.4 -- 36.3 -- 36.3 Manila Water Company, Inc. utilities Fy03, 04 75.5 -- 5.7 15.0 74.6 Mariwasa Manufacturing, Inc. Nonmetallic Mineral Product Fy70, 72, 00 15.7 0.5 14.3 -- 14.3 Manufacturing Marsman-Drysdale Agribusiness Food & Beverages Fy 15.0 8.8 5.3 -- 5.3 holdings, Inc. Micro Enterprise Bank, A Thrift Finance & Insurance Fy01 0.1 -- -- 0.1 0.1 Bank Inc. Mirant Pagbilao Corporation utilities Fy3 70.0 11.0 6.0 10.0 16.0 Mirant Sual Corporation utilities Fy6 47.5 16.0 1.5 -- 1.5 Northern Mindanao Power utilities Fy3 16.8 21.0 -- 4.3 4.3 Corporation Paramount Life & General Finance & Insurance Fy05 1.5 -- -- 1.5 1.5 Insurance Corporation Philippine Export Development Facility Finance & Insurance Fy02 0.2 -- 0.2 -- 0.2 Pilipinas Shell Petroleum Corporation Chemicals Fy3 40.3 65. -- 1.6 1.6 PlantersBank Mortgage Securitization Finance & Insurance Fy01 23. -- -- 2. 2. Pryce Gases Incorporated Transportation & Warehousing Fy 13.0 5.0 15.0 -- 15.0 SME.CoM Information Fy00 0.1 -- -- 0.1 0.1 STRADCoM Corporation Transportation & Warehousing Fy01 17.6 -- 6.8 8.0 14.8 Software Ventures Int'l., Inc Professional, Scientific, & Fy03 4.0 -- -- 4.0 4.0 Technical Services Victorias Chemical Corporation Chemicals Fy73 2.2 -- -- 0.3 0.3 Walden AB Ayala Management Collective Investment Vehicles Fy5 0.1 -- -- 0.1 0.1 Co. Inc. Walden AB Ayala Ventures Co. Inc. Collective Investment Vehicles Fy5 3.8 -- -- 0.5 0.5 352.6 81.7 434.4 samoa Samoa Venture Capital Fund Collective Investment Vehicles Fy05 0.4 -- -- 0.4 0.4 Wilex Cocoa Food & Beverages Fy7 0.3 -- 0.3 -- 0.3 0.3 0.4 0.7 PAGE 106 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EaST aSia and ThE PaCifiC thailand Bangkok Mass Transit System Public Transportation & Warehousing Fy7, .7 -- .8 .8 1.7 Company Limited Bumrungrad hospital Public Company health Care Fy4 -- -- -- 0.2 0.2 Limited--BhPC Fabrinet Industrial & Consumer Products Fy04 3.0 -- 1.2 -- 1.2 Finance one publice company LTD Finance & Insurance Fy5 30.0 147. 17.5 -- 17.5 credit line hMC Polymers Company Limited Chemicals Fy88, 6 1.0 11.0 -- 3. 3. Krung Thai IBJ Leasing Company, Finance & Insurance Fy2 0.4 -- -- 0.4 0.4 Ltd. (KILC) Lombard Thailand Intermediate Collective Investment Vehicles Fy02 37.5 -- -- 33.8 33.8 Fund, LLC. Siam Asahi Technoglass Co. Ltd. Industrial & Consumer Products Fy0 7.0 -- -- 6.4 6.4 Siam Industrial Credit Public Co Ltd Finance & Insurance Fy05 34.6 -- 36.4 -- 36.4 Thai Farmers Bank--Ladprao General health Care Fy2 0.3 -- -- 0.3 0.3 hospital Co. Ltd. Thai Petrochemical Industry Public Chemicals Fy7, 02 8.2 383.3 25.6 -- 25.6 Company Limited True Corporation Public Company Information Fy02 26.5 -- 2.3 -- 2.3 Limited True Move Company Ltd. Information Fy05 33.0 -- 36.3 -- 36.3 Tuntex Petrochemicals (Thailand) Chemicals Fy4 24. 137.5 -- 4. 4. Public Co. Ltd. united Palm oil Industry Public Food & Beverages Fy88 -- -- -- 1.1 1.1 Company Limited 156.1 60. 216. Vietnam Asia Commercial Bank Finance & Insurance Fy03 5.0 -- -- 5.0 5.0 Dragon Capital Limited Collective Investment Vehicles Fy03 2.0 -- -- 1.8 1.8 Franco-Vietnamese hospital health Care Fy02 8.0 -- 8.0 -- 8.0 Global CyberSoft, Inc. Information Fy02 1.3 -- -- 1.3 1.3 Khai Vy Corporation and Duyen Industrial & Consumer Products Fy05 6.0 -- 6.0 -- 6.0 hai Corporation Nghi Son Cement Corporation Nonmetallic Mineral Product Fy (8.8) (7.7) 10.1 -- 10.1 Manufacturing Paul Maitland International Industrial & Consumer Products Fy06 8.0 -- 7.2 -- 7.2 RMIT International university Education Services Fy02 7.3 -- 7.3 -- 7.3 Vietnam (RIuV) Saigon Thuong Tin Commercial Joint Finance & Insurance Fy03, 04, 05, 06 10.2 -- -- 10.2 10.2 Stock Bank Vietnam Enterprise Investment Limited Collective Investment Vehicles Fy02, 03 20.0 -- 2.0 7.4 .4 Vinh Phat Company Limited Textiles, Apparel, & Leather Fy 0.2 -- 0.1 -- 0.1 40.7 25.7 66.4 volume 2 PAGE 107 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EaST aSia and ThE PaCifiC regional Investment AIF Capital Limited Collective Investment Vehicles Fy5, 8 0.1 -- -- 0.1 0.1 Asia opportunity Fund, L.P. Collective Investment Vehicles Fy 73.3 -- -- 40.3 40.3 The Asian Infrastructure Fund Collective Investment Vehicles Fy5 50.0 -- -- 1.6 1.6 Asian Lion Fund Limited Collective Investment Vehicles Fy06 6.0 -- -- 6.0 6.0 Avenue Asia Special Situations Collective Investment Vehicles Fy04 40.0 -- -- 3. 3. Fund III, L.P. Avenue Asia Special Situations Collective Investment Vehicles Fy06 50.0 -- -- 50.0 50.0 Fund IV, LP Kula Fund Limited Collective Investment Vehicles Fy8 3.0 -- -- 0.6 0.6 SMELoan Finance & Insurance Fy02 16.0 -- -- 5.0 5.0 Vital Solutions Pte. Ltd. Information Fy01 1.0 -- -- 1.0 1.0 -- 162.5 163.0 total equity and loans 1,824.6 1,242.5 3,067.1 total guarantees and risk management products 275.2 total IFC portfolio for east asia and the pacific 3,342.3 PAGE 108 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity SouTh aSia Bangladesh BRAC Bank Finance & Insurance Fy04 1.6 -- -- 1.6 1.6 DeltaBRAC housing Finance Finance & Insurance Fy8 3.0 -- 1. 0.7 2.6 Corporation Dynamic Textile Industries Limited Textiles, Apparel, & Leather Fy2 2.5 2.0 1. -- 1. GrameenPhone Limited Information Fy04, 06 8.0 -- 83.0 -- 83.0 Industrial Promotion and Development Finance & Insurance Fy80, 11.1 -- 3.1 -- 3.1 Company of Bangladesh Limited Khulna Power Company Limited utilities Fy 22.5 21.6 10.4 -- 10.4 Lafarge Surma Cement Limited Nonmetallic Mineral Product Fy02 45.0 15.0 35.0 10.0 45.0 Manufacturing R.A.K. Ceramics (Bangladesh) Pvt. Ltd. Nonmetallic Mineral Product Fy03 12.0 -- 7.2 -- 7.2 Manufacturing World Communications, Inc. Information Fy8 0.0 -- -- + + 142.5 12.3 154.8 Bhutan Bhutan Resorts Corporation Limited Accommodation & Tourism Fy04 10.0 -- .4 -- .4 Services .4 -- .4 India AD hydro Power Limited utilities Fy05 4.1 -- 3.7 7.0 46.7 APIDC Biotechnology Venture Fund Collective Investment Vehicles Fy05 4.0 -- -- 4.0 4.0 Andhra Pradesh Paper Mills Limited Pulp & Paper Fy05 40.0 -- 35.0 5.0 40.0 Apollo hospitals Enterprise Limited health Care Fy06 5.1 -- -- 5.1 5.1 Apollo Tyres Limited Plastics & Rubber Fy03, 05 2.4 15.0 23.3 -- 23.3 Atul Limited Chemicals Fy06 17.0 -- 16. -- 16. BhW-Birla home Finance Limited Finance & Insurance Fy04 21.2 -- 20.7 -- 20.7 Ballarpur Industries Limited Pulp & Paper Fy01, 04 15.0 -- 15.0 -- 15.0 Balrampur Chini Mills Ltd. Food & Beverages Fy03 14. -- 12.1 -- 12.1 Bharat Biotech International Limited Chemicals Fy05 4.5 -- -- 4.5 4.5 Bharti Tele-Ventures Limited (BTVL) Information Fy01 20.0 -- -- 4.0 4.0 Bhartiya Samruddhi Finance Limited Finance & Insurance Fy01 1.0 -- -- 1.0 1.0 Bihar Sponge Iron Limited Primary Metals Fy85, 1 .6 -- 5. -- 5. CESC Limited utilities Fy1, 3 51.5 67.0 11.1 -- 11.1 CMS Computers Ltd Information Fy04 22.5 -- -- 12.5 12.5 Cairn Energy PLC oil, Gas, & Mining Fy04, 06 164.8 -- 150.0 -- 150.0 Chennai Water Desalination Limited utilities Fy06 25.1 -- 24. -- 24. Continental Carbon India Limited Chemicals Fy01, 04, 06 18.0 11.5 13.0 2.0 15.0 Cosmo Films Limited Plastics & Rubber Fy03, 05 14.1 -- 3.8 4.2 7. Crompton Greaves Ltd. Industrial & Consumer Products Fy04 15.0 -- 14.4 -- 14.4 DCM Shriram Consolidated Limited Chemicals Fy05, 06 45.0 -- 45.0 -- 45.0 DQ Entertainment Limited Information Fy03 3.0 -- 1.5 1.5 3.0 Dabur Pharma Limited Chemicals Fy05 15.1 -- -- 15.1 15.1 Dewan housing Finance Finance & Insurance Fy03 12.0 -- 10.5 -- 10.5 Corporation Ltd. volume 2 PAGE 10 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity SouTh aSia India (continued) Eurolight Electricals Pvt. Ltd. Industrial & Consumer Products Fy8 0.0 -- -- + + The Federal Bank Limited Finance & Insurance Fy06 31.5 -- -- 31.5 31.5 GVK Industries Limited utilities Fy6 37.5 45.5 -- 7.5 7.5 Global Trade Finance (Pvt.) Limited Finance & Insurance Fy01, 06 3.5 -- -- 2.2 2.2 Global Trust Bank Limited Finance & Insurance Fy4, 8, 00, 01 16.0 -- -- 1.4 1.4 hole-in-the-Wall Education Limited Education Services Fy02 1.6 -- -- 0.4 0.4 housing Development Finance Finance & Insurance Fy78, 87, 1, 3, 147.8 100.0 100.0 -- 100.0 Corporation Limited 01, 03 ING Vysya Bank Finance & Insurance Fy01, 05 10.8 -- -- 7.2 7.2 Indecomm Global Services Information Fy06 2.6 -- -- 2.6 2.6 India Auto Ancillary Fund Collective Investment Vehicles Fy 2.3 -- -- 0.6 0.6 The India Direct Fund, L.P. Collective Investment Vehicles Fy6 7.5 -- -- 6.2 6.2 Indian hydropower Development utilities Fy06 15.0 -- 14. -- 14. Company Indian Seamless Metal Tubes Limited Primary Metals Fy01 6.0 -- 6.0 -- 6.0 Indus Investments Mauritius Limited Collective Investment Vehicles Fy6 0.0 -- -- + + Indus Venture Investments Limited Collective Investment Vehicles Fy6 5.0 -- -- 1.3 1.3 Indus Venture Management Limited Collective Investment Vehicles Fy2 -- -- -- + + Infrastructure Development Finance Finance & Insurance Fy8, 05 65.5 100.0 50.0 10.8 60.8 Company Limited iLabs Investment Fund II, LLC Collective Investment Vehicles Fy06 20.0 -- -- 20.0 20.0 International Auto Limited Industrial & Consumer Products Fy06 10.0 -- -- .8 .8 JK Paper Ltd. Pulp & Paper Fy06 26.5 -- 15.0 11.5 26.5 KPIT Cummins Infosystems Limited Professional, Scientific, & Fy05 13.5 -- 11.0 2.5 13.5 Technical Services Kotak Mahindra Bank Limited Finance & Insurance Fy05 22.0 -- 22.0 -- 22.0 L G Balakrishnan & Bros Industrial & Consumer Products Fy06 1.7 -- 14.3 4.8 1.1 Larsen & Toubro Construction & Real Estate Fy03 50.0 -- 50.0 -- 50.0 Lok Capital LLC Finance & Insurance Fy06 2.0 -- -- 2.0 2.0 Mahindra & Mahindra Financial Finance & Insurance Fy02 17.2 -- 16.0 -- 16.0 Services Limited Mahindra Infrastructure Developers utilities Fy01 10.0 -- -- 10.0 10.0 Limited Mahindra Shubhlabh Services Limited Agriculture & Forestry Fy03 2.2 -- -- 2.3 2.3 Montalvo Systems Inc. Professional, Scientific, & Fy06 3.0 -- -- 3.0 3.0 Technical Services Moser Baer India Limited Industrial & Consumer Products Fy6, , 00 71.3 -- 12.6 20.1 32.7 Nagarjuna Coated Tubes Limited Primary Metals Fy81 1.8 -- -- 0.2 0.2 Nevis Networks Inc. Information Fy06 4.0 -- -- 4.0 4.0 NewPath Ventures LLC Professional, Scientific, & Fy03, 04 13.0 -- -- 13.0 13.0 Technical Services Nicco-uco Financial Services Limited Finance & Insurance Fy3, 6, 7, 8 6.5 -- 1. -- 1. Niko Resources Ltd. oil, Gas, & Mining Fy03 40.0 -- 24.4 -- 24.4 orchid Chemicals & Pharmaceuticals Chemicals Fy01 20.0 -- -- 0.7 0.7 Limited PAGE 110 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity SouTh aSia India (continued) owens Corning (India) Limited Nonmetallic Mineral Product Fy7 25.0 -- 5. -- 5. Manufacturing PSL Limited Primary Metals Fy06 20.0 -- 15.0 5.2 20.2 Powerlinks Transmission Limited utilities Fy04 74.6 -- 73.4 -- 73.4 RAK Ceramics India Pvt. Ltd. Nonmetallic Mineral Product Fy04 20.0 -- 20.0 -- 20.0 Manufacturing Rain Calcining Limited Chemicals Fy6, 05 34.7 -- 10.0 2.3 12.3 Ramky Infrastructure Ltd. utilities Fy05 15.0 -- 3.8 10.3 14.1 Ruchi Soya Industries Limited Food & Beverages Fy06 10.0 -- -- 10.0 10.0 SREI International Finance Limited Finance & Insurance Fy8, 00 33.0 -- .7 -- .7 Sealion Sparkle Port & Terminal Transportation & Warehousing Fy05 4. -- 4.4 -- 4.4 Services Limited South Asian Regional Apex Fund Collective Investment Vehicles Fy6 7.3 -- -- 5.7 5.7 Spryance, Inc. Information Fy01, 03 3.0 -- -- 3.0 3.0 Steuerung Anlage Pvt. Ltd. Industrial & Consumer Products Fy8 0.1 -- -- 0.1 0.1 Sundaram Finance Limited Finance & Insurance Fy86, 3, 4, 5, 04 47.5 -- 43.1 -- 43.1 Sundaram home Finance Limited Finance & Insurance Fy00, 02 12.5 -- 7.2 2.2 .4 TAN India Limited Chemicals Fy8 -- -- + -- + TCW/ICICI Private Equity Fund, L.L.C. Collective Investment Vehicles Fy8 10.0 -- -- 3.0 3.0 The Tata Iron and Steel Company Primary Metals Fy81, 86, 3, 4, 05 15.0 216.7 100.0 -- 100.0 Limited The Technology Development Collective Investment Vehicles Fy1 2.8 -- -- + + and Information Company of India Limited united Phosphorus Limited Chemicals Fy04 17.5 -- 15.5 -- 15.5 united Riceland Limited Food & Beverages Fy6, 05 18.5 -- 14.1 -- 14.1 usha Martin Limited Primary Metals Fy03 24.6 -- -- 0.7 0.7 Walden Nikko India Management Collective Investment Vehicles Fy8 0.0 -- -- + + Co. Ltd. Walden-Nikko India Ventures Collective Investment Vehicles Fy8 2.4 -- -- 1.7 1.7 Co., L.D.C. 1,102. 285.6 1,388.5 maldives Maldives Finance Leasing Finance & Insurance Fy02 4.3 -- 2.7 1.3 3. Company Limited Taj Maldives (Pvt.) Ltd Accommodation & Tourism Fy04 8.5 8.5 7.6 -- 7.6 Services universal Enterprises Pvt. Limited Accommodation & Tourism Fy05 30.0 -- 30.0 -- 30.0 Services Villa Shipping and Trading Company Accommodation & Tourism Fy6, 03 21.0 -- .0 -- .0 Private Limited Services Wataniya Telecom Maldives Pvt. Ltd. Information Fy06 20.0 -- 20.0 -- 20.0 6.3 1.3 70.5 volume 2 PAGE 111 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity SouTh aSia nepal Bhote Koshi Power Company Private utilities Fy8 23. 32. 13.2 2. 16.2 Limited himal Power Limited utilities Fy6 32.0 -- 20.7 -- 20.7 International Leasing and Finance Finance & Insurance Fy01 0.3 -- -- 0.3 0.3 Co., Ltd. Jomsom Mountain Resort (Pvt.), Ltd. Accommodation & Tourism Fy8 4.0 -- 4.0 -- 4.0 Services 37. 3.2 41.2 sri lanka Asia Power (Private) Limited utilities Fy7 11.0 8.8 -- 2.3 2.3 Commercial Bank of Ceylon Finance & Insurance Fy03, 04 12. -- -- 12.8 12.8 Dialog Telekom Ltd. Information Fy04 50.0 -- 48.8 -- 48.8 Fitch Ratings Lanka Limited Finance & Insurance Fy00 0.1 -- -- 0.1 0.1 Lanka hospital Corporation health Care Fy01 1.1 -- -- -- -- Private limited Packages Lanka (Private) Limited Pulp & Paper Fy7 1.1 -- -- 1.1 1.1 South Asia Gateway Terminals Transportation & Warehousing Fy00 28.6 -- 12.7 3.6 16.3 (Private) Limited Suntel Limited Information Fy01 7.5 -- -- 7.5 7.5 61.4 27.4 88.8 regional Investment Asian Mezzanine Infrastructure Fund Collective Investment Vehicles Fy7 2.3 -- -- 0.6 0.6 J.P. Morgan Partners Asia LDC Collective Investment Vehicles Fy 0.0 -- -- + + SEAVI Venture Management Collective Investment Vehicles Fy03 -- -- -- + + (Bermuda) Limited -- 0.6 0.6 total equity and loans 1,423.4 330.5 1,753.9 total guarantees and risk management products 67.6 total IFC portfolio for south asia 1,821.4 PAGE 112 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EuroPE and CEnTraL aSia albania Fushe-Kruja Cement Factory Nonmetallic Mineral Product Fy05 30.0 -- 30.0 -- 30.0 Manufacturing Insurance Institute of Albania Finance & Insurance Fy04 5.5 -- -- 6.2 6.2 National Commercial Bank Sh.A. Finance & Insurance Fy00 2.0 -- -- 2.0 2.0 ProCredit Bank Albania Finance & Insurance Fy00 1.1 -- -- 1.0 1.0 Vodafone Albania Sh.A Information Fy04 28.1 6.1 31.0 -- 31.0 61.0 .2 70.3 armenia ACBA Leasing Finance & Insurance Fy03 2.3 -- 2.0 0.3 2.3 Armeconombank Finance & Insurance Fy04 2.0 -- 2.0 -- 2.0 Armenia hotel Closed Joint Stock Accommodation & Tourism Fy01, 04 4.8 -- -- 4.8 4.8 Company Services Inecobank Finance & Insurance Fy06 3.0 -- 3.0 -- 3.0 NAREK LLC Construction & Real Estate Fy06 5.2 -- 5.2 -- 5.2 12.2 5.1 17.3 azerbaijan AzeriGazbank Finance & Insurance Fy8, 03, 06 6. -- 3. 2.3 6.2 Baku hotel Company Accommodation & Tourism Fy00 17.5 -- 1.5 -- 1.5 Services Microfinance Bank Azerbaijan Finance & Insurance Fy02, 04, 06 4.8 -- 3.0 1.8 4.8 Rabitabank Finance & Insurance Fy8, 03 1.6 -- 0. -- 0. uniBank Finance & Insurance Fy06 5.0 -- 5.0 -- 5.0 14.3 4.1 18.3 Belarus Detroit Belarus Brewing Company Food & Beverages Fy04, 06 10.5 -- .0 3.5 12.5 JSC Belgazprombank Finance & Insurance Fy05 5.0 -- 5.0 -- 5.0 Priorbank Joint Stock Company Finance & Insurance Fy03, 05 14.0 -- 4.3 -- 4.3 63.3 3.5 66.8 Bosnia and Herzegovina Akova Impex, d.o.o. Food & Beverages Fy 2.1 -- 0.2 -- 0.2 Bosnalijek, d.d. Sarajevo Chemicals Fy, 01, 05 13. -- .6 1.8 11.5 Fabrika Cementa Lukavac Nonmetallic Mineral Product Fy03 .8 2.4 10. -- 10. Manufacturing hVB Central Profit Banka d.d. Finance & Insurance Fy02, 04, 05 23.2 -- 11.1 15.6 26.6 horizonte Bosnia and herzegovina Collective Investment Vehicles Fy8 1. -- -- 1. 1. Enterprise Fund Konjuh d.d. Industrial & Consumer Products Fy8 -- -- 1.7 -- 1.7 Kozara d.d. Industrial & Consumer Products Fy8 -- -- 1.7 -- 1.7 Lijanovici d.o.o. Food & Beverages Fy 2.5 -- 0. -- 0. MDD Lignosper Industrial & Consumer Products Fy8 2.0 -- 2.3 -- 2.3 MI-BoSPo Finance & Insurance Fy06 2.6 -- 2.5 -- 2.5 Nova banka a.d., Bijeljina Finance & Insurance Fy06 12.4 -- 12.6 -- 12.6 volume 2 PAGE 113 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EuroPE and CEnTraL aSia Bosnia and Herzegovina (continued) Podgradci d.d. Industrial & Consumer Products Fy8 -- -- 1.1 -- 1.1 ProCredit Bank d.d. Finance & Insurance Fy8, , 01, 03 4.2 -- 2.8 -- 2.8 Raiffeisen Bank d.d. Bosnia and Finance & Insurance Fy03, 05, 06 51.3 -- 46. -- 46. herzegovina Sarajevo Privatization Venture Ltd. Collective Investment Vehicles Fy02, 03 11.5 -- -- + + Sour Energoinvest Industrial & Consumer Products Fy85 11.7 -- .8 -- .8 Tvornica Kartona I Ambalaze Cazin Pulp & Paper Fy77 8.0 7.1 4.3 -- 4.3 118.4 1.3 137.7 Bulgaria Bulbank AD Finance & Insurance Fy01 17.3 -- -- 17.5 17.5 Drujba A.D. Nonmetallic Mineral Product Fy04 24.3 -- 22.6 -- 22.6 Manufacturing EPIQ NV Industrial & Consumer Products Fy06 23.4 -- 25.1 -- 25.1 Epiq Electronic Assembly EooD Industrial & Consumer Products Fy01 5.5 -- 4.1 -- 4.1 Euromerchant Balkan Fund SICAV Collective Investment Vehicles Fy5 5.0 -- -- 0.3 0.3 Kronospan Bulgaria EooD Industrial & Consumer Products Fy00, 01 1.7 12.3 18.0 -- 18.0 Paper Factory Stambolijski Pulp & Paper Fy02 25.5 -- 5.5 -- 5.5 ProCredit Bank (Bulgaria) AD Finance & Insurance Fy01, 03, 04 15.7 -- 10.5 -- 10.5 Sofia hilton Accommodation & Tourism Fy8 12.8 .5 10.4 -- 10.4 Services Stomana Industry A.D. Primary Metals Fy04, 06 44.2 -- 43.1 -- 43.1 Trakya Glass Bulgaria EAD Nonmetallic Mineral Product Fy04 42.7 65.1 36.5 7.5 44.0 Manufacturing unionbank AD Finance & Insurance Fy03, 05 11.3 -- 10.0 -- 10.0 185.7 25.2 211.0 Croatia Alpe Jadran Banka d.d. Finance & Insurance Fy8 3.1 -- 3.2 -- 3.2 Belisce d.d. Pulp & Paper Fy73, 81, 8, 03 60.7 64.1 16.0 6.0 22.0 Belje d.d. Agriculture & Forestry Fy06 51.1 -- 50.3 -- 50.3 Brodogradiliste Industrial & Consumer Products Fy00 12.1 .0 0.1 0.5 0.6 The CC Partnership L.P. Collective Investment Vehicles Fy 5.0 -- -- 4. 4. Erste & Steiermarkische Bank d.d. Finance & Insurance Fy00, 03 36.4 -- 21. -- 21. Privredna banka Zagreb d.d. Finance & Insurance Fy05 .4 -- 4.2 -- 4.2 185.7 11.4 17.1 Czech republic CDV-1 holding Company, L.P. Finance & Insurance Fy01, 03 17.3 -- -- 1.3 1.3 The Czech and Slovak Private Equity Collective Investment Vehicles Fy5 2.5 -- -- 0.8 0.8 Fund, L.P. Duff & Phelps CZ, a.s. Finance & Insurance Fy 0.0 -- -- + + hayes Wheels Autokola Nova hut, a.s. Industrial & Consumer Products Fy4 16.1 21.5 3.2 -- 3.2 3.2 2.1 5.3 PAGE 114 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EuroPE and CEnTraL aSia estonia horizon Tselluloosi Ja Paberi Aktsiaselts Pulp & Paper Fy8, 00 13.1 -- 4.6 1.1 5.7 4.6 1.1 5.7 Georgia Bank of Georgia Finance & Insurance Fy00, 03 7.2 -- 4.7 -- 4.7 JSC Saatksio Szagadoeba MINA Nonmetallic Mineral Product Fy 8.8 -- 4.2 2.5 6.7 Manufacturing ProCredit Bank Finance & Insurance Fy, 00, 01, 02, 04 12.1 -- 6.4 2.2 8.6 TBC Bank Finance & Insurance Fy8, 00, 02, 04, 1.6 -- 5.6 .6 15.2 05, 06 TBC Leasing Finance & Insurance Fy05 3.0 -- 3.0 -- 3.0 TbilComBank Finance & Insurance Fy 1.0 -- 0.5 -- 0.5 24.5 14.3 38.8 Greece Asbestos Mines of Northern Greece, oil, Gas, & Mining Fy80 11.1 -- -- 2.8 2.8 Mining S.A. -- 2.8 2.8 Hungary First hungary Fund Limited Collective Investment Vehicles Fy0 7.5 -- -- 2.1 2.1 honeywell ESCo hungary utilities Fy00 0.4 -- -- 0.4 0.4 Mirelite Budapest Frozen Food Food & Beverages Fy4 3.0 -- -- 3.0 3.0 Company INC. (Mirelite) -- 5.5 5.5 Kazakhstan ABN-AMRo Bank Kazakhstan Finance & Insurance Fy4, 6, 8, 03 15.3 1.0 10.0 4.6 14.6 BTA Leasing Finance & Insurance Fy05 6.1 -- 5.0 1.1 6.1 Bank CenterCredit Finance & Insurance Fy05 10.0 -- 10.0 -- 10.0 CASPI Limited Accommodation & Tourism Fy01 2.5 -- 1.3 -- 1.3 Services Ispat Karmet SME Resource Too Collective Investment Vehicles Fy02 3.4 -- 3.3 0.1 3.4 Joint Stock Company Ispat Karmet Primary Metals Fy8, 30.7 -- 2.3 -- 2.3 Kazgermunai oil, Gas, & Mining Fy8 41.0 -- 18.0 0.7 18.7 Kazkommertsbank Finance & Insurance Fy7, 00, 03 12.5 -- -- 1.0 1.0 Lukoil overseas Karachaganak B.V. oil, Gas, & Mining Fy03 75.0 75.0 58.3 -- 58.3 oJSC NefteBank Finance & Insurance Fy01 2.5 -- 2.5 -- 2.5 Rambutya Limited Liability Partnership Wholesale & Retail Trade Fy00, 02 12. -- 5.1 -- 5.1 TuranAlem Bank Finance & Insurance Fy00, 03 15.0 -- -- 4. 4. 115.8 12.4 128.1 Kyrgyz republic Akun Ltd. Food & Beverages Fy02 2.4 -- 2.1 -- 2.1 Demirbank Kyrgyz International Bank Finance & Insurance Fy7, 03 0.6 -- -- 0.6 0.6 FINCA Microfinance Resource Finance & Insurance Fy02 1.0 -- -- 1.0 1.0 volume 2 PAGE 115 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EuroPE and CEnTraL aSia Kyrgyz republic (continued) Joint Stock Commercial Bank Finance & Insurance Fy04 1.5 -- 1.5 -- 1.5 Kyrgyzstan Joint-Stock Company Investment Finance & Insurance Fy04 1.5 -- 1.5 -- 1.5 Export-Import Bank (Inexim) Kazkommertsbank Kyrgyzstan Finance & Insurance Fy03 -- -- 2.0 -- 2.0 Kyrgyz Investment & Credit Bank Finance & Insurance Fy01, 05 3. -- 2.5 1.4 3. Kyrgyz-Chinese Joint Venture Pulp & Paper Fy00, 05 1.7 -- 1.4 -- 1.4 Altyn-Ajydar Microcredit Agency Bai Tushum Finance & Insurance Fy06 1.2 -- 1.2 -- 1.2 Financial Fund 12.2 3.0 15.2 latvia Baltic-American Enterprise Fund Finance & Insurance Fy05 7.1 -- 2.2 -- 2.2 2.2 -- 2.2 lithuania AB Drobe Wool Textiles, Apparel, & Leather Fy00 6.6 -- 2.3 -- 2.3 2.3 -- 2.3 macedonia, Former Yugoslav republic of Komercijalna Banka A.D. Skopje Finance & Insurance Fy01 3.1 -- 0.7 -- 0.7 Makedonski Telekomunikacii Information Fy8 25.0 25.0 -- 11.3 11.3 AD Skopje ProCredit Bank Macedonia Finance & Insurance Fy03 1.0 -- -- 1.1 1.1 Small Enterprise Assistance Fund- Collective Investment Vehicles Fy00 1.8 -- -- 0.5 0.5 Macedonia Fund L.L.C. Stopanska Banka a.d. Skopje Finance & Insurance Fy8, 00, 01, 03 12.4 -- -- 10.5 10.5 Teteks A.D. Tetovo Textiles, Apparel, & Leather Fy8, 02 6.8 -- 3.1 -- 3.1 3.8 23.5 27.3 moldova FinComBank S.A. Finance & Insurance Fy03, 04 3.0 -- 1.8 -- 1.8 INCoN JSC, Cupchin JSC, ungheni Food & Beverages Fy7 7.4 -- 2.4 2.0 4.4 JSC, and Floresti JSC Mobiasbanca S.A. Finance & Insurance Fy01, 06 5.0 -- 5.0 -- 5.0 Moldinconbank S.A. Finance & Insurance Fy01, 04 7.0 -- 3.6 -- 3.6 ProCredit Bank Moldova Finance & Insurance Fy00 1.0 -- 0. -- 0. RED Chisinau, RED Centru & RED Sud utilities Fy02 25.0 -- 20.0 -- 20.0 Victoriabank Finance & Insurance Fy02, 04 .0 -- 5.6 -- 5.6 Voxtel S.A. Information Fy, 00, 01 15.3 21.8 -- 1.6 1.6 3.1 3.6 42.8 PAGE 116 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EuroPE and CEnTraL aSia poland Baltic Malt Sp. z o.o. Food & Beverages Fy7 8.6 -- -- 2.0 2.0 Central Poland Fund, L.L.C. Collective Investment Vehicles Fy8 1.6 -- -- 1.5 1.5 Global hotels Development Group Accommodation & Tourism Fy 10.4 -- .4 3.2 12.6 Poland S.A. Services honeywell ESCo Polska utilities Fy00 0.2 -- -- + + Intercell S.A. Pulp & Paper Fy5, 7, 8, 01, 04 .5 -- -- + + Peters Fleischindustrie und handel Food & Beverages Fy4 6.5 -- 4.4 0. 