23461 I Volume 1 __ _I _ ___ _ 7i <,!' D I F F E R E N C E t, 2 O 0 1 A N N U A L R E P O R T INTERNATIONAL FINANCE CORPORATION World Bank Group International Finance Corporation Since its founding in 1956 iFC has committed more than $31 billion of its own funds and has arranged $20 billion in syndications for 2,636 companies in 140 developing countries. IFC coordinates its activities with the other institutions in the World Bank Group-the International Bank for Reconstruction and Development, the International Development Association, and the Multilateral Investment Guarantee Agency-but is legally and financiailly independent. Its 175 member countries provide its share capital and collectively determine its policies. The IFC Annual Report on the Web: www.ifc.org/ar2001 Enhanced this year for easier navigation and searches for IFC investment and portfolio projects. Note. Management's discussion and analysis, the audited financiai statements, and IFC's fiscal year 2001 investment portfolio appear in Volume 2 of the annual report. Currency is given in U.S. dollars throughout unless otherwise specified. .. ~ ~~~ ~ ~~ ~ ~ H E E~~ ~~~ I F.. REN Financial Highlights 2 Letter to the Board of Governors 4 Message from the Executive Vice President 5 The IFC Difference 8 Why IFC? 20 Products and Services 22 Adding Value: Good Business the IFC Way 24 Evaluating Performance 28 Ensuring Accountability 29 Operations 30 Regional Reports Sub-Saharan Africa 36 Asia & the Pacific 42 Europe & Central Asia 48 Latin America & the Caribbean 54 Middle East & North Africa 60 Annual Review Financial Review 65 Portfolio Review 69 Operations Evaluation Review 72 Project Commitments 73 Project Approvals 90 Technical Assistance & Advisory Projects 97 Appendixes 105 Acronyms, Notes, & Definitions 120 INTERNATIONAL FINANCE CORPORATION World Bank Group FINANCIAL HIGHLIGHTS OPERATIONAL RESULTS SUMMARY, FY 2001 New projects committed 205 Total financing committed $ 3.9 billion Financing committed for IFC's own account $ 2.7 billion New projects approved 240 Total financing approved $ 5.4 billion Financing approved for IFC's own account $ 3.7 billion Total disbursed loan & equity portfolio*t $ 10.9 billion Equity as a % of disbursed portfolio 25%OG Loans as a % of disbursed portfolio 75%, RESOURCES AND INCOME, FY 2001 Operating income $ 241 million Paid-in capital $ 2.4 billion Retained earnings $ 3.7 billion Borrowing for the fiscal year $ 3.6 billion * Does not include guarantees and risk management products t For IFC's own account as of June 30, 2001 em * S Mm S _ 5 APPROVALS BY SECTOR $ millions % APPROVALS BY PRODUCT $ millions Financial' 1,797 33.5% Loans* 2,793 Utilties & transportation 1,207 22.5% Equity & quasi-equity 949 Information 739 13.8% Syndicated loans/underwriting 1,615 Industrial & consumer products 479 8.9% Other 1,135 21.2% n TOTAL $5 357 21 2 = & Lu -ec i, lief --, -nrs- c ad - tecr, en,e h e-s d nc -e . ..ar es an sk -,a . .ee.ent prr-ctS M II COMMITMENTS BY SECTOR $ millions % Financal 1,185 30.2 Utilities & transportation 827 21.0 Information 701 17.8 Oil, gas, & mining 309 7.8 Industrial & consumer products 151 3.8 Nonmetallic mineral product manufacturing 149 3.8 Health care & education 139 3.5 Chemicals 118 3.0 Primary metals 71 1.8 Other 281 7.2 TOTAL COMMITMENTS $3,931 A Iconmitment data include guarantees and rsk management IncIud esfinance, insurance, and col ective investment venicues COMMITMENTS BY REGION $ millions Sub-Saharan Africa 642 Asia & the Pacific 784 Europe & Central Asia 510 _ Latin Amerlca & the Caribbean 1,017 Middle East & Nnrth Africa 956 /n / ~~~GInual 22 TOTAL $3,931 S nanhran Mr1 a - Lat r A -nrina & :50 Carinbban A- & thecn _ M ddei -as,t & N,,r- Aia nEr.;- & Centrn As a _ Goba COMMITMENTS BY PRODUCT $ millions Loans 1 526 Guarantees & risk management 570 Equity & quas -equity 636 syndicated loans 1,199 TOTAL $3,931 _ ncans flGennitnnnaee &n ir nk anausianni - w Eqi,,z & ... s .ecLty _ SvlnlW31c loans IFC strategy empha,.-e setr ageted for th-i Nighr p.t-nt1iafor -uta ned d,,,e1op-nt rpac 1 0 --- - -- - ---- - -- -- - - S - -- -- - - - - - - - - - - 40 - - ---- ------------- -------- -------- 400 -- F-a t cIz YeSnf P s necss hE o < _ _ ffi Lb .~~~~~--- Heelth & fdu.aicni FYQ1 Co=- tments W No n ud ng f11.r nt rn -nd --m n_nt orsn_Id , uwi t e* ard ta-ponst o .5h. LETTER to the BOARD of GOVERNORS The Board of Directors of the International Finance Corporation has had this annual report for the fiscal year ended June 30, 2001, prepared in accordance with the Corporation's by-laws. James D. Wolfensohn, president of IFC and.1 chairman of the Board of Directors, has submitted this report with thet accompanying audited financial statements to the Board of Governors. The Directors are pleased to report that in fiscal 2001 IFC continued to expand its positive developmental impact through private sector project financing operations and advisory activities. DIRECTORS' ALTERNATES Abdul Aziz Mohd. Yaacob Nguyen Doan Hung Girmai Abraham Richard H. Kaijuka Khalid M. Al-Saad Mohamed Kamel Amr Yahya Abdulla M. Alyahya Abdulrahman M. Almofadhi Andrei Bugrov Eugene Miagkos Yuzo Harada Masanori Yoshida Neil F. Hyden Lewis D. Holden Finn Jonck Anna M. Brandt Matthias Meyer Jerzy Hylewski Jean-Claude Milleron Emmanuel Moulin Terrie O'Leary Sharon Weber Franco Passacantando Helena Cordeiro Philippe M. Peeters Emin Dedeoglu FROM LEFT TO RIGHT: Andrei Bugrov, Girmai Abraham (seated), Finn Jonck, Balmiki Prasac Singh, Neil F. Hyden, Jean-Claude Milleron (seated), Matthias Meyer, Rosemary B. Stevenson' Stephen Pickford Rosemary B. Stevenson (seated), Terrie O'Leary, Philippe M. Peeters, Bassary Toure, Moises Pineda (seated), Pieter Stek Jan Piercy, Helmut Schaffer, Jaime Ruiz (scated), Mario Soto Platero, Mohamed Kamel Amr' Jan Piercy (vacant) Ahmed Sadoudi (seated), Franco Passacantando, Yahya Abdulla M. Alyahya, Yuzo Harada (seated), Moines Pineda Jose H. Machillanda ZZhu Guangyao, Abdul Aziz Mohd. Yaacob. Jaime Ruiz Luis Antonio Balduino -alternate director Ahmed Sadoudi Inaamul Haque Helmut Schaffer Eckhardt Biskup Balmiki Prasad Singh Mahbub Kabir Mario Soto-Platero Roberto Garcia-Lopez z Pieter Stek Tamara Solyanyk Bassary Toure Paulo F. Gomes Zhu Guangyao Chen Huan As of June 30, 2001 4 ~ ~ _ MESSAGE from the EXECUTIVE VICE PRESIDENT At IFC, we are optimists. We have to be. Our mission is to make progress against one of the oldest, deepest, and seemingly most intractable problems of humanity; poverty. That mission requires a philosophy of hope. It requires us to engage, inform, invest, and innovate, And keep at it. Even in times such as this past year. These sobering economic trends are a powerful The year started with bright prospects. We were reminder that growth cannot be taken for granted. looking at a global economy-in particular, world Nor can we take for granted the social, economic, trade-that was growing at record rates. and political frameworks that are necessary In the wake of the Asian financial crisis of 1998, for growth. private investment seemed poised for a strong Economic globalization can be reversed, as return to emerging markets. Indeed, it was on an happened a century ago. Unforeseen challenges can upswing. Advances in information technology also emerge. Lessons of past mistakes can be and telecommunications were raising hopes of forgotten or rejected, particularly by those who fail far-reaching productivity gains. Those gains, in to prosper in the global economy. turn, held the promise of spurring robust growth So our challenge at IFC is to do more than and a reduction in inequality. expand our investments in developing countries. It Much of that has changed, of course. The is to demonstrate that responsible, sustainable, and global economy slowed sharply in 2001. Private environmentally sound economic growth led by lending to emerging markets is now falling. Political the private sector is still possible in these markets. problems in several emerging markets have delayed It is to demonstrate that the freedom inherent in economic reforms and are now being exacerbared well-regulated markets over the long run still by the world economic slowdown. Optimism provides the greatest chance for the greatest number surrounding the high-tech sector has dissipated. of people to thrive and succeed. BRETON LITTLEHALES I LEM_ President Janes D. Wolfensohn and Executive Vice President Peter Woicke. Building on Our Strengths The theme of this year's annual report is "the IFC Innovation difference." I would argue that among the most IFC's record of creative and path-breaking initia- important characteristics of IFC are its long-term tives in the financial sector is second to none. We perspective, ability to innovate, and willingness to believe this not only helps create robust local insti- renew itself. Our growth in investments this past tutions and deepen markets, it widens access to year has not matched that of recent years. During capital and helps buffer the volatility of the global the 2001 fiscal year, operating income declined 37 economy for developing nations. About one-third percent from the previous fiscal year to $241 of our investments this year were made in the finan- million, mainly due to unfavorable economic cial sector. Those investments will make a tangible conditions that affected our portfolio. Gross invest- difference in the lives of home buyers, employees, _a Z ment commitments rose slightly to $3.93 billion, entrepreneurs, and business owners. while commitments for our own account rose 14 This year, assistance to microfinance institu- percent to $2.73 billion. More important than tions helped create self-employment opportunities these numbers, however, is the challenge that we for the poor in countries such as Bolivia, Bosnia and have set for ourselves and the course upon which we Herzegovina, Mexico, Moldova, and Ukraine. We have embarked. Increasingly, we are seeking to add assisted in establishing Namibia's first merchant value to projects in ways that go far beyond the bank, which will provide investment services to provision of capital. local businesses. We also helped promnote the issue of mortgage-backed securities by Mexico's Su Long-term perspective Casita, which will in turn provide housing finance Despite the ups and downs of this past year, we to lower-middle-class families. These are just a few have kept a long-term perspective and set even examples of the nearly $1.2 billion in gross finan- higher goals for IFC. For example, several years cial sector investment transactions signed this year. -= -ago we decided to place a strategic emphasis on a I am especially proud of our achievements in few sectors with strong development potential- supporting clients through structured finance prod- even though they might be more difficult to ucts and innovative risk management techniques. pursue. This year, the combination of those Recent innovations include partial guarantees and priority sectors-financial institutions; infra- credit enhancement products tailored to specific structure; information and communications tech- clients and markets. Guarantees increased to $547 nologies; small and medium enterprises; and social million in FY 2001. sectors, such as health and education-climbed to In India alone, we were able to help companies more than 70 percent of gross investment like Bharti Telecom and textile company Ballarpur commitments. Industries gain more affordable long-term financing Our investments targeting small and medium for their businesses through IFC partial credit guar- enterprises grew to 14 percent of gross investments. antees. These transactions broke new ground in the More than ever, we are working with large busi- domestic market and are likely to open new debt nesses to develop opportunities for these financing opportunities for other companies. Using enterprises. We are increasingly, through financial securitization techniques, we helped launch India's intermediaries rather than directly, supporting first private sector student loan program, thereby smaller and riskier projects undertaken with local providing a model for future programs. business sponsors. We expanded our reach in high-risk or low- Renewal income countries. More than 40 percent of our This year, the IFC Management Group asked our investments for our own account this year were strategists to reappraise the way that IFC made in countries falling into one or both of approaches development. In years past, our those categories. approach to development had sought to maximize Committed financing activities in the Middle economic benefits but merely satisfy environmental East and North Africa increased from $106 million and social requirements. But we have come to last year to $956 million in FY01, and we recognize that a more comprehensive approach to saw an 86 percent increase in commitments in development is essential to reducing poverty and Sub-Saharan Africa to $642 million. We more than improving lives. So our new Sustainability Initiative doubled commitments for our own account during seeks to take us beyond minimum standards, the past fiscal year in the South Asia and the East toward an approach that increases the environ- Asia and Pacific regions to $767 million. mental and social benefits of investments. Fortunately, this new approach builds on local issues such as community relations, the busi- progress underway. It builds on our pioneering ness environment, and the qualiry of air and water work at the project level. Por example, this year in affect firms' markets, costs, and risks. It means Peru, we supported a medium-sized ecotour actively pursuing more direct ways to help local venture that promotes sustainable environmoental communities participate in productive economic and social development in the rain forests. We also activity. It means factoring in the social or envi- supported a guarantee program that convinced ronmental impacts of one's operations, not avoiding Hungarian banks to lend money to improve them. It means demonstrating to firms that they P energy efficiency. have a long-term interest in more transparency and We recognize that this renewal of our mission better corporate govemrance. It means developing ;- will require more thatn new ideas. It will require explicit sustainability measures for IFC personnel. reorienting the capacity and expertise of IFC. But It means working to promote efficient use of the as I look around IFC today, I see incredible poten- natural resources associated with our investments. X tial. We have a vibrant intellectual partnership with Our challenge is to help developing nations use other members of the World Bank Group. We have this new model as they grow. It is to identify busi- increased synergy by merging key departments with ness partners who can both compete successfully the World Bank. And we have momentum. A and incorporate sustainability. It is to help the decade ago, IFC employed a single environmental leaders in sustainability while ensuring that other specialist. Today we employ more than 40, and firms and sectors are not left behind. environmental and social safeguards are an integral There is no road map for achieving this goal. and growing part of rhe investment process. There are no easy solutions. This is not the best With our clients, we are learning a new vway of time to be attempting this rcdefinition of our basic doing business. The old model of business was the philosophy. But we are very proud of the progress model of the Carnegies and Rockefellers. They of the past year. made enormous sums of money first, then gave The credit, of course, goes to the extraordinarily . i t part of their wealth back to their communities and talented and diverse team of men and women who the nation. Andrew Carnegie called it the "Gospel work at IFC. Together, we are making progress in .... . .... of Wealth": money first, and then responsibility, reducing poverty and improving lives. Together, we through taxes, philanthropy, and grants. are building an institution that will sustain those The new model-the model IFC is devel- aspirations. We are optimists. oping-is fundamentally different. It recognizes 4 the speed and the needs of the new millennium. It recognizes that financial success is compatible with a broader social responsibility as wealth is / being created The new Gospel of Wealth means responsibility in "real time," from the start. / 7if A k What does this mean? It means understanding how both global issues such as climate change, labor standards, and natural resource preservation and Peter Woicke, Executive 'lice President - z 0 TH E:T C zo UDI FFE At IFC, our difference is our strength. In a world full of potential entrepreneurs but risk-averse commercial lenders and investors, IFC fills a unique role. IFC is the only multilateral institution that provides both affordable capital and global experience to private businesses in developing nations. Our unique position generates a different way of fostering market-oriented development. There is a difference in our knowledge of markets and experience in structuring transactions in developing countries. There is a difference in the good corporate governance principles we promote. There is a difference in the strength of our partnerships with project sponsors, local communities, and others that benefit from the projects we finance. There is a difference in the high environmental and social standards our projects meet. The value we add to each transaction and advisory project we under- take sets us apart as a financier of business in the developing world. RENCEI IFC has been promoting good business practices for many years. For nearly a decade, we have worked systematically to advance better environmental and social outcomes and stronger corporate governance by increasing our due diligence and internal capacity in those areas. Today, we strive to demonstrate best practices through the projects we finance and the policies we follow. We are focusing our efforts more strategically on projects where we can have the strongest developmental impact. This is taking us to countries where the private sector is undeveloped and into sectors that have not traditionally attracted private sector financing. We are focusing especially on investments in the financial sector, which is essential to expanding access to capital. In many cases this support results in increased financing for small and medium enterprises. The other sectors we are targeting are infrastructure, information and communication technologies, and social sectors such as health and education. This year over 70 percent