5.2 Aktiengesellschaft The Poland Investment Fund L.P. Collective Investment Vehicles Fy5 2.5 -- -- 0.7 0.7 13.8 8.2 22.0 romania Banc Post S.A. Finance & Insurance Fy, 02, 06 26.7 -- -- 14.8 14.8 Banca Comerciala Romana S. A. Finance & Insurance Fy03, 04, 06 273.8 -- 156.7 111.0 267.7 Banca Pentru Mica Industrie si Libera Finance & Insurance Fy05 7.0 -- 7.0 -- 7.0 Initiativa Banca Transilvania Finance & Insurance Fy04, 05 6.4 -- 6.6 -- 6.6 Danube Fund Limited Collective Investment Vehicles Fy7 2.0 -- -- + + Domenia Credit S.A. Finance & Insurance Fy04 5.0 -- 4.5 -- 4.5 ICME Primary Metals Fy02 8.7 -- 6. -- 6. ProCredit Bank S.A. Finance & Insurance Fy02, 03, 04 7.6 -- 5.0 2.6 7.6 Raiffeisen Bank S.A. Finance & Insurance Fy05 -- -- 40.0 -- 40.0 Romania Gas holding utilities Fy05 54.4 -- -- 48.8 48.8 Romanian-American Enterprise Fund Finance & Insurance Fy04 3.0 -- 3.0 -- 3.0 S.C. Petrotel-Lukoil S.A. Chemicals Fy06 35.0 47.0 35.0 -- 35.0 Transport Trade Services S.A. Transportation & Warehousing Fy06 16.8 -- 17.6 -- 17.6 unicredit Leasing Romania S.A. Finance & Insurance Fy5, 8, 01 .8 -- 0.4 -- 0.4 unicredit Leasing S.A. Finance & Insurance Fy05 .4 -- .4 -- .4 355.2 177.1 532.3 russian Federation A.o. Mosenergo utilities Fy8 20.0 -- 7. -- 7. Absolut Bank Finance & Insurance Fy06 28.3 -- 15.0 13.3 28.3 Agro-Industrial Finance Company Finance & Insurance Fy03 5.5 10.0 5.0 0.5 5.5 BCEN Eurobank Finance & Insurance Fy03 100.0 -- 62.5 -- 62.5 BSGV Leasing Finance & Insurance Fy04 1.5 -- 70. -- 70. Banque Societe Generale Vostok Finance & Insurance Fy04 75.0 -- 25.0 -- 25.0 Baring Vostok Private Equity Fund III Collective Investment Vehicles Fy05 12.5 -- -- 12.5 12.5 Baring Vostok Private Equity Collective Investment Vehicles Fy01 15.0 -- -- 2.1 2.1 Fund, L.P. 2 Bauxite Timana (SuAL) Primary Metals Fy05 15.0 10.0 15.0 -- 15.0 Brunswick Capital Transportation & Warehousing Fy06 45.0 -- 37.5 7.5 45.0 Chukotka Mining and Geological oil, Gas, & Mining Fy06 -- -- 3.0 -- 3.0 Company Cinema Park Wholesale & Retail Trade Fy06 20.0 -- 20.0 -- 20.0 Commercial Bank DeltaCredit Finance & Insurance Fy02, 03 74.0 -- 68.1 -- 68.1 volume 2 PAGE 117 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EuroPE and CEnTraL aSia russian Federation (continued) Egar Technology Professional, Scientific, & Fy02 1.5 -- -- 1.5 1.5 Technical Services Eurosib Group (Valory Corporation NV Transportation & Warehousing Fy05, 06 78.0 71.5 78.0 -- 78.0 and subsidiaries) First Russia-NIS Fund Collective Investment Vehicles Fy5 15.0 -- -- + + Forus Bank Finance & Insurance Fy06 6.2 -- 6.7 -- 6.7 IBS Group holdings Limited Information Fy03 8.0 -- -- 8.0 8.0 Independent Network Television Information Fy04, 06 20.5 -- 16.1 3.5 1.6 holdings, Ltd. Industrial Investors Transportation & Warehousing Fy06 15.0 -- 15.0 -- 15.0 JSC Lebedyansky Food & Beverages Fy04 35.0 -- 35.0 -- 35.0 JSC SFAT Transportation & Warehousing Fy04, 05 60.0 55.0 53.7 -- 53.7 JSC Volga-Dnepr Airlines Transportation & Warehousing Fy02 16. 13.0 15.7 -- 15.7 Kronospan Russia Industrial & Consumer Products Fy04, 05 87.3 -- 88.0 -- 88.0 KuibyshevAzot JSC Chemicals Fy05 15.0 -- 13.5 -- 13.5 Limited Liability Company Accommodation & Tourism Fy05 15.0 50.0 14.3 -- 14.3 Esanna holdings Services Moscow Credit Bank Finance & Insurance Fy05, 06 15.0 -- 15.0 -- 15.0 NBD Bank Finance & Insurance Fy02, 03, 06 14.5 -- 10.8 -- 10.8 New Medical Center health Care Fy01 2.1 -- 1.7 -- 1.7 North-Western Shipping Company Transportation & Warehousing Fy05 23.0 23.5 23.0 -- 23.0 oAo Novatek oil, Gas, & Mining Fy05 35.0 -- -- 11.5 11.5 oAo TogliattiAzot Chemicals Fy05 30.0 45.0 30.0 -- 30.0 oAo ural-Siberian Bank Finance & Insurance Fy06 30.0 -- 30.0 -- 30.0 ooo Kronostar Industrial & Consumer Products Fy04, 05 4.3 4.3 1.7 -- 1.7 ooo Raiffeisen Leasing Finance & Insurance Fy05 -- -- 18.4 -- 18.4 ooo Ruscam Nonmetallic Mineral Product Fy02, 03, 04 40.5 -- 31. -- 31. Manufacturing ooo Stora Enso Packaging BB Pulp & Paper Fy00, 02 14.5 -- 3.5 -- 3.5 ooo Swedwood Tichvin Industrial & Consumer Products Fy02 5.6 -- 4.8 -- 4.8 ooo Vladpivo Ltd Food & Beverages Fy06 14.1 -- .6 5.3 14. open Joint Stock Company "Alliance Chemicals Fy06 25.0 -- 25.0 -- 25.0 oil Company" open Joint Stock Company Finance & Insurance Fy02, 05, 06 12.0 -- 14.2 -- 14.2 Commercial Bank "Center-invest" Peter hambro Mining Plc oil, Gas, & Mining Fy05, 06 32.4 -- -- 28.8 28.8 Pilkington Float Glass Russia Nonmetallic Mineral Product Fy04 53.7 -- 53.4 -- 53.4 Manufacturing Probusiness Bank Finance & Insurance Fy02 5.0 -- 5.0 -- 5.0 Promek Bank Finance & Insurance Fy05 -- -- 158.7 -- 158.7 Quadriga Capital Russia Fund Collective Investment Vehicles Fy05 17.7 -- -- 17.7 17.7 Ramenka Ltd. Wholesale & Retail Trade Fy, 01, 03, 06 140.5 30.0 0.6 -- 0.6 ruNet holdings Limited Professional, Scientific & Fy03 6.0 -- 1.0 5.0 6.0 Technical Services Russia Partners II, LP Collective Investment Vehicles Fy05 10.0 -- -- .8 .8 Russia Womens' Microfinance Network Finance & Insurance Fy05 1.0 -- 1.1 -- 1.1 PAGE 118 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EuroPE and CEnTraL aSia russian Federation (continued) Russian Standard Bank Finance & Insurance Fy02, 04, 06 134.0 60.0 130.1 10.0 140.1 The Russian Technology Fund, L.P. Collective Investment Vehicles Fy6 1.0 -- -- 0. 0. Sector Investment holding Company Collective Investment Vehicles Fy6 -- -- -- + + Limited Severstaltrans; Balttranservis; Transportation & Warehousing Fy04 40.0 -- 34.3 -- 34.3 Sevtekhnotrans Sibakadembank Finance & Insurance Fy05, 06 1.0 -- 1.0 -- 1.0 Small Business Credit Bank (KMB Bank) Finance & Insurance Fy02 7.0 -- 3. -- 3. Stavropolsky Broiler Agriculture & Forestry Fy03 15.0 -- 13.5 -- 13.5 Trio Invest LLC Transportation & Warehousing Fy06 20.0 -- 20.0 -- 20.0 uralTransBank Finance & Insurance Fy03 7.5 -- 5.8 -- 5.8 Volga Shipping Company Transportation & Warehousing Fy05 25.2 17.3 24.5 -- 24.5 Vyksa Steel Works Primary Metals Fy06 60.0 -- 60.0 -- 60.0 ZAo DeltaLeasing Finance & Insurance Fy04, 06 10.2 -- 8.7 -- 8.7 ZAo Europlan Finance & Insurance Fy02 10.0 -- 2. -- 2. ZAo Locko Bank Finance & Insurance Fy06 26.4 -- 11.1 16.4 27.5 ZAo Raiffeisenbank Austria Finance & Insurance Fy03, 05 20.0 -- 140.0 -- 140.0 ZAo Sonic Duo Information Fy02 30.0 10.0 6.0 -- 6.0 1,800.7 154.3 1,55.0 serbia and montenegro Banca Intesa Spa Finance & Insurance Fy06 125.3 -- 75.4 51.1 126.4 Continental Banka A.D. Finance & Insurance Fy04, 06 25.5 -- 28.1 -- 28.1 Government of Montenegro other (For Non-Investment Fy80 -- -- 1.4 -- 1.4 Projects) hVB Serbia and Montenegro A.D. Finance & Insurance Fy05 37.6 -- 37.7 -- 37.7 Institut Za Fizikalnu Medicinu I health Care Fy82, 88 22.0 -- 10.4 -- 10.4 Rehabilitaciju ("Dr. Simo Milosevic") Igalo Jugobanka--udruzena Banka Beograd Finance & Insurance Fy86 23.0 .8 5.5 -- 5.5 Loan to Eight Banks for Small- Finance & Insurance Fy80 26.0 5.7 0. -- 0. Scale Enterprises opportunity Bank Montenegro Finance & Insurance Fy05 5.2 -- 4.1 -- 4.1 Panonska Banka A.D. Finance & Insurance Fy04 -- -- 4.7 -- 4.7 Podgoricka banka a.d. Finance & Insurance Fy05 8.5 -- 6.3 -- 6.3 Privredna Banka A.D. Pancevo Finance & Insurance Fy04 -- -- 1.4 -- 1.4 ProCredit Bank Kosovo Finance & Insurance Fy02 1.1 -- -- 1.1 1.1 ProCredit Bank Serbia Finance & Insurance Fy02, 03 14.0 -- 7.4 -- 7.4 Raiffeisen Bank Kosovo J.S.C. Finance & Insurance Fy06 12.8 -- 12.6 -- 12.6 Raiffeisenbank yugoslavija a.d. Finance & Insurance Fy02, 05, 06 23.1 -- 12.5 10.5 23.0 Tigar M.h. Plastics & Rubber Fy02, 05 21.7 -- -- 8.0 8.0 Vojvodjanska Banka--udruzena Banka Finance & Insurance Fy87, 8, 04 54.6 2.5 7.4 -- 7.4 215.7 70.7 286.4 volume 2 PAGE 11 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EuroPE and CEnTraL aSia slovenia Poteza Adriatic Fund B.V. Collective Investment Vehicles Fy04 13.7 -- -- 14.0 14.0 -- 14.0 14.0 tajikistan First Microfinance Bank Tajikistan Finance & Insurance Fy05, 06 0.8 -- -- 0.8 0.8 Giavoni Textiles, Apparel, & Leather Fy03 3.0 -- -- 3.0 3.0 open Joint Stock Company Finance & Insurance Fy03 -- -- 1.0 -- 1.0 "Bank Eskhata" open Joint Stock Company "Pamir utilities Fy03 8.0 -- 4.5 3.5 8.0 Energy Company" SugdAgroServ Agriculture & Forestry Fy02, 04 0.8 -- 0.7 -- 0.7 Telecom Technology Ltd. Information Fy02 0.4 -- 0.1 -- 0.1 6.3 7.3 13.7 turkey Acibadem Saglik hizmetleri ve health Care Fy05, 06 60.0 -- 60.0 -- 60.0 Ticaret A.S. Arcelik, A.S. Industrial & Consumer Products Fy6, 01, 03, 05 18.0 13.1 104.0 -- 104.0 Arcelik-LG Klima Sanayi ve Ticaret A.S. Industrial & Consumer Products Fy00 15.3 10.2 2.8 -- 2.8 Assan Demir ve Sac Sanayii A.S. Primary Metals Fy4, 7, 02, 05 85.3 40.0 47.5 -- 47.5 Atilim university Education Services Fy02 6.5 -- 4.4 -- 4.4 Avea Iletisim hizmetleri A.S Information Fy06 120.0 -- 120.0 -- 120.0 Banvit Bandirma Vitaminli yem Agriculture & Forestry Fy01 25.0 -- 6.7 5.0 11.7 Sanayi A.S. Beko Elektronik A.S. Industrial & Consumer Products Fy03 25.0 25.1 27.4 -- 27.4 Borcelik Celik Sanayii ve Ticaret A.S. Primary Metals Fy5, 6, 7 47.1 -- 6.4 .7 16.0 CBS holding A.S. Chemicals Fy4 15.5 -- 3.5 -- 3.5 Eczacibasi Karo Seramik Construction & Real Estate Fy02 . -- 8.0 -- 8.0 Ekim Turizm Ticaret ve Sanayi A.S. Finance & Insurance Fy05, 06 64.7 27.8 5.0 5.0 64.0 Entek Elektrik uretimi A.S. utilities Fy8 25.0 26.5 16.0 -- 16.0 Finans Finansal Kiralama A.S. Finance & Insurance Fy7, 8, 06 36.5 -- 25.1 -- 25.1 Gunkol/TEBA Industrial & Consumer Products Fy02 10.2 -- 4.4 6.2 10.7 Indorama Iplik Sanayi ve Ticaret A.S. Textiles, Apparel, & Leather Fy 10.7 -- 3.8 -- 3.8 Ipek Kagit Sanayii ve Ticaret A.S. Pulp & Paper Fy8, 00, 02 45.0 33.0 11.2 -- 11.2 Istanbul Bilgi university Education Services Fy01, 06 27.0 -- 21.0 -- 21.0 Kiris otelcilik ve Turizm A.S. Accommodation & Tourism Fy8, 0 13.4 -- 27.0 -- 27.0 Services Koc Finansal Kiralama A.S. Finance & Insurance Fy7, 04 45.0 -- 30.0 -- 30.0 Kula Mensucat Fabrikasi A.S. Textiles, Apparel, & Leather Fy1 1.8 -- 5.1 -- 5.1 Medya holding A.S. Information Fy3, 6 28.6 -- 5.0 -- 5.0 Meteksan Sistem ve Bilgisayar Professional, Scientific, & Fy04 8.5 -- 7.6 -- 7.6 Teknolojileri A.S. Technical Services Milli Reasurans T.A.S. Finance & Insurance Fy02, 06 100.0 -- 100.0 -- 100.0 Modern Karton Sanayii ve Ticaret A.S. Pulp & Paper Fy8, 02, 06 70.0 30.0 46.8 -- 46.8 Nasco Nasreddin holding A.S. Textiles, Apparel, & Leather Fy2 17.5 5.0 -- -- -- opet Petrolculuk A.S. Chemicals Fy04 25.0 40.0 25.0 -- 25.0 PAGE 120 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EuroPE and CEnTraL aSia turkey (continued) oyak Bank A.S. Finance & Insurance Fy8, 04 65.0 25.0 38. -- 38. PALEN Enerji Dogal Gaz Dagitim utilities Fy05 2.0 -- 2.0 -- 2.0 Endustri PALGAZ Dogal Gaz Dagitim Sanayi utilities Fy05 10.0 -- 10.0 -- 10.0 Pinar Entegre et ve yem Sanayii A.S. Food & Beverages Fy84, 4, 8 21. -- 1.6 -- 1.6 Pinar Sut Mamulleri Sanayii A.S. Food & Beverages Fy4, 00 22.5 -- 8.5 -- 8.5 Sakosa Sabanci-Kosa Endnstriyel Iplik Textiles, Apparel, & Leather Fy 24.8 24.3 12.2 -- 12.2 ve Kord Bezi Sanayi ve Ticaret A.S. Sanko Group Nonmetallic Mineral Product Fy06 75.0 -- 75.0 -- 75.0 Manufacturing Silkar Turizm yatirim ve Isletmeleri A.S. Accommodation & Tourism Fy86, 0 18.6 .5 0.7 -- 0.7 Services Soktas Pamuk ve Tarim urunlerini Textiles, Apparel, & Leather Fy8, 02 17.0 -- 1.0 -- 1.0 Degerlendirme Ticaret ve Sanayi A.S. Standard Profil otomotiv Sanayi ve Industrial & Consumer Products Fy06 22.7 -- 18.8 3.8 22.6 Ticaret Anonim Sirketi Turkiye Sinai Kalkinma Finance & Insurance Fy64, 67, 6, 72, 70.1 45.0 50.0 -- 50.0 Bankasi, A.S. 73, 75, 76, 80, 83, 2, 05 Trakya Cam Sanayii A.S. Nonmetallic Mineral Product Fy7, 83, 84, 8, 67.7 31.0 -- 0.1 0.1 Manufacturing 1, 6, Turk Demir Dokum Fabriklari A.S. Industrial & Consumer Products Fy6, 06 31.8 -- 31.4 -- 31.4 Turk Ekonomi Bankasi A.S. Finance & Insurance Fy5, , 03, 05 112.5 32.5 71.7 -- 71.7 Turkish Private Equity Fund I L.P. Collective Investment Vehicles Fy02 10.0 -- -- 10.0 10.0 Turkiye Sise ve Cam Fabrikalari, A.S. Nonmetallic Mineral Product Fy3, 7, 02, 03 137.0 88.5 48.7 -- 48.7 Manufacturing uzel Makina Sanayii A.S. Industrial & Consumer Products Fy 11.4 8.5 6. -- 6. Viking Kagit ve Seluloz, A.S. Pulp & Paper Fy70, 71, 82, 83, 8 15.3 -- 5.4 -- 5.4 yeditepe Beynelmilel otelcilik Accommodation & Tourism Fy0, 4, 02 31.8 27.5 5.3 -- 5.3 Turizm ve Ticaret A.S. (Conrad Services Istanbul hotel) yuce ozel Egitim ve Kulturel Education Services Fy05 4.5 -- 3.8 -- 3.8 hizmetler A.S. 1,16.4 3.7 1,20.1 ukraine AvalBank Finance & Insurance Fy05 85.0 -- 81.3 -- 81.3 CJSC AES Kyivoblenergo utilities Fy05 30.0 -- 2.5 -- 2.5 CJSC AES RivneEnergo utilities Fy05 15.0 -- 14. -- 14. CJSC Myronivsky Khliboprodukt Agriculture & Forestry Fy04, 05 110.0 -- 87.5 -- 87.5 CJSC Sofia Kiev Accommodation & Tourism Fy06 16.5 13.0 16.5 -- 16.5 Services Closed Joint Stock Company Rise Agriculture & Forestry Fy06 10.0 -- 10.0 -- 10.0 Euroventures ukraine Fund II Collective Investment Vehicles Fy05 7.5 -- -- 7.5 7.5 First Lease Finance & Insurance Fy04, 05 2.0 -- 1.1 -- 1.1 Industrial union of Donbass Primary Metals Fy06 100.0 -- 100.0 -- 100.0 Joint Stock Commercial Bank hVB Finance & Insurance Fy8, 03, 04 2.8 -- -- -- -- Bank ukraine volume 2 PAGE 121 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EuroPE and CEnTraL aSia ukraine (continued) LLC "CPC" Biocon Chemicals Fy06 3.5 -- 3.5 -- 3.5 LLC Savservice Center Wholesale & Retail Trade Fy06 8.0 -- 8.0 -- 8.0 Limited Liability Company Wholesale & Retail Trade Fy06 45.0 -- 45.0 -- 45.0 "Kviza-Trade" MhP S.A. Agriculture & Forestry Fy05 -- -- -- 20.0 20.0 Nova Liniya Wholesale & Retail Trade Fy04, 06 15.0 -- 14.7 -- 14.7 oJSC "Concern Galnaftogas" Chemicals Fy06 25.0 -- 25.0 -- 25.0 ProCredit Bank ukraine Finance & Insurance Fy01, 04 14.7 -- 7. -- 7. Raiffeisenbank ukraine Finance & Insurance Fy05 -- -- 30.0 -- 30.0 Sandora Limited Liability Company Food & Beverages Fy04 20.0 -- 20.0 -- 20.0 44.8 27.5 522.3 uzbekistan ABN AMRo Bank uzbekistan Finance & Insurance Fy6 1.0 -- -- 1.0 1.0 Asaka Bank Finance & Insurance Fy00, 03 15.0 -- 6.3 -- 6.3 Fayz holding Joint Stock Company Industrial & Consumer Products Fy8 2.4 -- + 0.5 0.5 of the open Type hamkorbank, Joint Stock Finance & Insurance Fy01 1.0 -- 0.6 -- 0.6 Commercial Bank National Bank of uzbekistan Finance & Insurance Fy00 15.0 -- 7. -- 7. osiyo Granite Ltd. Nonmetallic Mineral Product Fy01 1.7 -- 1.3 -- 1.3 Manufacturing Parvina Bank, Private Closed Joint Finance & Insurance Fy01 1.0 -- 0.8 -- 0.8 Stock Commercial Bank uzbek Leasing International A.o. Finance & Insurance Fy6, 01, 03 3.4 -- 1.7 0. 2.6 uzdutch Cheese Ltd. Food & Beverages Fy00 0.6 -- 0.5 -- 0.5 1.2 2.4 21.6 regional Investment AIG Emerging Europe Infrastructure Collective Investment Vehicles Fy00 30.0 -- -- 8.1 8.1 Fund L.P. and Emerging Europe Infrastructure Fund C.V. Advent Central Europe Collective Investment Vehicles Fy5 0.0 -- -- + + Management L.P. Advent Central and Eastern Collective Investment Vehicles Fy8 15.0 -- -- 3.5 3.5 Europe II L.P. Advent Central and Eastern Collective Investment Vehicles Fy04 15.1 -- -- 15.5 15.5 Europe III L.P. Advent Private Equity Fund-- Collective Investment Vehicles Fy5 10.0 -- -- 2.8 2.8 Central Europe L.P. Alliance ScanEast Fund, L.P. Collective Investment Vehicles Fy4 4. -- -- + + Baltic American Enterprise Fund Finance & Insurance Fy03 50.0 -- 50.6 -- 50.6 Bancroft II, L.P. Collective Investment Vehicles Fy03 1.8 -- -- 25.0 25.0 Black Sea Fund L.P. Collective Investment Vehicles Fy, 02 14.5 -- -- 1.2 1.2 CJSC Zeus Ceramica Nonmetallic Mineral Product Fy06 .0 -- .0 -- .0 Manufacturing Central Asia Small Enterprise Collective Investment Vehicles Fy03 2.5 -- -- 2.5 2.5 Fund LLC PAGE 122 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity EuroPE and CEnTraL aSia regional Investment (continued) Emerging Europe Convergence Collective Investment Vehicles Fy06 25.8 -- -- 24. 24. Fund II, L.P. European Fund for Southeast Europe Finance & Insurance Fy06 36. -- -- 37.3 37.3 hanseatic Capital, LLC Finance & Insurance Fy03 7.4 -- .4 -- .4 MFI Facility--Central Asia Finance & Insurance Fy03 45.0 -- 42.0 -- 42.0 Marbleton Property Fund LP Collective Investment Vehicles Fy06 20.0 -- -- 20.0 20.0 NIS Restructuring Facility, L. P. Collective Investment Vehicles Fy00 10.0 -- -- 1.7 1.7 Raiffeisen International Bank-- Finance & Insurance Fy04, 05 241.6 -- -- 80.6 80.6 holding AG Raiffeisen International Banking Finance & Insurance Fy05 200.1 -- 50.3 -- 50.3 The Romania & Moldova Direct Collective Investment Vehicles Fy 4.0 -- -- 1.1 1.1 Fund, L.P. SEAF Central and Eastern Europe Collective Investment Vehicles Fy01, 04 3.7 -- -- 2.4 2.4 Growth Fund LLC SEAF Trans-Balkan Fund LLC Collective Investment Vehicles Fy01 4.8 -- -- 1.8 1.8 Societe Generale, S.A. Finance & Insurance Fy05 265.0 -- 110.0 -- 110.0 271.3 228.3 4.6 total equity and loans 5,194.7 875.7 6,070.4 total guarantees and risk management products 221.8 total IFC portfolio for europe and Central asia 6,292.2 volume 2 PAGE 123 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity LaTin aMEriCa and ThE CaribbEan argentina ARCoR S.A.I.C. Food & Beverages Fy88, 06 82.0 210.0 70.0 -- 70.0 Aceitera General Deheza S.A. Food & Beverages Fy5, 02, 04 125.0 60.0 70.0 -- 70.0 Aguas Argentinas S.A. utilities Fy5, 6 85.0 307.5 -- 7.0 7.0 Aguas Provinciales de Santa Fe S.A. utilities Fy01 20.0 20.5 3.8 -- 3.8 Asociacion union Tamberos Food & Beverages Fy 6.0 -- 3. -- 3. Cooperativa Limitada (AuTCL) BACS Banco de Credito y Finance & Insurance Fy00, 05, 06 10.1 -- 50.0 12.5 62.5 Securitizacion, S.A. Banco General de Negocios S.A. Finance & Insurance Fy4, 48.0 -- 33.0 -- 33.0 Banco de Galicia y Buenos Aires, S.A. Finance & Insurance Fy7, , 00, 04, 05 120.0 245.0 101.8 -- 101.8 Banco del Suquia Finance & Insurance Fy8, , 03 45.0 25.0 10.5 -- 10.5 Bunge Argentina S.A. Food & Beverages Fy7 20.0 -- 5.0 -- 5.0 Ceramica Zanon S.A.C.I.y M. Nonmetallic Mineral Product Fy6 20.0 -- 17.7 -- 17.7 Manufacturing Chevron San Jorge SRL (Neuquen oil, Gas, & Mining Fy2, 3 73.4 35.0 -- 58.4* 58.4 Basin, huantraico) Compania Elaboradora de Productos Food & Beverages Fy5 15.0 6.0 .7 -- .7 Alimenticios S.A. (CEPA) Companias Asociadas Petroleras S.A. oil, Gas, & Mining Fy7, 06 67.0 53.0 50.0 -- 50.0 Concesiones y Construcciones de Transportation & Warehousing Fy00 26.0 -- 6.0 20.0 26.0 Infraestructura S.A. Editorial Codex Sociedad Anonima Information Fy6 6.6 0.4 -- 1.6 1.6 FV S.A. Industrial & Consumer Products Fy 16.0 -- 5.5 -- 5.5 Grupo Financiero Galicia S.A. Finance & Insurance Fy -- -- -- 3.1 3.1 hospital Privado Centro Medico de health Care Fy .6 -- 8.4 -- 8.4 Cordoba S.A. Jumbo Argentina S.A. Wholesale & Retail Trade Fy04 40.0 -- -- 40.0 40.0 Louis Dreyfus Manufacturing S.A. Industrial & Consumer Products Fy00 -- -- 5.0 -- 5.0 Milkaut S.A. Food & Beverages Fy7, 8 20.0 5.0 14.8 5.0 1.8 Molinos Rio de la Plata S.A. Food & Beverages Fy3, 4, 03 22.3 20.0 -- 3.6 3.6 Noble Argentina S.A. Transportation & Warehousing Fy06 18.0 18.0 18.0 -- 18.0 Nuevo Central Argentino S.A. Transportation & Warehousing Fy3 13.0 15.0 -- + + Pan American Energy LLC oil, Gas, & Mining Fy3, 6, 06 15.0 235.0 115.0 -- 115.0 Patagonia Fund, L.P. Collective Investment Vehicles Fy8 20.0 -- -- 14.1 14.1 Patagonia Mint S.A. Food & Beverages Fy8 6.0 -- 2.8 -- 2.8 Roberts Participaciones S.A. Collective Investment Vehicles Fy86 0.1 -- -- 0.1 0.1 S.A. San Miguel A.G.I.C.I. y F. Agriculture & Forestry Fy, 05 32.2 10.0 24.1 -- 24.1 SanCor Cooperativas unidas Ltda. Food & Beverages Fy5 40.0 30.0 28.5 -- 28.5 Sideco Americana S.A. Transportation & Warehousing Fy5 -- -- -- 15.0 15.0 Socma Americana S.A. Transportation & Warehousing Fy5, 40.0 60.0 13.3 -- 13.3 T6 Industrial S.A. Food & Beverages Fy8 15.0 30.0 8.3 -- 8.3 Terminal 6, S.A. Transportation & Warehousing Fy87, 0, 1, 6, 8 33.0 1.5 3.3 -- 3.3 Terminales Portuarias Argentinas S.A. Transportation & Warehousing Fy6 12.0 -- 0.5 -- 0.5 The Tower Investment Management Collective Investment Vehicles Fy5 0.2 -- -- + + Company The Tower Fund, L.P. Collective Investment Vehicles Fy5 25.0 -- -- 14.3 14.3 PAGE 124 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity LaTin aMEriCa and ThE CaribbEan argentina (continued) Transportadora de Gas del Norte S.A. Transportation & Warehousing Fy7 45.0 210.0 38.2 -- 38.2 universidad del Salvador Education Services Fy01 10.0 -- .3 -- .3 Vicentin S.A.I.C. Food & Beverages Fy7, 03, 05 0.0 40.0 35.0 -- 35.0 yacylec S.A. utilities Fy4 20.0 45.0 -- 5.0 5.0 761.2 1.8 61.0 Belize Nova Companies (Belize) Ltd. and Agriculture & Forestry Fy8 5.5 -- 4.3 -- 4.3 Ambergris Aquactulture Ltd. 4.3 -- 4.3 Bolivia Aguas del Illimani S.A. utilities Fy00 7.1 -- 3.8 1.0 4.8 Banco Bisa S.A. Finance & Insurance Fy76, 88, 1, 2, 28.7 -- -- 3.2 3.2 5, 8 Banco Los Andes ProCredit Finance & Insurance Fy, 01, 03 10.0 -- 6.6 -- 6.6 Banco Sol Finance & Insurance Fy04 6.0 -- 4.0 -- 4.0 CB Transporte e Infraestructura Transportation & Warehousing Fy 2.0 -- 0. -- 0. S.A. (CBTI) Central Aguirre Portuaria, S.A. Transportation & Warehousing Fy2, 02 4.7 -- 1.7 0.2 1. Compania Boliviana de Gas Natural Chemicals Fy3 2.3 -- 0.1 -- 0.1 Comprimido S.A. (GENEX) Electropaz S.A. utilities Fy00 25.0 -- 18.0 -- 18.0 Fondo Financiero Privado F.I.E. S.A. Finance & Insurance Fy03 2.5 -- 1.3 -- 1.3 Minera S.A. oil, Gas, & Mining Fy87, 0 -- -- -- 3.4 3.4 Minproc Bolivia S.A. oil, Gas, & Mining Fy2 1.0 -- -- 0.6 0.6 PRoDEM Finance & Insurance Fy04 3.0 -- 2.4 -- 2.4 Petroquimica Boliviana S.A. Chemicals Fy06 10.5 -- 10.5 -- 10.5 Sinchi Wayra S.A. oil, Gas, & Mining Fy0, 4, 6, 00 40.6 5.0 1.3 -- 1.3 Telefonica Celular de Bolivia S.A. Information Fy7, 01 26.7 23.3 8.3 -- 8.3 Transierra S.A. Transportation & Warehousing Fy05 50.0 100.0 45.4 -- 45.4 Transportadora de Electricidad S.A. utilities Fy03 30.0 -- 27.7 -- 27.7 Transportes Ferroviarios S.A. Transportation & Warehousing Fy -- -- -- 4.4 4.4 Trenes Continentales S.A. Transportation & Warehousing Fy -- -- -- 2. 2. 132.0 15.7 147.8 Brazil ABN AMRo REAL S.A. Finance & Insurance Fy05 125.0 -- 125.0 -- 125.0 AgCert International, LLC Agriculture & Forestry Fy05 15.0 -- -- 10. 10. Amaggi Exportacao e Importacao Food & Beverages Fy03, 05 60.0 -- 51.4 -- 51.4 Limitada Andrade Gutierrez Concessoes S.A. utilities Fy02 30.0 -- -- 30.0 30.0 Andrade Gutierrez S.A. Construction & Real Estate Fy03 40.0 20.0 32.0 -- 32.0 Apolo Produtos de Aco SA Primary Metals Fy02 8.0 -- 6.4 -- 6.4 Banco Bahia Mariani Finance & Insurance Fy06 50.0 -- 50.0 -- 50.0 Banco Itau-BBA S.A. Finance & Insurance Fy01, 02, 03 130.0 60.0 6.8 -- 6.8 volume 2 PAGE 125 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity LaTin aMEriCa and ThE CaribbEan Brazil (continued) CPFL Energia S.A. utilities Fy03 40.0 -- -- 40.0 40.0 CRP-Caderi Capital de Risco S.A. Collective Investment Vehicles Fy5 0.8 -- -- 0.1 0.1 CTBC Telecom Information Fy7 43.2 -- 3.0 18.2 21.2 Central Geradora Termeletrica de utilities Fy06 62.5 67.5 61.0 -- 61.0 Fortaleza Chapeco Companhia Industrial de Food & Beverages Fy4, 6 43. 5.3 27.8 -- 27.8 Alimentos (ChAPECo) Cimetal Siderurgia, S.A. Primary Metals Fy78 11.4 -- -- 3.0 3.0 Comgas utilities Fy04 45.0 45.0 44.4 -- 44.4 Companhia Brasileira de Securitizacao Finance & Insurance Fy05 3.1 -- -- 3.3 3.3 Companhia de Tecidos Norte de Minas Textiles, Apparel, & Leather Fy3, 8, 00 25.5 20.0 2.8 5.4 8.2 (Côteminas) Cooperativa Central dos Produtores Food & Beverages Fy06 15.0 -- 15.0 -- 15.0 Rurais de Minas Gerais Ltda Cosan S.A. Industria e Comercio Agriculture & Forestry Fy05 70.0 -- 65.0 5.0 70.0 Dende do Para S.A. Agricultura, Food & Beverages Fy80, 4 5.3 -- -- 1.1 1.1 Industria e Comercio de oleaginosas Dixie Toga S.A. Plastics & Rubber Fy8, 05 15.4 -- -- 14.7 14.7 Duratex S.A. Industrial & Consumer Products Fy88, 7 2.4 78.0 4.4 -- 4.4 Dynamo Puma II International Collective Investment Vehicles Fy05 20.0 -- -- 20.0 20.0 ENERBRASIL Energias Renovaveis do utilities Fy06 5.5 -- -- 5.5 5.5 Brasil Ltda Empesca S.A. Construcoes Navais, Food & Beverages Fy8 15.0 -- 15.0 -- 15.0 Pesca e Exportacao Empresa Brasileira de Aeronautica S.A. Industrial & Consumer Products Fy05 35.0 145.0 35.0 -- 35.0 Endesa Brasil S.A. utilities Fy06 50.0 -- -- 50.0 50.0 Fras-le, S.A. Industrial & Consumer Products Fy 20.0 -- 4.0 .3 13.3 Fundo de Educacao para o Brasil Education Services Fy06 12.0 -- 12.0 -- 12.0 GP Capital Partners III, L.P. Collective Investment Vehicles Fy05 15.0 -- -- 14.0 14.0 Grupo Peixoto de Castro Chemicals Fy02 .0 -- .0 -- .0 Participacoes S.A. Icatu Equity Partners L.P. Collective Investment Vehicles Fy8 14.0 -- -- 13.7 13.7 Industrias Arteb S.A. Industrial & Consumer Products Fy8 27.0 20.0 20.0 7.0 27.0 Innova SA Chemicals Fy00 25.0 60.0 -- 5.0 5.0 Ipiranga Petroquimica S.A. Chemicals Fy80, 87, 8, 06 111.3 178.0 50.0 6.3 56.3 Joaquim oliveira S.A. Participacoes Agriculture & Forestry Fy01 15.0 -- 14.6 -- 14.6 Laboratorio Fleury health Care Fy00, 04 15.0 -- 6.0 -- 6.0 Lojas Americanas S.A. Wholesale & Retail Trade Fy6, 05 68.0 20.0 35.0 -- 35.0 MRS Logistica S.A. Transportation & Warehousing Fy06 50.0 50.0 50.0 -- 50.0 Maximilano Gaidzinski S.A.--Industria Nonmetallic Mineral Product Fy00 45.0 -- 27. -- 27. de Azulejos Eliane Manufacturing Microinvest S.A. Sociedade de Credito Finance & Insurance Fy03 1.3 -- -- 1.3 1.3 Ao Microempreendedor Mineracoes Brasileiras Reunidas S.A. oil, Gas, & Mining Fy88, 3, 01 75.0 27.0 10.0 -- 10.0 Net Servicos de Comunicacao S. A. Information Fy5, 02, 05 12.0 -- -- 30.1 30.1 New GP Capital Partner B L.P. Collective Investment Vehicles Fy4 -- -- -- 5.7 5.7 PAGE 126 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity LaTin aMEriCa and ThE CaribbEan Brazil (continued) Para Pigmentos S.A. oil, Gas, & Mining Fy5 3.0 33.5 2.2 .0 11.2 Portobello S.A. Nonmetallic Mineral Product Fy5, 00, 02 38.4 -- 11.4 4.8 16.2 Manufacturing Puras do Brasil S.A. Accommodation & Tourism Fy00 5.0 -- 1.0 -- 1.0 Services Queiroz Galvao Perfuracoes S.A. oil, Gas, & Mining Fy03, 04 40.0 -- 36.7 -- 36.7 Randon S.A. Implementos e Industrial & Consumer Products Fy -- -- 5.3 -- 5.3 Participacoes Rio Bravo Securitizadora Finance & Insurance Fy06 1.5 -- -- 1.5 1.5 Sadia Concordia S.A. Industria Food & Beverages Fy4, 5, 7 80.0 222.0 8.7 -- 8.7 e Comercio Salutia health Care Fy02, 04 2. -- -- 2. 2. Samarco Mineracao S.A. oil, Gas, & Mining Fy7 18.0 16.0 3.6 -- 3.6 Sao Paulo Alpargatas S.A. Textiles, Apparel, & Leather Fy87, 7, 03 0.0 -- 15.0 -- 15.0 Saraiva S.A. Livreiros Editores Wholesale & Retail Trade Fy8 18.0 -- -- 1.5 1.5 Satipel Industrial S.A. Industrial & Consumer Products Fy03 25.0 -- 10.0 -- 10.0 Sepetiba Terminal de Conteineres S.A. Transportation & Warehousing Fy02 32.0 8.0 31.2 -- 31.2 Sotave Amazonia Quimica e Chemicals Fy80, 83 18.2 -- 14.2 4.0 18.2 Mineral S/A Sudamerica en Fiesta, S.A. de C.V. Accommodation & Tourism Fy00 15.0 -- -- 15.0 15.0 Services Suzano Petroquimica S.A. Chemicals Fy06 60.0 140.0 60.0 -- 60.0 Synteko Produtos Quimicos S.A. Chemicals Fy02 18.0 -- 12. -- 12. TAM S.A. Transportation & Warehousing Fy06 50.0 -- 50.0 -- 50.0 Tecon Rio Grande S.A. Transportation & Warehousing Fy, 04 20.2 24.1 16. -- 16. Tecon Salvador S.A. Transportation & Warehousing Fy01, 03 5.0 5.0 3.0 1.5 4.5 Tecon Suape S.A. Transportation & Warehousing Fy06 6.0 -- 6.0 -- 6.0 TriBanco Brazil Finance & Insurance Fy05, 06 10.0 -- 10.0 -- 10.0 uP offshore Apoio Maritimo Ltda.-- Transportation & Warehousing Fy03 1.0 23.3 .0 10.0 1.0 uP offshore (Bahamas) Ltd. unibanco--uniao de Bancos Finance & Insurance Fy88, 6, 02, 03, 04 144.8 250.0 16. -- 16. Brasileiros S.A. usina hidreletrica Guilman- utilities Fy8 30.0 1.0 1.1 -- 1.1 Amorim S.A. Wiest S.A. Industrial & Consumer Products Fy 8.0 -- 8.0 -- 8.0 1,17.7 34. 1,547.6 Chile Bosques y Maderas S.A. (BoMASA) Industrial & Consumer Products Fy2, 4 10.3 6.0 -- 4.8 4.8 Certifica.com Information Fy01 1.5 -- -- 1.5 1.5 Factorline S.A Finance & Insurance Fy05 5.0 -- 5.0 -- 5.0 Ferrocarril del Pacifico S.A. Transportation & Warehousing Fy7 20.5 6.0 -- 5.6 5.6 hQI Transelec Chile S.A. utilities Fy03 60.0 -- -- 54.2 54.2 hidroelectrica Aconcagua S.A. utilities Fy2, 3 14.5 6.0 -- 6.5 6.5 hidroelectrica la higuera utilities Fy06 45.0 115.0 45.0 -- 45.0 Lan Chile S.A. Transportation & Warehousing Fy03 30.0 -- 30.0 -- 30.0 volume 2 PAGE 127 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity LaTin aMEriCa and ThE CaribbEan Chile (continued) Lignum Forestry Fund Agriculture & Forestry Fy06 6.5 -- -- 6.5 6.5 Minera Escondida Limitada oil, Gas, & Mining Fy8, 3, 87.6 -- 14.0 7.5 21.5 Proa Fondo de Inversion de Desarrollo Collective Investment Vehicles Fy6 8.3 -- -- 3.6 3.6 de Empresas San Antonio Terminal Internacional S.A. Transportation & Warehousing Fy01 38.7 65.0 30.8 3.7 34.5 San Vicente Terminal Internacional S.A. Transportation & Warehousing Fy04 15.0 -- 14.6 -- 14.6 Sociedad Nacional de Procesamiento Information Fy04 10.0 -- -- 10.0 10.0 de Datos S.A. 13.3 103.8 243.1 Colombia Banco Caja Social S.A.--BCSC Finance & Insurance Fy02, 06 1.7 -- -- 1.8 1.8 Banco Davivienda S.A. Finance & Insurance Fy03, 06 60.0 -- 35.0 25.0 60.0 Cartones America, S.A. Pulp & Paper Fy04 21.8 -- 1. -- 1. Carvajal S.A. Pulp & Paper Fy05, 06 120.0 -- 100.0 20.0 120.0 Cementos del Caribe, S.A. Nonmetallic Mineral Product Fy75, 01 17.6 13.0 2.0 -- 2.0 Manufacturing Colombian home Mortgage Finance & Insurance Fy02, 04 10.6 -- 0.8 10.1 10. Corp. (ChMC) Forjas de Colombia, S.A. Industrial & Consumer Products Fy64, 68 1.3 -- -- 1.1 1.1 Fundacion Mundo Mujer Finance & Insurance Fy06 5.6 -- 5.2 -- 5.2 Fundacion Social Finance & Insurance Fy06 50.0 -- 50.0 -- 50.0 Fundacion WWB Colombia, Cali Finance & Insurance Fy06 .2 -- 7. -- 7. Inversura S. A. Finance & Insurance Fy02 15.0 -- -- 15.0 15.0 omimex de Colombia, Ltd. oil, Gas, & Mining Fy03 15.7 -- 5.0 -- 5.0 Petrotesting Colombia S.A. oil, Gas, & Mining Fy06 15.0 -- -- 15.0 15.0 Promigas S.A. E.S.P. Transportation & Warehousing Fy77, 8, 3, 4, 88.3 6.5 50.0 -- 50.0 7, 06 Proteccion S. A. Finance & Insurance Fy02 10.0 -- -- 10.0 10.0 Proteinas del Pacifico, S.A. Food & Beverages Fy0 0.2 -- -- 0.2 0.2 Sociedad de Inversiones en Energia S.A. Finance & Insurance Fy5 -- -- -- 0.2 0.2 Suramericana de Inversiones S.A. Finance & Insurance Fy02 75.0 -- 42.0 -- 42.0 Suramericana 317. 116.4 434.2 Costa rica Alterra Partners Costa Rica S.A. Transportation & Warehousing Fy01 35.0 85.0 32.7 -- 32.7 Banco Banex, S.A. Finance & Insurance Fy05 40.0 -- 40.0 -- 40.0 Banco Cuscatlan de Costa Rica Finance & Insurance Fy03 5.0 -- 5.0 -- 5.0 Banco Interfin S.A. Finance & Insurance Fy3, 01, 04 40.0 -- 23.8 -- 23.8 Consorcio hospitalario health Care Fy 1.2 -- -- 1.2 1.2 Internacional, S.A. Corporacion Supermercados Wholesale & Retail Trade Fy 40.0 -- 18.3 -- 18.3 unidos S.A. hidroelectrica Aguas Zarcas, S.A. utilities Fy4 4.0 6.1 0.7 -- 0.7 PAGE 128 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity LaTin aMEriCa and ThE CaribbEan Costa rica (continued) Maricultura, S.A. Agriculture & Forestry Fy7 1.7 -- -- 0.7 0.7 Productos Gutis S.A. health Care Fy03 7.0 -- 1.0 -- 1.0 121.4 1. 123.3 Dominican republic Aeropuertos Dominicanos Siglo Transportation & Warehousing Fy05, 06 60.0 15.0 60.0 -- 60.0 XXI, S.A. Banco ADoPEM Finance & Insurance Fy06 1.0 -- -- 1.0 1.0 Banco BhD, S.A. Finance & Insurance Fy03 20.0 -- 20.0 -- 20.0 Caucedo Investments Inc. Transportation & Warehousing Fy02 30.0 -- 28.5 -- 28.5 Consorcio Energetico Punta Cana- utilities Fy05 10.0 -- 10.0 -- 10.0 Macao S.A. Domicem S.A. Nonmetallic Mineral Product Fy04, 05 27.8 27.8 27.8 -- 27.8 Manufacturing Grupo M Textiles, Apparel, & Leather Fy04 20.0 -- 20.0 -- 20.0 Inversora Internacional hotelera, S.A. Accommodation & Tourism Fy 14.0 21.7 .3 -- .3 Services occidental hotels Management B.V. Accommodation & Tourism Fy05 20.0 -- 20.0 -- 20.0 Services occidom, B.V. Accommodation & Tourism Fy05 10.0 40.0 8. -- 8. Services orange Dominicana S.A. Information Fy02 47.5 46.5 38.3 -- 38.3 Pasteurizadora Rica C. por A. Food & Beverages Fy00 15.0 -- 8.6 -- 8.6 Red Sanitaria hospiten health Care Fy00, 03 14.0 10.0 13.0 -- 13.0 Smith-Enron Cogeneration Limited utilities Fy5, 6 32.3 50.0 1. -- 1. Partnership 266.3 1.0 267.3 ecuador Banco ProCredit Ecuador Finance & Insurance Fy04 2.0 -- 1.3 -- 1.3 Compania Financiera Ecuatoriana de Finance & Insurance Fy6, 73, 77, 81, 3.0 -- -- 0.3 0.3 Desarollo, S.A. 82, 88 Concesionaria DhM, S.A. Transportation & Warehousing Fy 3.3 3.8 -- 0.3 0.3 Ecuacobre-FV S.A. Nonmetallic Mineral Product Fy00 .0 -- 5. -- 5. Manufacturing Favorita Fruit Company, Ltd. Agriculture & Forestry Fy, 03 30.0 -- 14.4 5.0 1.4 Procesadora Nacional de Alimentos Food & Beverages Fy04 20.0 -- 1.0 -- 1.0 C.A.--PRoNACA La universal S.A. Agriculture & Forestry Fy 13.2 -- 6.6 5.0 11.6 47.2 10.6 57. el salvador Atlantic Aircraft holding Ltd Transportation & Warehousing Fy05 30.0 -- 30.0 -- 30.0 Banco Agricola S.A. Finance & Insurance Fy04 50.0 -- 47.1 -- 47.1 Banco Cuscatlan, S.A. Finance & Insurance Fy, 03 40.0 -- 20.7 -- 20.7 Banco ProCredit S.A. Finance & Insurance Fy03, 04 12.0 -- 8.5 + 8.5 Banco uno El Salvador S.A. Finance & Insurance Fy05, 06 -- -- 10.0 -- 10.0 volume 2 PAGE 12 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity LaTin aMEriCa and ThE CaribbEan el salvador (continued) Confia AFP S.A. Finance & Insurance Fy04 7.5 -- -- 7.5 7.5 Implementos Agricolas Industrial & Consumer Products Fy8, 2.2 -- -- 0.2 0.2 Centroamericanos, S.A. Metrocentro, S.A. de C.V. Wholesale & Retail Trade Fy04 25.0 -- 25.0 -- 25.0 141.3 7.7 14.0 Grenada Bel Air Plantation Limited Accommodation & Tourism Fy02 2.0 -- 2.0 -- 2.0 Services 2.0 -- 2.0 Guatemala Banco Cuscatlan de Guatemala Finance & Insurance Fy03 10.0 -- 10.0 -- 10.0 Banco Industrial S.A. (Guatemala) Finance & Insurance Fy06 30.0 -- 30.0 -- 30.0 Frutera del Pacifico, S.A. Agriculture & Forestry Fy00 7.0 -- 1.4 -- 1.4 Generadora de occidente Limitada utilities Fy03 15.0 12.0 12.3 -- 12.3 Montana Exploradora de oil, Gas, & Mining Fy04 45.0 -- 45.0 -- 45.0 Guatemala S.A. operadora de Tiendas, S.A. Wholesale & Retail Trade Fy 20.0 -- .5 -- .5 (La Fragua, S.A.) orzunil I de Electricidad, Limitada utilities Fy8, 00 14.3 15.0 7.7 1.2 8. 115.8 1.2 117.0 Guyana Guyana Americas Merchant Bank Finance & Insurance Fy00 1.0 -- -- 1.0 1.0 Guyana Goldfields Inc oil, Gas, & Mining Fy06 4.6 -- -- 4.7 4.7 -- 5.7 5.7 Haiti Micro Credit National S.A. Finance & Insurance Fy00 0.4 -- -- 0.4 0.4 unigestion holdings S.A. Information Fy06 15.0 -- 15.0 -- 15.0 15.0 0.4 15.4 Honduras Compania Pino Celulosa de Centro Pulp & Paper Fy6, 70 0.1 -- -- 0.1 0.1 America, S.A. Grupo Granjas Marinas, S.A. de C.V. Agriculture & Forestry Fy87, 6.6 -- 2.5 -- 2.5 2.5 0.1 2.5 Jamaica Jamaica Energy Partners utilities Fy05 28.0 50.0 28.0 -- 28.0 Jamaica Public Service Company utilities Fy03 45.0 -- 45.0 -- 45.0 MBJ Airports Limited Transportation & Warehousing Fy02, 06 40.0 45.0 3.6 -- 3.6 National Commercial Bank Jamaica Finance & Insurance Fy06 30.0 -- 30.0 -- 30.0 142.6 -- 142.6 PAGE 130 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity LaTin aMEriCa and ThE CaribbEan mexico AES Merida III S. de R.L. de C.V. utilities Fy8 30.0 74.0 24. -- 24. Agropecuaria Sanfandila S.A. de C.V. Agriculture & Forestry Fy 8.7 4.3 4.2 -- 4.2 Banco BBVA--Bancomer Finance & Insurance Fy7 -- -- 6.6 -- 6.6 Banco del Bajio, S.A. Finance & Insurance Fy06 45.0 -- -- 45.0 45.0 Baring Mexico Private Equity Fund L.P. Collective Investment Vehicles Fy6, 11.8 -- -- 3.8 3.8 Carlyle Mexico Partners, L.P. Collective Investment Vehicles Fy06 20.0 -- -- 20.0 20.0 Central Anahuac S.A. de C.V utilities Fy00 50.0 5.5 44.1 -- 44.1 Central Lomas de Real S.A. de C.V. utilities Fy04 70.0 106.2 66. -- 66. Central Saltillo S.A. de C.V. utilities Fy00 35.0 43.0 31.2 -- 31.2 Central Valle hermoso S.A. de C.V. utilities Fy04 70.0 107.1 6.4 -- 6.4 Centro Espanol de Tampico, A.C. health Care Fy06 5.0 -- 5.0 -- 5.0 de B.P. Combustibles Ecologicos Mexicanos, Chemicals Fy02 6.5 -- 4.0 1.5 5.5 S.A. de C.V. Consorcio International hospital, S.A. health Care Fy 4.8 -- -- 4.8 4.8 de C.V. Controladora de Servicios Medicos S.A. health Care Fy05 14.5 -- 14.5 -- 14.5 de C.V Coppel S.A. de C.V. Wholesale & Retail Trade Fy02, 06 30.0 -- 25.7 -- 25.7 Desarrollo Terrestre Mexicano, S.A. Transportation & Warehousing Fy04 23.4 -- 17.0 -- 17.0 de C.V. Financiera Compartamos, S.A. de Finance & Insurance Fy01, 05 1.7 -- -- 0.7 0.7 C.V., S.F.o.L. Financiera Educativa de Mexico S.A. Finance & Insurance Fy05 15.8 -- 14.4 0.7 15.1 de C.V. Fomento Economico Mexicano S.A. Food & Beverages Fy8 107.6 -- -- + + de C.V. Forja de Monterrey, S.A. de C.V. Industrial & Consumer Products Fy 16.0 13.0 3.7 3.0 6.7 Fundidora Monterrey, S.A. Primary Metals Fy62, 65, 66, 68 22. 0.5 -- 1.4 1.4 GMAC Financiera Finance & Insurance Fy05 64.1 -- 62.3 -- 62.3 GW Servicios, S.A. de C.V. Transportation & Warehousing Fy01 12.4 10.0 5. 1. 7.8 Girsa, S.A. de C.V. Chemicals Fy7, 00 85.0 175.0 22.5 -- 22.5 Grupo Aceros Corsa, S.A. de C.V. Primary Metals Fy00 16.0 -- 3.7 3.0 6.7 Grupo Bimbo, S.A. de C.V. Food & Beverages Fy2, 6 65.0 175.0 5.4 -- 5.4 Grupo Calidra, S.A. de C.V. oil, Gas, & Mining Fy8, 04 38.0 10.0 24.7 6.0 30.7 Grupo Financiero Banorte, S. A. de C.V. Finance & Insurance Fy03 100.0 -- 5.6 -- 5.6 Grupo Industrial Ayvi S.A. de C.V. Agriculture & Forestry Fy 10.0 -- 2. -- 2. Grupo Mexmal Industrial & Consumer Products Fy03 10.0 -- 10.0 -- 10.0 Grupo Posadas, S.A. de C.V. Accommodation & Tourism Fy2, 3, 5, 6, 00 83.7 68.5 10.0 2.6 12.6 Services Grupo Su Casita, S.A. de C.V. Finance & Insurance Fy01, 06 .6 -- -- 14.8 14.8 hipotecaria Credito y Casa Finance & Insurance Fy05 20.6 -- 20.3 -- 20.3 hipotecaria Su Casita, S.A. de Finance & Insurance Fy01, 04, 05, 06 14.5 -- 132.5 -- 132.5 C.V.--SoFoL Industrias Innopack S.A. de C.V. Plastics & Rubber Fy01 15.0 -- -- 15.0 15.0 Infologix BVI Limited Information Fy02 -- -- 3.5 -- 3.5 volume 2 PAGE 131 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity LaTin aMEriCa and ThE CaribbEan mexico (continued) Interoyal hotelera, S.L. Accommodation & Tourism Fy03 -- -- -- + + Services Medicus, S.A. de C.V. health Care Fy 3.5 -- 3.3 -- 3.3 Mexplus Puertos S.A. de C.V. Transportation & Warehousing Fy3, 5, 6, 4.5 -- -- 4.5 4.5 occidental hotels Mexico, S.A. de C.V. Accommodation & Tourism Fy03 40.0 40.0 24. -- 24. Services occihold International, S.L. Accommodation & Tourism Fy03 -- -- -- 10.0 10.0 Services Pan American Silver Corporation oil, Gas, & Mining Fy00, 02 10. -- -- 0. 0. Polomex S.A. de C.V. Industrial & Consumer Products Fy03 8.0 -- 4. -- 4. Promotora de Centros Educativos Education Services Fy01 4. -- 3.5 -- 3.5 S.A. de C.V. Propalma Fondo Chiapas Equity Food & Beverages Fy8 -- -- -- 1.0 1.0 Agency Line Subinvestment Proteison, S.A. de C.V. Agriculture & Forestry Fy85 2.8 -- -- 0.8 0.8 Puertas Finas de Madera Montealban, Industrial & Consumer Products Fy02 13.0 -- 8. -- 8. S.A. de C.V. SSA Mexico holdings, S.A. de C.V. Transportation & Warehousing Fy04 45.0 -- 44.5 -- 44.5 Terminal Maritima de Altamira, S.A. Transportation & Warehousing Fy7 5.1 10.4 4.3 -- 4.3 de C.V. universidad Tecnologica de Mexico Education Services Fy06 30.4 -- 28. -- 28. S.A. Vuela Compania de Aviacion, S.A. Transportation & Warehousing Fy06 40.0 -- 40.0 -- 40.0 de C.V. ZN Mexico Capital Growth Fund Ltd. Collective Investment Vehicles Fy 15.3 -- -- 1.7 1.7 ZN Mexico II, LP Collective Investment Vehicles Fy 10.0 -- -- 7.6 7.6 84.1 150.6 1,044.7 nicaragua Banco Procredit S.A. (Nicaragua) Finance & Insurance Fy04 5.0 -- 3.5 -- 3.5 Distribuidora Cesar Guerrero S.A. Wholesale & Retail Trade Fy 1.0 -- 0.1 -- 0.1 3.6 -- 3.6 panama Aguas de Panama S.A. utilities Fy03 6.0 10.0 4.6 -- 4.6 Banco Continental de Panama, S.A. Finance & Insurance Fy3, 04 41.7 -- 35.0 -- 35.0 Banco del Istmo, S.A. (Banistmo) Finance & Insurance Fy00 20.0 38.0 .4 -- .4 Banco General S.A. Finance & Insurance Fy8, 00 40.0 -- 2.1 -- 2.1 Banco uno Panama S.A. Finance & Insurance Fy05, 06 -- -- 20.0 -- 20.0 Compania Panamena de Aviacion, S.A. Transportation & Warehousing Fy05 15.0 -- 15.0 -- 15.0 Corporacion uBC Internacional, S.A. Finance & Insurance Fy03, 04 10.3 -- -- 10.3 10.3 International Shopping Centers Wholesale & Retail Trade Fy06 1.0 -- 1.0 -- 1.0 holdings, Inc--ISC La hipotecaria Finance & Insurance Fy04, 05 35.0 -- 20.0 -- 20.0 Manzanillo International Terminal-- Transportation & Warehousing Fy5, 00, 05 0.0 35.0 62.0 -- 62.0 Panama, S.A. PAGE 132 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity LaTin aMEriCa and ThE CaribbEan panama (continued) Panama Canal Railway Company Transportation & Warehousing Fy00, 06 20.0 30.0 11.1 -- 11.1 Suleasing Internacional S.A. Finance & Insurance Fy00 2.5 -- 0.8 -- 0.8 226.1 10.3 236.4 paraguay Telefonica Celular del Paraguay SA Information Fy05 15.0 -- 15.0 -- 15.0 15.0 -- 15.0 peru Agraria El Escoria S.A. Food & Beverages Fy00 7.0 -- 7.0 -- 7.0 Agro Industrial Paramonga S.A. Food & Beverages Fy8 14.2 14.8 11.1 -- 11.1 Alicorp S.A. Food & Beverages Fy00 40.0 20.0 20.0 -- 20.0 Banco Internacional del Peru Finance & Insurance Fy8, 04 60.0 100.0 40.0 -- 40.0 Edpyme Edyficar S.A. Finance & Insurance Fy04 4.0 -- 2. -- 2. Empresa Agroindustrial Laredo S.A.A. Food & Beverages Fy00, 05 15.0 -- .3 -- .3 Ferrocarril Transandino S.A. Transportation & Warehousing Fy02 .0 -- 7.4 -- 7.4 Global Microcredit Facility Finance & Insurance Fy04 4.0 -- 4.0 -- 4.0 Gloria S.A. Food & Beverages Fy04 25.0 -- 23.6 -- 23.6 Inversiones Malecon de la Accommodation & Tourism Fy05 10.0 -- 10.0 -- 10.0 Reserva S.A. Services Inka Terra, Peru S.A.C. Accommodation & Tourism Fy01 5.0 -- 4.7 -- 4.7 Services Interconexion Electrica ISA Peru S.A. utilities Fy02, 03 18.0 8.0 15.3 -- 15.3 Interseguro Compania de Seguros de Finance & Insurance Fy02, 03, 05 5.2 -- -- 5.2 5.2 Vida S.A. Latino Leasing, S.A. Finance & Insurance Fy8 12.5 -- 3.8 -- 3.8 MIBANCo, Banco de la Finance & Insurance Fy02, 06 32.0 -- 2.3 -- 2.3 Microempresa, S.A. Minera Quellaveco S.A. oil, Gas, & Mining Fy3, 6, 00, 01 12. -- -- 12. 12. Minera yanacocha S.A. oil, Gas, & Mining Fy4, 5, 00 32.7 5.0 -- 0.3 0.3 Norvial S.A. Transportation & Warehousing Fy03 18.0 -- 18.0 -- 18.0 Peru orient Express hotel Accommodation & Tourism Fy01 10.0 -- 8.8 -- 8.8 Services Peru Privatization Fund L.P. Collective Investment Vehicles Fy5 13. -- -- 1.5 1.5 The Peru Privatization Fund Collective Investment Vehicles Fy5 0.0 -- -- + + Management Services Company Limited Ransa Comercial S.A. Transportation & Warehousing Fy00, 05 20.0 -- 14.4 -- 14.4 Sociedad Agricola Drokasa S.A. Agriculture & Forestry Fy00, 06 21.0 -- 15.0 -- 15.0 Tecnofil S.A. Industrial & Consumer Products Fy02 7.4 -- 3.2 2.0 5.2 247.7 21. 26.6 volume 2 PAGE 133 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity LaTin aMEriCa and ThE CaribbEan trinidad and tobago Caribe hospitality Trinidad & Tobago Accommodation & Tourism Fy04 3.8 -- 3.6 -- 3.6 Services Guardian holdings Limited Finance & Insurance Fy06 50.0 -- 50.0 -- 50.0 RBTT Merchant Bank Limited Finance & Insurance Fy02 20.0 -- 13.8 -- 13.8 Republic Bank Ltd. Finance & Insurance Fy02, 03, 06 70.0 -- 5.4 -- 5.4 Trinidad Cement Company Nonmetallic Mineral Product Fy05, 06 35.0 -- 35.0 -- 35.0 Manufacturing u.W.I., St. Augustine--Institute Education Services Fy04 5.0 -- 5.0 -- 5.0 of Business unicell Paper Mills Caribbean Ltd. Pulp & Paper Fy02 .0 -- .0 -- .0 (uPMCL) 175.7 -- 175.7 uruguay Azucitrus S.A. Food & Beverages Fy85, 3 11. -- -- 3.4 3.4 Banco Montevideo S.A. Finance & Insurance Fy02 18.0 -- -- .0 .0 Cooperativa Nacional de Productores Food & Beverages Fy03 30.0 -- 25.0 -- 25.0 de Leche Surinvest International Limited Finance & Insurance Fy80, 87, 8, 7, 20.5 10.0 4. 3.3 8.2 02, 05 universidad de Montevideo Education Services Fy01 3.3 -- 2.6 -- 2.6 32.6 15.7 48.3 Venezuela Complejo Siderurgico de Guayana, C.A. Primary Metals Fy7, 8 45.0 121.0 -- 10.0 10.0 Corporacion de Cemento Andino, C.A. Nonmetallic Mineral Product Fy01 4.8 15.2 2.4 -- 2.4 Manufacturing Forestal Trillium Industrial & Consumer Products Fy00 11.0 3.0 -- 3.6 3.6 Global Materials Services Venezuela, Transportation & Warehousing Fy02 3.2 -- 0.4 -- 0.4 C.A. / ACBL Riverside Terminals C.A. Intersea Farms de Venezuela, C.A. Agriculture & Forestry Fy02 3.0 -- -- 3.0 3.0 Metanol de oriente, Metor, S.A. Chemicals Fy3 37. 3.3 -- 6.8 6.8 Minera Loma de Niquel, C.A. oil, Gas, & Mining Fy8, 00 75.2 50.0 1.3 4.4 5.8 Petrofalcon Corporation oil, Gas, & Mining Fy05 -- -- -- 8.0 8.0 Propileno de Falcon, C. A. (Profalca) Chemicals Fy00 24.0 23.0 11.3 -- 11.3 Sistema Electronico de Transacciones Finance & Insurance Fy6, 00 0.5 -- -- 0.5 0.5 C.A. (SET) Telecomunicaciones Movilnet, C.A. Information Fy8 35.0 60.0 6.6 -- 6.6 Vinccler oil & Gas C.A. oil, Gas, & Mining Fy05 36.0 -- 28.0 -- 28.0 4. 36.4 86.3 PAGE 134 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity LaTin aMEriCa and ThE CaribbEan regional Investment Advent Latin American Private Equity Collective Investment Vehicles Fy06 20.0 -- -- 20.0 20.0 Fund III-E Limited Partnership Advent Latin American Private Equity Collective Investment Vehicles Fy02 15.0 -- -- 14.3 14.3 Fund II B Limited Partnership Aureos Central America Fund, L.L.C. Collective Investment Vehicles Fy03 8.3 -- -- 7.3 7.3 Convergence Communications, Inc. Information Fy00, 01, 02 7.1 -- -- 7.1 7.1 Darby-BBVA Latin America Private Collective Investment Vehicles Fy03 10.0 -- -- 10.0 10.0 Equity Fund, L.P. ECoM Agroindustrial Corp. Ltd. Agriculture & Forestry Fy06 25.0 -- 25.0 -- 25.0 GeoPark holdings Limited oil, Gas, & Mining Fy06 10.0 -- -- 10.0 10.0 hSBC Private Equity Latin America Collective Investment Vehicles Fy01 -- -- -- 0.3 0.3 (Cayman) L.P. hSBC Tower II Equity Partners Collective Investment Vehicles Fy01 20.0 -- -- 14.1 14.1 (Cayman) L.P. The Latin America Enterprise Collective Investment Vehicles Fy8 13.1 -- -- 11. 11. Fund II, L.P. The Latin America Enterprise Fund, L.P. Collective Investment Vehicles Fy5 20.0 -- -- 4.1 4.1 Latin American Agribusiness Finance & Insurance Fy02, 06 50.0 -- 43.3 -- 43.3 Development Corporation S.A. Latin Power I L.D.C. Collective Investment Vehicles Fy3 25.0 -- -- 10.8 10.8 Latin Power II L.D.C. Collective Investment Vehicles Fy8 7.0 -- -- 1. 1. Marcopolo S.A. Industrial & Consumer Products Fy03 30.0 -- 28.1 -- 28.1 Paladin Realty Latin America Collective Investment Vehicles Fy06 15.0 -- -- 15.0 15.0 Investors II, L.P. PriceSmart, Inc. Wholesale & Retail Trade Fy01, 02 42.0 -- 17.1 2.8 1. Proa II Fondo de Inversion Collective Investment Vehicles Fy05 11.0 -- -- 11.0 11.0 Profund Internacional, S.A. Collective Investment Vehicles Fy6 3.0 -- -- + + Scotiabank Multicountry Loan Facility Finance & Insurance Fy01 25.0 25.0 25.0 -- 25.0 Solidus Finance & Insurance Fy06 3.0 -- -- 3.0 3.0 TCW/ Latin America offshore Private Collective Investment Vehicles Fy00 20.0 -- -- 18.5 18.5 Equity Partners I, L.P. Terra Capital Investors Ltd. Collective Investment Vehicles Fy 5.0 -- -- 5.0 5.0 Trans union Central America Finance & Insurance Fy03, 04 0.5 -- -- 0.5 0.5 uABL Limited Transportation & Warehousing Fy03 25.0 10.0 16.6 -- 16.6 uPR holdings Transportation & Warehousing Fy03 -- -- -- 5.0 5.0 155.1 172.8 327.8 total equity and loans 5,206.3 1,221.9 6,428.1 total guarantees and risk management products 286.5 total IFC portfolio for latin america and the Caribbean 6,714.7 volume 2 PAGE 135 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity MiddLE EaST and norTh afriCa afghanistan Areeba Afghanistan Limited Information Fy06 45.0 -- 40.0 5.0 45.0 First Microfinance Bank of Afghanistan Finance & Insurance Fy04, 06 4.5 -- 3.5 1.0 4.5 Tourism Promotion Services Accommodation & Tourism Fy04 7.0 -- 7.0 -- 7.0 (Afghanistan) LTD. Services 50.5 6.0 56.5 algeria Algerian Cement Company Nonmetallic Mineral Product Fy03, 04 45.0 -- 37.7 -- 37.7 Manufacturing Algiers Investment Partnership S.P.A. Finance & Insurance Fy00 0.2 -- -- 0.2 0.2 Arab Banking Corporation Algeria Finance & Insurance Fy8, 02 1. -- -- 1. 1. Arab Leasing Corporation Finance & Insurance Fy02 0.7 -- -- 0.7 0.7 Mittal Steel Annaba Primary Metals Fy03 25.0 -- 23.2 -- 23.2 RedMed SPA oil, Gas, & Mining Fy06 10.0 -- 10.0 -- 10.0 Societe des Fertilisants d'Algerie Chemicals Fy06 24.2 -- -- 24.2 24.2 70. 27.0 7. egypt Al-Amir for Sanitary Ware Nonmetallic Mineral Product Fy02 5.0 -- 3.4 -- 3.4 Production, S.A.E. Manufacturing Alexandria Carbon Black Chemicals Fy3, 7, , 03 27.5 -- .0 3.0 12.0 Company S.A.E. Alexandria Fiber Co., SAE Textiles, Apparel, & Leather Fy04 8.0 -- 8.0 -- 8.0 Alexandria National Iron & Steel Primary Metals Fy84, 1, 3, 4, 42.6 -- -- -- -- Company S.A.E., (ANSDK) 6, Amreya Casting Company Industrial & Consumer Products Fy02 5.0 -- 4.6 -- 4.6 CIB Investors, LLC Finance & Insurance Fy06 0.7 -- -- 0.7 0.7 Commercial International Bank S.A.E. Finance & Insurance Fy4, 01, 06 38. -- -- 23.3 23.3 Commercial International Life Finance & Insurance Fy00, 04 2.1 -- -- 2.0 2.0 Insurance Company S.A.E E.D.F. Port Said East Power S.A.E. utilities Fy01 45.0 152.5 41.1 -- 41.1 E.D.F. Suez Gulf Power S.A.E. utilities Fy01 45.0 152.5 40.4 -- 40.4 EFG hermes holding SAE Finance & Insurance Fy01, 06 35.0 -- 20.0 -- 20.0 Egypt Factors Finance & Insurance Fy05 3.0 -- -- 3.0 3.0 Egyptian housing Finance Company Finance & Insurance Fy04 1.6 -- -- 1.7 1.7 Gippsland Limited oil, Gas, & Mining Fy06 4.3 -- -- 4.5 4.5 IT Worx, Inc. Professional, Scientific, & Fy01 2.5 -- -- 2.5 2.5 Technical Services Ismailia Fish Farming Company, S.A.E. Agriculture & Forestry Fy80, 83 2.2 -- 1. 