of our committed investments involved target sectors, and 14 percent related to small and medium enterprises. Building on our strengths, we are determined to become a more effective leader of the private sector in promoting sustainable development. We are committed to showing that a greater awareness of the risks and opportunities related to environmental, social, and corporate governance factors can be part of a business strategy to produce better profits through growth, improved efficiency, lower costs, increased revenues, better access to capital, and a more positive brand image. That positive image, backed up by positive action, can reduce the risks for companies that recognize a broader responsibility to society and local communities. The financial and economic viability of projects remains at the heart of our approach to long-term sustainability. As we go forward, our staff and business partners must do more than incorporate environmental, social, and minority investor safeguards into the private sector projects that we finance. A sustainable approach to doing business means linking together the strengths IFC already brings its clients, thus enabling us to deliver "the IFC difference" in a more coherent, efficient, and innovative way. INNOVATIVE T E C H N I Q U E S IFC strives to demonstrate the long-term viability of markets and mobilizes private financiers to take risks they would be unwilling Fto take on their own. A long-term perspective allows us to finance new opportunities in frontier markets. In countries and sectors with limited access to capital, we seek innovative ways to make our projects successful ard encourage others to follow once we have paved the way. With our large clients, this year we established access to more affordable sources of domestic and innovative programs that support small and medium foreign capital. The use of guarantees grew rapidly enterprises in markets with poorly developed private this year to $547 million in transactions signed, up sectors. With steelmaker Ispat Karmet in Kazakhstan from $3.8 million the previous year. Through our we provided advice and approved a project to finance first local currency partial credit guarantee in India, the inclusion of smaller local businesses in the steel we helped pulp and paper manufacturer Ballarpur production supply chain. We are developing similar Industries raise its credit rating and lengthen projects with the sponsors of the Chad-Cameroon the maturity of its bond issue, which set a bench- Petroleum and Pipeline Development project and mark for domestic long-term private bond issues (see the Mozal Aluminum project in Mozambique. p. 46). We also worked with clients this year in Through credit guarantees, in which IFC Bolivia and Indonesia to structure risk management assumes all or part of a borrower's liability in the transactions to manage currency risk by better event of default, we are providing businesses with matching liabilities with revenues. BELOW: Bhartiya Samruddhi Finance provides financial services to the rural poor to promote sustainable livelihoods. This family received a loan for their small business. to This year, we helped banks and participation. This year we supported other financial institutions expand pri- IWorld, a project to establish a global ' GUARANTEES Volume Cornm[itted vate sector economic opportunities. We Interner portal for the infrastructure are leading the development of mort- sector. IFC structured a bond issue for 600- gage-backed securities markets in Latin Bharti Telecom to enable the company America, for example, which will to connect its network to smaller towns result in better access to housing and in India that lack cellular service. The 400- - - - strengthen financial institutions through issue was structured as three different more effective asset management. We offerings with tenors of five, eight, and 9 300- -- -- committed or approved financing to ten years to target different investor promote the first major issues of market segments. IFC spent consider- ,, 200- mortgage-backed securities in Mexico able time educating prospective buyers D00 and Peru (see boxes, pp. 55 and 57). In about the guarantee structure in order to Argentina, Brazil, and Colombia we facilitate secondary trading. In another gave assistance to the first housing transaction, we financed the first FY99 FYOO FYOI finance corporations. Internet service provider in Togo. In China, we supported the first for- This year we branched out further ne use of loan gduranFeeO grew dramaticol y dur ng FY01. Through eign investment in the insurance sector into social sector businesses. For example, guarantees FC supported trade fac ties (see box, p. 43). When IFC can identify in Brazil we supported a start-up and ocal currency bond iSSUeS infrastructure or information and Internet-based education venture, and communications technology needs in in Argentina we made loans to two markets bypassed by commercial universities to support higher education financiers, we can pioneer private sector (see p. 56). _-~ ...LEFT C nresnglysupporting financal OOctor India: A First for Student Loans Through a novel student loan program in India, IFC helped fill an students who take loans under the program are expected to earn urgent need, since private lenders have avoided higher-education more than their parents after graduation from NIIT. loans, viewing them as a state responsibility or a loss-making We will provide a mezzanine credit guarantee in local currency proposition. Working with experienced partners, we devised a way for 10 percent of the program. It will cover credit losses on a to make our first major investment in student financing by helping portfolio of student loans extended by Citibank to students of NIIT launch a large-scale private sector loan program. Using loan who enroll in a three-year computer course. The loan portfolio securitization techniques, the financing structure provides for will build up over five years to as much as 4.2 billion rupees different levels of risk shared among IFC, Citibank, and NIIT ($90 million). Limited, a higher-education institution with a strong reputation in By promoting financially sustainable student loans with no information technology. public subsidies, this project should encourage similar initiatives in Lending under the program is based on a student's future India and other countries. earning capacity, thereby making loans accessible to lower-income families that could not otherwise afford tuition fees. A majority of _ _ C. -. a BEST CORPORATE GCOVERNAN CE AND MANAGEMENT _ M ETHODS Global capital flows are of limited value to many companies in developing countries because too often they fail to translate into) better financing opportunities. Following the market volatility of recent years, investors are selecting targets more cautiously. In this environment, companies with better management and capacity to protect minority owners will be more attractive to investors, We help companies strive to achieve international assistance from the Japanese government and the best practices. By encouraging companies experi- European Union, we have been providing the Bank enced in the global marketplace to invest in devel- of Shanghai with a long-term comprehensive oping countries, we foster better management technical assistance program since 1995. This techniques at the local level. We also promote assistance has covered all major management and improved corporate governance practices and legal operational aspects of the bank. This year IFC's frameworks as we select, negotiate, and supervise Management Advisory Services conducted a human our own investments, advise governments and other resource management review, working closely with clients, and offer grass-roots support. bank management. The next phase of technical For example, IFC supported the Bank of assistance will provide training to improve Shanghai through both donor-funded technical skills in credit analysis, as well as credit policies assistance and our influence as an investor. With and procedures. BELOW: Natalia Kosheleva, deputy project manager of an IFC corporate governance technical assistance initiative, discusses issues relating to the role of corporate secretaries at a conference in Moscow. 1~~2 _4 ;& ~~~~~~~~~~~~~~~~~1., _ _-E~~~~~~~~~~~~~ "THE TASK IS TO PROVIDE EMERGING AND DEVELOPING ECONOMIES WITH AN ASSURANCE THAT CAPITAL IS MORE LIKELY TO FLOW TO THOSE COUNTRIES AND COMPANIES THAT DEMONSTRATE A RESPONSIVENESS TO GOVERNANCE ISSUES. " Ira M Istein, Cha rman, OECD/World Bank Private Sector Advisory Group on Corporate Governance This investment marked IFC's first the activities of the bank. The board is VALUING GOOD GOVERNANCE in a Chinese bank. Through invest- also in the process of setting up com- ments, first made in 1999, xve have been mittees on auditing, risk management, Importance of corporate-level factors when able to help improve the bank's corpo- and compensation that will provide it selecting emerging market companies in rate governance. We made an initial with better information and capacity to which to invest investment of $22 million for a 5 per- review operations in the future. AVERAGE RESPONSE cent equity stake. We followed up by Our activities with the Bank of 1 2 3 4 5 taking part in a rights issue in 2000. Shanghai exhibit how we continue to An IFC-appointed director on the positively influence companies in our Bank of Shanghai's board has been portfolio long after transactions are ilrrelevac working actively with other board completed. Further, the introduction of 3=Re levant members and senior management on international banking standards and improving corporate governance and best practices to the Bank of Shanghai ' transparency to meet international best demonstrates their value to other banks practices. Due to these efforts, the board and is having an impact throughout jr__ r _ if ,'bti, is playing a more active role in governing Chinas banking sector. _ os-,nct ors oeheen company & famivy nterests C eprly defined "overnance arrangements MARK -ALLAN'ER(i G - Aco,racyf of seanim rporTing - ~~~~~~~~~~~~ "~~~~~~~~~~~"' ~ ~ ~ ~ ~ ~ ~ ~ m e,~ally enforceoble minrcrto shareholoer protectcoi Use of _nrformance-related pay for sop management -' .. Tme iness of f nancial reporting Sourcs Mco sey Emeo gmng Market lboeot Op,,iono Srrey 2COI PHOTOS: GUM et), one of Moscow's odest departnrent This surve cf 46 prvate equity nvestcrs with aporox metely $5b I cn _-YZX EZ 1^ t ' ,, , [stores, and Krasny Oktyabr (Red October, right), a under management ,as carred oun at FCs Glson Prvate Equity wil1-known nhoco atl comrpany, are working with the Corfereose (Mpay li, 2O1 see &,Nl fc crglfunds) Pr vate Enterprise Partnersh p to build investor conf dence in loca Iy owned and managed companies Promoting Best Practices in Russia In transition economies, the modern corporation is itself a training programs for managers, directors, and shareholders of joint relatively new and unfamiliar form of economic organization. stock companies. It also develops and distributes practical manuals In Russia, emerging private companies need to strengthen their on corporate governance and internationally accepted best boards of directors, internal controls, accounting and disclosure practices, advises authorities on local legislation and regulation, and practices, and other elements of corporate governance to build assists joint stock companies in drafting company charters and investor confidence. conducting board of directors and shareholder meetings. This year IFC's Private Enterprise Partnership, with support from To disseminate information widely, the partnership participates the government of the Netherlands, started a corporate governance in a series of national and regional roundtables jointly with the project in Russia to respond to this need among local companies. OECD/World Bank Group Global Corporate Governance Forum. These Although new to Russia, the program is based on the partnership's roundtables promote improved corporate governance practices similar initiatives in Ukraine and Armenia. through discussions of how to build investor confidence in The partnership draws on IFC investment and technical local enterprises. assistance experience in advising local companies on the corporate governance practices they need to adopt. The partnership sets up - A PARTN1*ERSHIlP APPROACH IFC carefully cultivates client reiationships -lo ensure that our, transactions foster strong business performance. Our emphasis on partnerships extends beyond those involvecJ in financing transactions. By building solid links to communities governments, and nongovernmental organizations and within the World Bank Group, we can bring parties together to develop innovative approaches to issues that benefit all concerned. This year we collaborated wvith Mozambique's Mozal asrating civil war. IFC financed the first phase of this Aluminum for the second time not only to fina-nce project with $120 million in loans, at the time our the expansion of a project critical to the country's largest single investment in the world. eco-onomy but to support Mozal's development of an Mozal's highly competitive aluminum smelter HIV/AIDS program. began production in 2000, ahead of schedule and During FY0 1 we committed a $600 million debt $ 100 million under budget. With expansion, Mozal package, including $25 million for IFC's own will become an even more potent force for fuature account. The first phase of the Mozal Aluminum economic development by creating jobs, foreign project three years ago helped put Mozambique on exchange, tax revenues, industrialization, local busi- the foreign investment map, encouraging others to ness opportunities, and international recognition of invest in a poor country still recovering from a dev- Mozambique as a good place to do business. BELOW: Mabati Rolling Mills in Mombasa, Kenya. received f nancing from IFC. ^ B 6 i 6 j~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. 14 zt / ''5, ~ ~ ~ ~ ~ 0011t ! J responsibilitv. The Mozal Community among the 100,000 target population in Development Trust, created as part of the Mozal area. the new financing package, is expected to We are also working to build z a spend $2 million annually on social and partnerships between Mozal and local /1 1 - community initiatives. It has under- businesses to maximize subcontracting taken a groundbreaking HIV/AIDS opportunities for local small and awareness program that consists of inten- medium enterprises. The Africa Project sive, repetitive, face-to-face encounters Development Facility will provide between trained field workers and capacity-building support for those community members. IFC will provide businesses to help expand their role as a matching contribution through the contractors to Mozal. LEFT: Cheese from UzDutch, an IFC prolect, be ng Icaded rto a 'hopow ier's car. II, ~~~~RIGHT: Dsa.a a Russan soft drink oroducer, was X l' t ~~~~~~~~~esitab ished and grew due 5to the n rdueveomn of 5~~~~~~~~~~~~~fnni ea n Dgh theFrvicEnes wh cFh were encouragecF X \. < ' MARN r,]"E* ALLANDER 2 Er' ~~~~~~~~~~~~~~~~~~~~~~~~~ - ~ ~ ------ Mauritania: Advice for Better Phone Service Mauritania wanted to liberalize its state-run telecom sector to IFC's mandate involved reviewing and finalizing the competitive expand access and improve service to the general public. As part of framework and defining the privatization strategy. We conducted a d this effort, the government engaged IFC as principal advisor for the $43 million financial restructuring that enabled the company to privatization of the national telecom operator, Mauritel. acquire its cellular license before privatization. We marketed Along with the World Bank, we worked with the government to the transaction to investors, organized the bidding, and closed , provide policy and transaction assistance. IFC's attention to social the transaction. impact helped ensure that the transaction included a universal The winning bidder, Maroc Telecom, paid $48.1 million ($14.4 access fund to support the development of infrastructure in rural million share purchase and $33.7 million capital increase) for areas, which will expand service beyond central city addresses to 54 percent of the company. Based on per line value of over $4,000 rural populations that might otherwise go unserved. or based on earnings valuation, the price compares well with any Mauritel must quadruple the size of its fixed-line network telecommunications privatization in Africa to date. a within five years under the terms of the privatization. The financial structure of the deal should provide the company with the capacity to invest to meet the requirements. * U ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ --AN ENVIRONMENTAL AND SOCIAL OUTLOOK Z~~~~~~ IFC addresses environmental and social issues from the outset o- the investment process. We actively seek to help our clients exedtheir environmentally beneficial practices. We saw such an- opportunitv this year in Peru. We worked with Inka Terra, a leading ecotour observable by the general public. It is a genetic operator, to help put its business on a sound bank. Primary rainforest inventories of this type financial footing. In Inka Terra, IFC saw an help determine the importance of conservation. attractive opportunity to promote ecologically The company owns and operates two small friendly rainforest management and conservation hotels near Machu Picchu and the Madre de and invest in a company with good financial Dios forest, offering visitors an opportunity to view prospects.We moved quickly to make sure Inka the tropical flora and fauna and cultural heritage Terra's financing needs were met, signing the trans- sites of these distinct parts of Peru. Inka Terra has action only four months after an initial meeting. operated in Amazonia for more than 25 years and Harvard professor and biodiversity advocate has established a track record of balancing tourism E.O. Wilson identified an Inka Terra site at Cuzco with nature conservation. Its president is an emer- Amaz6nico as having the world record number of itus board member of Conservation International, ant species in a single location. Inka Terra's site at a nonprofit organization dedicated to protecting Machu Picchu has the largest known collection the Earth's biologically richest areas and helping of native orchid species in their natural habitat people who live there improve their quality of life. I=B BELOW: Observing orchids at a garden surrounding an Inka Terra site. 160 4~~~~ /~~~~~~~~~~~~~~~~~~~~~~ f~~~~~~~~~~~~~~~~~~~~~~~~~ wi | , |~~~~~~~~~~~~~~~~~1 i i i F" S~~~~oa comniis prvdn job ston eniomna poice in pl.ace0 . ;;\ .; ' i' * -i '; '' ,' t1 /' ' ' 4 N . . t conservatio. We ar helin Inka Ter o,' v prcie 'agais ;int.,rnaiona in'l . .'- wt X e o i - sd t b udstand_its Rl CHARE LORD The company works closely with Although the company already had local communities, providing jobs strong environmental policies in place, and creating interdependence between the review of policies by IFC allowed their economic well-being and nature Inka Tetra management to evaluate its conservation. We are helping Inka Terra own practices against international uith the expansion of its existing standards to better understand its properties and the construction of model. Inka Terra's management credits additional lodges. Like many medium- IFC with encouraging the company to sized businesses in Latin America, it had make practices more efficient and to trouble finding affordable financing, consider new growth opportunities. Longer-term financing at a lower cost Inka Terra learned about financing put this company's ecotour business on new activities through the Global a more sustainable growth path and will Environment Facility, which provides allow management to focus on its core concessional funding for private sector areas of conservation and tourism. projects that further biodiversity. IFC PROVIDED THE BEST BANKING EXPERIENCE I EVER HAD. THE FINANCING WAS COMPLETED VERY FAST AND THE LOAN TERMS WERE VERY BENEFICIAL TO ENRO LEDCM_NCE US. WE ARE PAYING LESS THAN HALF IN FINANCING COSTS THAN BEFORE lFC -_i _ _i=_fiX_i_S-__' | WAS INVOLVED. THIS ALLOWS US TO CONCENTRATE ON THE BUSINESS OF ECO LOGICAL CONSERVATION.' _Jose Koech in, President, Inka Terra, SA LEIFT Ar IC technica assistance projec in Madagascar helped mainta n the environmvent for w d fe. 1 A GOO BUS INESS P E R S P E1 C 3 IFC integrates international best practices into financing activities, but our accumulated expertise and experience anc our unique place in the market have positioned us to provide a new kind of leadership in private sector development. Under oUr Sustainability Initiative we aim to measure future performance based on finan- cial, socioeconomic, and environmental sustainability-or a triple bottom line, We mean to deliver on our mission by supporting important elements of the Spier management plan enterprises that can prosper in the marketplace to provide an economic base on which to build a without relying on economic distortions for sustainable community. survival, benefit the environment, and contribute Spier's management is committed to maxi- tangibly to the well-being of people in host mizing economic and social benefits to nearby ress- countries and communities. Many IFC projects dents and contributing to a new vision in incorporate sustainable practices that bring post-apartheid South Africa. But the Spier commu- commercial benefits to our clients. This year, nity faces many of the problems of the country at for example, we approved an investment to large, such as a lack ofjobs for unskilled workers and. help develop the Spier Estate in South Africa. social tensions that lead to high crime rates. The management of the estate views complex Widespread economic hardship undermines a rich environmental and social issues as a significant local culture.The area also faces environmental pres- opportunity to foster viable businesses through sures, including abundant nonnative vegetation that a sustainable approach. lowers the water table. Yet the potential of the people The Spier Estate, established in 1659 in and the natural environment holds tremendous the Stellenbosch region of South Africa, now promise if nurtured and developed through well- includes organic farms, vineyards, a winery, a designed businesses. IFC was intrigued by the conference center, several restaurants, and a festival potential of this project because of Spier's approach theater. Tourism and conference promotion are to building up its business in a sustainable fashion. 5-5 V2.)t '' "A SUSTAINABLE APPROACH ASKS PEOPLE TO THINK DIFFERENTLY AND MAKE A FUNDAMENTAL LEAP IN PERSPECTIVE. WE FIND THAT WHEN PEOPLE ARE ABLE TO SEE THE DIFFERENCE, THEIR PERSPECTIVE CHANGES." Eve Annekc, Execut ve Director, Spier Hold ngs We approved financing to support that make maxinmum use of renew- an ambitious $81 million development able resources, operate efficiently, and plan that calls for construction of a require relatively little maintenance. 250-room hotel aimed at international Construction methods take into travelers, a 150-room limited-services account site sensitivity, ecological hotel that would offer accommodation impact, and the energy required to pro- ro conference attendees, and new duce building materials. The entire housing developments on the estate. We physical plant will operate in an ecolog- plan to commit over $ l9 million in ically sustainable manner. Water will be loans and equity to provide the conserved through low-flush toilets and financing for those activities. The the use of drip irrigation in the funding will also help expand existing vineyards, and wastewater will be smallholder farms in areas adjacent to filtered for recycling. Solid waste will the estate, enhance farming activity on be separated and recycled or used for the estate, and establish a leadership compost, with the result that only institute xvith the Universitv of 10 percent of solid waste will end up Stellenbosch. going to the municipal dump. The hotel manager, Ritz-Carlton, Spier's management credits IFC will train unskilled workers for new, not only with seeing the long-term well-paying jobs. Local black farmers value of this approach but also will be trained in organic farming with helping other financial investors techniques to provide fresh produce understand that value. Spier's business to the hotel. A crafts village will be approach was in place before IFC expanded, a school will be constructed, arrived, but our enthusiasm for its and new housing will be available for economic, social, and environmental low-income residents. vision helped bolster management's Development plans require the use efforts to pursue sustainable business of sustainable construction methods practices more confidently. ,,-IlJR T '- F SPIES ESTATE 3 | | | | ^> $^ e rf R t: ~~~~~~~~~~~~~~~~~~~~~~~LEFT: The Spaer Estate now ins uees organr C farms E iii E t t ~ ~ ~~ ~~- X. i . parrvee yad lEG ndcalackfarmers w betraned 1E.qS [,~ 'R ~ '\ At N 1 74 S P~~~~~~~~~~~~~~~~~~~~~~LET h pe saenw n dsogncfrn VWY IFC?- Over the years the International Finance Corporation has shown that goodl investment returns are compatible with creating employment, a health~,i environment, and an improved quality of life in developing countries. Our mandate is to further economic development Putting our own capital at risk, we buy shares in through the private sector Working with business project companies or financial institutions. We also partners and financial institutions, we invest in make long-term loans to our clients and offer guar- sustainable private enterprises in challenging antees and risk management services. We mobilize business environments. We promote financially additional resources from private capital markets sound businesses and projects with the prospect of through syndicated loans and placement of equity operating profitably. We also set high standards for and provide extensive advisory services to our clients. corporate governance and social and environmental Our reputation and standing as an international soundness and bring our expertise to project organization allow us to bring parties to a transaction transactions to help our partners achieve the best together. Our participation can reassure foreign performance. investors, local partners, other lenders, and govern- We finance projects in regions and sectors ment authorities about the viability of our projects. underserved by investment from private sources. We IFC was established in 1956 and is a member find new ways to develop promising opportunities of the World Bank Group. Its share capital is hekl in markets that commercial investors consider too by 175 member countries. Building on our risky or politically unstable to provide any measure relationship with the World Bank with its global of security, profitability, or growth without IFC's resources and experience, IFC can bring significant participation. In those environments we see-and benefits to a country beyond the scope of a encourage-opportunity and profitability. single transaction. m v 20~_S __ I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ LEFT IFC f rances the capital intensive bus nesses BELOW: Through spec alized fac ties IFC suipports small firms, like this Moscow dry cleaner vvith adv ce PROMOTING A SUSTAINABLE PRIVATE SECTOR IFC promotes sustainable private sector We pursue sustainability. We are investment in developing countries, increasingly looking at the long-term helping to reduce poverty and improve outcome of our projects through a triple people's lives. bottom line of financial, socioeconomic, In seeking to fulfill that mission, and environmental performance. All we are selective. We invest only in IFC projects must be financially companies with the potential for long- promising, have strong developmental term vitality, growth, and profitability. potential, and reflect our commitment We will not pursue investments for to responsible environmental and social which the private sector is a better- performance and high standards of suited finiancier. corporate governance. We seek partnerships with a wide MARK FALLANrEF range of co-investors, including local and To learn more... foreign private businesses, commercial www.ifc.org banks, institutional investors, develop- A complete list of office locations ment banks, and export credit agencies. and contact details can be found in the appendixes. [IFC PROJECT] BOUNDARY HILL WILL ENABLE OUR COMMUNITY TO BECOME SELF SUFFICIENT AND RUN OUR OWN DEVELOPMENT PROGRAMS. WE HOPE TO BE ABLE TO SUPPLY DRINKING WATER TO OUR SUBVILLAGES AND HAVE SCHOOLS FOR ALL CHILDREN IN OUR COMMUNITY." -S gir Ole K bir t V lage Councilor, Maasa Vi age of Lolkisale. Tanzan a (see p. 37). A *~~~~~~~~~ _v ,i II , . ;+ \ j LEFT: FC supports a wide range of bus nesses in X , . X +- , t-br% , Russ a through advice and -imancing 2 7 I N T E R N A T I O N A L F I N A N C E C O R P O R A T I O N ,- PRODUCTS AND SERVICES INVESTMENT TOOLS r IFC risks its own capital by buying shares in project companies, other project entities, financial institutions, and portfolio or private equity funds. We generally subscribe to between 5 and 20 percent of a project's equity. \XNe will not normally hold more than a 35 percent stake and are never the single largest shareholder in a project. EQUITY AND We are a long-term investor in our projects. When it comes time to sell, we prefer to exit by selling shares in QUASI-EQUITY the capital markets following a public offering. Through our quasi-equity instruments, we invest through products that have both debt and equit)y characteristics. Some instruments, like subordinated loans and convertible debt, impose fixed-repayment schedules. Others, such as preferred stock and income notes, do not require such rigid repayment arrangements. We finance projects and companies through our A-loans, which are for IFC's own account. IFC does not accept government guarantees. Maturities of A-loans generally range between 7 and 12 years at origination, but some loans have been extended to as long as 20 years. Most IFC loans are provided in major currencies, and we are expanding our capacity to offer local currency loans. LOAN AND We carry out comprehensive due diligence before investing in anv project. Because of our extensive INTERMEDIARY t lending experience in developing countries, we are uniquely qualified to evaluate the risks associated with S projects. We are willing to extend loans that are repaid only from the cash flow of the project, with only limited recourse or without recourse to the sponsors. We also make loans to intermediary banks, leasing companies, and other financial institutions through credit lines that result in further on-lending. These credit lines are often targeted at small businesses. X Mobilization of private sector financing in developing countries is fundamental to the fulfillment of IFCs role as a development catalyst. We can broaden our impact by mobilizing loans from other financial institutions that are willing to lend to projects only with our participation. Syndicated loans, or B-loans, are the cornerstone of IFCs mobilization efforts. Through this mechanism, MOBILIZATION financial institutions share fully in the commercial credit risk of projects while IFC remains the lender of record. Participants in IFCs loans share in the advantages that IFC derives as a multilateral development institution, including preferred access to foreign exchange. Where applicable, banks are also exempted from the mandatory provisioning that regulatory requirements impose. We also mobilize private capital for companies by engaging in underwriting, private placements, and equity fund investments, which help clients gain access to international capital markets, often for the first time. Loan and bond guarantees and standby financing allow our clients to use IFC's good credit to help them secure financing from international capital markets. IFC offers credit enhancement structures for debt instruments. These include partial credit guarantees, which allow IFC to use its triple-A credit rating to help clients attract new sources of financing, reduce financing costs, and extend maturities. Credit guarantees cover all credit risks during a specified portion of the financing term or up to a specified capped amount and often serve to extend maturities beyond what private creditors would otherwise provide. GUARANTEES .We can extend a partial guarantee either in a local currency or in a foreign currency. The partial guarantee AND RISK in local currency benefits borrowers by providing access and sought-after maturities and in the process MANAGEMENT helps develop local financial markets. In the international bond markets, a partial credit guarantee in foreign currency helps an IFC client company establish its own name with international investors and thus assists the client in diversifying its funding sources. Our risk management services enable clients to access derivatives markets through IFC as an intermediary. With IFC's currencv-hedging instruments, our clients can hedge exposure related to foreign currency borrow- ings. With IFC's interest-rate hedges, clients can transform the nature of their borrowings (for example, fixed rate to floating rate or vice versa). IFC's commodity price-hedging products allow clients to reduce risks related to price volatility. We also provide risk management facilities so that clients can use hedging products for a fixed period of time on a pre-approved basis. OTHER SERVICES IFC advisory services are designed to improve the investment climate in member countries and the business practices of companies in which we invest. They play an increasingly important role in the way IFC approaches its investment activities. We undertake a wide array of financial market advisory assignments, specializing in securities markets and banking and credit institutions. Assignments address areas such as locnl debt market development and ADVISORY capacity building at financial institutions. SERVICES ! The work of the Private Sector Advisory Services, jointly managed by IFC and the World Bank, covers policy issues, sector advice, and specific transactions. Our activity in this area includes advice on competition policy, structuring of privatization deals, and policy analysis of foreign investment issues. Another newly created and jointly managed unit, the Small and Medium Enterprise Department, focuses on business environment issues, capacity building, and the development of innovative financing techniques. The IFC Corporate Governance program provides advice on practices and policies at IFC investee companies, assistance in addressing country-specific risks, and information on promoting strong corporate governance. Technical assistance further complements IFC's investment activities by providing advice and training to TECHNICAL governments and private companies. IFC manages special project development facilities that give assistance to ASSISTANCE small and medium enterprises. IFC also manages the Technical Assistance Trust Funds, which are supported by donor governments. These funds sponsor feasibility and sector studies, training initiatives, environmental and social review of projects, and advisory assignments to governments. IFC INVESTMENT TOOLS EQUITY Direct investment in shares of companies, financial institutions, or project entities. QUASI-EQUITY Instruments that incorporate lending and equity features, such as subordinated loans, convertible debt, or preferred shares. They provide risk-retum alternatives that lie between those of pure loan and equity investments. A-LOAN Senior loan funded with IFC's own resources. B-LOAN Participation in an IFC loan sold to other financial institutions. GUARANTEE Assumption by IFC of specified portions of a borrower's liability in the event of default. RISK MANAGEMENT Several credit intermediation products, including currency and interest rate swaps, and other hedging instruments. PRODUCTS 23 ADIN VALU GOOD BU S I N E SS THE IFC WAY The demanding job IFC undertakes is making business opportunities profitable in the world's riskiest and most uncertain markets. In many countries the private sector is undeveloped, local or foreign partners are inexperienced, or bus ness practices fall short of international standards. To address these needs, we tailor our services as the situation demands. We also focus on seeing that natural resources are used to increase national wealth on equitable social terms while ma ntaining a healthier an nronment. We have assembled a staff of 1,951 men that help make their businesses operate and and women from 130 countries with the specialist perform in ways they could nor have achieved on skills necessary to build relationships, appraise their own. We can do this through the efforts of our financial options, assess technical and environ- various specialist departments. mental obstacles, and work with local communities We provide advice on good governance and to structure broadly beneficial transactions for other best practices through technical assistance people in developing