0.5 2.4 Lecico Egypt (S.A.E.) Nonmetallic Mineral Product Fy04 .8 -- .8 -- .8 Manufacturing Meleiha oil Development and oil, Gas, & Mining Fy87, 88, 3 41.7 -- -- 30.82* 30.8 Exploration Project Merlon Petroleum Company of Egypt oil, Gas, & Mining Fy04, 05 30.0 -- -- -- -- Metro Markets Wholesale & Retail Trade Fy03 15.0 -- 10.5 -- 10.5 Misr Compressor Manufacturing Industrial & Consumer Products Fy2 13.5 -- .7 3.8 13.5 Company, S.A.E. PAGE 136 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity MiddLE EaST and norTh afriCa egypt (continued) oRIX Leasing Finance & Insurance Fy7, 02, 06 7. -- 5.1 0. 6.0 Sekem holdings Chemicals Fy03 5.0 -- 4.2 -- 4.2 Societe Nationale d'Industries Nutritive Food & Beverages Fy06 14.0 -- 14.0 -- 14.0 Sokhna Port Development Company Transportation & Warehousing Fy04 20.0 -- 18.4 -- 18.4 unipak Nile Limited Pulp & Paper Fy8, 01 8.0 -- 4.1 -- 4.1 Wadi holdings Agriculture & Forestry Fy05 15.0 -- 15.0 -- 15.0 21.2 76.6 25.8 Iran, Islamic republic of Gorouh Sanaye Kaghas Pars Pulp & Paper Fy72 12.0 2.0 -- 1.8 1.8 Sherkate Sahami AAM Karafarin Bank Finance & Insurance Fy05 10.0 -- 10.0 -- 10.0 Karafarin Leasing Company Finance & Insurance Fy05 2.0 -- -- 2.0 2.0 Rak Ceramics Joint Stock Company Nonmetallic Mineral Product Fy04 7.0 -- 7.0 -- 7.0 Manufacturing Saman Bank JSC Finance & Insurance Fy05 10.0 -- 10.0 -- 10.0 27.0 3.8 30.8 Iraq Iraq National Bank Finance & Insurance Fy05 8.0 -- 8.0 -- 8.0 National Bank of Kuwait--Iraq Finance & Insurance Fy05 1. -- -- 1. 1. united Cement Corporation Nonmetallic Mineral Product Fy06 8.3 -- 0.0 8.3 8.3 Manufacturing 8.0 10.2 108.2 Jordan Business Tourism Company Limited Accommodation & Tourism Fy8 5.0 -- 1.6 -- 1.6 Services CTI Group Inc. Transportation & Warehousing Fy06 15.0 -- 15.0 -- 15.0 hikma Investment Company Ltd. Chemicals Fy87, 1, 3, 5, 03 24.5 -- 10.2 -- 10.2 hikma Pharmaceuticals plc Chemicals Fy1, 5 -- -- -- 0. 0. International Luggage Manufacturing Textiles, Apparel, & Leather Fy01 8.0 -- 7.2 -- 7.2 Company Middle East Regional Development Nonmetallic Mineral Product Fy02 5.0 -- 4.4 0.6 5.0 Enterprise Manufacturing Modern Agricultural Investment Transportation & Warehousing Fy 1.0 -- -- 1.0 1.0 Company Societe Generale de Banque Jordanie Finance & Insurance Fy01 4.4 -- -- 2.1 2.1 Zara Investment holding Accommodation & Tourism Fy7 18.0 -- -- 3.0 3.0 Company Limited Services 38.3 7.5 45. lebanon Byblos Bank S.A.L. Finance & Insurance Fy3, 7, 01, 03 38.8 40.2 .8 -- .8 SABIS International School--Adma Education Services Fy05 8.0 -- 8.0 -- 8.0 Societe hoteliere "De Vinci" S.A.L. Accommodation & Tourism Fy 3.0 -- 0. -- 0. Services 18.6 -- 18.6 volume 2 PAGE 137 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity MiddLE EaST and norTh afriCa morocco Cerame Afrique Industries Nonmetallic Mineral Product Fy1 5.2 -- -- 1.7 1.7 Manufacturing Maghreb Management Limited Collective Investment Vehicles Fy00 0.0 -- -- + + Maghreb Private Equity Fund Limited Collective Investment Vehicles Fy00 5.0 -- -- 3.7 3.7 Settat Filature (SETAFIL) Textiles, Apparel, & Leather Fy88, 3 4.4 -- 3.4 1.2 4.6 3.4 6.6 10.0 oman Alliance housing Bank Finance & Insurance Fy05 45.0 -- 45.0 -- 45.0 Bank Muscat (S.A.o.G.) Finance & Insurance Fy06 100.0 -- 100.0 -- 100.0 Mazoon Petrogas SAoC oil, Gas, & Mining Fy05 40.0 -- 3.1 -- 3.1 Taageer Finance Company Finance & Insurance Fy05 10.0 -- 10.0 -- 10.0 united Power Company S.A.o.G. utilities Fy5, 00 20.5 57.0 3.1 5.1 8.2 17.3 5.1 202.3 pakistan AES Lal Pir (Private) Limited utilities Fy5 4.4 -- 14. .5 24.4 AES Pak Gen (Private) Company utilities Fy6 2.5 48.3 .2 .5 18.7 Abamco Composite Fund Collective Investment Vehicles Fy05 5.0 -- -- 5.0 5.0 Abamco Limited Collective Investment Vehicles Fy5 0.3 -- -- 0.3 0.3 BRR International Modaraba Finance & Insurance Fy2, 4, 6 15.8 -- + 0.8 0.8 CSIBL Finance & Insurance Fy05 7.0 -- 6.5 -- 6.5 Crescent Bahuman Limited Textiles, Apparel, & Leather Fy4, 7, 02 23.4 11.5 2.5 5.1 7.6 Dewan Investment and Finance Finance & Insurance Fy04 1.0 -- -- 1.0 1.0 Company Dewan Salman Fibres Limited Textiles, Apparel, & Leather Fy03, 04 35.0 -- 30.0 -- 30.0 Engro Chemical Pakistan Limited Chemicals Fy1, 7, 06 55.3 14.0 -- 2.6 2.6 Eni Pakistan Limited oil, Gas, & Mining Fy02 30.0 -- 12.0 -- 12.0 First International Investment Finance & Insurance Fy0, 2, 6 4.7 -- -- 1.5 1.5 Bank Limited First MicroFinanceBank Limited Finance & Insurance Fy02 2.7 -- -- 2.7 2.7 First uDL Modaraba Finance & Insurance Fy6, 04 10.0 -- -- -- -- Gul Ahmed Energy Limited utilities Fy6 31.1 35.0 8.1 4.1 12.2 habib Bank Limited (hBL) Finance & Insurance Fy06 50.0 -- 50.0 -- 50.0 Kohinoor Energy Limited utilities Fy5 31.3 36.6 6.3 6.3 12.6 orix Investment Bank Pakistan Limited Finance & Insurance Fy6, 06 5.6 -- 5.0 -- 5.0 orix Leasing Pakistan Finance & Insurance Fy4, 06 2.5 3.3 17.0 -- 17.0 Packages Limited Pulp & Paper Fy65, 80, 82, 87, 50.6 20.1 -- 5.8 5.8 88, 2, 4, 5, 05 Pakistan International Container Transportation & Warehousing Fy03 .3 -- 8.0 -- 8.0 Terminal Pakistan Petroleum Limited oil, Gas, & Mining Fy83, 85, 5, 02 47.6 86.0 -- 7.0 7.0 Paktel Limited Information Fy06 35.0 -- 35.0 -- 35.0 Premier Mercantile Services Limited Transportation & Warehousing Fy05, 06 14.0 -- 14.0 -- 14.0 Rally Energy Corp. oil, Gas, & Mining Fy06 15.0 -- 15.0 -- 15.0 Sarah Textiles Textiles, Apparel, & Leather Fy3, 6, 02 7.8 -- 1.1 -- 1.1 PAGE 138 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity MiddLE EaST and norTh afriCa pakistan (continued) TRG Pakistan II Limited Information Fy04 5.0 -- -- 5.0 5.0 Tameer Microfinance Bank Ltd Finance & Insurance Fy06 1.0 -- -- 1.0 1.0 uch Power Limited utilities Fy6 35.0 60.0 13.6 -- 13.6 248.2 67.1 315.3 saudi arabia Kingdom hotel Investments Accommodation & Tourism Fy06 20.0 -- 20.0 -- 20.0 Services Saudi British Bank Finance & Insurance Fy05 50.0 -- 50.0 -- 50.0 Saudi orix Leasing Company Finance & Insurance Fy06 17.0 -- 17.0 -- 17.0 Saudi orix Leasing Company (SoLC) Finance & Insurance Fy00, 03, 05 5.3 -- -- 5.3 5.3 87.0 5.3 2.3 syrian arab republic Arab Drip Irrigation Technology Plastics & Rubber Fy01 1.0 -- -- 1.0 1.0 Company Limited (Adritec) Bank of Syria and overseas Finance & Insurance Fy02, 04 6.1 -- -- 5.7 5.7 united Joint Stock Company for Chemicals Fy02 13.2 -- 13.2 -- 13.2 Petrochemical Industries 13.2 6.7 1. tunisia Banque Internationale Arabe de Tunisie Finance & Insurance Fy8, 00, 01, 04 57.6 -- 52.1 -- 52.1 Societe Miniere de Bougrine (SMB) oil, Gas, & Mining Fy2, 4 17.0 -- -- 2.3 2.3 Societe des Industries Textiles Textiles, Apparel, & Leather Fy88 1.7 -- -- 2.1 2.1 Reunis, S.A. Societe Industrielle des Textiles (SITEX) Textiles, Apparel, & Leather Fy86, 2, 8 14.5 -- -- 2. 2. Societe Monastirienne Internationale Textiles, Apparel, & Leather Fy1 5.6 -- 4.0 1. 6.0 des Textiles Tuninvest International Limited Collective Investment Vehicles Fy8 4.7 -- -- 2.8 2.8 56.2 12.1 68.2 West Bank and Gaza Arab Bank PLC--Microentreprise Finance & Insurance Fy7 + -- + -- + Facility Arab Concrete Products Company Nonmetallic Mineral Product Fy8 0.8 -- 0.8 -- 0.8 Manufacturing Arab Palestinian Investment Bank Finance & Insurance Fy6 3.7 -- -- 3.7 3.7 Commercial Bank of Palestine-- Finance & Insurance Fy7 6.6 -- + -- + Microentreprise Credit Facility Jericho Motels Company Ltd. Accommodation & Tourism Fy 1.2 -- 1.1 -- 1.1 Services Jordan National Bank--Microentreprise Finance & Insurance Fy7 (1.0) -- 0.2 -- 0.2 Credit Facility Nabahin Industry and Trading Plastics & Rubber Fy8 0.5 -- 0.5 -- 0.5 Company volume 2 PAGE 13 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity MiddLE EaST and norTh afriCa West Bank and Gaza (continued) Palestine Industrial Estates Construction & Real Estate Fy8 2.0 -- 1.0 1.0 2.0 Development and Management Company Palestine Mortgage and housing Finance & Insurance Fy 3.0 -- -- 3.0 3.0 Corporation Limited Palestine Tourism Investment Company Accommodation & Tourism Fy .4 -- -- 0.5 0.5 Services Peace Technology Fund Ltd. Collective Investment Vehicles Fy 12.6 -- -- 12.3 12.3 Peace Technology Management Ltd. Collective Investment Vehicles Fy8 0.2 -- -- 0.2 0.2 3.6 20.7 24.3 Yemen, republic of Aden Company for Silos and Mills Food & Beverages Fy 8.0 -- 6.4 -- 6.4 Al-Ahila Mineral Water Company Food & Beverages Fy03 1.5 -- 1.4 -- 1.4 Marib Agriculture Company, y.S.C. Agriculture & Forestry Fy87 2.8 -- 2.4 0.3 2.7 National Cement Company Nonmetallic Mineral Product Fy06 35.0 -- 35.0 -- 35.0 Manufacturing yemen Battery Manufacturing Industrial & Consumer Products Fy84, 85 4.0 0.4 3.3 0.5 3.8 Company, y.S.C. 48.4 0. 4.2 regional Investment Arab Insurance Group Finance & Insurance Fy8 6.2 -- -- 6.0 6.0 Maghreb Private Equity Fund II Collective Investment Vehicles Fy06 11.7 -- -- 12.6 12.6 Nuqul Group Pulp & Paper Fy05 25.0 -- 25.0 -- 25.0 25.0 18.6 43.6 total equity and loans 1,204.7 274.1 1,478.9 total guarantees and risk management products 89.5 total IFC portfolio for middle east and north africa 1,568.3 PAGE 140 IFc annual report 2006 original Commitments1 Investments Held for IFC2 (uS$ millions) (uS$ millions) Fiscal Year in Which total total total loans Country, region or other area, and obligor sector Commitments Were made IFC syndications loan equity and equity GLobaL regional Investment ACCIoN Investments in Finance & Insurance Fy03 3.0 -- -- 3.0 3.0 Microfinance, SPC Baku-Tiblisi-Ceyhan Pipeline oil, Gas, & Mining Fy04 125.0 125.0 125.0 -- 125.0 Capital International Private Equity Collective Investment Vehicles Fy04 30.0 -- -- 21.1 21.1 Fund IV, L.P. Emerging Markets Global Small Collective Investment Vehicles Fy04 10.0 -- -- 10.0 10.0 Capitalization Fund First International Merchant Bank plc Finance & Insurance Fy05 10.0 -- 6.0 4.0 10.0 GEM VII Targeted Value Income Fund Collective Investment Vehicles Fy05 30.0 -- -- 25.8 25.8 InfrastructureWorld.com Information Fy01 5.0 -- -- 5.0 5.0 Microcred S.A Finance & Insurance Fy06 2.8 -- -- 2.8 2.8 Novica united, Inc. Information Fy03 1.5 -- -- 1.5 1.5 olam International Agriculture & Forestry Fy04 15.0 -- -- 11.2 11.2 orient Express hotels Accommodation & Tourism Fy05 25.0 -- 25.0 -- 25.0 Services ProCredit holding Finance & Insurance Fy01, 02, 03, 06 1.8 -- -- 20.2 20.2 Santiago CDo Ltd. Collective Investment Vehicles Fy05 28.0 -- 13.0 13. 26. Schwarz Group Wholesale & Retail Trade Fy04, 05 14.5 -- 147.6 -- 147.6 ShoreCap International Finance & Insurance Fy04 2.5 -- -- 2.5 2.5 Soco International PLC oil, Gas, & Mining Fy06 45.0 -- 45.0 -- 45.0 State Street Bank and Trust Company Collective Investment Vehicles Fy4 10.0 -- -- .0 .0 IFC Emerging Markets Common Trust Fund Stora Enso oyj Agriculture & Forestry Fy05, 06 100.0 200.0 100.0 -- 100.0 TCW GEM II, Limited Collective Investment Vehicles Fy8 10.0 -- -- + + Tepe Akfen Vie Investment Transportation & Warehousing Fy06 27.0 -- 27.0 -- 27.0 Construction and operation Co. 488.6 130.0 618.6 total equity and loans 488.6 130.0 618.6 total guarantees and risk management products 110.0 total IFC portfolio for Global 728.6 total eQuItY anD loans 16,744.3 4,510.5 21,254.8 total eQuItY anD loans For IFC (net oF WrIte-oFF aDJustments)3 16,406.7 3,911.6 20,318.3 total Guarantees anD rIsK manaGement proDuCts 1,308.8 total IFC portFolIo For Its oWn aCCount 21,627.1 * TheCorporation'sinvestmentsinunincorporatedoilandgasjointventures(UJVs)areaccountedforunderthecostrecoverymethod,asmorefullydescribedinNoteAtotheCorporation'sFY06financial statements.FortheUJVs,investmentsheldforIFCcomprisesthesumoftheinceptiontodatecashdisbursements,netofcashreceipts(untilcostisrecovered)plustheundisbursedbalanceofsigned commitments,netofcancellations. + Lessthan$50,000. 1. CommitmentsincludefundstobeprovidedbyIFCforitsownaccount,fundstobeprovidedbyparticipantsthroughthepurchaseofaninterestinIFC'sinvestment,andfundstobeprovidedbyother financialinstitutionsinassociationwithIFC,whereIFChasrenderedmaterialassistanceinmobilizingthesefunds.Originalcommitmentsarecomposedofdisbursedandundisbursedbalances.The undisbursedportionisrevaluedatcurrentexchangerate,whilethedisbursedportionrepresentsthecostofthecommitmentatthetimeofdisbursement.LoansheldfortheCorporationarerevaluedat thecurrentexchagerate.AmountsshownareforcommitmentsoutstandingatJune30,2006,netofcancellations. 2. InvestmentsheldforIFCcomprisesthesumofthedisbursedandoutstandingbalancetogetherandtheundisbursedbalanceofsignedcommitments,netofcancellationsandbeforewrite-offadjustments. 3. Write-offadjustmentsare$337.626minloansand$598.848minequityforatotalof$936.474m. Note:Theoperationalinvestmentsarerepresentedbyloansandequity,asstated.Inaddition,incertaininvestments,theCorporationhastherighttoacquiresharesand/orparticipateintheprofitsof theenterprise. volume 2 PAGE 141 Participants in Loan Syndications AsofJune30,2006 aBn aMrO Bank n.v. GarantiBank international nv alpha Bank Sa hSBC holdings PLC Banco Bilbao vizcaya argentaria S.a. hSh nordbank aG Banco Finantia Sa inG Bank n.v. Banco Latinoamericano de exportaciones Sa J P Morgan Chase & Co. Banco Santander Central hispano, Sa Korea Development Bank Bank of america n.a. Landesbank Baden-württemberg Bank of Tokyo-Mitsubishi UFJ Ltd. Malayan Banking Berhad Bayerische hypo- und vereinsbank aG Mizuho Corporate Bank Ltd Bayerische Landesbank natexis Banques Populaires BnP Paribas national City Bank Caixa Geral de Depositos S.a. nederlandse Financierings-Maatschappij voor Calyon Ontwikkelingslanden nv "FMO" Cathay United Bank norddeutsche Landesbank Girozentrale "nOrD LB" Chiao Tung Bank Co Ltd nordea Bank aB (publ) China Construction Bank Corporation norinchukin Bank Citibank n.a. Oversea-Chinese Banking Corp Ltd CLiCO investment Bank Limited raiffeisen Zentralbank Osterreich aG Commerzbank aG raiffeisenlandesbank niederoesterreich-wien aG Cooperatieve Centrale raiffeisen-Boerenleenbank B.a. rBTT Bank Limited (rabobank nederland) republic Bank Ltd Cordiant Capital (iFPT) rhB Bank (L) Ltd DBS Bank Ltd rietumu Banka Dexia Sa Sanpaolo iMi Spa DnB nOr Bank aSa Shanghai Commercial & Savings Bank Ltd. DvB Bank aktiengesellschaft Skandinaviska enskilda Banken aB (Publ) DZ Bank aG Deutsche Zentral-Genossenschaftsbank Societe Generale S.a. e.Sun Commercial Bank, Ltd. Standard Bank Plc emirates Bank international PJSC Standard Chartered Bank erste Bank der Oesterreichischen Sparkassen aG State Bank of india First Citizens Bank Limited Sumitomo Mitsui Banking Corporation FirstCaribbean international Bank (Cayman) Limited Sumitomo Trust & Banking Co. Ltd. Fortis Bank n.v. westLB aG PAGE 142 IFc annual report 2006 Sub-Saharan africa 144 East asia and the Pacific 149 Technical assistance South asia 154 Europe and Central asia 156 Latin america and the Caribbean 161 and advisory Projects Middle East and north africa 164 Global 168 This table includes technical assistance and advisory projects approved during Fy06. This work is supported by various donors, including iFC itself. Many projects in the table are carried out by a network of facilities managed by iFC; some serve a developing region, while others emphasize a specific aspect of development. Many facilities, including most of the regional project development facilities, fund their activities from a pool of core funds raised from a group of donors; other facilities, such as the Private enterprise Partnership, raise donor funds specifically for individual projects and initiatives. in addition to the facilities, iFC manages trust funds on behalf of many donor governments to support technical assistance work. The Funding Mechanism for Technical assistance and advisory Services uses a portion of the Corporation's retained earnings to support specific activities. acronyms and abbreviations in the table include the following: CBF Capacity Building Facility MSMe micro, small, and medium enterprise CCF Corporate Citizenship Facility nGO nongovernmental organization CommDev Oil, Gas, and Mining Sustainable PBGi Performance Based Grants initiative Community Development Fund PeDF Pacific enterprise Development Facility CPDF China Project Development Facility PenSa Program for eastern indonesia DevCo infrastructure Development SMe assistance Collaboration Partnership Fund PeP Private enterprise Partnership eDi economic Development institute PeP-aceh Private enterprise Partnership for aceh eOF environmental Opportunities Facility and nias FiaS Foreign investment advisory Service PeP africa Private enterprise Partnership for africa FMTaaS Funding Mechanism for Technical PeP-Mena Private enterprise Partnership for the assistance and advisory Services Middle east and north africa Fy fiscal year PeP-Se Private enterprise Partnership GeF Global environment Facility Southeast europe GeM Gender entrepreneurship Markets SeDF Southasia enterprise Development Facility LaCP Latin america and the Caribbean SFMF Sustainable Financial Markets Facility Technical assistance Facility SGBi Strengthening Grassroots Business initiative MPDF Mekong Private Sector SMe small and medium enterprise Development Facility TaTF Technical assistance Trust Funds MSi Mozambique Small and Medium USTDa United States Trade and enterprise initiative Development agency volume 2 PAGE 143 project project Description Donor program Sub-Saharan afriCa REGIoNAL African National Investment To strengthen investment climate reform advisory activities for a small number of Core Funds FIAS Climate Workshops African countries highlighted in DoingBusiness. Credit Bureau Program To foster the development of private credit bureaus in the region in order to Netherlands TATF facilitate the extension of credit to previously underserved segments of the population, in particular, consumers and small businesses. Doing Business Technical Advice To develop quick-response capacity to governments requesting technical advice IFC FIAS with expert advisory services in the areas profiled in DoingBusiness. Fundraising Technical Assistance To raise awareness among state and municipal officials about the different IFC FMTAAS mechanisms available for raising funds for investments, including products offered by IFC and other development partners. Gender Entrepreneurship Markets To identify and assess legal and administrative constraints facing women business Netherlands PEP Africa entrepreneurs in Ghana and Tanzania and to develop a prioritized reform agenda. hIV/AIDS Microfinance Sector To raise awareness and develop risk management tools for the microfinance sector Core Funds SFMF Awareness in Africa on hIV/AIDS. IFC Against AIDS To accelerate the involvement of private enterprises in the fight against hIV/AIDS. IFC FMTAAS MSME Finance Program To deepen and broaden the African financial sector and to raise the standard of IFC PBGI financial services provided to MSMEs. Review of Investment Climate To review investment climate databases and evaluate indicators to develop a robust Core Funds FIAS Indicators impact monitoring system for the Investment Climate Facility. Securities Market Institutional To foster the development of properly functioning securities markets in the region. Sweden PEP Africa Development SME Entrepreneurship To assist African entrepreneurs in developing bankable business plans and raising Denmark/Japan/ PEP Africa Development Initiative finance for new project investments, expansions, and modernizations. Netherlands/Norway/IFC Societe Malienne de Promotion To allow the company to undertake a cleaner production audit and design review Core Funds EoF hoteliere of its existing operations in Mali and Burkina Faso. Submarine Cable System To provide advisory services for structuring and implementing a fiber-optic loop for IFC/Netherlands/ DevCo the Eastern Africa Submarine Cable System project. Sweden/united Kingdom Trade Finance Promotion To strengthen the institutional capacity for trade finance operations in frontier IFC FMTAAS market banks in the region. CouNTRy Burkina Faso Banque Agricole et Commerciale To establish a capacity-building program to enable the MFI to efficiently offer Core Funds/Ireland PEP du Burkina Microfinance microfinance products and services to the small business sector. Africa/TATF Doing Business Better To improve key areas of the investment climate to meet the standards as measured Core Funds/Switzerland FIAS by the Doing Business indicators. PAGE 144 IFc annual report 2006 project project Description Donor program Grassroots Arts Project To establish capacity-building programs for artisans to increase production capacity Core Funds SGBI and quality and improve their business management skills. STEP Burkina Training To train university graduates to provide business advisory services to micro and Core Funds SGBI small business operators. Cameroon AES onchocerciasis Project To design an action plan on onchocerciasis and disease prevention, and control for Netherlands TATF the company benefiting not only the company's operations and the immediate environment but also communities beyond. Comoros Privatization Study To formulate a detailed strategy and approach for the privatization programs of IFC/Netherlands/ DevCo Comores Telecom and Société des hydrocarbures des Comores. Sweden/united Kingdom Congo, Democratic republic of Stakeholder Capacity Building To increase the capacity of local and provincial stakeholders to benefit from the Core Funds CCF social and environmental assessment and community development planning processes of the Kolwezi Tailings project. Ghana Law on Collateral Security To advise the Ministries of Finance and Judiciary in Ghana and draft a new law and Switzerland TATF related regulations, rules, and procedures on collateral security. Leasing Industry Development To develop the country's leasing industry to increase the financial options available Switzerland PEP Africa for small and medium-size businesses. Schools Financing To expand the facilities of private sector primary schools and improve their skills in Denmark/Netherlands/ TATF/CBF/ education management. Norway/IFC SME/EDI Guinea-Bissau Investment Policy and Legislation To provide expert advice to the government on investment policy and legislation as Core Funds FIAS Assistance well as technical assistance to finalize investment legislation. Refining Investment Legislation To assist the government in refining draft legislation on foreign direct investment. IFC FIAS Kenya Business Development Training To sharpen the consulting skills of business development service providers to Core Funds PEP Africa enhance their advisory and training services to SMEs. Coca-Cola South Africa Bottling To identify opportunities for building the operating and management capabilities Core Funds CBF Company of the company's manual distribution centers and to develop appropriate training programs. Kenya Women Entrepreneur To identify the main challenges facing women entrepreneurs and facilitate their IFC GEM Assistance greater participation in private sector development. Licensing Reform To help the government to develop and implement a comprehensive business Core Funds/united FIAS license reform process and design a regulatory impact assessment tool. Kingdom SME Credit Scoring To complete the development of a demand-driven SME credit scoring tool for 54 Core Funds PEP banks in the region. Africa/CBF volume 2 PAGE 145 project project Description Donor program SME Solution Center To support the effective implementation of the SME Solution Center's core capacity Core Funds PEP Africa building, skills development, technical assistance, access to information, and access to finance programs. Telkom Kenya, Ltd. To implement the privatization of the country's fixed line telecommunications IFC/Netherlands/ DevCo company. Sweden/united Kingdom Women's Business Development To enhance the economic growth and contribution of women by facilitating access African Development PEP Africa to finance and relevant business development services. Bank lesotho Business Registration and Licensing To help reduce the costs of registering a business and securing trading and Core Funds FIAS Reforms manufacturing licenses. Industry Competitiveness Report To prepare the apparel industry and the government for the restructuring of the Core FIAS