countries, projects or as part of our investment services. By When the global investment climate changes, instituting and following those practices, our clients we work to anticipate the needs of our clients and are better able to attract international investors, who respond resourcefully. We seek to fulfill our role as a pioneer by taking on projects in the most challeng- ing business environments and in largely untapped markets. lFC has the depth and flexibility to deal 'IFC TELLS CLIENTS EVERYTHING IT with the unique challenges and opportunities KNOWS TO HELP A COMPANY. ANLD developing countries face. In reforming and post- THAT'S JUST ONE PART OF IT WE INSIST privatization environments and sectors of high TA LETBCM ODCR developmental priority, IFC helps aemonsrrate theTHTACINBEOEAG DCR viability of investment by private firms. PORATE CITIZEN.' Project finance skills and risk management -uha uahsen expertise are at the core of our services to clients. IFCupotfoli offiamuser We add to our core services in many ways. For some clients we introduce international best practices 24 ~ ~ ~ ntewrdsrsietadms neti akes nmn onre h LEFT: At hea uarters in Wa.singt r, D.C _ Atu. Muha, Kialim Srah arc Tosh.ya Man,u ka nft to rigrt) d ncuns Latin Amrinran investmerits and strategy. IR E1 ON L fTLEHALEo ',2 insist that companies recognize lenders' and investors' rights. We also advise governments, stock exchanges, and busi- "WHEN WE FIRST OBTAINED FINANCING FROM FCD. THE ENVIRONMENTAL ness associations on ways in which STANDARDSSEEMEDLIKEANOBSTACLE, BUTWENOWREALIZETHATTHEYHAVE companies can improve their structure HELPED US TO BUILD A STRONG BUSINESS. IN FIVE YEARS. THERE WILL BE NO and governance. ACCESS TO INTERNATIONAL MARKETS FOR COMPANIES THAT DO NOT SHOW We make an array of resources available to our clients to improve their RESPECT FOR THE ENVIRONMENT IT IS BECOMING FUNDAMENTAL TO INTER project performance. Our staff includes NATIONAL TRADE." more than two dozen industry specialists who offer technical know-how fori n-Rafael Wong, Executive Vice President, Reybancorp, Ecuador ments and focus on new industry sectors and trends. Mrany ofour projects have littleor no BELOW: Theu anagervent group prolding leadership to IFC and the pr vate sector activues of the World environmental or social risks associated Sustainability Initiative. This approach Bank Group consuits of Peter Wocke (seated, fronV, with them, but we review all projects will allow us to make full use of IFCs four Fc n presidens Jbure Dorotho r Berry, aid and, when necessary, put safegtuards in social and environmental expertise, not Care. F Lee, and NemalTaa atShaflk Istanding, leftt, place to ensure that they are environ- only by ensuring compliance with high oRD slce presnient mentally and socially responsible. Our standards in those areas but also ", team of more than 40 environmental by further advising firms on ways to and social specialists incorporates best benefit from improvements in their practices into our investment activity. \Ve environmental and social performance. maintain a unit that trains and monitors The additional expertise and expe- the financial intermediaries that benefit rience xve bring to projects distinguish ' : A from IFC investments, and we have a the work of IFC for project sponsors, a . ' 4 in special unit to promote environmen- while making our projects a benefit to - tally beneficial investments. the countries and local communities Our strategy for targeting future affected by them. This is how we investments has been reviewed and demonsttate the value of good business reinvigorated this year through our in our developing member countries. IFC Shareholders: Guiding Activities The International Finance Corporation's 175 member countries, Effectiveness monitors and assesses the Bank Group in its effort to through a Board of Governors and a Board of Directors, guide our reduce poverty. The Personnel Committee reviews and advises on programs and activities. Each country appoints one governor and one compensation and other significant personnel policy issues. alternate. IFC corporate powers are vested in the Board of Governors, James D. Wolfensohn is president of each World Bank Group which delegates most of its powers to a board of 24 directors. Their institution-IFC, the International Bank for Reconstruction and voting power on issues brought before them is weighted according Development (IBRD, or the World Bank), the International to the share capital each director represents. Development Association (IDA), and the Multilateral Investment The directors meet regularly at World Bank Group headquarters Guarantee Agency (MIGA). in Washington, D.C., where they review and decide on investment Peter Woicke, who assumed the position of executive vice projects and oversee general management policies. president of IFC in 1999, oversees our day-to-day operations. He is Committees advise the Board on management issues. The Audit also a managing director of the World Bank. In that role he is Committee has a mandate to focus on external and internal audit charged with the Bank's private sector operations and with as well as financial policy issues. The Budget Committee considers formulation of a coordinated private sector development strategy for certain aspects of business processes, administrative policies, the World Bank Group. standards, and budget issues. The Committee on Development INVESTMENT, ADVISORY, AND PORTFOLIO AND RISK MANAGEMENT ACTIVITIES _ 4 L & ff g c Our core business of investment and broaden the range of policv and inv st advisory activities falls into two areas: ment product options to clients. Those operations and portfolio and risk jointly managed departments provide management. The operations side of investment, advisory, and portfolio mln- management oversees new business from agement services. origination through the commitment The Legal Department offt,rs of funds, as wvell as treasury operations. policy-related advice and transactional Those in charge of portfolio and risk support to senior management, ope a- management supervise investments tional departments, and the financial including credit review, risk management, complex. As the chief legal officer, the monitoring, and trust fund operations. vice president and general counsel World Bank management for private advises on all issues arising under IFC(s sector development shares responsibility Articles of Agreement and on tdie for special IFC-World Bank depart- conformity of proposed rransactio is ments that were created last year to with policies and practices. '[THE CHAD-CAMEROON PETROLEUM AND PIPELINE DEVELOPMENT PROJECT] IS AN AMBITIOUS ATTEMPT TO SHOW THAT BIG OIL CAN MAKE MONEY WHILE IMPROVING THE LIVES OF THE LOCAL PEOPLE WHERE IT DOES BUSINESS. IT'S THE WAY GLOBAL DEVELOPMENT OUGHT TO WORK." -Pauw Paeburn, senior writer at BusinessWeek, on National Public Radicv, Apr] 11, 2001 TOP: A nvestmentofficerd scussesa project The terms of the project were deveJoped by the World Bank and FC. IFC committei iri Kerya. $100 mi I on for its own account and arranged a B-loan of $100 million for the project -t BOTTOM: Staff from the Syndications and June 2001. International Securities Department discuss pans -o -Is annua participarts meeting, led by SUelleo Lazarns, a rector OPERATIONS We work with clients through our ing different sectors in many countries regional and industry departments to and weigh the need for IfC support. finance and advise on projects that The regional departmenrs worh are financially viable, socially and envi- closely with clients, cultivate relation- ronmentally beneficial, and econom- ships with governments and the private ically sustainable. sector, and coordinate with other parts At the corporate level our Operations of che World Bank Group. Each of Strategy Group formulates strategic pri- those departments processes projects in orities. Our seven regional departments financial markets that help build domes- (Central and Eastern Europe, East Asia tic institutions as well as projects in and the Pacific, Latin America and the manufacturing and service businesses. Caribbean, Middle East and North Each regional department has a sub- Africa, South Asia, Southern Europe and stantial presence in the field, bringing Central Asia, and Sub-Saharan Africa) us closer to clients and enabling us to he develop localized strategies for member more responsive. countries in their region. These strate- We add more than regional perspec- gies assess the relative impact ofsupport- tive to our transactions. We also bring global sector expertise through our spe- cialized industrv departments, in cluding "THERE ARE MANY COUNTRIES IN THE WORLD WHERE THE IFC UMBRELLA IS Agribusiness, Infrastructure, and Power. An IFC Social Sectors group seeks ESSENTIAL FOR US. [IN THOSE COUNTRIES] I THINK IT WOULD BE VERY opportunities to work with pionecring DIFFICULT TO GET A DEAL TOGETHER WITHOUT THE INVOLVEMENT OF A companies in this area, especially in MULTILATERAL INSTITUTION LIKE IFC." health and education. Our private Equity and Investment Funds Department was -Mart n Wuerth, Director, G obal Project Finance, HypoVereinsbank crcated in FY01 to handle IFC's extensive portfolio of funds and help carry out related investments in this area. Our manage business risk, including cur- Global Financial Markets Department rency and interest rate sxvaps and hedg- provides leadership for our advisory and ing instruments. 'The same department investment operations in international carries out the market borrowings BELOW: Treasury Department staff inthe oFCtra(2mng financial markers. program and manages a $13.3 billion roorm The department has taken the lead in appy- Z, ~~~~~~~~~~~~~inp nVovaOieo r00 management teehn queo to oeip Threc specialist industrv depart- liquid asset portfolio as well as the assets e nts core pete on a globtal basis ments are jointly managed with the and liabilities on our balance sheet. Our World Bank: Global Information and lawyers assist in a range of treasury activ- Communication lechnologies; Mining; ities, including IFC bond issues, swaps X3 and Oil, Gas. and Chemicals. The Small and other derivatives, liquidity manage- and Medium Enterprise and Private ment, and securitization transactions. Sector Advisory Services departments are Lending from our ownv account is also jointly managed Bank-IFC units not the only way we serve clients. We . supporting our investment activity and can structure transactions in a wvav that offering advisory services. IFC's attorneys gives other international lenders the risk and legal assistants collaborate with the mitigation they need to provide loans regional and industry investnient for our clients. The Syndications and departments to identify and analyze legal International Securities Department and regulatory issues and to structure and mobilizes financing from outside negotiate terms of IFC investment. sources, particularly through the svndi- Through our Treasury Department, cation of B-loans, underwriting activi- we offer clients products that help them ties, and private placements. PORTFOLIO AND RISK MANAGEMENT We use our experience in project The Corporate Portfolio and Risk finance and financial markets to review Management Department has developed credit risks associated with our invest- a comprehensive risk framework and ments and manage our portfolio of Financial policies for our treasury and "IF CREATES A RELATIONSHIP THAT existing investments. business activities. It also maintains I Before investments are made, they portfolio monitoring systems and CONTINUES AS LONG AS YOU ARE are vetted by Credit Review, vwhich information. The Special Operations WITH US. WE HAVE A PROGRAM TO establishes standards and maintains Department manages troubled projects, VISIT COMPANIES ON A REGULAR independent oversight. 'The Financial with the objective ofiinproving prospects BASIS, AND WE PROVIDE ADVICE Operations Unit processes and settles all for recovery. AS NEEDED." investment and borrowing transactions A complete organizational chart and payments and manages the settle- and management list can be found in -Elijah Chindra, IFC engineer ment and custody of our liquid asset the appendixes. investment and equity investment portfolios. AEVALUATING PERFORMANCE Evaluation is an integral part of the IFC management process. Investment departments execute self-evaluation reports on a random sam- ple of mature investment projects and all completed technical assistance projects. The independent Operations Evaluation Group ver- ifies the findings. OEG contributes to corporate learning and accountability for results through annual reports and special studies, including country evaluations, sector and thematic evaluations, and process evaluations. The cases below are derived from OEG's latest Annual Review of IFC's Evaluation Findings, which synthesizes performance patterns, draws inferences relevant to strategy, alnd makes recommendations to management and the Board for improving effectiveness (see p. 72 for a summary of the Annual Review). IFC has learned to replicate lessons from successful mature projects. In one case, we financed part of trie capital expenditure plan to rehabilitate a recently privatized water and sewerage system, Aguas Argentinas. The project resulted in improved efficiency, lower water rates, and increased access to clean water and sewerage for a large segment of the urban population. Capacity increased 26 percent, resulting in nearly I million new water customers and about 400,000 additional sewerage customers in a city of 9.4 million people. Operations becamne profitable after years of losses and subsidies. REPLICATING The success of the project illustrated the importance of the commitment and flexibility of SUCCESS government and project sponsors, who ensured in this case a fair and transparent regulatory structure. We learned to look for partners with a long view who accept that the major benefits of a project accrue from profitable operations over time. We also found that worker cooperation and good labor relations are critical in postprivatization projects. In this case, the company increased average salaries by 40 percent, undertook an intensive training program for employees, designed a voluntary retirement program with worker participation, and developed an employee ownership scheme. The result was a highly motivated, productive, and competitive work force. (-Since not all projects are successful, we also draw lessons from those with unsatisfactory outcomes. In one such case, we supported the upgrade of meat-processing plants intended to enhance export product quality, expand the domestic product range, and improve hygiene standards. Operationally the project succeeded, but mar- ket conditions and a change in management caused it to fail financially. The company had expected small competitors to go out of business when the government LEARNING FROM enforced hygiene standards and tax rules. But that failed to happen, while beef consumption declined in EXPERIENCE export markets. From this experience, we learned not to underestimate competitors' strengths or the flexibility of small operators in an environment where reforms are untested. We learned how disruptive ownership and management changes can be during a depressed industry cycle. We also learned that we can avoid misunderstandings by better clarifying environmental reporting expectations as part of the project appraisal and investment negotiations. ENSURING ACCOUNTABILITY COMPLIANCE ADVISOR/OMBUDSMAN The Compliance Advisor/Ombudsman promotes better accountability of IFC and MIGA management to people affected by their projects. It is an independent office, reporting directy to the president of the World Bank Group rather than to IFC or MIGA management. Its mandate is to assist people affected by projects by addressing complaints in a fair, objective, and constructive manner and to enhance the social and environmental impact of IFC and MIGA projects. The CAO carries out its function in three ways: by Board's decision. These recommendations were incor- serving as ombudsman, responding to concerns fromn porated into IFC's agreementwith the project sponsor. outside the organi-zation; by advising on broader cnvi- This year the CAO also completed its first ronmenral and social issues; and by auditing compliance compliance audit, began a mining sector audit, and with environmental and social safeguard policies. complered a guide on compliance audits for IFC staff In its ombudsman role, the CAO began receiving In its advisory- role rhe CAO provides informal and formal complaints in August 2000. In its first year. it formal advice on projects, an activity that does not received a total of nine complaints, and accepted seven. prejudice the involvement of the CAO in its other roles. T wo complaints were rejected. It advised on 17 projects This year advisory areas induded IFC's Sustainability and addressed onc project in its compliance role. Initiative and the extractive industries' review of the Using its flexibility, the CAO seeks to develop World Bank Group, mechaniisms to resolve complainants' issues and to avoid To enswre that the people who need the CAO's future problems. This may take the form of negotia- services know how to access them, the CAO office is tinus, mediation, or fact-finding involving IFC and spreading the word. Its operation-al guidelines are now MICA staff, project sponsors, and the affected parties. available in print and electronically in Arabic, Chinese, For example, this year the office nmade recosnmenda- English, French, Portuguese, Russian, and Spanish. The tions on the Jordan Gateway project, an industrial estate GAO visited regional hubs and countsy offices to speak at the Jordanian-Israeli border. They were provided to to staff and meet with nongovernmental organizations the Board of Directors by the presidenit in time for the and other partniers. INDEPENDENT FLEXIBLE, AND RESPONSIVE 7 , 4 C 5 . 4 - lFC pursued investments this year uAnder challenging circumstances. Private capital flows to emerging mnarkets continued to be depressed in FY 2001 despitel stronger growth in many of the countries that are recovering from the 1997-98 financial crisis. Since then, private debt flows have declined to below 1992) levels, an indication of inivestors' low appetite for risk in today's financie,l marketplace. Today's lenders tend to be short-term oriented and concentrated on large, veil-established businesses. SK. Demand for IFC,s services remains high under cial services, infrasrructure, inormation and com.- - ~~~~~~~these conditions; yer we need ro focus our munications technologies, small and mediumi resources where we can add the most value for our enterprises, and social services such as health and clients and promote the strongest development education. Our innovation during the year led to impact. Our strategic directions approved by the path-breaking transactions for our clients in areas Board put an emphasis on frontier markets, ranging from local currency financing and partial priority sectors, and innovation in structuring credit guarantees to student loan financing, products otherwise unavailable to meet the special distressed debt huoyuts, and corporate-linked needs of our clients, financing of small and medium businesses. Our activities in frontier markets consist of In FY0 1, over 40 percent of the investments for working with clients in countries that either are our own account were in low-income or high-risk considered high risk by commercial investors or countries and over 70 percent in our priority iave low income per capita. In those markets, IFC sectors. We committed funds for the first time to has a special role in promoting private sector invest- projects in Armenia, Chad, Saudi Arabia, and the ment. Priority investment sectors consist of finan- Syrian Arab Republic. k~~~~~~~~~~~~~ - RIGHTh Nigeri a' miuw, small, s,d medium nterproes are benet 3ingfrom pC's new Supportand Treirong Partnership Program. IFC OPERATIONS AND RESOURCES, FY 1997-2001 BALANCE SHEET HIGHLIGHTS For the year ending June 30 (Millions of U.S. DoUarsl As Df June 30 (Millons of U.S. Dollars) FY97 FY98 FY99 FYOO FY01 1997 1998 1999 2000 2001 OPERATIONS ASSETS Investment commitments Liquid assets,exclud'gdernvatves 8,748 10.747 11,369 13,740 14,581 Number of projectst - - 228 210 205 Investments 8,423 8,976 10,039 10,940 10,909 Total commitments signed- $ 5,558 5,138 3,688 3,909 3,931 Reserve against losses -1.076 -1,522 -1,825 -1,973 -2,213 For IFC's own account- 2,402 2,699 2,890 2,379 2,732 Net Investments 7,347 7,454 8,214 8,967 8,696 Held for others 3.156 2,439 798 1,530 1,199 Derivative assets 11.400 11,944 12.290 14,224 1,143 Receivables and other assets 1,480 1,476 1,583 1,788 1,750 Investment approvals Number of projects 276 304 255 259 240 Total assets 28,975 31,621 33,456 38,719 26,170 Total financing approved $ 6,722 5,905 5,280 5,846 5,357 LIABILITIES For IFC's own account 3,317 3,412 3,505 3,505 3,742 Borrowings outstanding 10,123 11,162 12,430 14,919 15.457 Held for others 3,405 2,493 1,775 2,341 1,615 Derivative liabilities 12,181 12,678 13,011 14,990 1,768 Total project costs 17,945 15,726 15,578 21,136 16,427 Payables and other liabilities 1,934 2,697 2,671 3.077 2,850 Investment disbursements Total liabilities 24,238 26,537 28,112 32,986 20,075 Total financing disbursed $ 5,110 4,291 3,296 3,307 2,370 CAPITAL For IFC's own account 2,003 2,054 2,102 2,210 1,535 Capital stock 2,229 2,337 2,350 2,358 2,360 Held for others 3,107 2,237 1,194 1,097 835 Retained earnings 2,503 2,749 2,998 3,378 3,723 Other 5 -2 -4 -3 12 Committed portfolio Number of firms 1,046 1,138 1,280 1,333 1,378 Total capital 4,737 5,084 5,344 5,733 6,095 Total committed portfolio $ 18,992 20,608 21,685 22,168 21,851 Note: As a result of the adoption of ne, accountrng standards on derivatives and For IFCOs own account 10,512 11,448 13,364 13.962 14,321 hedg ng in FY01, with respect to nvestments, borrowings, and nocivatve assets ard abii,- Held for others 8.471 9.160 8.321 8,206 7,530 tves, the FY01 balance sheet is not comparable inth prior ftscal year end balance sheets INCOME STATEMENT HIGHLIGHTS RESOURCES AND INCOME For the year ending June 30 (Millions of U.S. Dollars) (Millions of U.S. Dollars) Capitalization FY97 FY98 FY99 FY00 FY01 Borrowings $ 10,123 11,162 12,429 14.919 15,457 Paid-in capital 2.229 2,337 2,350 2,358 2,360 Interest and financial fees 580 583 607 694 715 Retained earnings 2,503 2,749 2,998 3,378 3.723 from loans Operating income 432 212 249 380 241 Interest from time deposits 412 537 547 634 790 Net income $ 432 246 249 380 345 and securities Charges on borrowings -536 -651 -670 -812 -961 Net interest income 456 469 484 516 544 t Includes f rst commitment tc projects In the fisca; year. Proiects nvolving financ ng to Net gains and losses -1 13 -15 -38 87 mone than one company are counted as one commitment Figures mainta nedt fcr on trading activities commitments pror to FY99 dc not ccmpare Income from equity Investments 344 314 265 262 222 - Total committed portfolio and held for others include securnized voans. Inc udes loan guarantees and r sk management products for FYs9-01 Provision for losses on -266 -481 -333 -215 -402 ... Includes loan guarantees ond risk management pyodiucts for FY97-Ol investments and guarantees Note: Certain prior period arnounts have been recassified to conform tc current Net noninterest expense -101 -103 -152 -145 -210 period presentation Operating income 432 212 249 380 241 Other unrealized gains and - - - - 11 losses on ftiancial instruments Cumulative effect of change - 34 - - 93 in accounting principle Net income 432 246 249 380 345 aa . - ! - I - I 1 1 I .-I~~~~~~ a l . . I . a. Ia . _ * . . -a - - a - I -a. ma a a D - a am a a I a - . - a S -a !~~~~ _ a- a - 8-a Even as demand for our traditional intermediary investment that can create project financing activities remains models to leverage our resources more strong, our new credit enhancement effectively (see box, p. 31). This year we products helped some of our clients committed or approved support for smrall attract long-term financing from new and medium enterprises through corplo- classes of investors, including local and rate-linked transactions in Argentina, foreign institutions, which had previously Kazakhstan, Mozambique, and Nigeria. been out of their reach. Our committed TIhrough credit lines and other loans to local currencv and partial credit guarantee banks in Africa, Asia, Europe, Lacin products this year amounted to £547 mil- America, and the Middle East, we sup- S-S -. i a - lion, up from only $3.8 million in FY00. ported lending to small and medium Direct investment in small and enterprises. Specific transactions are E i -llE U ~ - 1 - -medium enterprises was deemphasized highlighted in our regional reports .i .ii = t 3 rhis year in favor of mobilization and beginning on page 36. _ - _ - - * - - INVESTMENT OPERATIONS - - , * - .* . - IFC signed gross investment commit- Mob Ii zaficon arid -dN I;I D ;r 1%1 ments of $3.9 billion for 205 projects Risk Manra-err -er in FY 2001, of which $1.2 billion was Loan syndications mobilized through loan syndications, In high-volatility markets, where lenders compared with $3.9 billion in IFC were reluctant to supporr projects in commitments, ofxvhich $1.5 billion were sectors and countries perceived aLS -,__ - - - -syndications for FY00. IFC provides a especially risky, our ability to mobilize range of products and services for clients, financing from the private sector played .- - - - -- -: including debt, equity, guarantees, and a critical role. The comfort of the IF- -T^_ * a - - . * . . -risk management products that are "umbrella"-which offers preferred i* . - - * a. - . - *funded through IFC's own financial access to foreign exchange and exemp- I-i iF -* - . - - resources. During FY01, IFC signed tion from mandatory provisioning-can 1;51il;1,-i * investment commitments for its own play an important part in lenders' risk * - r. , * - -M; _account of $2.7 billion, which included mitigation strategies. X11_1_ _ Z 1/1 _ _ ~~~~~~$386 million in equicy investments, $251 To increase the long-term project million in quasi-equity, $1.5 billion in finance available to private companies ii loan agreements, and $570 million emerging markets, we encourage in guarantees and risk management lenders-through participation in aii products. Based on expected project IFC-led transaction-to make long-term costs, each dollar committed by IFC to loans to borrowers who face limired:l projects in FY01 will result in an addi- access to funding, often at tenors well tional $5.47 of private sector investment. beyond those available in the marker at Investment disbursements amounted the time. The average maturity of loan to $2.4 billion in FY01, compared syndications this year was 10 years, with $3.3 billion in FY00. A total of compared with seven years in FY00. 240 projects were approved in 75 coun- Reaching this level was a breakthrough in tries in FY01, compared with 259 a market environment where tenors were projects in 81 countries in FY00. Five- coming down in general. year data on investment approvals, com- Signings of ncw B-loans in FY01 mitments, and disbursements appear on totaled $1.2 billion for 24 projects, page 31. Investment projects are further compared with $1.5 billion in FY00 detailed in the regional sections and This decline is due to difficult marker listed in our project tables in the Annual conditions combined with our greater Review section. focus on riskier sectors and countries. For the first time, the Middle East Risk management services and North Africa represented the largest Companies and banks in developed volume of business for IFC syndications. markets use risk management instru- \W'e syndicated large transactions for a ments, such as interest rate or currency cellular phone company in Morocco and swaps, to unbundle financial risks and for two power projects in Egypt- manage them more effectively. Such Suez Gulf and Port Said East (see box, products can help companies better r p. 62). In another milestone, we mobi- match assets and liabilities through lized a significant volume of uew svndi- hedging and decrease vulnerability cations in Sub-Saharan Africa, where to unfavorable movements in interest our signed deals included loans to rates, currencies, and commodity prices. support the Chad-Cameroon Petroleum These risk management instruments are Development and Pipeline Project and often not available to emerging market the expansion of Ghana Telecom. entities because of credit risk. IFC's syndicated loan portfolio Since 1 990, IFC's client risk as of June 30, 2001, was $7.5 billion management program has helped clients hN in 266 projects. Our Syndication compete more effectively on a global Departments B-Loan Management basis. The program plays a develop- Division administers B-loans and coor- mental role by advising emerging dinates activity with participants. mark-et companies on risk management rechniques. IFC also enhances the Securities underwriting long-term creditworthiness of its private and placement sector clients by enabling them to enter IFC helps private compainies in devel- into risk manageniecit hedgiiig traissac- ABOVE: Maisky Cha a mir-bakery in Moscow, oping countries raise long-term invest- tions that reduce their exposure to prepares bread inan over eased through assis- tance from the Private Enterprise Partnership- ment capital from international markets. interest rate, currency, and commodity The partnership s work ng with this and other Recognizing the special characteristics of price risks. sma ' and medium enterprises to increase issuers from each of these countries, xve During the past I I years, IFC's access to finance. help organize appropriate structures and Board has approved 98 risk manage- develop suitable placement strategies ment projects, which represent a loan- targeting investors with a long-term equivalent exposure ofover $500 million perspective and rhe ability to assess for clients in 38 countries. Transacrions emerging market risks. have been conducted with clients to We guide clients through the legal, hedge a notional amount of over $1.9 accounting, and financial disclosure billion. (The potential exposure or requirements of the markets and help future risk of these transactions is a frac- them understand the offering process. tion of the notional amount, estimated Our transactions are completed accord- by using option valuation techniques.) ing to international standards and In FY01, the Corporation signed practices and are designed to have a three risk management projects and strong demonstration effect to attract approved eight. We executed agreements long-term capital to economically and with Bolivian company Caja Los Andes, environmentally sustainable investments Indonesia's PT Indorama Synthetics, and in developing countries. In public issues, Kipevu Power in Kenya. An innova- we help ensure broad distribution and tive project in Mexico was approved support the developtnent of an active that would allow a utility company, secondary market and continuing Coinpafiia Tratadora de Aguas Negras research by market intermediaries. de Puerto Vallarta, to synthetically trans- During FY01, we advised and form its existing dollar-denominated assisted businesses and funds directing liabilities into Mexican peso-denomi- investments toward countries such nated liabilities and thus match the as Brazil, Egypt, India, Kazakhstan, currency in which it receives revenues. Russia, and Thailand and sectors such as banking, chemicals, construction, and aviation. Risk management products are Banking assignments in support of * Z. . u - - . .offered to IFC customers solely for hedg- small and medium enterprises are ing purposes and not for speculation. increasingly taking along-term, compre- *. . . . . . * IFC hedges its own market risk on these hensive approach to building instit.s- -I *, - - - ..transactions and monitors the current tional capacity as a condition of securing ! | l ! l ~~~~~~exposure of the transactions regularly in IFC financing. This year we worked (i:n line with market practice. such projects in Georgia, Kazakhsta n, Moldova, Romania, Russia, Tajikista s, 9 i a Smai a H a rid M e d i um m and Uzbekistan. E n I e r p r i s e s We helped establish or scale tip * - 3 - 9 - 9 . - Ehe Small and Medium Enterprise commercial microfinance institutions l - - 0 U (SME) Department, jointly managed in Chad, the Kyrgyz Republic, and * -. 8 -, - - - * by IFC and the World Bank, completed Mongolia, as well as in countries in Lati n l -C 3a s-s * . - -its first fiill year of operations in FYOI. America and the Caribbean; we under- * u-D . - s . - a -The department follows a four-part strat- took credit-scoring initiatives in Africa * . Es a a a~-. - ~- -egy to improve the business environ- and India and e-finance projects in . -Z .. m** . r a! , *ment, build access to capital, provide Hungary and India; and we piloted new A,. 9-i-9 * * ** ! support services, and advance informa- solutions for rural finance in China -a. - r E - l - ntion technology. and Mongolia. The SME Department coordinates Other innovative advisory assigir- the activiries of project development ments are underwav on the development facilities, which assist small business of secondary mortgage markets (Czec i *islq 6 ' - development. These include the Africa Republic, India, Korea, Poland, Russi,, - - -. - Project Development Facility, the Slovakia, Ukraine); structured finance * 3 - -. 'El;6; 6 -71 ::X11 Mekong Project Development Facility, (India, Korea, South Africa); and bio- as - _ 3} - a . . - *and the South Pacific Project Facility. metric technology (global). Leasing, * a l l l z r - *aa- - -IFC's newest small and medium legal, and regulatory market assessments . * l X ll= = ..--a . .enterprise initiative, Southeast Europe continued to expand in frontier coun- - 1 1 t; 5 _ * . * .Enterprise Development, provides a key tries (Cambodia, Maldives, Mongolia, *, u 1 >_ -on-the-ground presence to carry out Nepal); insurance and pension advisories this work, while also helping smaller were initiated in Albania, China. businesses in Bosnia and Kosovo, FYR Kazakhstan, Madagascar, and Romania Macedonia, and Albania improve their * - - - performance and raise new financing. P:r I ;tmet r This year in Bosnia and Herzegovina, Ads sS erv~ v e et s a countrv with 60 percent unemplov- Last vear IFC and World Bank advisors 9 - *9 * -i - _ ment and an unfriendly business envi- services wvere integrated into the Private -A i 3 . 