industry in advance of the expiration of the third-country fabric provision in the Funds/uSTDA/ComMark African Growth and opportunity Act. Lesotho hospital To advise the government on the replacement of an existing public hospital with Sweden TATF greenfield medical facilities, including an outpatient clinic and hospital. Queen Elizabeth II hospital To maximize opportunities for local SMEs to more effectively provide public health Core Funds CBF care services resulting from the replacement of Queen Elizabeth II Public hospital through a public-private partnership. Sectoral Study of the Effective Tax To improve understanding of the link between tax policy and its administration, Core Funds/united FIAS Burden and the broader political economy context for business development and Kingdom poverty reduction. liberia Private Sector Development To devise a private sector development agenda for the new government based on Core Funds FIAS an examination of the existing investment climate. madagascar Business Advisory Services To provide SME entrepreneurs with business advisory services on new project Core Funds PEP Africa investments, expansion and modernization of businesses, and access to finance. Factoring Industry Study To evaluate the environment for developing the factoring industry and help Netherlands TATF establish a factoring company to increase access to financial services for MSMEs. Independent Power Project To structure and implement a series of small independent power projects for a IFC/Netherlands/ DevCo total of up to 100 MW of additional capacity. Sweden/united Kingdom Leasing Industry Development To develop the country's leasing and factoring industry, thereby improving financial Core Funds PEP options for small and medium-size businesses. Africa/CBF Marketing and Sales Project To help SMEs, consultants, and business organizations improve their skills in Core Funds PEP marketing and sales management. Africa/EDI Public-Private Partnership To design and implement public-private partnerships for up to 12 airports, IFC/Netherlands/ DevCo including the international hub at Antananarivo. Sweden/united Kingdom Public-Private Partnership To advise the government of Madagascar on the design and implementation of a IFC/Netherlands/ DevCo public-private partnership for JIRAMA, the national power and water utility. Sweden/united Kingdom PAGE 146 IFc annual report 2006 project project Description Donor program SME Export Program To help exporting SMEs meet international exporting standards, enhance their France PEP Africa technical capacity, and better understand their markets. SME Quality Management To help SMEs increase their competitiveness by improving production and Core Funds PEP Africa quality management. Tax Burden Sectoral Study To evaluate the inter-relationship of tax policy with its administration and to offer Core Funds FIAS recommendations on investment and business climate policy for growth and poverty reduction. mauritius Licensing Reform and Impact To develop and implement an action plan for business startups and licensing Core Funds FIAS Assessment reform, and assess the tax system's impact on investment and growth. mozambique Administrative Barriers to To study the licensing and fee requirements affecting the cost of doing business Core Funds/united FIAS Investment including the effects of tax policy as a contributor or barrier to a firm's ability to Kingdom grow both in theory and in practice. ENh/CMG Pipeline To help the companies raise funds in order to exercise their 25% equity option in South Africa TATF RoMPCo, the gas pipeline company holding the pipeline portion of the assets of the Southern Africa Regional Gas Project. SGL Printing Shop To provide the company with financing and business expansion technical assistance. Switzerland MSI SME Business Advice To provide finance and technical assistance to ensure an effective operation of a Switzerland MSI soft drink company. Tourism Sector Study To assist the government of Mozambique in identifying features of the Core Funds FIAS investment climate in tourism that matter most for efficiency and competitive growth. Tourism Sector Study To stimulate growth and investment in the country's tourism sector through Belgium/IFC PEP Africa/ pro-active project development in selected tourism zones. CBF nigeria Carbon Finance Market Survey To assess the potential for carbon finance in Nigeria and South Africa through a Ireland TATF pilot study to possibly lead to the first packaging of SME carbon credits for the private market. Diamond Bank Internal To assist the bank in becoming a sustainability leader through train-the-trainer Ireland TATF Sustainability Training programs and workshops. health Sector Expansion Program To conduct a seminar for the government and industry participants to better Ireland TATF understand the market, infrastructure, and capacity-building needs of the health sector. Investment Climate Program To promote sustainable and measurable improvements in the investment climate united Kingdom FIAS at the state level. Market Study To complete a detailed market study for the proposed Gulf of Guinea Institute Ireland TATF and the African Institute of Science and Technology's School of Management and Public Policy. Private Sector Participation To advise the government of Nigeria on the implementation of private sector IFC/Netherlands/ DevCo participation in the country's airport system. Sweden/united Kingdom volume 2 PAGE 147 project project Description Donor program rwanda Electricity Generation Plant Design To provide specialized engineering assistance in the design of a facility to extract Netherlands/IFC TATF deep water methane from Lake Kivu and produce electricity for inhabitants of the region. Gas Recovery Development To help develop a lake gas recovery facility and associated power plant. Ireland TATF Leasing Market Study To develop a strategy to set up financial leasing operations and support the Netherlands TATF creation of a leasing company with the Development Bank of Rwanda. Rwanda Informal Economy Study To survey the characteristics of firms in the informal sector and determine concrete Core Funds FIAS policy recommendations on how to shift economic activity from the informal to the formal economy. Rwanda Leasing Program To support the development of the leasing market by creating a progressive legal, African Development PEP Africa regulatory, and tax framework. Bank Rwandair Privatization To help the government to identify and execute strategic options for the IFC/uSTDA TATF/DevCo privatization of Rwandair. Sectoral Study of the Effective Tax To improve understanding of the link between tax policy and its administration, Core Funds FIAS Burden and the broader political economy context for business development and poverty reduction. senegal Accelerated Growth Strategy To support the government in addressing institutional dimensions key to Core Funds/uSAID FIAS successfully implementing the recently outlined accelerated growth strategy. sierra leone Improving the Business To improve the business climate and facilitate private sector development by Core Funds/united FIAS Environment streamlining the business registration process. Kingdom Investment Policy Study To identify public policies and instruments that affect investment decisions and Core Funds/united FIAS hold the most potential to attract responsible international private investment. Kingdom Monitoring and Evaluation To support a private sector development reform initiative by results measurement Core Funds/united FIAS Measurement and client capacity building. Kingdom Private Sector Development Project To facilitate private sector development by designing and implementing Core Funds/united FIAS institutional underpinnings for land holding and transfer. Kingdom south africa Administrative Barrier Review To conduct a review of administrative impediments to investment. Core Funds/ FIAS Switzerland/united Kingdom Clean Development Mechanism To prepare an investors guide to Clean Development Mechanism projects in Core Funds CCF the region. Community Training To provide job skills and training to disadvantaged and disabled people to produce IFC SGBI craft items for sales in the local, tourist, and export markets. Competition Law Study To prepare a study on the impact of competition law policy on the country's Core Funds FIAS investment climate. Compliance Costs for Small To evaluate the tax rate on businesses by measuring the time and cost burden on Core Funds/Switzerland FIAS Business Taxes Study SMEs associated with administrative compliance for business taxes. PAGE 148 IFc annual report 2006 project project Description Donor program Endeavor Entrepreneurship To establish a monitoring and evaluation system measuring qualitative and IFC PEP Africa Institute quantitative impact, and to develop a sustainability strategy. Tax Burden Study To improve understanding of the link between tax policy and its administration, Core Funds/united FIAS and the wider political economy context for business development. Kingdom Women Entrepreneurs Scheme To provide recommendations to the Department of Trade and Industry to help Core Funds/IFC CCF/TATF women entrepreneurs gain better access to financing opportunities. sudan Review of Administrative Barriers To review the investment climate, prepare a draft investor roadmap document, and Core Funds FIAS to Investment facilitate a discussion on key findings. tanzania, united republic of Leasing Industry Development To develop the leasing industry in Tanzania, thereby improving financial options for Switzerland PEP Africa small and medium-size businesses. Tanzania honey Company To improve honey collection standards, increase farmers' incomes, and contribute Core Funds SGBI Expansion to the operating and financial sustainability of the company. Tax Policy Study To understand the effects of tax policy on company growth and informality, and Core Funds/united FIAS determine tax policy best practice to promote growth and investment. Kingdom uganda Economic Analysis of Electricity To provide IFC and other potential lenders and investors with an economic and IFC FMTAAS Project financial evaluation of a proposed electricity generation project. Zambia Copperbelt SME Supplier To improve local SMEs' ability to meet industry procurement requirements and Ireland CBF Development Program diversify the SME market through partnerships with other mining companies. EaST aSia and ThE PaCifiC REGIoNAL Credit Risk Rating & Management To develop and implement a business loan rating methodology that would enable IFC FMTAAS banks to measure and optimize credit risk. Design and Export Promotion To assist two design and export promotion centers in Cambodia and Indonesia in Core Funds/Italy/Japan MPDF/PENSA/ Centers improving their handicrafts design and quality, increasing production capacity, and SGBI/TATF reaching export markets. IFC Against AIDS To accelerate the involvement of private enterprises in the fight against hIV/AIDS. IFC FMTAAS CouNTRy Cambodia Advocacy Support to Business To provide private sector working groups and business associations with research Core Funds MPDF Associations support in order to better advocate for policy change. Business Environment Study To identify regulatory and administrative barriers to business growth at the Core Funds MPDF/TATF provincial level throughout the country. volume 2 PAGE 14 project project Description Donor program Cambodia Grassroots Facility To create and develop a working capital facility for selected socially minded IFC SGBI grassroots business organizations in the country. CraftNetwork To assist handicraft producers in addressing critical constraints and barriers facing IFC SGBI them and to facilitate export sales to major international markets. Digital Divide Data Development To strengthen and expand the company's operations, create more jobs, provide IFC SGBI training for more disadvantaged young adults, and promote sustainability. Duty Suspension Scheme To assist the government of Cambodia in the design and construction of a customs Core Funds FIAS duty suspension scheme. Garment Sector Assistance To help increase the country's garment sector export performance through the Core Funds MPDF Program launch and facilitation of an international buyers' forum. Investment Board Support To support the Cambodia Investment Board in refining an investment promotion Core Funds FIAS strategy, and developing and delivering a detailed action plan. Tourism Sector Study To identify the key constraints to the tourism sector's development and Core Funds FIAS contribution to growth, and provide recommendations to address the problems. China Business Credit Evaluation To expand access to business credit and encourage private sector growth. Core Funds FIAS China Development Marketplace To support the China Development Marketplace competition of innovative projects Core Funds CCF by providing grant money for the Corporate Citizenship Awards category. City Commercial Banks To help raise the banks' management and operational standards, develop a Core Funds CPDF/TATF/ roster of Chinese financial trainers, and strengthen the capacity of the China CBF Banking Association. Energy Efficiency Finance Program To market, develop, and provide equipment financing services to energy users in Core Funds/GEF/ CPDF/GEF/ the commercial, industrial, institutional, and multi-family residential sectors Finland EoF engaged in energy efficiency projects. Financial Sustainability Project To build sustainability capacity within financial institutions and local partner Core Funds SFMF organizations with sustainable finance training and technical assistance. health and Safety Seminar To conduct a sustainability and health & safety seminar to improve the overall Core Funds CCF development prospects of IFC clients. Investment Agency Development To build the capacity of agencies responsible for the enhancement and promotion Core Funds FIAS of the local investment climate in disadvantaged provinces. North Andre Supply Chain To introduce traceability in the apple supply chain of the company, improve farm Germany TATF Linkages management practices, develop improved marketing opportunities, and build local institutional capacity. Nursing Training Program To help united Family hospitals and Clinics develop a formal nurses training Sweden TATF program to operate effectively to international medical standards. Power Plants Financing To understand what returns are possible from equity investments in the power Spain TATF sector and identify investment opportunities. Private Sector Development Study To analyze the sustainability and quality of private sector development and assist Denmark TATF the government in promoting higher standards of corporate behavior. PAGE 150 IFc annual report 2006 project project Description Donor program Renewable Energy Study To contribute to the transformation of the country's energy sector to incorporate Denmark/IFC TATF more renewable energy. Reputex To develop a corporate social responsibility rating system for Chinese companies to Core Funds SFMF stimulate investment by domestic and international investors. Sichuan and yunnan Milk Farmers To help local dairies improve farm management and productivity and quality of IFC TATF their milk supply. Sichuan Cluster Development To identify the scope for potential government assistance for the industrial Core Funds CPDF development of Sichuan Province. Sichuan Value Chain Analysis To identify the opportunities and challenges in developing strategic sectors such as Core Funds FIAS agribusiness, electronics manufacturing, and eco-tourism. Survey on SME Access to Finance To gain an in-depth understanding of current SME finance activity in the country Core Funds CPDF through a nationwide survey. Tourism Development in Sichuan To help gain a better understanding of the dynamics of the tourism sector. Core Funds FIAS united Rural Cooperative Bank of To enhance the bank's corporate governance structure and risk management IFC PEP-China/ hangzhou system, and improve its market position and organizational structure. FMTAAS Vocational Education To assess the current market for vocational education and training and to develop Sweden/IFC TATF a set of recommendations for the development of a training framework from a private sector perspective. yunnan Whitewater River To implement the design changes for improving the safety and reducing the cost Switzerland TATF hydropower of the three dams that will be built on the river. Fiji Investment Approvals Reform To provide hands-on, practical assistance to 18 government agencies involved in Core Funds FIAS implementing reforms to their investment approval procedures. Private Sector Investment To deliver quantitative and qualitative improvements in investment approval Core Funds FIAS processing times and costs for the private sector investor. Indonesia Aceh Investment Law To help prepare a regional investment policy statement and an outline regional Core Funds FIAS investment law. Aceh Investment Promotion To support the development of a more effective investment promotion capacity. Core Funds PEP-Aceh/ FIAS Agriculture Development To deliver agribusiness development and higher incomes in selected provincial Australia PENSA areas through improved access to markets, finance, information, and technology. Investment Climate Study To critically analyze the current investment climate with a view to quickly Core Funds FIAS identifying key priorities for the authorities. Investment Incentives Review To provide commentary on recent government proposals to reform the system of Core Funds FIAS investment tax incentives, and to provide a forum for policy dialogue. Investment Law To specify the roles and responsibilities of a national investment promotion agency Core Funds FIAS and outline simple and transparent investment promotion procedures. Komodo Park Tourism To establish an innovative private sector/NGo partnership concession to undertake GEF GEF park management and tourism development. volume 2 PAGE 151 project project Description Donor program Linkages in Mining Communities To identify opportunities for, and impediments to, the development of linkages Core Funds FIAS/PENSA between the mining sector and the local economy. Sector Policy Solution Design To identify options for addressing policy and institutional impediments in the Core Funds FIAS investment climate that constrain exports of shrimp and man-made textiles. SME Enhanced Lending To help strengthen banks' capability to serve the SME market by improving their Japan TATF Framework credit skills and assisting in their institutional development. SME Sector Establishment To establish an SME sector to contribute to sustainable employment and economic Core Funds PENSA/TATF growth to increase regional social stability in the longer term. Student Financing Pilot To help Sampoerna Foundation develop a pilot student financing facility. Switzerland TATF Telecommunications Market Study To determine the potential of the country's telecommunications market and IFC TATF identify options for reaching this market through private investments. lao people's Democratic republic Bamboo Supply Chain Study To undertake a bamboo market study for the development of sustainable bamboo Core Funds CCF supply chains to increase the income of local communities. Financial Institutions Law To support sound financial sector and banking practices by creating an environment Core Funds MPDF where all banks have the same opportunities and abide by the same rules. mongolia Capacity Building Assistance To strengthen the capacity of the newly established unfair Competition Regulatory Sweden TATF Authority of Mongolia through training key staff on how to investigate the situation in key markets to determine unfair competition. Gas Sector Study To support a gas sector study and develop and diversify the country's energy Sweden TATF market including natural gas, condensates, liquefied petroleum gas, and liquefied natural gas. Independent Power Project To lay the technical, commercial, and regulatory groundwork for the country's first Core Funds EoF independent power producer windmill project. papua new Guinea Institution Building To provide technical assistance for institution and capacity building to PNG Japan TATF Microfinance Ltd. philippines Boracay Island Private Sector To identify private sector investment opportunities for IFC that will help improve IFC TATF Investment the island's infrastructure and ensure the sustainability of its tourism industry. Manila South Commuter Rail To help the Philippine government assess the feasibility of enhancing the entire Spain TATF Project heavy rail system for southern Luzon. Private Sector Participation To mobilize private sector participation to build, maintain, and manage the IFC/Netherlands/ DevCo extension of the existing Light Rail Transit Line 1 system in Manila. Sweden/united Kingdom Private Sector Participation To improve the provision of water services through the introduction of private IFC/Netherlands/ DevCo sector involvement throughout the country. Sweden/united Kingdom PAGE 152 IFc annual report 2006 project project Description Donor program Small Power utilities Group To replicate the success of previous Small Power utilities Group transactions to IFC/Netherlands/ DevCo other areas that are in urgent need of more affordable and reliable power. Sweden/united Kingdom samoa Regulatory Reform Implementation To help identify and remove regulatory and administrative barriers to doing Core Funds FIAS business and increase opportunities for private sector development. Venture Capital Fund To build sustainability capacity within local investors in the fund and other Core Funds PEDF participants in the country's finance sector. solomon Islands Administrative Barriers To prepare a detailed diagnostic review of work permits and residency permits Core Funds FIAS approval procedures. Foreign Investment Registry To assist in the establishment and operation of the Foreign Investment Registry Core Funds FIAS Establishment within the Investment Division of the Ministry of Commerce and Industry. thailand Administrative Barriers to To undertake an administrative barriers to investment study to identify Core Funds FIAS Investment opportunities to further streamline investment operating procedures. timor-leste Access to Finance Workshop To open up channels and develop products and methodologies to improve Core Funds PEDF financial services availability to MSMEs. Electronic Marketplace Appraisal To assess the viability of establishing an electronic marketplace in the country to Core Funds PEDF assist SME hotel operators. Private Sector Development To help the government of Timor-Leste and the donor community shape the Netherlands TATF private sector development strategy. tonga Regulatory Reform Implementation To provide hands-on, practical assistance to 18 government agencies involved in Core Funds FIAS implementing reforms to their investment approval procedures. Vietnam Administrative Barriers Evaluation To identify regulatory and administrative barriers to business growth and IFC TATF implement a number of specific improvements to the business environment. Composite Panel Investment To determine the feasibility of investing in a composite panel plant to supply the Sweden TATF Evaluation growing furniture manufacturing business in the country. Foreign Investment Agency To provide assistance to the national investment protection agency in developing a Core Funds FIAS medium-term strategic plan. Land Program Design To strengthen the legislative framework and administrative structures that regulate Core Funds FIAS business access to land and business land rights. Private Credit Bureau To develop a private credit bureau to facilitate the extension of credit to growing Core Funds TATF yet underserved segments of the population, in particular SMEs. Private Sector Gender Equality To create awareness of the importance of gender equality as both a business Core Funds MPDF opportunity and a development imperative. Private Sector Participation To advise the government of Vietnam on how to mobilize