9 9 D X 9 9 r E ronment for entrepreneurs, the SME Sector Advisory Services (PSAS). Thc 3 l. - * Ma .2 - E E: Department coordinated IFC and World jointly managed department provides l l - 5 =3; E = . =3 55 - Bank efforts to help the government advice to governments and enterprises on address pressing constraints, drawing on policy, transaction implementation, and priority needs identified by local business foreign direct investment. Its specialist associations. Working groups have been areas include advice on infrastructure set up to focus on business operarions, transactions and foreign investment ancd financing, and the legal framework. basic sectors like health and education. In cases where IFC is asked to make an Financial Sector investment in an enterprise receiving Advisory Services PSAS advice, the investment and advi- In FY 2001, 117 advisory assign- sorv roles are managed carefullv to ments in more than 50 countries and address conflict of interest issues. regions received some $17 million in active ftnds Privatization LEFT: Scuth Africa s endowed with beautiful Private Sector Advisory Services advises national parks. governments and state-owned enter- S ~ ~ ~ ~ ~ prises on privatization transactions and _.. projects that are commerciallv viable, / S S 1r'Jitj TECHNICAL ASSISTANCE C environmentally and socially responsi- ble, and meet sound economic objec- Total: $582 million Cumulative contributions to IFC-managed technical assistance programs reached $582 tives. PSAS provides more than million, compared with a cumulative total of transaction support, also advising on $525 million at the end of FY00. policy and transparency issues. This year PSAS focused on transac- - 71% Donor Countries' tions where we could add value and - 19% World Bank Group7 * | I I ~~~10% Donor Institutionst' attract commercial funds and on devel- D opment of our activities in eastern Europe and southern Africa. We also Includes Austra a Austra, Begum Canada, Deornark, Finard, France Germany, Greece India, reand, csr3el, Italy, Jaran, uxemnbourg, Mexicc. Netnerlands Nse Zealand, Norwrny, ac,and Portrgal Soeen,a, completed the successful privatization Spain Sweden, Sw tzeriand, Un ted K ngdor, and United States of Societc Nationale d'Electricite in t nclides nternaticra Bank for Recenstructon anc tevelopment, Internariona Finance Corporation and M.t arera Investmnter Gcarantne Agency Cameroon (see box, p. 32); Mauritel, rr ucludes Afr can De.e opment Bank, Eurcpean Bank fcr Reconstruct on and Deve opment E ropean GComur 'K Inter-American Develcpment Bank. Asian Development Bank, and Unitec Nat ons Deve opment the telecommunications operator serv- Programme ing Mauritania (see box, p. 15). and the nK first transshipment hub terminal in northeastern Brazil, in the Port of FIAS completed 48 advisory proj- Suape. As part of a long-term program, ects in FY 2001, with the largest we also advised South African National programs in Africa (14), Asia and the Parks (see box, p. 34). Pacific (14 including six in the Pacific), ' and Europe ( 11). First-time clients were Foreign investment in Albania, Bhutan, EastTimor, Nigeria, The Foreign Investment Advisory Service and Sao Tome and Principe. Ten projects helps governments design policies and dealt with reviewing the legal framework institutions to attract foreign direct for FDI, nine with reducing the admin- investment (FDI) and obtain the most istrative barriers to FDI, and five with benefit from it. Jointly operated by IFC diagnosing and identifying a country's and IBRD and further supported by main policy impediments to attracting funds from donor countries, FLAS works productive FDI. FIAS conducted six only at the request of client governments. regional projects for groups of countries Since its founding in 1985, FIAS has to coordinate their FDI strategies and assisted nearly 120 countries. investment promotion activities. FRANK AJILORE i ABOVE: The Support and Tra ning Ent'epreneunal Program helps clients like this one build thenr bus nesses n Nigera. * - *=tlt' and institutions, including the World Bank Group, agement, and monitoring framework for the mining sector in Lao PDR _ ,, . _ - *: . M Th&1 and helped develop rural electrification projects in Uganda. _,* a ~ iii, liii ediid, Through FY01, the donor community provided cumulative finances various feasibility and prefeasibility studies and projects to contributions of $137 million to support the TATF program, which on privatization, policies to strengthen the business environ- includes a budgeting allocation from IFC's own resources totaling C, =, $6.7 million to date. Since the inception of the program in 1988, Or capacity-building programs, and corporate governance practices. donors have approved more than 1,000 technical assistance projects. ~ In FY 2001, for example, TATF funded a leasing sector study in Other funds provided by donors allow for assistance through project Central Asia, sponsored a study of Internet service provision for "smart facilities and additional programs, including some work carried out U schools" in Egypt, and undertook a comprehensive study for an by the Foreign Investment Advisory Service. innovative, private sector-led reform of San Salvador's bus system. a It also helped improve the environmental and social regulatory, man- -3_ U II SUB-SAH RAN AFRICA Meeting challen es with innovation The environment for private sector investment remains difficult in Sub-Saharan Africa. Under such circumstances, IFC must find innovative ways to support the private sector's contribution to development. Despite economic challenges, we were able to support private sector business opportunities in the region, especially focusing on the financial sector, infrastructure projects, small and medium enterprises, and tourism businesses. Angola Liberia Benin Madagascar o l Botswana Malawi FY00t FYO I BSurkina Faso Mali Burundi Mauritania Financing committed for IFC's account 321 482 =- Cameroon Maunitrus Equity and quasi-equity* 1552 3 Cape Verde Mozambique Loan guarantees and risk management 4 89 Central African Republic Namibia Loan syndications 24 160 Chad Niger TOTAL COMMITMENTS SIGNED 345 642 Comoros Nigeria Comrmitted portfolio for IFC's account 1,251 1,525 Democratic Republic Rwanda Loans 822 997 of the Congo Senegal Equity 410 424 Republic of Congo Loan guarantees and risk management 19 104 Cdtedli Seychelles Committed portfolio held for others 243 301 Sierra Leone (loan participations) Djfbouti Somalia TOTAL COMMITTED PORTFOLIO 1,494 1,826 Equatorial Guinea Eritrea South Afrca Financing approved for IFC's account 765 400 Sudan Loans** 675 268 Ethiopia Swaziland Equity and quasi-equity* 90 132 Gabon . Loan syndications and underwriting 483 40 The Gambia Tanzaia TOTAL FINANCING APPROVED 1,248 440 Ghana Uganda ":~~~~~~~~~~~~~nciudies nan and equaty-typs, quasr-esuity lnvetmnents Ghan a Uganda '.ncudes loan guarantees and ret management Guinea Zambia *Revised FYW tgures ShOW ecnilted guarantee and resk managernent products Guinea-Bissau Ziffbabwe Kenya Lesotho RIGHT. Families in southern Madagascar bentefit frmm an IFC project for wrich rvelrage provides supptes. Africa's economic growth rate of 2.7 Although many governments have Tanzania: percent in calendar year 2000, although initiated important reforms to encourage Villagers Become Shareholders up from 2.1 percent in 1999, still falls private sector development, the impact short of the level needed to reduce has been muted by incomplete imple- In an ecotourism project in Tanzania, IFC poverty, and barely kept pace with mentation, poor governance, and lack of provided an innovative structure for a population growth. With the exception capacity in government. A harsh transaction that benefits a local tribe and of a small number of oil-exporting investment climate combined with wildlife in the region in many ways. nations, terms of trade continued to inadequate and poorly managed infra- Boundary Hill in northern Tanzania is a deteriorate. Many countries were caught structure is especially unforgiving to 16-bed, upscale lodge within a 35,000- in a double bind, as prices for imported small and medium enterprises, which acre private game reserve. The project oil rose while prices for major commoditv lack the resources to deal with such busi- we financed provides equity in the hotel to exports fell. Meanwhile, Africa remains ness challenges. te local M riviles th ing family, largely isolated from the approximately ~ ~~the local Maasai villagers. The King family, largely isolated from rhe approximately $180 billion foreign direct investment IFC strategy and financing the other partner, is an established tour flows to emerging markets. Foreign The poor environment for private operator with long ties to the community. direct investment had increased in 1999 business, weak international capital The Maasai village of Lolkisale has leased to $9.5 billion, but it decreased to $7.3 flows, high perceived risks, and a its land for the private game reserve, which billion in 2000. difficult enabhing environment make will protect an important migratory corridor 'T'here was progress this year in IFC's role more important than ever in and animal habitat adjacent to the Tarangire ending conflicts that have inhibited Sub-Saharan Africa: the projects IFC National Park. development, such as a cessation of finances account for about 10 percent of We supported the project with a loan hostilities between Ethiopia and Eritrea all private investment in the region. for our account, complemented by another and movement toward peace in Sierra During FY 2001, our new invest- from the IFC-administered Global Environ- Leone. Yet conflict and instability remain ment commitments increased from the ment Facility. We also secured trust funds the major constraints to economic devel- levels of the previous two vears to $642 .. . . i ..~ to cover part of the costs of the environ- opment in Africa, and some of Africas million. Loan syndications were $160 conflicts have proven stubbornlv resis- million, a considerable increase during * * r - * n a | r r X r f ~~~~~~~rigorous due diligence on the environmental rant to resolution. Meanwhile, theAIDS the year that made it possihle for IFC to epidemic is taking an especially heavy toll complete large infrastructure project and social impacts to ensure that the on those infected and their families and financings for the region. Such syndica- villagers were getting a fair result, to challenges economic and social develop- tions have an important demonstration validate to wildlife preservationists the ment efforts. effect in introducing new lenders to contribution of the private reserve, and BELOW: Giraffes res de in the Tarang re National to confirm the financial soundness of the Park. The Boundary H 11 project preserves an project. The project demonstrates that the important m gratory corridor for other wildlife. strictest application of IFC standards adds substantial value to private investments and helps a community participate fully in the FINANCIAL SECTOR AND SME INVESTMENTS developmentprocess. Sub-Saharan Africa, Comm tments 400 ----------------------- ------------------------ 40 ---- --- --- ---- --- ---3 5 c 300 -- 30 t - -------------------------------- 25 -D I tO 200 20 ~~~~~~~~~~~~INVESTMENTS BY AMOUNT 200 - -20 LetAi _ S 1 s Financ al ntermed ar es- - f A.isSmall and Med um Enterpr sesa 100 - --------> 10 INVESTMENTS BY PROJECT O I ~~~~~~~~~~~~~~~~Right Aviv so> || -}SFinanc al sternred ar es' - 0 ------ -- q ------ o Small and Med um Erterpr sesa FY99 FY0 0 FYOI vestmnents nc cde guarantees and sk managemrent procucts Incluces n,est-eos n -c al and nsurance 2D,panies a wie as ccl ecve -iestment 4ec e, - ude, nveb jv ert asat stame to m c a. srall and nd ua J enterprises nves-ments nc u de 0 I ndustry se0hoKs rc ud nX_ carI seiactr i a - 'I' ' PROJECTS AND COUNTRIES *31 S-Subaharan Africa Sub-Saharan Africa COMMITMENTS FY00 FY01 800---- Number of Pro ject 65 51 Number of coortr es 23 23 600 6 0-0--- - O E APPROVALS FY00 FYO0 jIll* Number of Pro ects 80 45 v 200 - - -- _ Number of Countr es 25 17 FY99 FY00 FY01 the region. The committed portfolio Building the financial sector * Syndicaioss snd underwrt ng increased to $1.8 billion. Portfolio Our work in the financial sector * Fisooc og for [0 s moo accosnr performance, however, was hampered continues to be the largest single area for- by the need for provisioning against IFC financing. We signed 18 invest - adverse stock market movements and ment transactions for a total of $235 losses arising from economic crises in million during FY 2001. In Ghana A,: & Zimbabwe and C6te d'Ivoire. supported the establishment of Ghana Sub-Shaaran Africa Our strategy, first developed in 1998, Microcredit Corporation and Enterpris,. emphasizes three areas: building the Life Assurance Company. In Cameroon 1,200 ----------------------------- financial sector, expanding the private and Tanzania we made equity invest- provision of infrastructure, and sup- ments to assist the privatization of major 1,000- -porting indigenous entrepreneurship. In commercial banks. 1111 -------------- -----------addition, IFC supports projects with In Nigeria, we made term credit facil- 800 --_ high development impacts, tailoring ities available to five leading commercial v 600-- g priorities to individual countries. banks to help them meet investment demand and the private sector revitaliza- 400 -----------------m----- tion occurring as a result of new policicb (see box, p. 41). We invested or plan to 200-- ------ invest in Equipbail Mali and Banco o Internacional de Mocambique-Leasing. FY99 ------ -- We also provided support to Banco do FY99 FY00 FY01 Microfinancas de Mocarnbique, a new . Syd 001 000 SF0 .noerwr tng microfinance institution. We helped Fin-- 00g for FC 5 a., account R CHARC LORL) RIGHT: Toe Kipeou Power projsot is Mombasa, Konya. IFC pruvioed a rsk masagemenr produot s0 roe _ compeIH o Te 0 better manage asseto 0n0 I abilrieso. 38 rvddarkmngeetpouts h ;i 5. f g -0m-8ll-o dbatlel--naas 39c<.lrr ab z-c Si~~~~~~~~~~~~~~~~~~~~~~~~''0 -- -. - ~Ghana: _s. JJ Expanding Telephone Service 4SZ!9 <~ f- - -> 6 !W lb ShU-:l Ghana Telecommunications was partially privatized in 1997 with the assistance of the World Bank. Telekom Malaysia bought a i- - f strategic stake and then reorganized the Y t company and streamlined operations. 4 Now Ghana Telecom is prepared to :, - 3extend service to new communities, add capacity, and improve the quality of ROBRET GR>OMSAN international services through a $216 million investment program. These activities represent the fulfillment of Telekom ABOVE: FC supports agr bus ness throughout Sub- the expansion of cellular operators Malaysia's purchase commitment to the Saharan Afr -a. in Rwanda and Uganda as well asMays'sprhecomtntote establish Intermarket Discount House regionally through our investment in government. The fixed-line network will in Malawi and Nedbank Investment Mobile Systems International Cellular grow by 145,000 lines, and the network Bank in Namibia. We provided tech- Investments Holdings, which has will be digitized. A nationwide cellular nical assistance and capacity-building licenses throughout Africa. In Togo,we network will reach 97 towns and provide projects, including training to West financed Centre d'Assistance de capacity for at least 70,000 subscribers, African commercial banks on-lending Formation er d'Etudes-Informatique. many with no previous telephone access. to small businesses. We supported the first private Internet service Investment will also be used to link to a studies on the regulatory framework for provider, in the expansion of its network new submarine cable extending from microfinance in West Africa and on the and services. IFC successfully completed Europe to South Africa. development of stock markets in advisory mandates with Mauritania to We helped finance the expansion with a Seychelles and Uganda. We also com- privatize the national telephone utility $40 million loan for our own account and pleted a study analyzing debt markets in and with Cameroon on the privatiza- West Africa. tion of the national electricity distribu- arranged a commercial bank loan syndication tion utility. The financing of the of another $60 million. Such a large-scale Promoting infrastructure Chad-Cameroon Petroleum and Pipeline project in Ghana was not feasible with the The pace of IFC investment in private Development includes mobilization of domestic financing that the company had infrastructure is growing slowly, but further investments in roads, bridges, originally envisaged. IFC financing was key to we still play a key role, finding oppor- and other infrastructure upgrades. mobilizing international banks. IFC worked tunities to support transactions where with the government, Ghana Telecom, other commercial lenders are unavailable or Assisting entrepreneurs telecommunications companies, and the seek IFCs ability to provide a high level and smaller businesses World Bank to strengthen the new regulatory of social and environmental impact In support of indigenous entrepreneur- commission and resolve other issues that had review. We completed a major financing ship we are doing less direct financing of limited private participation and competi- for Ghana Telecommunications, the smaller investments and providing more tion. Our participation in this transaction partially privatized national operator assistance for the creation and building demonstrated support for the private sector (see box. right). IFC also supported of intermediaries to provide capital, approach to telecom development. The result is a rapidly expanding sector bringing new or better service to Ghanaians. 7-- t~~~~- _ [E S / ABOVE LEFT: FC financed Nairob's Lanamark Hote, technical expertise, and other services. Other high-impact projects vhienh provdcanjnbn, training, sneask s. The goal of this change in strategy is to In the extractive sectors, we gavu ABOVE RIGHT: An FC client prov,ded a m croenter- reach a larger number of small and support to major development projects. crise loan for th s fam y business. medium businesses more effectively. The agreement for finanicing thu In South Africa, we financed Tusk Chad-Cameroon oil pipeline projec: Project Management, a firm making was signed, with IFC leading coordina contract management services and tion among a largc number of financial working capital available to small institutions. IFC's investment demon- construction companies. In Chad and strates how a joint World Bank IFC' Cameroon we xvorked with the oil approach can provide a comprehensivt pipeline construction firm to identify structure for poverty reduction. The opportunities for local sourcing and Bank's participation provides low-interes provided training by the Africa Project loans to support institution building bv Development Facility through cham- governments in both countries ancl bers of commerce to enhance the management of petroleum revenues iii capacity of local firms to bid on Chad. The World Bank is financing the construction and supply contracts. two governments' purchases of equity interests in the pipeline. RIGHT: Kenya-based Mu tip e Hau ers, wh ch rece ved _ 3j_ \.,i. IFC financing, maintains a soph sticated comrpter system for track ng its t eat of trucks. f _ _l | l | F:~~~~~~~~~~~~~~~~~~~~~~~~~~~t 40__E | : _~~~~~~~ cc>.' LEFT: An IFC capac tyobuIldirig initiat an provides ass stance to hese bagmakers n Niger.a BELOW: A negetable exporter that 1Fe hen vorkeed to support generates Jobs and fore gn exchange n Kenya FRANS AJtI ,RE We financed an oil trade facility to and hotels. We completed the first phase expand the capacity ofAfrican and inter- of our advisory project on concessions national banks to handle oil exports. As in national parks in South Africa (see the Mozal aluminum smelter came on box, p. 34). stream in Mozambique, we committed Manufacturing and agribusiness to financing a doubling of its capacity, projects included a horticulture exporter making it one of the largest and lowest- in Burundi, a textile and clothing manu- cost aluminum producers in the world facturer in Madagascar, and a cement (see p. 14). manufacturer in Ghana that brings newx Tourism is also a major sector for competition and lower prices to the IFC in Africa, where we committed or market. We also financed a health clinic approved financing for 12 hotel projects. in C6te d'Ivoire and a fire safety training , Notable ones included the Spier Hotel center in Nigeria. 