private sector IFC/Netherlands/ DevCo participation in electricity generation. Sweden/united Kingdom volume 2 PAGE 153 project project Description Donor program Secured Transactions Assessment To assess the current shortcomings in the legal and institutional framework for Core Funds FIAS movable asset financing. Sustainable Tourism Workshop To launch a Web-based sustainability rating scheme to recognize and reward SME Netherlands/IFC TATF accommodation providers with good sustainable practices. SouTh aSia CouNTRy Bangladesh Assessing Stakeholder Interests in To design an appropriate communications strategy to act as an example of how Core Funds FIAS PSD Reform to institutionalize private sector development regulatory reform. Business Framework To implement a modern business regulatory framework that enables more Core Funds/united FIAS Implementation efficient, effective, and transparent regulation of the private sector. Kingdom Economic Zone Development To provide the government with options for developing and implementing an Core Funds/united FIAS economic zone strategy which reflects international best practice. Kingdom Financial Sector Assistance and To increase access to finance and build capacity for SMEs, and raise awareness of Core Funds SEDF Training best practices on SME finance in the financial markets. Independent Power Project To advise the government on the design and implementation of a baseload gas- IFC/Netherlands/ DevCo fired independent power producer project. Sweden/united Kingdom Investment Climate Assessment To track the performance of 250 SMEs over a three-year period to determine the Core Funds SEDF Panel key challenges and constraints they face. Private Sector Development To facilitate a private sector development vision for the government of Bangladesh Core Funds/united FIAS and organize a monitoring and evaluation system. Kingdom Private Sector Development To prepare for the Private Sector Development Support Project and to ensure the Core Funds/united FIAS Preparation Study successful implementation of six related projects. Kingdom/Canada Private Sector Development To build a consensus and commitment among all stakeholders to achieve Core Funds FIAS Reform necessary regulatory and administrative reform. Small Power Plants Program To advise the government in the structuring, tendering, and implementation of IFC/Netherlands/ Devco the Small Power Plants Program, consisting of ten plants of 10 to 30 MW. Sweden/united Kingdom Social and Environment Auditing To build capacity of local service providers for implementing and auditing social Core Funds SEDF Assistance and environmental compliance measures. Bhutan Financial Markets Assistance and To increase access to finance for SMEs both in terms of number of clients reached Core Funds SEDF Training and range of financial products offered. Gender Entrepreneurship Markets To develop the entrepreneurial capacity of women in rural communities through Core Funds SEDF business management and marketing, and alliance building between women's associations, government, and donor agencies. PAGE 154 IFc annual report 2006 project project Description Donor program India Assistance Facility for Sustainable To provide advisory services to state and municipal governments to develop private Sweden TATF Advisory Projects infrastructure projects, including public-private partnerships. Cairn Energy To help the company implement its contributions to local community and Core Funds CCF economic development in connection with its exploration and drilling activities. Capacity Building for Banks To increase access to financing for businesses and consumers by fostering the Japan/Netherlands/IFC TATF development of an efficient and competitive local banking sector. Competition Commission To conduct competition and regulatory impact assessments of key sectors of the Core Funds/united FIAS Assessment economy to foster investment, productivity, growth, and consumer welfare. Kingdom Federal Bank Ltd. To design, structure, and monitor technical assistance programs for the bank. IFC FMTAAS health Awareness Scheme To create awareness about prevention and management of hIV/AIDS with Core Funds CCF company stakeholders at all manufacturing locations. ICT and Entrepreneurship To create entrepreneurship opportunities and improve information and IFC SEDF communications technology services delivered to poor rural communities. Mobile health Service To provide health services, multimedia education resources, telephone connectivity, IFC SEDF and access to financial products. Municipality Linkages Program To provide financing to selected municipalities for energy efficiency investments in Core Funds SEDF water pumping systems and building and street lighting. Private Sector Participation To introduce private sector participation in the city of Bangalore's water sector. IFC/Netherlands/ DevCo Sweden/united Kingdom Thane Municipal Corporation To implement specific capacity building initiatives that will improve financial IFC TATF management and social capital development in Thane municipality. Tourism Workshop To develop and deliver a workshop on environmental, social, and health & safety Core Funds CCF best practice for key players in the tourism and hospitality sector. maldives SME Development To create and develop awareness of SME finance issues, develop sustainable SME Core Funds SEDF finance models, and improve the outreach of banks and other financial institutions in the sector. sri lanka Rainforest Ecolodge Company To foster SME growth by creating sector-specific opportunities, increasing Core Funds SEDF competitiveness, productivity, and market share, and developing linkages to larger enterprises. SME Banking Capacity Building To improve the capacity and efficiency of banks and other financial institutions Core Funds SEDF to meet SME needs, including loans and newly developed financial products and services. Worldhotel-link.com Limited To foster SME growth by creating sector-specific opportunities and increasing Core Funds SEDF/CBF competitiveness, productivity, and market share. volume 2 PAGE 155 project project Description Donor program EuroPE and CEnTraL aSia REGIoNAL Capacity Building To map the country's non-cement building materials industry to help united Kingdom/IFC TATF increase capacity. Central Asia Leasing Facility To strengthen the capacity of the financial institutions involved in the Facility Switzerland/IFC PEP/CBF and improve their management information systems. Environmental Management To help financial institutions in the Balkan region understand why and how to Core Funds SFMF manage the environmental and social issues associated with their lending and investment operations. Financial Services Capacity Building To increase access to financial services for MSMEs and households in the region Netherlands TATF by building the capacity of local private sector financial institutions to efficiently serve these client segments. IFC Against AIDS To accelerate the involvement of private enterprises in the fight against hIV/AIDS. IFC FMTAAS Leasing Industry Development To increase access to finance for small and medium-size businesses through Switzerland PEP equipment leasing in Kyrgyz Republic, Tajikistan, and uzbekistan. Mortgage Market Development To assist in the development of primary mortgage markets and easy access to IFC FMTAAS Project mortgage financing for people with low and medium incomes. CouNTRy albania Alternative Dispute Mediation To support the establishment of an efficient mediation system of enforcing Netherlands PEP-SE commercial contracts. Business Regulation Plan To support the government in reducing regulatory barriers in selected sectors Core Funds/Switzerland FIAS with efforts to build regulatory capacities and institutions. Corporate Governance Guidelines To promote the benefits of good corporate governance and build the capacities Switzerland PEP-SE of key stakeholders to implement best practice. International Technical Standards To introduce and disseminate international technical standards and regulations Norway PEP-SE among companies in selected sectors. Recycling Initiative To deliver sustainable development impacts by supporting profitable and Austria PEP-SE environmentally and socially responsible recycling businesses. armenia Corporate Governance To improve corporate governance best practice in local banks. Netherlands PEP Secured Transactions Reform To assist in fostering the private sector's access to credit by addressing Core Funds FIAS shortcomings in its secured transactions regime. azerbaijan Corporate Governance To improve the corporate governance practices of local joint stock companies Switzerland PEP and banks to help them gain easier access to capital. Leasing Industry Development To increase financing for small and medium-size businesses through leasing Switzerland PEP industry development. PAGE 156 IFc annual report 2006 project project Description Donor program Licensing Review To assist the government of Azerbaijan in designing a comprehensive reform Core Funds FIAS strategy to minimize entry controls imposed on business. Belarus Business Association Development To reinforce local economic development by strengthening the competence of IFC PEP business associations and private business. Business Enabling Environment To reinforce local economic development, strengthen the role of private business, Sweden PEP and improve the private business environment. Bosnia and Herzegovina Administrative Barriers to To assist the government in efforts to remove administrative barriers to investment. Core Funds/Switzerland FIAS Investment Alternative Dispute Mediation To support the establishment of an efficient mediation system for enforcing Canada/Netherlands PEP-SE commercial contracts. Corporate Governance To promote the benefits of good corporate governance and build the capacities of Switzerland PEP-SE key stakeholders to implement best practice. International Technical Standards To introduce and disseminate international technical standards and regulations Norway PEP-SE among companies of selected sectors in the country. Recycling Initiative To deliver sustainable development impacts by supporting profitable and Austria PEP-SE environmentally and socially responsible recycling businesses. Bulgaria Administrative Barriers Reform To provide solution designs for administrative barriers relating to on-site Core Funds FIAS inspections and construction procedures and advice on institutional reform mechanisms. Croatia Biogas and Composting To assess the feasibility of anaerobic digestion of Belje's animal rearing waste and Germany/IFC TATF wastewater to produce biogas and high-quality organic fertilizer from residuals. Improving Regulations for To improve the quality of regulations affecting the start-up and operation Core Funds/Switzerland FIAS operations of businesses. Georgia Business Association Development To reinforce local economic development by strengthening the competence of FMTAAS PEP business associations and private business. Business Banking operations To help strengthen and expand the retail and small business banking operations. Netherlands/IFC TATF Business Development To increase access to markets for local firms, raise the level of local management Canada PEP skills, improve access to financing, and reduce administrative and legislative barriers to private sector growth. Kazakhstan Corporate Governance To improve the corporate governance practices of local joint stock companies and IFC PEP banks with a view to increasing their ability to attract investment. oil and Gas Industry To complement the ongoing efforts of international oil and gas operations to CBF PEP increase sustainable local sourcing. volume 2 PAGE 157 project project Description Donor program Kyrgyz republic Review of Investment Law To conduct a systematic review of the existing investment law and the Core Funds FIAS government's proposed amendment to the law. latvia FIAS Impact Study To test how to gauge the impact of FIAS activities in a particular client country. Core Funds FIAS Regulatory Costs Survey To assist the government in carrying out an administrative and regulatory costs Core Funds FIAS survey to ensure longitudinal and cross-country comparability of the results. macedonia, Former Yugoslav republic of Alternative Dispute Mediation To support the establishment of an efficient mediation system of enforcing Netherlands PEP-SE commercial contracts to encourage private sector investment. Corporate Governance To promote the benefits of good corporate governance and build the capacities of Switzerland PEP-SE key stakeholders to implement best practice. International Technical Standards To introduce and disseminate international technical standards and regulations Norway PEP-SE among companies in selected sectors. Recycling Initiative To deliver sustainable development impacts by supporting profitable and Austria PEP-SE environmentally and socially responsible recycling businesses. poland Property Rights Reform To identify the key legal and institutional impediments to contract and property Core Funds/Poland FIAS rights enforcement and to propose reform solutions. romania Industrial Competitiveness Study To assist the government of Romania in developing a strategic approach for Spain/IFC TATF enhancing the country's competitiveness in preparation for Eu entry and address post-entry challenges. Public-Private Partnership To assist the Municipality of Bucharest in implementing a program of public-private Core Funds PEP-SE Assistance partnerships for property development and management. russian Federation Administrative Barriers to To prepare an administrative and regulatory cost survey in the Tomsk region on Core Funds/uSAID FIAS Investment administrative barriers to investment. Administrative Barriers to To prepare a study of administrative barriers to investment in Sakhalin oblast. Core Funds FIAS Investment Administrative Barriers to To conduct a self-assessment of the removal of administrative barriers, including Core Funds FIAS Investment business surveys, templates, baselines for monitoring, and facilitation of dialogue between the public and private sectors. Administrative Barriers to To prepare a study of administrative barriers to investment in Leningrad oblast. Core Funds FIAS Investment Auto Linkages To identify potential partnerships between automotive suppliers and producers. Germany PEP Automotive Industry Development To improve the production efficiency of automobile engines at a factory in the Austria PEP Volga Region. PAGE 158 IFc annual report 2006 project project Description Donor program Banking Sector Corporate To improve the current state of internal governance in banks and the use of Switzerland PEP Governance corporate governance in their credit assessment of corporate clients. Business Development To assist Finnish companies to develop mutually beneficial links with Russian Finland PEP businesses and to develop the local information and communications technology services industry. Business Development To increase access to markets for local firms, improve business practices and the Canada PEP knowledge base of walk-in clients, and strengthen the capacity of local business service providers. Campina To set up the first leasing company for the primary agricultural sector and improve Netherlands PEP the economic performance of supplier farms. Computer-Aided Design Assistance To provide the automotive industry with information on modern computer-aided Austria PEP/TATF engineering for quality improvement. Corporate Governance To improve the corporate governance practices of open joint-stock companies in Switzerland PEP the regions to help them gain easier access to capital. Corporate Social Responsibility To provide best practice cases on market-driven corporate social responsibility for Core Funds FIAS the forestry industry. Energy Efficiency Promotion To improve energy efficiency and profitability of companies leading to a reduction GEF/SFMF PEP in greenhouse gas emissions. Energy Efficiency Promotion To promote investments in energy efficient technologies in the Volga Region. Germany PEP Energy Efficiency Technology To develop non-grant financing mechanisms to enable investment in energy GEF GEF efficiency technologies in industry, commercial, residential, and transport sectors. Fishing Industry Survey To provide an updated and accurate source of information on the fishing industry. Iceland PEP Leasing Industry Development To grow the local leasing industry and build linkages between Finnish and Swedish Finland/Sweden PEP exporters and Russian companies in need of capital equipment. Legislative Reform To provide advice to the government to improve the transparency, consistency, and Core Funds FIAS efficiency of administrative procedures for business access to land and real estate. Machine Tools Evaluation To evaluate the economic benefit to the country of an initiative to modernize Germany PEP machine tools. occupational health Study To gauge, collate, and analyze perceptions of hIV/AIDS and other occupational Finland/IFC TATF/FMTAAS health issues in the private sector. Pilot Intermediaries Survey To survey specialized business intermediaries whose companies provide businesses Core Funds FIAS with services in order to help them deal with administrative barriers. Power and Insulated Cables Study To undertake a study of the technical, market, and financial aspects of the Italy TATF insulated power cable, telecom cable, and wire manufacturing industry. Primary Mortgage Market To grow the country's nascent residential mortgage market. Netherlands PEP Development Real Estate Administration To prepare a report on administrative barriers to land and real estate markets in Core Funds/uSAID FIAS Irkutsk oblast and recommend more competitive procedures in the allocation of land and real estate. volume 2 PAGE 15 project project Description Donor program Real Estate Administration To prepare a report on administrative barriers to land and real estate markets in Core Funds/uSAID FIAS Rostov oblast and recommend more competitive procedures in the allocation of land and real estate. SME Development To maximize local sourcing opportunities from Komi Republic to support local SME CBF PEP business growth. Sustainable Forestry To encourage investors to strive for sustainable forestry in their joint ventures and Finland PEP promote the forest industry as a potential resource for new investments. serbia and montenegro Alternative Dispute Mediation To support the establishment of an efficient mediation system for enforcing Canada/Netherlands PEP-SE commercial contracts. Constanza-Pancevo-omisalj-Trieste To create a strategy for the pipeline development company, promote the Austria/Italy TATF Pipeline commercial viability and bankability of the project, and attract the interest and participation of potential private sector investors. Corporate Governance To promote the benefits of good corporate governance and build the capacities of Switzerland PEP-SE key stakeholders to implement best practice. International Technical Standards To introduce and disseminate international technical standards and regulations Norway PEP-SE among companies in selected sectors. JAT Airways To assist the company, presently burdened with massive debts and operational Norway PEP-SE challenges, in transforming itself into a sustainable enterprise. Recycling Initiative To deliver sustainable development impacts by supporting profitable and Austria PEP-SE environmentally and socially responsible recycling businesses. Tigar Waste Project To address the company's waste problem by undertaking a greenfield investment Core Funds EoF project to recycle worn-out old tires and rubber waste. tajikistan Agribusiness Supply Chains To address shortages in the supply of raw materials in farming. Sweden PEP Development Farmer ownership Model To increase legal awareness of SMEs through a technical assistance program which Switzerland PEP supports the formation, development, and sustainability of the agricultural service company SugdAgroServ. Farmer ownership Model To improve the profitability and sustainability of local farms. Canada PEP Investment Climate Reform To help the government address shortcomings in the investment climate and assist Core Funds FIAS in building a more effective institutional framework for investment facilitation. SME Policy Development To reduce regulatory barriers to business by streamlining the inspections and Switzerland PEP permits systems at the level of the controlling agencies and the legislature. ukraine Agriculture Development To strengthen private agribusiness, improve the enabling environment, and Canada PEP increase public awareness of the agriculture industry. Banking Sector Corporate To improve the current state of internal governance in banks and the use of Switzerland PEP Governance corporate governance in their credit assessment of corporate clients. PAGE 160 IFc annual report 2006 project project Description Donor program Biogas Production To help utilize organic waste emanating from animal rearing operations and define Netherlands TATF the feasibility of fermenting the materials to generate biogas for combustion or bioethanol as an additive for motor fuel. Corporate Governance To improve the environment for private sector development and facilitate access Canada/Switzerland PEP to global financing by improving corporate governance practices. Food Safety Implementation and To conduct a gap analysis of two cheese manufacturing companies and help Core TATF/SFMF Certification Assistance them implement hazard Analysis and Critical Control Point procedures and Funds/Switzerland/IFC obtain certification. Leasing Industry Development To support the development of a sustainable leasing industry by advising leasing Netherlands PEP companies, government agencies, and businesses and education institutions on leasing issues. SME Policy Development To improve the business enabling environment for SMEs. European Commission PEP Vinnitsa Dairy Supply Chain To develop private farm enterprises, improve farm productivity and milk quality, Sweden PEP Development and promote milk safety awareness. Vinnitsa Fruit Supply Chain To develop private farm enterprises and improve farm productivity and Austria PEP Development agronomy practices. uzbekistan SME Policy Development To support SME development initiatives with factual information through Switzerland PEP monitoring the sector problems and simplifying select aspects of the regulatory system for SMEs. SME Policy Development To improve the regulatory climate for entrepreneurship in the key areas of Switzerland PEP inspections, permits issuance, and tax administration. LaTin aMEriCa and ThE CaribbEan REGIoNAL Microfinance Feasibility Study To assess the market for MSME finance in the region and to determine the Netherlands TATF feasibility of Republic Bank's broadening its financial products to address market demand. oECS Submarine Cable Project To build and operate a broadband network from Guadeloupe to an international France TATF gateway in Puerto Rico. SME Toolkit Adaptation To provide management tools to microfinance institutions and business Switzerland TATF/LAC TA development service providers to improve their performance when advising SMEs. Facility Sustainable Financial Management To build capacity for sustainable lending and investment in the emerging market Core Funds SFMF Workshop financial sector. Tourism Linkages To help the countries of the organization of Eastern Caribbean States Core Funds FIAS strengthen the backward linkages between the tourism industry and the rest of their economies. volume 2 PAGE 161 project project Description Donor program CouNTRy argentina Pan American Energy To increase economic opportunities for microentrepreneurs in communities near Core Funds LAC TA the company's Acambuco gas operations. Facility Bolivia Business Registration Reform To reinforce, consolidate, and extend the simplification reform for registering Switzerland LAC TA new firms. Facility Electropaz To improve the company's engagement with the local indigenous community Core Funds CCF through targeted contributions to development. Forestry Industry Development To address the issues affecting the provision of certified wood by forest Netherlands LAC TA communities and increase market access for related SMEs. Facility Trickle up Program To reinforce the business activities and capabilities of poor producers and artisans Core Funds SGBI to increase microenterprise profitability and sustainability. Brazil Amaggi To improve the company's practices in the cultivation and processing of soya Core Funds CCF through training and awareness-raising at the farm level. Amazon Paper Project To promote the company's products in national and international markets, support Core Funds SGBI its supply chain, and advise on business planning and management. Business Registration Reform To reduce the transaction costs associated with business registration by decreasing united Kingdom LAC TA the time and requirements necessary to obtain operation and construction licenses. Facility Elimination of Administrative To eliminate administrative barriers to investment at the subnational level in line uSTDA FIAS Barriers with the Doing Business indicators. Grassroots Income Project To identify and finance grassroots income-generating projects and assess the Core Funds SGBI outcome of this pilot project for further improvement and replication. Tribanco Brazilian Bank To strengthen the bank's financial intermediation role for family-owned IFC CBF MSME retailers. Colombia Business Regulation Reform To reduce the transaction costs of formalizing a business and improve companies' Core Funds LAC TA perceptions of the Bogota municipal inspection process. Facility/CBF Competitive Business Advantage To deliver a workshop to help financial institutions understand why and how to Core Funds SFMF Workshop manage the environmental and social issues associated with their lending and investment operations. Portal Nacional de Tramites To develop a single technological platform for formalizing a business across the Core Funds/Canada LAC TA country to allow rapid and efficient online registration. Facility Costa rica Implementation of Competition To implement a new competition policy to foster a market-friendly investment Core Funds/Canada FIAS Policy in Investment climate and reduce restrictive business practices. Grenada Financial Management Project To prepare the municipal government for diversifying its funding sources by IFC TATF enhancing its financial management and risk rating systems. PAGE 162 IFc annual report 2006 project project Description Donor program Guatemala housing Reconstruction Program To provide quality assurance services for sustainable housing reconstruction Netherlands TATF and construction and mitigate the impact of future hurricanes on the people in the region. Marlin Mine To financially support a community environmental monitoring committee for IFC CommDev the mine. Haiti Electricity Transmission Study To support a feasibility study of a project to connect haiti to a 100MW wind IFC TATF farm to be constructed in the Dominican Republic to help alleviate acute electricity shortages. Financial Audit of l'Electricite To conduct a financial audit according to international accounting standards and Canada TATF d'haiti an evaluation of the internal audit system and its reliability. Honduras Simplification of Business To reduce the cost, time, and number of requirements for the registration and Netherlands LAC TA Procedures operation of new businesses. Facility Jamaica Investment Climate Study To prepare a diagnostic report on the investment climate. Core Funds/united FIAS Kingdom Tourism Sector Study To prepare a study on the tourism sector. Core Funds/united FIAS Kingdom mexico Administrative Barriers to To reduce the time, cost, and procedures necessary to open a business, register Core Funds/Mexico FIAS Investment property, register collateral, and enforce contracts. Business Enabling Environment To reduce transaction costs for firms by reducing the amount of time and Core Funds LAC TA requirements necessary to open a business and obtain a construction permit. Facility nicaragua Business Registration Reform To reinforce and extend simplification reforms for obtaining municipal business Switzerland LAC TA operating licenses and construction permits. Facility FINDESA To support the MFI in its transformation to a formal banking institution. Core Funds LAC TA Facility Leasing Market Development To stimulate the country's financial leasing market by enabling legislative passage Switzerland LAC TA in the Nicaraguan Congress of a new leasing law. Facility Sustainable Supply Chain in the To create a business model for forest communities and SMEs using sustainable Core Funds/CBF LAC TA Wood Industry wood sources to expand access to local and international markets. Facility/CBF Wood Market Development To develop a business model that increases sales of local MSME furniture Netherlands LAC TA workshops by helping them access international markets. Facility peru Administrative Barriers To assess administrative barriers in the area of construction permits and provide Core Funds FIAS detailed recommendations for reform. Administrative Barriers to To address the quality of the investment environment and promotion strategy to Core Funds FIAS Investment attract new foreign direct investment. volume 2 PAGE 163 project project Description Donor program Biofuel Processing To support field testing of new Swedish technology to improve biogas harvesting, GEF GEF processing, and transport. Corporate Social Responsibility To increase the access of MSMEs to global markets by improving efficiency and Core Funds/Peru FIAS implementing corporate social responsibility standards. Government Best Practices To support the recognition of public sector institutions that have demonstrated Core Funds CBF Campaign best practices in public administration and improved service delivery. Improving Management in Mining To improve the management of mining canon flows and reserves by promoting Core Funds LAC TA sustainable changes in the institutional structure of municipalities. Facility National Plan Peru To reinforce and extend the simplification reform for obtaining a municipal Core Funds LAC TA operating license and construction permit. Facility Nesst Venture Fund To help a group of civil society organizations develop financially sustainable high- IFC CBF impact social enterprises. yanacocha Development Program To support a supplier development program that will build the capacity of local Core Funds CBF SMEs in the construction and transportation sectors. uruguay Public Engagement for uruguayan To facilitate negotiations between the Argentine and uruguayan stakeholders on Core Funds/IFC TATF/SFMF Pulp Mills issues and concerns surrounding the execution of the two pulp mill projects. MiddLE EaST and norTh afriCa REGIoNAL Corporate Governance Workshop To support the development and implementation of corporate governance codes Core Funds PEP-MENA of best practice in the region. Gender Entrepreneurship Markets To research the importance of women's entrepreneurship in private sector IFC GEM development, job creation, and economic growth. Mining Policy Reform Project To define policy recommendations for the development of the region's mining Core Funds PEP-MENA industries, with particular focus on legal, fiscal, and institutional frameworks. Sustainable Finance Capacity To hold sustainable finance awareness raising events across the region, to be Core Funds SFMF Building followed by Competitive Business Advantage workshops. Tameer Microfinance Bank To build the capacity of the bank to design and manage IT systems and operational Core Funds PEP-MENA launches, and promote staff training and gender awareness. CouNTRy afghanistan horticulture Export Development To enhance the performance of SME raisin and pomegranate producers in terms of Core Funds PEP-MENA/ product quality, productivity, and sales and export growth. SGBI Kabul university Business Skills To build the capacity of Kabul university to offer a business skills training program Core Funds PEP-MENA Project in order to upgrade the business skills of local entrepreneurs. PAGE 164 IFc annual report 2006 project project Description Donor program algeria CARE To assist CARE, an association of private entrepreneurs dedicated to economic Core Funds PEP-MENA reforms, to become a leading economic think tank doing evidence-based advocacy on selected topics. Doing Business Review To identify and implement reforms to improve the business enabling environment Core Funds PEP-MENA building on the findings of DoingBusiness. Increasing Lending to SME Sector To increase secure and profitable lending to SMEs through better portfolio risk Core Funds PEP-MENA management and improved collection procedures. SME Banking Best Practice To disseminate international best practice in credit risk management and train Core Funds PEP-MENA bankers in techniques to safely and profitably expand their credit operations. SME Promotion Council To improve the organizational capacity of the newly established consultative body Core Funds PEP-MENA on SME policy. egypt, arab republic of Commercial International Bank To improve the bank's retail banking operations and launch its SME Core Funds/uSTDA PEP-MENA lending operations. Corporate Governance Guidelines To promote private sector corporate governance best practice by increasing the Core Funds PEP-MENA capacity of specialist training and educational institutions. Egyptian Liquidity Facility To build the capacity of the mortgage facility to develop the housing finance Core Funds PEP-MENA market and increase home ownership. Estealam To establish the country's first private credit bureau. Core Funds PEP-MENA Industrial Estates Feasibility Study To attract investment into two pilot industrial estates by accommodating investors' Core Funds FIAS needs and providing adequate services. Nile Containers Terminal To ensure smooth transportation of containers by barges on the Nile delta between Netherlands TATF Cairo and Greater Alexandria. organic Waste Composting To help an agricultural company develop bare desert land by maximizing Spain TATF optimization Program the feasible volume of organic compost and production of the highest quality compost. Reducing Regulatory Burden To reduce the regulatory burden on the private sector by streamlining procedures Core Funds PEP-MENA/ needed to start a business. TATF Iraq Gender Entrepreneurship Markets To provide a learning forum for 20 Iraqi women SME entrepreneurs in response to Core Funds PEP-MENA a demand for women-specific business training. housing Construction Sector Study To promote a market-based housing industry and help understand the role of the Core Funds PEP-MENA private sector and SMEs in the housing construction sector. Iraq National Bank To develop the small business lending outreach of the bank through training and Japan/Spain TATF capacity building. Jordan Business Regulatory Reform Project To support the government of Jordan in implementing a comprehensive licensing Core Funds PEP-MENA/ and inspection reform program. TATF volume 2 PAGE 165 project project Description Donor program Cairo Amman Bank To provide the bank with a plan to improve its corporate governance policies Core Funds PEP-MENA and practices. Corporate Governance Guidelines To improve the corporate governance practices of the country's banks by drafting a Core Funds PEP-MENA voluntary bank-level corporate governance code for the sector. Leasing Regulatory Review To improve the leasing legislative framework to support the development of the Core Funds PEP-MENA local financial market and improve access to finance for SMEs. Queen Alia International Airport To expand airport capacity while improving commercial performance, service Core Funds PEP-MENA Expansion quality, and self-sustainability. Royal Jordanian Airline To assess the overall viability of privatizing the airline company. Core Funds PEP-MENA lebanon Reform and Private Sector Growth To raise awareness among key stakeholders on the specific reform activities Core Funds PEP-MENA necessary to promote stronger private sector growth. Simplifying Business Registration To reduce the regulatory burden on the private sector through a comprehensive Core Funds PEP-MENA/ review and restructuring of business registration procedures. TATF morocco Banque Centrale Populaire To strengthen the bank's credit risk management system in line with international Core Funds PEP-MENA best practice. Business Enabling Environment To identify and implement reforms to improve the business enabling environment, Core Funds PEP-MENA based on the findings of DoingBusiness. Central Bank of Morocco To assist the bank in implementing its decision to outsource its credit registry to a Core Funds PEP-MENA private sector company. Ionnovact SME Project To assist a leading business organization in supporting the research and Core Funds PEP-MENA development activities of SMEs. Service Provider Development To finalize the transformation of AZIT into a professional service provider to Core Funds PEP-MENA improve the working environment of SMEs in the industrial zone. SME Promotion To cooperate with ADIZIA to promote SMEs in the industrial zone of Ait Core Funds PEP-MENA Melloul, Agadir. Training Course Development To work with Confederation Generale des Entreprises du Maroc to professionalize Core Funds PEP-MENA business membership organizations by developing standardized training courses for their staff. oman Alliance housing Bank upgrade To help the bank upgrade and automate its loan origination, underwriting, and Core Funds PEP-MENA servicing systems. pakistan Alternative Dispute Mediation To establish a pilot mediation center to help mitigate expensive and lengthy court Core Funds PEP-MENA/ procedures for the private sector, especially SMEs. TATF Automotive Parts Sector To promote the development of the country's automotive parts sector. Core Funds/Denmark PEP-MENA Development Beaconhouse To develop a plan for implementing a new information and communications IFC TATF technology initiative. PAGE 166 IFc annual report 2006 project project Description Donor program DataCheck To help the company expand its product offering to include bureau risk scores, Core Funds PEP-MENA hosted application processing, and antifraud services. Earthquake Relief Matching Grant To support immediate post-earthquake relief efforts through a matching IFC TATF Scheme grants program. First Women Bank Limited To write a business plan and clarify the business potential of the bank with the Core Funds PEP-MENA goal of attracting new private strategic investors. house Building Finance To assist house Building Finance Corporation in its ongoing corporatization effort Core Funds PEP-MENA Corporation Advisory to achieve sustainability of operations and future growth. ICT Sector Development To promote the development of the country's information and communication Core Funds/Denmark PEP-MENA technology sector. National Bank of Pakistan To help the bank establish a new student loan asset class for private universities. Netherlands TATF Pakistan Business Council To assist in the establishment of a high-quality think tank doing evidence-based Core Funds PEP-MENA Establishment advocacy to help strengthen private sector growth. Private Sector Participation To introduce the private sector in the provision of water and sanitation services in IFC/Netherlands/ DevCo the district of Lahore through a possible long-term concession. Sweden/united Kingdom Value Chain Analysis To complete a value chain analysis with cost information ranging from the sourcing Core Funds/uSTDA FIAS of raw materials to delivery of the final product. Wind Power Pre-Feasibility To help the government of Pakistan develop a legal framework on renewable wind Spain TATF energy resources. saudi arabia SIMAh To develop existing credit information infrastructure by supporting SIMAh, a local Core Funds PEP-MENA bank-owned consumer credit bureau. syrian arab republic Foreign Direct Investment Study To provide an overview of the legal, policy, and institutional frameworks for Core Funds FIAS attracting foreign direct investment in the country. united arab emirates Abu Dhabi health Program To implement a new national health insurance program and privatize the Core Funds PEP-MENA government-owned hospitals and clinics. Corporate Governance Guidelines To help develop and publish a corporate governance guidelines handbook for the Core Funds PEP-MENA country's bank directors. Corporate Governance Guidelines To help minimize portfolio risk by advising Abu Dhabi Investment Authority Core Funds PEP-MENA appointed directors to promote and implement corporate governance best practice. Dana Gas Corporate Social To advise the company on establishing corporate social responsibility policies Core Funds CCF/PEP- Responsibility and processes. MENA West Bank and Gaza Barriers to Investment To help the Palestinian National Authority and international donors to identify key Core Funds FIAS constraints to private investment in the West Bank and Gaza. Corporate Governance Workshop To improve the corporate governance practices of banks and companies and Core Funds PEP-MENA introduce a new corporate governance code. volume 2 PAGE 167 project project Description Donor program Rafah Bank Review To conduct a review of the MFI's current strategy and develop an action plan to Core Funds PEP-MENA guide its launch. Yemen, republic of Leasing Law Review To establish a proper leasing regulatory environment and expand the leasing sector. Core Funds PEP-MENA Tadamon Islamic Bank To develop the MSME banking business for the bank by leveraging a pilot Core Funds PEP-MENA operation in the city of Taiz and building on key existing strengths. GLobaL Administrative Barriers to To revise and update the FIAS manual for the identification and removal of Core Funds FIAS Investment administrative barriers to investment, and to create the first of several solution design modules. Aureos Private Equity To channel technical and financial assistance to SMEs carrying out environmental Core Funds SFMF and social improvement projects. Capacity Building for Public-Private To develop a better environment for SMEs by building capacity among local Core Funds FIAS Dialogue stakeholders and providing tools and best practice knowledge to practitioners. Cleaner Production Allocation To promote Cleaner Production initiatives and accelerate the adoption of Cleaner Core Funds/Bavaria TATF/SFMF Production techniques by IFC's clients. Eco-securities Research and To conduct market research on the potential to use asset-backed securitization to Core Funds SFMF Development promote sustainable and responsible institutional investment in emerging market forest resources. Environmental, health, and Safety To update Part III of the Pollution Prevention and Abatement handbook and IFC IFC TATF Guidelines update environmental guidelines with broad financial and technical support from international financial institutions. FDI Flow Study To improve understanding of south-south foreign direct investment flows by IFC FIAS reviewing available resources on the topic. Financial Institution Market To publish a book highlighting sustainability-related products and services of Core Funds SFMF Research highest priority to emerging market financial institutions. Financial Institutions Technical To design, structure, and monitor technical assistance programs in target banks. IFC FMTAAS Assistance Fuel Cell Financing To support stationary fuel cell projects in eligible developing countries. GEF GEF Investment Climate Reform To understand the process of managing investment climate reforms to inform the Core Funds FIAS strategy, design, and implementation of Bank Group operations and projects. Regulatory Governance Toolkit To collect, develop, and disseminate insights on regulatory management and Core Funds FIAS reform that will enable staff to diagnose and provide solutions to client governments' regulatory reform strategies. Regulatory Reform Study To understand the political economy and institutional mechanisms of successful Core Funds FIAS regulatory reforms to assist governments in implementing good practices as learned from international experience. PAGE 168 IFc annual report 2006 project project Description Donor program Renewable and Sustainable Energy To develop market surveys, general regulatory reviews, and economic analysis of Netherlands TATF Program prototype renewable energy projects. Renewable Energy Efficiency Fund To make debt and equity investments in private sector projects in the renewable GEF GEF energy and energy efficiency sectors. Review of Impediments to To conduct a review of the major barriers to competition and the role that an Core Funds/united FIAS Competition effective competition law policy could play in alleviating these impediments. Kingdom Secured Lending Evaluation To determine common lending evaluation methodologies used by financial Netherlands TATF institutions to make the process of lending to SMEs more efficient. SME Benchmarking To develop best practice case studies and industry benchmarks on leading banks IFC TATF involved in SME finance in both developed and emerging markets. Study on the Effects of Tax on To increase understanding of the impact of tax administration on the investment Core Funds/united FIAS Business and business climate for poverty reduction. Kingdom Sustainable Finance Summit 2006 To influence the volume and quality of long-term portfolio investment in Core Funds SFMF sustainable and responsible emerging market companies. Sustainable Management Project To host a summit to plan new action within the international investment Core Funds SFMF community on mainstreaming sustainable, responsible investment. Trade Facilitation and Logistics To provide quantitative data to senior policymakers, private sector service Core Funds FIAS Supply Chain providers, and key public sector agencies about trade logistics performance indicators that reflect their trade competitiveness. Value Chain Assessment To improve awareness among task managers, researchers, and policymakers Core Funds/Norway FIAS about the effectiveness of the value chain framework for research and policy advisory services. VISA Credit Bureau Program To foster the development of private credit bureaus in emerging markets in VISA International TATF order to facilitate the extension of credit to previously underserved segments of the population. volume 2 PAGE 16 Board of Governors Governors and Alternates AsofJune30,2006 member Governor alternate a Afghanistan Anwar ul-haq Ahady Wahidullah Shahrani Albania Ridvan Bode Fatos Ibrahimi Algeria Mourad Medelci Abdelhak Bedjaoui Angola Ana Dias Lourenco Job Graca Antigua and Barbuda Errol Cort Asot A. Michael Argentina Felisa Josefina Miceli Martin Redrado Armenia Vahram Nercissiantz Karen Chshmarityan Australia Peter Costello Teresa Gambaro Austria Karl-heinz Grasser Kurt Bayer Azerbaijan Elman S. Rustamov heydar Babayev B Bahamas, The James h. Smith Ruth R. Millar Bahrain Ahmed Bin Mohammed Al-Khalifa Mahmood hashem Al Kooheji Bangladesh M. Saifur Rahman Md. Ismail Zabihullah Barbados Mia A. Mottley Grantley W. Smith Belarus Andrei V. Kobyakov Anatoly I. Sverzh Belgium Didier Reynders Guy Quaden Belize Mark A. Espat Carla Barnett Benin Pascal I. Koupaki Moudjaidou I. Soumanou Bhutan Lyonpo Wangdi Norbu (vacant) Bolivia Carlos Villegas Quiroga Luis Alberto Arce Catacora Bosnia and herzegovina Adnan Terzic Dragan Doko Botswana Baledzi Gaolathe Serwalo S.G. Tumelo Brazil Guido Mantega henrique de Campos Meirelles Bulgaria Plamen oresharski Dimitar Kostov Burkina Faso Jean Baptiste Compaore Lene Sebgo Burundi Dieudonne Ngowembona Leon Nimbona C Cambodia Keat Chhon Aun Porn Moniroth Cameroon Polycarpe Abah Abah Daniel Njankouo Lamere Canada James Michael Flaherty Robert Greenhill Cape Verde Joao Pinto Serra Leonesa do Maria Nascimento Lima Fortes Central African Republic Sylvain Maliko Edmond Gbegouda Gnikpingo Chad Mahamat Ali hassan Sobdibet hinsalbet Chile Andres Velasco Branes Alberto Arenas de Mesa China Jin Renqing Li yong Colombia