'W%e began or made and related tourism facilities in South progress toward the financing of Africa, small-scale game lodges in secondary schools in Cameroon, Ghana, Tanzania (see box, p. 37) and Botswana, Guinea, and Uganda. and expansion of regional game lodges J R C ARD LDR s* Nigeria: Financing Resurgence The return of civilian government and probusiness policies in 1999 extends much further. This type of lending allows us to provide prompted many Nigerian companies to rehabilitate and upgrade financing indirectly to a broad range of companies while supporting their operations. Local banks, accustomed to short-term lending, the development of these local financial institutions. have been unable to meet the new longer-term loan demands of In addition to facilities committed, three others have been Itheir customers. approved by IFC and are expected to be committed in FY02. One IFC has worked closely with Nigerian banks to ensure that they of these new facilities will focus on supporting the small have sources for medium-term lending. This fiscal year we committed and medium enterprise lending program of a leading bank. We are $122.5 million in credit facilities to four Nigerian banks to expand working with some of our client banks to identify strategic their term lending. Our clients are Diamond Bank, Citibank Nigeria, partners and are providing technical assistance that will help Guaranty Trust Bank, and FSB International Bank, but our reach them build capacity. ( - ASIA &~ THE. PACI'FIC Clearing obstacles, promoting growth The need for private enterprises to contribute to economic growth in Asia and the Pacific is pressing. But the private sector faces a slowing world economy, stalled economic reforms, fiscal deficits. and restrictions on the borrowing capacity of private firms. Although obstacles differ among countries, they all limit the ability of the public and private sectors to bring about rapid anc sustainable growth. Bangladesh Myanmar Cambodia Nepal China Pakistan ~~~~~~~~~Millions of U.S. Dollars Chin a Pakistan Fiji Palau India Papua New Guinea Financing committed for IFC's account 373 767 Indonesia Philippines Loans 239 157 Kiribati Samoa Equity and quasi-equity* 133 226 Loan guarantees and risk management 1 384 Republic of Korea Solomon Islands Loan syndications 324 17 Lao People's Democratic Sri Lanka TOTAL COMMITMENTS SIGNED 697 784 Republsic Thailand Committed portfolio for IFC's account 3,996 4,168 Maidices Tonga Loans 2,797 2,479 Vanuatu Equity 1,046 1,137 Marshall Islands Vietnam Loan guarantees and risk management 153 552 Federated States of Committed portfolio held for others 2,850 2,346 Micronesia (loan participations) Mongolia TOTAL COMMITTED PORTFOLIO 6,846 6,514 Financing approved for IFC's account 927 1,228 Loans** 659 932 Equity and quasi-equity* 268 296 Loan syndications and underwriting 137 131 TOTAL FINANCING APPROVED 1,064 1,359 *fncludes loan and equity-type, quasi-equity investments includes loan guarantees and r sk management nRev sed FYO figures show committed guarantee and risk management products RIGHT: IFC is financing Sino Forest, the only privately held, fully integrated plantation manage- 42 ment company in China (see box, p. 44). i EAST ASIA AND THE PACIFIC China: Strengthening the Insurance Sector Building a more In FY01, we provided credit enhance- effective private sector ment, completed restructuring transac- IFC invested in New China Life Insurance Some East Asian countries, such as tions, and supported financial institutions Company this year to make it a more China and Korea, experienced growth in crisis-affected countries. For example, , competitive force in the domestic insurance rates in calendar year 2000 of around 8 we invested equity in Cheil Jedang i market, introduce better management pcrccnt, a rate that dcclined in the Investment Trust to strengthen an insti- practices to the company, and promote good months that followed. In countries like rution affected by low confidence in the corporate governance. NCL decided to seek Thailand and Indonesia, where growth Korean investment trust industry. Our I foreign strategic partners as a key part of its rates were in the more modest 4-5 investment supports the introduction of I long-term strategy. This was the first percent range in 2000, expansion sub- global best practices into an important i foreign investment in a Chinese domestic stantially diminished in early 2001. segment of Koreas financial sector. life insurance company approved by the While domestic demand remains strong Small and medium enterprises are market regulator and one of the first in China and Vietnam, the environ- particularly affected by the crisis. IFC projects open to foreign investors in China's ment elsewhere is not as favorable. As a invested in a trading network in the services sector. IFC invested in the company result, investor confidence has deterio- Philippines (see box, p. 45) that enhances * along with Zurich Financial Services Group rated, as reflected in decelerating inter- market access and provides pre-export of Switzerland, Meiji Life Insurance national debt and equity flows to financing to small businesses. The com- Company of Japan, and the Netherlands crisis-affected countries. pany plans to expand its network to - Development Finance Company (FMO). Economies hit by the financial China, Indonesia, and Thailand. IFC was instrumental in bringing the crisis of the past decade have restruc- Despite the fact that East Asian coun- * parties together to structure the transac- tured their banks and companies tries enjoy some of the highest savings | tion. We invested $31 million in equity in slowly. Nonperforming loans remain rates in the world, the financial sector the company. In our capacity as a share- high and balance sheets weak, while offers a narrow range of services. Our holder, we expect to help improve its restructurings are dominated by investments aim to strengthen this management capacity and corporate gover- rescheduling rather than changes in sector. In Thailand, for example, we nance practices. We arranged for one of operational control. invested in the first foreign joint-venture New China Life's senior vice presidents to Our strategic focus in East Asia is on credit rating agency. The agency enhances w Ch the senior Insid e supporting the restructuring of banks clients' access to nonbank financing and work with the International Insurance and companies, strengthening the is expected to contribute to the devel- Foundation, a Washington, D.C.-based financial sector, raising corporate opment of the Thai bond market. In industry association. The company official governance standards, and investing in China, IFC provided technical assis- - will take qualifying exams from a U.S. projects at the frontier of private tance and invested in New China Life, professional society. Also, through a tech- sector development. an insurance company (see box, right). nical assistance grant, the company will be able to provide training for its managers and 1H staff, and sales and investment staff will F ITh spend three to six months working with FINANCIAL SECTOR AND SME INVESTMENTS US-bedsuacomnes Asia and the Pac fic, Comm tments a We strengthened the existing board of 600 ----------------------------------------------- 40 directors and shareholder meeting proce- ------------------------ 35 dures to ensure that directors and 450 ~- shareholder representatives have full 450 --------~~~~~~~~~~~~~~,4B 30 information and authority to discuss meet- , INVESTMENTS BY AMOUNT y ing agenda items by receiving detailed = 300< . g_ 4 t' ,. >20 'eft Axis board and shareholder meeting agendas or XIA ~~~~~~~~~~~~Finaric a ntermed,ares' r 5.g~ --R- r-------t 15 a Small and Med um Enterpr ses'* draft resolutions at a specified time prior to 150 10 INVESTMENTS BY PROJECT a meeting. o ~~~~~~~~~~~~~~~~Rght x Financ ai ntermen ar es O -- --- ---- - Sinal anid Men eim Enterprises-- FY99 FY00 FY01 Invesiments in- ude guarantees and rsk ma-ragernenr prrduct; Inc uden Investments n financ al and esuran-e compan es as wel as co lect >e nnstrr er t ehrIC es G6 I Incluces nvestme-r a,s stanc me micro, sma 1, ano medium ente,rp ses lrInvestrenrrs inn unn a I Industry sectrs, rrnuding fnancia selrnr S 3 *= * PROJECTS AND COUNTRIES As a and the Pac fic Asia and the Pacific 1,000- COMMITMENTS FY30 FY0I Number of Projects 28 45 750- --------------- r----- N\mber of Coont es IC I 2iO- ----- ----- ----- APPROVALS F: FYOI Nmbe of Proj ecs 54 65 250 ------ ---- -----Nin-ber of CAntTr es 12 15 ~ e FY99 0YO0 FYO9 FX Syndicat ons and .nderwr t nI E Financ rg for FC s own accoun.- s _ The investment brings the private sector environment. In Indonesia, however, wvc Asia and the Pac fic into the presently state-dominated have had to put our program on holk 1,500 -domestic insurance market. until progress is achieved in the areas oi- Inhospitable business policies and governance and judicial process. 1,250 ------------ - poor corporate governance inhibit Some of the grearest challenges for private investment flows. This year we private sector development in East Asie. 1,000-- ------ ------ provided assistance to improve the busi- and the Pacific are found in Cambodia. _7_0_ ness environment in several countries. In the interior provinces in China, Lac 4 750- | Z Z China, for example, we published a PDR, Mongolia, Vietnam, and the major study through Australian Trust Pacific Islands. For these countries and 500- ------ ,, i i i Fund financing on the domestic private regions our priority has been to hellt 250-- sector and policy changes needed to small and medium businesses through o * * z support its development. IFC chairs the financing lines and specialized project E -- . - JII ---- Private Sector Forum in Vietnam, which development facilities and support for FY99 FYOO FYOI convenes businessmen, policymakers, financial institutions specializing in and donors to discuss policies and small and medium lending. The China Fi Syndicar rnn anf unerwr : cg specific measures to improve the business Project Development Facility, the third X Finan'crg for IFC s con account -~~~~~~. 11 a| i a5 ai ii a1 - --a - a aa- a . - -. - a.. :n _ .tf a - a-.a . t_-a, *: . a a -f a.. -mlIllilioi111stsua: rtult:-l ttlll*I:T.1Pl * aa a aa__.- aaa - a ___a. .-aa. -. .*- * . a a.. - a - azilstlisl-stsiseh:=fllYl|ll.tll_.s a . isltalis.- S :-. tli-l]l *a ait .1 t -,:t l. r:ila .l-- l a.. * . - .aa a a a- .a- a . - *a. -Se. a a. . a~~~~~~~~*ll*g1 t ttlttif< i a E 1i tJt ' ; t ; iI | i:;L a - a s.* a - - a a aa-. .aa a. . a - a . - a - .- .a - a -* - - - . *a* a - a a .aa a -a *a.--= .- ~~~~~~~~~~~ , Philippines: Expanding Markets for Small Businesses * *l*lSmall and medium businesses in developing countries often lack opportunities to sell their products in the global marketplace. Avalon Professional Web Trade, a trading company based in Singapore, is working to ill- overcome some of the barriers these l l businesses face. To support the small and medium enterprise network of APW, the $12 million Philippine Export Development Facility is being established. It provides a 50 percent partial guarantee to the facility N C-K FLANDERS ' - members. Transactions under PEDF would benefit from a quasi-securitization of receivables. Banks participating in the facility would manage PEDF, while APW ABOVE: FC partic pation In a project In Vietnam Historically, high growth rates to ensured that farmers would have greater ncore the region have exacerbated environ- would be the intermediary to small and opportun ties. . exacdiumtenterprises mental problems. We actively seek m BELOW: The Mekong Project Deve opment Facil Iy PW receives purchase orders for provided f nancing for the modernizat on and opportunities to invest in environmen- A expansion of a toy company n Ho Chm Minh Cty. tally sustainable projects with strong furniture from U.S. buyers and subcontracts beneficial effects on local communities - out production to small businesses in in the East Asia and the Pacific region, and the environment. We signed an the Philippines. These businesses are will soon be established in Sichuan, investment agreement this year with prequalified on the basis of product quality, China. The facilities are working :o Sino Forest, a project consisting of plan- i production reliability, environmental stan- improve the environment in which tations and downstream manufacturing " dards, size, export experience, and propri- businesses operate and are assisting operations in Guangdong and Jiangsu - etor merit. project sponsors in meeting high stan- provinces. It combines international best The enterprises in the APW network dards for social, environmental, and practices in sustainable forestry with benefit from the company's marketing economic sustainability. community development (see box. p. 44). a ,, activities abroad as well as from financing for pre-export activities such as raw glF material procurement and labor costs. " Moreover, APW's economy of scale gives it the purchasing power to obtain volume discounts, which it shares with its network partners. _ @*_ . APW now plans to expand its network to China, Indonesia, and Thailand so that it can offer a product line to meet the full ' r range of market demand, from high-end, high-margin products to lower-end, lower- 6. margin products. In addition to the financing provided for the PEDF, IFC's equity investment of $1 mil- lion in APW will help meet the company's operating expenses. The transaction offers a model for promoting the development of small and medium enterprises elsewhere. Z v. LEFT AND ABOVE: IFC sane to invest ir anew 21 Vm&gawatt winnd energy project nInd a. A s mi ar ~~. : ~~~~~~ ~project, p ctured here, is prosiding a clean, eff cient L ~~~~~~~~~~~~~source of energy in the state of Karnataka. ([SC3 F2 Sek r .D00t SOUTH ASIA Making innovation work Pakistan's balance-of-payments posi Economic growth in South Asia is fast tion remain:s fragile an d foeig by world standards. hut the economies investment modest, although economia. are still not vigorous enough to address indicators have improved. Pre-electiori the needs of the one-third of the world's concerns in Bangladesh and civil strikt poor who live there. The unstable in Sri Lanka slowed the reform processes political environment, uncertain fiscal and damaged investor confidence. and regulatory conditions, inadequate Nevertheless, those economiessaN infrastructure, and slow pace of reform strong growth this year of around 5@ impede growth. On the positive side, percent. Political and financial scandal* export growth is driving economic have damaged investor confidence iti recovery in Pakistan and Bangladesh India, but business-oriented policies anci and sustaining growth in India and Sri an ambitious privatization programi Lanka. Even these bright spots, though, underscore a commitment to reform. are threatened by an economic slow- Annual growrh is expected to remain a down in the United States and Europe. around 6.0 percent. *~~ - . . - S I : '- S 5 * - 5 I . S . j56.( i1 5l - q~~~~I… - S .. S.- 0 -. I SS S3. - prjet p ctuSed here, is -rvdn a Slan ef cient5~IS * * - ** *or- of enrg -n *h *tt of * - - - 0w_ India: Landmark Microfinance Investment Rural finance and microfinance are chal- lenging areas for private sector participation in India because dominant state-owned LEFT: Th s rura I farmer recevead a oan from Bha rt ya - rural finance institutions undermine a ,!'Rj6t, r' ;' \ f E t 11 _ < ~~~~~Sarnudbhi Finance tc)support his livjehhDod Saminoofe F¢. vsnee ;-T-o' s i 0< le ood strong commercial and repayment culture. S.,'.X.w st:.:S,A.iB§.;W*.t~>,.*434 ................ of s s~w5>4 A s IFC's first investment of its kind in one * of the few commercial private microfinance institutions, Bhartiya Samruddhi Finance helped create a model institution, demon- In South Asia our strategy is to as education, or in infrastructure includ- strating the viability of the market to support four areas. In the financial ing telecommunications and aviation. - potential entrants into the difficult Indian sector we are building strong domestic We also introduced the use of * microfinance market. institutions that expand the range of partial credit guarantees to enhance the a Samruddhi, a for-profit nonbanking services and deepen markets, especially ability of our clients to access longer- finance company formed to provide loans to for poorly served small and medium term debt financing in local markets farmers and small nonfarm enterprises in rural enterprises. We are supporting private and quasi-equity products such as areas, serves over 320 villages in Andhra provision of infrastructure, including foreign currency convertible bonds (see Pradesh and Karnataka in southern India. Its privatization of public utilities and the box, p. 46). In addition, we established average loan size is equivalent to $260. About creation of new infrastructure. We are risk management facilities with local * 30 percent of the loans are made to women. promoting restructuring and modern- financial institutions, enabling IFC to , IFC committed $1 million in equity in ization of manufacturing and service make local currency loans to clients. companies to help them meet the We made an investment in challenges of globalization. Finally, we Samruddhi, a microfinance institution * program. IFC's dialogue with the govern- are making selective investments in the that was formed specifically to provide , ment of India and subsequent investment in private sector provision of health and loans to farmers and small nonfarm Samruddhi led to the opening up of the education to improve quality and access. enterprises in rural areas in India. IFC's Indian microfinance sector to foreign invest- IFC operations in South Asia grew investment in Samruddhi also included ment. Other participants in Samruddhi's substantially this year. Commitments a $350,000 technical assistance package expansion project include the Shorebank increased dramatically in FYO1. The from IFC's small and medium enterprise Corporation of Chicago, the Dutch Hivos- emphasis. however, was on implementing capacity-building facility for portfolio Triodos Fund, and a number of Indian our strategy through innovation-offer- assessment and monitoring and infor- financial institutions. ing new products to new clients in new mation technology upgrades (see box, ! Our participation also included a sectors. In India, for example, we signed right). In Bangladesh. we established a t IFC's first student loan program with tvo-year revolving trade enhancement f $30,0 tecica assinc package NIIT Limited, a leading information facility with Netherlands Development from IFC's Capacity Building Facility for technologycompany (see box, p. 1), and Finance Company and Standard portfolio assessment and monitoring and made our first investment in a Web-based Chartered Bank. It will increase the technology upgrades. education company, eGurucool, that availability of trade finance for small and aims to use the Internet to deliver high- medium private sector importers and quality education content at lower cost. exporters. The facility will also help We financed projects with a wide build the reputation of Bangladeshi range of small and medium companies, banks in international markets, while a providing them with the added value of technical assistance package will ensure IFC expertise in the financial, technical, that the local banks improve their and environmental areas. We selected accounting and reporting standards. growth companies that were restructur- Following up on our financial inig, iriodernizing, or expanding Lo iiiarket developmeiit work in the froii- become globally competitive. These tier countries in the region, we helped were companies in value-added manu- establish the first private sector leasing facturing such as pharmaceuticals or company in the Maldives and a leasing high-tech manufacture, in services such company in Nepal. 