Alberto Carrasquilla Santiago Montenegro Trujillo Comoros Imani younoussa Moindjie Saadi PAGE 170 IFc annual report 2006 member Governor alternate C (continued) Congo, Democratic Republic of Marco Banguli Jean-Claude Masangu Mulongo Congo, Republic of Pierre Moussa Pacifique Issoibeka Costa Rica Guillermo Zuniga Chaves Francisco de Paula Gutierrez Côte d'Ivoire Paul Antoine Bohoun Bouabre Charles Koffi Diby Croatia Ivan Suker Ana hrastovic Cyprus Michael Sarris Christos Patsalides Czech Republic Bohuslav Sobotka Miroslav Singer D Denmark ulla Toernaes Carsten Staur Djibouti Ali Farah Assoweh Simon Mibrathu Dominica Swinburne Lestrade Rosamund Edwards Dominican Republic hector Manuel Valdez Albizu Juan Temistocles Montas e Ecuador Diego Borja Cornejo Ruben Flores Egypt, Arab Republic of Mahmoud Mohieldin Fayza Abulnaga El Salvador Eduardo Zablah-Touche William J. handal Equatorial Guinea Jaime Ela Ndong Jose Ela oyana Eritrea Berhane Abrehe Martha Woldegiorghis Estonia Aivar Soerd Renaldo Mandmets Ethiopia Sufian Ahmed Mekonnen Manyazewal F Fiji Jone yavala Kubuabola Tevita Banuve Finland Eero heinaluoma Paula Lehtomaki France Thierry Breton Xavier Musca G Gabon Casimir oye-Mba Christian Bongo Gambia, The Mousa G. Bala Gaye Abdou B. Touray Georgia Aleksi Aleksishvili Irakli Chogovadze Germany heidemarie Wieczorek-Zeul Thomas Mirow Ghana Kwadwo Baah-Wiredu Anthony Akoto osei Greece George Alogoskoufis Plutarchos Sakellaris Grenada Anthony Boatswain Lennox J. Andrews Guatemala Maria Antonieta de Bonilla Lizardo Sosa Lopez Guinea Madikaba Camara Eugene Camara Guinea-Bissau Issufo Sanha Victor Luis Mandinga Guyana Bharrat Jagdeo Saisnarine Kowlessar H haiti Daniel Dorsainvil Raymond Magloire honduras hugo Rolando Noe Pino yani Rosenthal hidalgo hungary Janos Veres Tamas Katona volume 2PAGE 171 member Governor alternate I Iceland Valgerdur Sverrisdottir Arni M. Mathiesen India P. Chidambaram A. K. Jha Indonesia Sri Mulyani Indrawati hartadi A. Sarwono Iran, Islamic Republic of Davoud Danesh Ja'fari Mohammad Khazaee Torshizi Iraq Baker J. Al-Zubaidy Ali Gh. Baban Ireland Brian Cowen Tom Considine Israel Stanley Fischer yossi Bachar Italy Mario Draghi Ignazio Angeloni J Jamaica omar Lloyd Davies Wesley George hughes Japan Sadakazu Tanigaki Toshihiko Fukui Jordan Suhair Al-Ali Maher Madadha K Kazakhstan Karim Massimov Marat A. Kusainov Kenya Amos Kimunya Joseph Kanja Kinyua Kiribati Nabuti Mwemwenikarawa Taneti Maamau Korea, Republic of Duck-Soo han Seongtae Lee Kuwait Bader Meshari Al-humaidhi Abdulwahab Ahmed Al-Bader Kyrgyz Republic Akylbek Japarov Kurmanbek M. ukulov l Lao People's Democratic Republic Chansy Phosikham Phouphet Khamphounvong Latvia oskars Spurdzins Aigars Stokenbergs Lebanon Jihad Azour Alain A. Bifani Lesotho Timothy T. Thahane Moeketsi Majoro Liberia Antoinette M. Sayeh Toga McIntosh Libya Ahmed A. Menesi Ali Ramadan Shnebesh Lithuania Zigmantas Balcytis Ramune Vilija Zabuliene Luxembourg Luc Frieden Jean Guill m Macedonia, former yugoslav Republic of Nikola Popovski Maksud Ali Madagascar haja Nirina Razafinjatovo henri Bernard Razakariasa Malawi Goodall E. Gondwe David Faiti Malaysia Abdullah Ahmad Badawi Izzuddin bin Dali Maldives Qasim Ibrahim Abdullah Jihad Mali Abou-Bakar Traore Marimantia Diarra Malta Tonio Fenech Alfred Camilleri Marshall Islands Brenson S. Wase Jefferson Barton Mauritania Mohamed ould El Abed Isselmou ould Sidi El Moctar Mauritius Rama Krishna Sithanen Krishnanand Guptar Mexico Francisco Gil Diaz Alonso Pascual Garcia Tames Micronesia, Federated States of Nick L. Andon Lorin Robert PAGE 172 IFc annual report 2006 member Governor alternate m (continued) Moldova Mihail Pop Valeriu Lazar Mongolia Nadmid Bayartsakhan ochirbat Chuluunbat Morocco Fathallah oualalou Rachid Talbi Alami Mozambique Aiuba Cuereneia Pedro Conceicao Couto Myanmar hla Tun Myo Nwe n Namibia helmut Angula Carl-hermann G. Schlettwein Nepal Ram Sharan Mahat Bhoj Raj Ghimire Netherlands Gerrit Zalm Agnes van Ardenne New Zealand Michael Cullen John Whitehead Nicaragua Mario Jose Flores Mario Arana Sevilla Niger Ali M. Lamine Zeine Ramatou Diamballa Nigeria Nenadi E. usman olusegun o.o. ogunkua Norway Erik Solheim Anne Margareth Fagertun Stenhammer o oman Ahmed Bin Abdulnabi Macki Mohammed bin Nasser Al-Khasibi p Pakistan Salman Shah Khalid Saeed Palau Casmir E. Remengesau Lawrence Alan Goddard Panama Carlos A. Vallarino orcila Vega de Constable Papua New Guinea Bart Philemon Simon Tosali Paraguay Ernst F. Bergen S. Jorge von horoch Peru Fernando Zavala Lombardi Waldo Mendoza Bellido Philippines Margarito B. Teves Amando M. Tetangco, Jr. Poland Leszek Balcerowicz Jerzy Pruski Portugal Fernando Teixeira dos Santos Carlos Costa Pina r Romania Sebastian Vladescu Cristian Popa Russian Federation Aleksei Kudrin German o. Gref Rwanda James Musoni Monique Nsanzabaganwa s St. Kitts and Nevis Denzil Douglas Janet harris St. Lucia Kenny D. Anthony Len Ishmael Samoa Nickel Lee-hang hinauri Petana Saudi Arabia Ibrahim A. Al-Assaf hamad Al-Sayari Senegal Abdoulaye Diop Cheikh hadjibou Soumare Serbia and Montenegro Igor Luksic Mladjan Dinkic Seychelles Patrick Pillay Jacquelin Dugasse Sierra Leone John o. Benjamin Samura Kamara Singapore Tharman Shanmugaratnam Lim Siong Guan volume 2PAGE 173 member Governor alternate s (continued) Slovak Republic Ivan Miklos Elena Kohutikova Slovenia Andrej Bajuk Andrej Kavcic Solomon Islands Bartholomew ulufa'alu Shadrach Fanega Somalia (vacant) (vacant) South Africa Trevor Andrew Manuel Elias Lesetja Kganyago Spain Pedro Solbes M. David Vegara Figueras Sri Lanka Mahinda Rajapaksa P. B. Jayasundera Sudan El Zubair Ahmed El hassan Lual A. Deng Swaziland Absalom M.C. Dlamini Musa D. Fakudze Sweden Par Nuder Carin Jamtin Switzerland Joseph Deiss Micheline Calmy-Rey Syrian Arab Republic Amer hosni Lutfi Mohammad hamandosh t Tajikistan Safarali Najmuddinov Abdulaziz Sharipov Tanzania Juma Alifa Ngasongwa Gray S. Mgonja Thailand Thanong Bidaya Suparut Kawatkul Timor-Leste Maria Madalena Brites Boavida Aicha Bassarewan Togo yandja yentchabre Gilbert Bawara Tonga Siosiua T.T. `utoikamanu `Aisake V. Eke Trinidad and Tobago Conrad Enill Alison Lewis Tunisia Mohamed Nouri Jouini Abdelhamid Triki Turkey Ibrahim h. Canakci Memduh Aslan Akcay Turkmenistan Geldymurad Abilov (vacant) u uganda Ezra Suruma C. M. Kassami ukraine Stanislav Stashevsky Arseniy yatsenyuk united Arab Emirates hamdan bin Rashid Al-Maktoum Mohammed Khalfan Bin Khirbash united Kingdom hilary Benn Gordon Brown united States John W. Snow Josette S. Shiner uruguay Danilo Astori Carlos Viera uzbekistan Faizulla M. Mullajanov ulugbek Rozukulov V Vanuatu Willie Jimmy Tapangararua Simeon Athy Venezuela, República Bolivariana de Jorge Giordani Nelson Jose Merentes Diaz Vietnam Le Duc Thuy Phung Khac Ke Y yemen, Republic of Abdulkarim I. Al-Arhabi Mutahar Abdulaziz Al-Abbasi Z Zambia N'gandu Peter Magande Chibiliti Evans Chibiliti Zimbabwe herbert M. Murerwa Gideon Gono PAGE 174 IFc annual report 2006 Board of Directors Directors and Alternates and Their Voting Power Director alternate Director Casting Votes of total Votes percent of total appointed (vacant) Jennifer Dorn united States 56,62 23.66 (vacant)a Toshio oya Japan 141,424 5.87 Eckhard Deutscher Walter hermann Germany 12,158 5.36 Pierre Duquesne Alexis Kohler France 121,265 5.04 Tom Scholar Caroline Sergeant united Kingdom 121,265 5.04 elected Gino Alzetta Melih Nemli Austria, Belarus, Belgium, Czech Republic, hungary, 125,221 5.20 (Belgium) (Turkey) Kazakhstan, Luxembourg, Slovak Republic, Slovenia, Turkey Biagio Bossone Nuno Mota Pinto Albania, Greece, Italy, Malta, Portugal, Timor-Leste 101,758 4.23 (Italy) (Portugal) Dhanendra Kumar Zakir Ahmed Khan Bangladesh, Bhutan, India, Sri Lanka ,234 4.12 (India) (Bangladesh) Luis Marti Jorge Familiar Costa Rica, El Salvador, Guatemala, honduras, Mexico, 7,478 4.05 (Spain) (Mexico) Nicaragua, Spain, Venezuela (Republica Bolivariana de) Marcel Masse Gobind Ganga Antigua and Barbuda, The Bahamas, Barbados, Belize, 2,44 3.86 (Canada) (Guyana) Canada, Dominica, Grenada, Guyana, Ireland, Jamaica, St. Kitts and Nevis, St. Lucia Jan Willem van der Kaaij Anca Ciobanub Armenia, Bosnia and herzegovina, Bulgaria, Croatia, 87,113 3.62 (Netherlands) (Romania) Cyprus, Georgia, Israel, Macedonia (former yugoslav Republic of), Moldova, Netherlands, Romania, ukraine Thorsteinn Ingolfssonc Svein Aassd Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, 86,63 3.60 (Iceland) (Norway) Norway, Sweden Alexey G. Kvasov Eugene Miagkov Russian Federation 81,52 3.3 (Russian Federation) (Russian Federation) otaviano Canuto Jeremias N. Paul, Jr. Brazil, Colombia, Dominican Republic, Ecuador, haiti, 75,80 3.16 (Brazil) (Philippines) Panama, Philippines, Trinidad and Tobago Joong-Kyung Choi Terry o'Brien Australia, Cambodia, Kiribati, Korea (Republic of), 73,30 3.04 (Republic of Korea) (Australia) Marshall Islands, Micronesia (Federated States of), Mongolia, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Vanuatu Jaime Quijandria Alieta Guadagni Argentina, Bolivia, Chile, Paraguay, Peru, uruguay 64,144 2.66 (Peru) (Argentina) Pietro Veglio Jakub Karnowski Azerbaijan, Kyrgyz Republic, Poland, Serbia and 62,601 2.60 (Switzerland) (Poland) Montenegro, Switzerland, Tajikistan, Turkmenistan, uzbekistan herwidayatmo Nursiah Arshad Fiji, Indonesia, Lao People's Democratic Republic, 5,12 2.4 (Indonesia) (Malaysia) Malaysia, Myanmar, Nepal, Singapore, Thailand, Tonga, Vietnam Mathias Sinamenye Mulu Ketsela Angola, Botswana, Burundi, Eritrea, Ethiopia, The 58,873 2.44 (Burundi) (Ethiopia) Gambia, Kenya, Lesotho, Liberia, Malawi, Mozambique, Namibia, Nigeria, Seychelles, Sierra Leone, South Africa, Sudan, Swaziland, Tanzania, uganda, Zambia, Zimbabwe volume 2 PAGE 175 Director alternate Director Casting Votes of total Votes percent of total elected (continued) Sid Ahmed Dib Shuja Shah Afghanistan, Algeria, Ghana, Iran (Islamic Republic of), 45,80 1.1 (Algeria) (Pakistan) Morocco, Pakistan, Tunisia Mahdy Ismail Aljazzaf Mohamed Kamel Amr Bahrain, Egypt (Arab Republic of), Iraq, Jordan, Kuwait, 34,476 1.43 (Kuwait) (Arab Republic of Egypt) Lebanon, Libya, Maldives, oman, Syrian Arab Republic, united Arab Emirates, yemen (Republic of) Abdulrahman M. Almofadhi Abdulhamid Alkhalifa Saudi Arabia 30,312 1.26 (Saudi Arabia) (Saudi Arabia) Zou Jiayi yang Jinlin China 24,750 1.03 (China) (China) Paulo F. Gomes Louis Philippe ong Seng Benin, Burkina Faso, Cameroon, Cape Verde, Central 22,47 .5 (Guinea-Bissau) (Mauritius) African Republic, Chad, Comoros, Congo (Democratic Republic of), Congo (Republic of), Côte 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, 2005: Director end of period service alternate Director end of period service yahya Abdullah M. Alyahya April 30, 2006 Akbar Ali Khan August 2, 2005 (Saudi Arabia) (Pakistan) John Austin August 14, 2005 Anthony Requin october 11, 2005 (New Zealand) (France) Robert holland, III August 26, 2006 Tamara Solyanyk November 30, 2005 (united States) (ukraine) Ad Melkert February 28, 2006 (Netherlands) yoshio okubo June 14, 2006 (Japan) Chander Mohan Vasudev November 14, 2005 (India) Note:Somalia(333votes)didnotparticipateinthe2004RegularElectionofDirectors. a. MakotoHosomi(Japan)appointedeffectiveJuly14,2006. b. TobesucceededbyClaudiuDoltu(Romania)effectiveJuly24,2006. c. TobesucceededbySveinAass(Norway)effectiveJuly1,2006. d. TobesucceededbyPauliKariniemi(Finland)effectiveJuly1,2006. PAGE 176 IFc annual report 2006 iFC Management AsofJune30,2006 president1 Paul Wolfowitz Senior Manager, Business Development Timothy Krause (hong Kong) executive Vice president Lars Thunell Senior Regional Manager, Technical Asst. Warrick Smith Vice President and Corporate Secretary1 W. Paatii ofosu-Amaah and Advisory Services (hong Kong) Compliance Advisor/ombudsman2 Meg Taylor General Manager, PEP China (Chengdu) Mario Fischel Vice President, Asia and Latin America5 Farida Khambata General Manager, PEP Mekong (Phnom Adam Sack Vice President, Europe, Africa and the Edward Nassim Penh) Middle East5 General Manager, PEP Pacific (Sydney) (vacant) Vice President, Finance, and Treasurer Nina Shapiro General Manager, PENSA (Jakarta) Chris Richards Vice President, human Resources and Dorothy h. Berry Country Manager, Indonesia (Jakarta) German Vegarra Administration Country Manager, Philippines and Thailand Vipul Bhagat Vice President, Industries5 Declan Duff (Manila) Vice President, Risk Management5 Allen Shapiro (Acting) Country Manager, Vietnam, Cambodia, Laos Sin Foong Wong Vice President, World Bank/IFC Private Sector Michael Klein (hanoi) Development and IFC Chief Economist Manager, Strategy and Coordination Amitava Banerjee rEGionaL dEParTMEnTS south asia sub-saharan africa Director (New Delhi) Iyad Malas Director (Johannesburg) Thierry Tanoh Senior Manager (Mumbai) Sujoy Bose General Manager, PEP Africa (Johannesburg) Bernard Chidzero Senior Manager (New Delhi) Vipul Prakash Country Manager, Central Africa (Douala) Cheikh oumar Seydi General Manager, SEDF (Dhaka) Anil Sinha Country Manager, East Africa (Nairobi) Jean Philippe Prosper Manager, Strategy and Coordination Neil Gregory Country Manager, Ghana, Benin, Burkina Imoni Akpofure Faso, Côte d'Ivoire, Guinea, Liberia, Niger, Sierra Leone, Togo (Accra) Central and eastern europe Country Manager, Madagascar, Comoros, henri Rabarijohn Director (Moscow) (vacant) Mauritius, Seychelles (Antananarivo) Manager, Strategy and Coordination Kutlay Ebiri Country Manager, Mozambique and Babatunde onitri Manager (Moscow) Tania Lozansky Angola (Maputo) Country Manager, Nigeria (Lagos) Solomon Quaynor southern europe and Central asia Country Manager, Senegal, Cape Verde, Aida Der hovanessian The Gambia, Guinea-Bissau, Mali, Director (Istanbul) Shahbaz Mavaddat Mauritania (Dakar) General Manager, PEP Southeast Europe (vacant) Country Manager, Southern Africa Andrew Alli (Sarajevo) (Johannesburg) General Manager, PEP Southeast Europe-- Angelo Dell'atti Manager, SME Solutions Center Ibrahima Diong Infrastructure (Sofia) (Johannesburg) Manager (Istanbul) Snezana Stoiljkovic TA Coordinator (Istanbul) Antoine Courcelle-Labrousse east asia and pacific Director (hong Kong) Richard Ranken latin america and the Caribbean Associate Director, China and Mongolia Karin Finkelston Director (Rio de Janeiro) Atul Mehta (Beijing) Associate Director (São Paulo) Saran Kebet-Koulibaly volume 2 PAGE 177 Senior Manager (Buenos Aires) yolande Duhem Senior Manager, Nonbank Financial Marcos Brujis Institution, Regional Coordinator for Senior Manager (Mexico City) Paolo Martelli East Asia General Manager, LAC Facility (Lima) Anita Bhatia head, Banking Joao Lucas Duchene Country Manager, Colombia, Venezuela, Roberto Albisetti head, Financial Infrastructure and Peer Stein and Ecuador (Bogotá) Institution Building Country Manager (Lima) Marcene Broadwater Associate Director, operations Mamta Shah Manager, New Business Loy Pires Manager, Transaction Group Ayaan Adam Manager, Strategy and Coordination Eduardo Wallentin head, Regional Coordinator for South hans-Jorg Paris Resident Representative (Santo Domingo) Salem Rohana Asia and MENA Resident Representative (Port of Spain) Kirk Ifill head, Regional Coordinator for Southern Mengistu Alemayehu Europe and Central Asia head, Regional Coordinator for Europe Rosy Khanna middle east and north africa and Central Asia Director (Cairo) Michael Essex head, Special Projects Jean-Marie Masse Associate Director (Algiers) Abdelkader h. Allaoua Associate Director, operations, Africa and James Scriven Senior Manager (Dubai) Azmat Taufique Latin America and Caribbean Regions General Manager, PEP-MENA (Cairo) Jesper Kjaer Manager, Regional Coordinator for Serge Devieux Latin America Manager Mariko higashi head, Regional Coordinator for Africa Atsuko horiguchi Manager (Cairo) Michael higgins Manager (Cairo) Gulrez hoda Global Information and Communication technologies3 induSTry dEParTMEnTS Director Mohsen Khalil agribusiness Manager, New Investments Stephanie von Friedeburg Director Jean-Paul Pinard Manager, Portfolio and Credit Review (vacant) Associate Director, Portfolio and Macadou N'Daw Credit Review Global manufacturing and services Senior Manager, New Investments oscar Chemerinski Director Dimitris Tsitsiragos Senior Manager, Portfolio, Sub-Saharan George M. Tiller Global Financial markets Africa (Johannesburg) Director Jyrki Koskelo Senior Manager Sergio Pimenta Associate Director, Field and Portfolio Mark Alloway Manager, Global Transaction Group Milton Wanyama Portfolio Manager, Central and Eastern Alireza Zavar Manager, Portfolio, East Asia (hong Kong) S. Balasubramanian Europe (Moscow) Manager, Portfolio, South Asia (New Delhi) Colin Warren Portfolio Manager, East Asia (hong Kong) William haworth Manager, Portfolio, Southern Europe and Antonio David Portfolio Manager, Latin America and Shamsher Singh Central Asia (Istanbul) Caribbean (Rio de Janeiro) Manager Stephanie Freymann Portfolio Manager, South Asia and MENA Jan Van Bilsen Portfolio head, MENA Carsten Mueller Region (Dubai) Portfolio Manager, Southern Europe and Martin Kimmig Central Asia (Istanbul) Health and education Portfolio Manager, Sub-Saharan Africa Dolika Banda Director Guy Ellena (Johannesburg) Manager, Credit Review and Portfolio Sybile Lazar Associate Director, Financial Engineering Shidan Derakhshani Manager, New Business Patrick Leahy Senior Manager, Institution Building & Georgina Baker New Product Development Senior Manager, Microfinance S. Aftab Ahmed PAGE 178 IFc annual report 2006 Infrastructure Controller's and Budgeting Director Francisco Tourreilles Director (effective9/1/06) Christian Grossmann Senior Manager, Infrastructure Amnon Mates Senior Manager, Budgeting Richard J. Moss Senior Manager, Portfolio and Credit Review Apinya Suebsaeng Manager, Financial Reporting and Paul B. Bravery Accounting Policy Senior Manager, Transport Services Ravinder Bugga Manager, Internal Controls and Nicholas Pardoe Manager, New Investments Darius Lilaoonwala Special Projects Manager, Portfolio Pierre Bouvery Senior Adviser, Loss Provisioning Guy A. de Clercq Manager, Public-Private Partnerships and Morgan Landy Renewable Energy Corporate Business Informatics Manager, utilities usha Rao-Monari Chief Information officer Guy-Pierre de Poerck Senior Manager, Development and Wajdi Bustani oil, Gas, mining, and Chemicals3 Informatics Director Rashad-Rudolf Kaldany Manager, Business Informatics Paul Standen Associate Director, oil and Gas Somit Varma Senior Manager, Mining Kent E. Lupberger Corporate Governance Senior Manager, Portfolio and Credit Review Kalada harry Director Teresa Barger Manager, Chemicals Lance Crist Corporate portfolio management private equity and Investment Funds Director Marc Babin Director haydée Celaya head, Equity and Portfolio Management Sebastian Thiriez Manager, New Business Maria Kozloski Manager, Portfolio operations David Wilton Corporate relations Senior Manager Bruce Moats small and medium enterprises Director Laurence Carter Credit review Senior Manager Max Aitken Director Sakdiyiam Kupasrimonkol Manager, Donor-Funded operations Mariann Kurtz-Weber Chief Credit officer Paul Baribeau Manager, Linkages Sujata Lamba Chief Credit officer Monish Dutt Manager, Training and Knowledge Sita Ramaswami Chief Credit officer Robin Glantz Management Chief Credit officer Flavio Guimaraes Chief Credit officer Manuel E. Nunez trust Funds Chief Credit officer Vincent Polizatto Director Mwaghazi Mwachofi Chief Credit officer Richard P. Roulier Chief Credit officer C. John Wilson dEParTMEnTS advisory services environment and social Development Director Bernard Sheahan Director Rachel Kyte Manager, Privatization Policy and David Donaldson Transactions (Johannesburg) Associate Director, Investment Support William Bulmer Group Manager, Environmental Finance Group Shilpa Patel Business risk Group Manager, Knowledge and Innovation Group Richard Caines Director udayan Wagle volume 2 PAGE 17 Financial operations operational strategy Director Avi hofman Senior Manager Toshiya Masuoka Senior Manager, Loan and Equity Soon-Wan ooi operations Support private sector Development Manager, Investment Accounting, Karen Jones Compliance, and Custody Director, Investment Climate Pierre Guislain Manager, Project Risk Management Edward Strawderman Senior Manager, Foreign Investment Thomas Davenport Advisory Service Manager, Monitoring and Analysis Group Simeon Djankov Grassroots Business organizations Manager, Development Effectiveness Roland Michelitsch Director harold Rosen Lead Economist (Sydney) Russell Muir Human resources and administration resource mobilization Vice President Dorothy h. Berry Director Ritva Laukkanen Associate Director, hR Development Esteban Altschul Manager, B-Loan Management Matthew Bauer Manager, Donor-Funded operations Anne Sahl Manager, Syndications Stefania Berla Manager, Facilities and Administration Elizabeth Casqueiro Manager, Leadership Development Eva Mennel risk management and Financial policy Manager, Recruitment Malte von Putbus Director Lakshmi Shyam-Sunder Manager, Staff Development Daniel Tytiun special operations Independent evaluation Group4 Director Maria Da Graça Domingues Director Denis Carpio (Acting) treasury legal Department Deputy Treasurer--head of Funding John Borthwick General Counsel Jennifer Sullivan Deputy Treasurer--head of Liquid Asset Mark Spindel Deputy General Counsel David McLean and Cash Management Chief Counsel (Istanbul) David harris Deputy Treasurer--head of Derivative Shanker Krishnan Products and Asset Liability Management Chief Counsel Christian Philip Deputy Treasurer--head of Quantitative Takehisa Eguchi Manager Sabina Beg Analysis Manager John Coogan Deputy Treasurer--Global head of Lee Meddin Manager Caroline Kahn Structured Finance Manager Fady Zeidan oThEr municipal Fund Director, Tokyo office hiroshi Arichi Director Vincent Gouarne (Acting) Special Representative in Europe (Paris) Wolfgang Bertelsmeier Special Representative in Europe (Frankfurt) oltmann G. Siemens 1. TheseofficersholdthesamepositionintheWorldBank. 2. ReportsdirectlytoWorldBankGroupPresident. 3. ReportstoWorldBankVicePresident,Infrastructure,aswellasIFCVicePresident,Industries. 4. ReportstoDirector-General,IndependentEvaluation,WorldBankGroup;toIFCExecutiveVicePresidentforadministrativepurposes. 5. AsofJuly1,2006. PAGE 180 IFc annual report 2006 aCronYms, notes, anD DeFInItIons aCronYms notes anD DeFInItIons CaO Compliance advisor/Ombudsman the fiscal year at IFc runs from July 1 to June 30. Fy fiscal year Thus, Fy06 began on July 1, 2005, and ended on GDP gross domestic product June 30, 2006. iBrD international Bank for reconstruction Investment amounts are given in U.S. dollars unless and Development otherwise specified. iCSiD international Centre for Settlement of investment Disputes on-lending is the process of lending funds from iFC's iDa international Development association own sources through intermediaries, such as local banks ieG independent evaluation Group and microfinance institutions. iFC international Finance Corporation participants and IFc fully share the commercial iMF international Monetary Fund credit risks of projects, but because iFC is the lender of MiGa Multilateral investment Guarantee agency record, participants receive the same tax and country MPDF Mekong Private Sector Development Facility risk benefits that iFC derives from its special status as a PenSa Program for eastern indonesia SMe assistance multilateral financial institution. PeP Private enterprise Partnership Quasi-equity instruments incorporate both loan and PeP africa Private enterprise Partnership for africa equity features, which are designed to provide varying PeP-Mena Private enterprise Partnership for the degrees of risk/return trade-offs that lie between those Middle east and north africa of straight loan and equity investments. PeP-Se Private enterprise Partnership for Southeast europe rounding of numbers may cause totals to differ from SeDF Southasia enterprise Development Facility the sum of individual figures in some tables. SMe small and medium enterprise the World Bank includes both iBrD and iDa. the World Bank group includes iBrD, iDa, iFC, MiGa, and iCSiD. volume 2 PAGE 181