0 5: _~~Ceta Asia prges seidn:thsya, frte frttm ic . t Despeitente numerous andmiversethallngs inrolvedent bcuildi ~~~~~~~~~~~~~~Mlin f U.S. DolAr t~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~Y0 FY0 the private sector in the developing countries of Europe and Central Asia, progress is evident: this year, for the first time since the shift toward a market economy, all transition countries experienced positive economic growth. This improvement occurred after the turmoil caused by the 1998-99 Russian crisis and the Kosovo conflict. Mtillions of U.S. Dollars FYOOt FY01 Albania Former Yugosla Financing committed for IFC's account 512 414 rtia RepubSlc of MacedoniaLoans 9 Azerbaijan Moldova Equity and quasi-equity 115 174 Belarus Poland Loan guarantees and risk management 0 3 Romania Loan syndications 170 96 Bosmna and TOTAL COMMITMENTS SIGNED 682 510 Herzegovina Russian Federation Bulgaria Slovak Republic Committed portfolio for IFC's account 2,598 2,455 Croatia Slovia a Loans 1,999 1,814 Czech Republic Tajikistan Equ~Loa synicty osadudrrtn 6 7 tuEs i nquity -ye qusieqit inesmet n udes Loan guarantees and risk management 23 21 i Estonia Turkey Committed portfolio held for others 1,087 879 Georgia Turkmenistan (loan participations) . ~~~~TOTAL COMMITTED PORTFOLIO 3,685 3,334 Hungary Ukraine Kazakhstan Uzbekistan Financing approved for IFC's account 494 719 Kyrgyz Republic Federal Republic Loans** 344 492 Latvia of Yugoslavia Equity and quasi-equity* 150 227 Loan syndications and underwriting 165 372 Lithuania TOTAL FINANCING APPROVED 659 1,091 ncludes loan and equity-type, quasi-equity investments tInciudes loan guanantees and risk management R evised FY00 figures skow committed guarantee and risk management products RIGHT: At Doverie Brico, Bulgaria. a home improve- .0 I. 1 ; nent storethat received fundingfrom IFC, a customer examinesl goods2.2 2 Taj i kistan: Building Capacity Very poor countries emerging from sustained periods of political unrest and civil strife need substantial assistance in restructuring The Russian economic recovery acceler- perienced managers; domestic financial the economy and developing the capacity ated this year, driven bv oil prices but institutions and intermediation are reqedo spo pivt se ctth * ~~~~~~~~~~~~~~~~~required to support private sector growth. also by increased political stabilitv and rudimentary. As a result, foreign invest- Tajikistan is one such country. Invest- improved policies. Other oil-exporting ment is very low. ments are needed to establish financial countries also benefited from high Two severe crises in Turkey high- mnts,arebnedd tofestablish financi prices. Investors are responding posi- lighted the need for radical economic institutions, rebuild infrastructure, restruc- tively to an economic reform in Bulgaria. reforms, bank restructuring, and priva- ture social services, revitalize industrial and Croatias new government adopted plans tization. Turkey is struggling to emerge agricultural production, and improve to further economic reforms and its from a financial crisis and is undergoing sustainable natural resource utilization. integration into Europe. A new govern- a period of austerity. A former command economy like Tajikistan's mentin FR Yugoslavia is committed to IFC has increased its emphasis on also requires significant technical and a program centered on transition to a sectors and countries with the most training assistance for small and medium market economy. The country has acute need to advance the pace of enterprises to develop in a market economy. become a member of the World Bank private sector development. In those Support for this transformation and and IFC, and we are actively exploring countries, we are providing assistance in investment and advisory activities. legal and regulatory reform, and helping supplied by foreign consultants funded by In Central Europe, most countries our clients improve management capa- seeking European Union accession are bilities and governance practices. The foreign aid ostan thelmomentum, racing against time to introduce fiscal particularlv difficult constraints on h reforms and comply with EU environ- private sector development in the professionals so that required skills are mental standards. former Soviet Union are being addressed available locally at affordable costs. Across the region there are serious through a technical assistance unit, the This year we invested in an audit and challenges to progress: the business Private Enterprise Partnership, which consulting firm that will provide a wide environment is underdeveloped and IFC established with support from bilat- range of services on a commercial basis to unfriendly; most companies have poor eral donors in May 2000. Building on international and Tajik clients. Services corporate governance regimes and inex- IFC's 10 years of advisory work with include auditing to international accounting standards and management training. This will provide both donors and Tajik clients easy access to services that meet interna- tional standards at reasonable costs. Most Europe and Central Asia, Comm tments services will be developed by local staff trained either abroad or in-country through on-the-job training, with supervision by 300 -- - -- 30 z international staff provided by the project's ---------------------------- foreign sponsor. In addition, some training -------X----- o for local entrepreneurs running small and medium businesses will be partially funded 2020 ------- 0 :::: - , - ' by donors. INVESTMENTS BY AMOUNT Under this project, specialized field 3 . | . =. Left Ax s training in financial and business manage- cz P E l . E F nancia Intermediaries' n 100 < | -V 10 iO -Sma and Medium Enterprises" ment will assist local entrepreneurs in UC INVESTMENTS BY PROJECT operating businesses successfully in a R igai nAx eiuteeris'Rns Ieraiis market environment. _ :: i .= * - * ~~~~~~~~~F nancia Intermediaries' 0 ° -- ---------- l --------- T--1- -- O Smal and Mediunm Ente,prises" FY99 FY00 FY01 nvestmeqts ncluce guara-tRes arid risk nmanagemert prcducts 'Irvudes nvetrsent. r fnncia and insurance companies as we I as Ccl e mc,e inassreerit -e ales -. as odes isasstroentass,rtaore tso a ra sinai and r ca .m enre'prises n,estmntas rl-ude al ndustrv secors ncludi g - dl seatnr * PROJECTS AND COUNTRIES Europe and Central Asia Europe and Central As a 1,000 - = COMMITMENTS FY00 FYCI Numrrber of Projects 46 44 S 750-- -- Number of Ccu tr es 19 21 , 500-- - - APPROVALS FY00 FY01 i Ul * 1lf Number of Projects 47 58 2 50 - ------- 7 250 * B Number of Cca tr es 19 23 FY99 FYO0 FYO1 ::Synd cat cns arnc underwr t ng Financ ng 'or IFC's cwn accoun these countries, the partnership's experi- friendly environment and a consisten: enced staff on the ground work directly trend of private sector-led growth. We with local companies and governments support small and medium enterprises to promote investment in the region, before and after investment and wilI. support the growth of small and medium build strong financial intermediaries. enterprises, and improve the business This year we established a regional hub in Europe and Centra Asia environment. Istanbul to enhance our operations in 1,200 - -IFC and World Bank strategy for the southern Europe and central Asia. region aims to establish a business- 1000 - - -- --f a 00 - -------------- --- 7200---- j--- --- 0 - - - - - - - - - - - - - - FY99 FYC0 FY0Y :: Synd cat ons arS underw, t rg RIGHT: Electronics technic an Nerm n Hoozic repairs a computer a- Whitef eld Computers, an T G >Q F Finarc ng fr FC s own acccut so utions company n Bos, a supported by SEED. -I - - I - . - * . . . I 5. I.F- r IllslTs IILE - I! * sm Siiil -lluuvsi ..lSaPX *ti .5li C i .l[CEUlral@ ISSlXCdlnt nCS - *.*5 SI - I . ..5 \ \ ' edge of markets and contacts to introduce promote sustainable forestry in Russia v X \ innovative financing that attracted (see box, right). We also advised govern- .,\E "q.>''¾§ )\\\\ : foreign investors to difficult countries ments on how to enhance the investment 'NZ'.. and integrate small and medium enter- environment and attract foreign prise finance with technical assistance investment (Armenia, Larvia, Russia, > to financial institutions. We supported and Slovakia). basic financial services and projects that Private Sector Advisory Services build confidence in the banking system agreed with the Georgian government to and in the leasing sector and institution- provide strategic advice on power sector building at second-tier local banks and privatization (including the transmission ' '... leasing companies. and dispatch and distribution network We are also working with companies outside Tbilisi, and a hydrogeneration j to help them attract foreign investment project). It is also planning to work on an if and technology. In eastern Europe, we assignment with the Municipalitv of are carefully choosing partners receptive Krakow to privatize water supply, urban to improved transparency and corporate transit, and solid waste management. ,. 2> governance. Our work with small andr medium enterprises is aimed at bettering RIGHT: Moscow department store GUM is work ng with IFC to mprove ts corporate governance 4 . the business environment. practlices. NB S (~~~~~ K $~~~~~~~~~~~~~~~~~~~~~~~~~~ L TIN A tA & THE CARIBBEAN Finance for broad-based development Economic reform and market liberalization in Latin America and the Caribbean are now widespread. Under these conditions, economies are proving more resistant to major external shocks. Underpinning this new strength are the contributions of private businesses, which have become more resilient through reform and have made possible the more efficient infrastructure services and increased productivity critical to sustained development. Millions of U.S. Dollars FYOOs FYO1 Antigua and Barbuda Guyana Argentina Haiti Financing committed for IFC's account 1,041 705 The Bahamas Honduras Loans 729 553 Equity and quasi-equity* 309 151 aarbados Jamaica Loan guarantees and risk management 3 1 Belize Mexico Loan syndications 973 312 Bolivia Nicaragua TOTAL COMMITMENTS SIGNED 2,014 1,017 Brazil Panama Committed portfolio for IFC's account 5,159 5,204 Chile Paraguay Loans 3,932 4,050 Colombia Peru Equity 1,107 1,122 Loan guarantees and risk management 120 32 Costa RicDa . St. Kitts ansd Nevis Committed potftolio held for others 3,793 3,270 Dominica St. Lucta (loan participations) Dominican Republic Trinidad and Tiago TOTAL COMMITTED PORTFOLIO 8,952 8,474 Ecuador Uruguay Financing approved for IFC's account 1,171 1,047 El Salvador Repiublica Bo8ivariana Loans** 931 806 Grenada de Venezuela Equity and quasi-equity* 240 241 Guatemala Loan syndications and underwriting 1,553 437 TOTAL FINANCING APPROVED 2,724 1,484 *Inclades tan andi aealty4ype quas-enrlty investments 'nclides Joae guarantees and rtsk managemnet tReised FYOD fgsae stow cmm ited guarantee and risk management omducts 0 RIGHT: IFC supports Infrastructure project to bing better services throughout Latin America. But economic growth and stability have firms and smaller businesses have no Mexico: not yet become the norm. Economic equivalent domestic sources of long- Improving Conditions for Mortgage performance varied this year, but as the term capital to fund business growth. Borrowers and Lenders year closed the specter of slow growth That obstacle impedes broad-based hung over the region. In Mexico and private sector development and limits The proceeds of an IFC-supported bond Brazil, for example, optimism generated employment opportunities for many. offering in Mexico will be used to make mort- by strong growth was dampened by the These conditions have created a gage loans to lower-middle-class families. possibility of an economic slowdown in strong demand for investment financing The investment supports the housing market the United States. Meanwhile, in from IFC. With demand far exceeding while also allowing IFC to play an important Andean countries social and political our financial resources, we need to role in developing domestic capital markets. issues dimmed prospects for a rapid concentrate on areas where our activities A mortgage-backed securities market recovery from recession. Argentinas can increase the prospects for equitable would broaden the availability of housing economy remained stagnant, caught growth and help provide basic services, finance by transferring risk to bond investors between the uncertainty of the govern- or where private financiers view certain and would open up new funding avenues to ment's fiscal position and wavering sectors as too risky, investor confidence. ~~~~~~~~~~mortgage lenders. To help advance this investor confidence. Continued economic shifts create IFC strategy and financing market, IFC became an equity investor in a difficult policv environment. Rapid and Our new investment commitments in Hipotecaria Su Casita, the second-largest mortgage lender in Mexico. sustained economic growth has a proven Latin America were down compared to gag capacity to better the lives of those in last year. This was a result of our highlv We made an equity investment of 100 poverty. But in the present environment, selective approach. Given the economic million pesos (about $11 million) for 14.4 reform has not rapidly delivered on its conditions of countries in the region, percent of the common stock of Su Casita. promise of higher living standards across however, demand for services is strong. We also invested in Mexico's first major the social spectrum. This perception has Our financing commitments reached mortgage-backed bond issue from Su weakened the political consensus for $1.02 billion this year for 43 projects. Casita. To obtain an AA rating, which would liberalization. Across the region we intend to demon- satisfy domestic pension and insurance Uneven capital flows are mostlv strate the broad benefits of private sector company investment requirements, Su responsible for this situation. Only a very investment. To do this we are financing Casita needs to originate 40 percent more few large companies in Latin America those businesses where private sector t, ~ ~ ~ ~ ~ ~ . . ........ mortgages than funds received. Our invest- and the Caribbean are candidates for participation can provide a visible mortgagesh fnds rins foreign private debt. Middle-market impact on living standards, such as m e a Substa's orthe b o ll provide a substantial share of the overcol- lateralization required. FINANCIAL SECTOR AND SME INVESTMENTS Lat n Amer ca and the Caribbear Comm tmenIs 600 .2 ----------------------------------------- 2 300 18 - --r w --l-l-f-l 18 >--|--------- --- ---------------------t 14° . 200 --- --- --------- 12 t> - --- ---- -----_ ----- ------ --- ---6 1 0 INVESTMENTS BY AMOUNT i l Finano a nterard ar es- 100 --|---- s<; -----6 aRE Small and Med um Enterpr ses-* o ;> * C ------- C Z f4 INVESTMENTS BY PROJECT x i m ani a ntermed ar es' FY99 FY00 FY01 aacslmrents nc ude guarantees ard isk managerweit procucts ncc udes estrneants i f roric al d Ins irance rrntanicx aS we as col ectve Investment veh clan -d ... tflac srrn-ftl asi-ta-ce c n, rn snAi aria mec um, -r anrarpirize n,estments nfliceai na,iutrsec.rs ,,,- cr B f nanca sccor a- -s_ r , ^4 PROJECTS AND COUNTRIES _ 1Kj11Ti1bll142kfb Latin Amer ca and the Caribbean Latin America and the Caribbean COMMITMENTS FY0o FY01 2,000 - _ Number of Projects 57 43 Number of Countries 17 12 _i 1,500 -- - - _- - APPROVALS FY00 FY01 V) 1,000-- -- - l - ----- -- -l----- ------------------------------- * -- U ta~~~~~~~~~~~~~~~Nrnbour of Po uects 585o4 o R~~~~~~~~~~~~~~~~~~ ~~umouer of Countries 15 14 in 500-- ---- - ----n---@ ct 500 FY99 FYOO FYO0 U Synd catics are orderorittng Forancing for IFC s own accourt housing finance, health, education, and During FY 2001, we agreed to financc infrastructure, including power, trans- Escol@24Horas, an innovative electronic portation, and water and sanitation. We educarion venture that will provide Latin America and the Car bbean are also extending access to financing Internet-based learning and open new for the broad range of local firms, educational opportunities for Brazilian 3,000 - - - including small and medium enter- students (see box, p. 58). In Argentina, prises, through development of the IFC is demonstrating the financial 2,500-- --------------- --------------- financial sector. Finally, we are sup- viability of investment in higher porting firms with high growth and education through two loans to univer- 2,000---- ----- ---------------- employment impact. siLies that will allow them to expand student services and research. We 1,500ls-.--~~~0~~~~~~~Z~~~~~~Z ~ ~~~~~ At the frontier committed investments in education We are targeting projects that demon- projects in Mexico, Peru, and Uruguay *1 000 ---- --- --- ---. strate how private participation can raise We also financed health projects in 500 s -- - - - standards of living in areas like health Brazil and Mexico. E * * E and education, which have largelv 0 ~~~~~~~~~~~~~~~~~~~~~~~~~~I BELOW: noa ornoect thot preouroes cu tuar hur tugs E o-- ----FY99----- FY-^ ------ FY01 ----- been dominated by the public sector. in Fer, FC supporte toe 0uent Expreos Hotel. FY99 FY00 FYOol M Synd cat ons and nuderwur t rg Fin'narcg for FC s own accouno 1|Pfi S-t kljigji !!!l 4 liN : lli | ~~~~~~~~~~~ Be~ ~ P<:, C X: <2: 2 _ : S ~~~~~~~~~~~~~~~~~~~~~~~t- _ . 0 < , -- .S.v * '; ~~~~~~ Pe ru: Affordable Homes _ t1- 8 . - .E- -t IFC and Banco Sudamericano are w\ . .23 working together to make home ownership - ~~~~~~~~~~~~~~~~~~~~more affordable in Peru. /iililt l P i 11 | This year's approval of a partial guarantee worth up to $6 million will make the bank's issue of $30 million in mort- gage-backed bonds more attractive to institutional investors. As a result, the bank will be able to extend its lending to addi- tional individual borrowers, and investors will benefit from the credit backing of ABOVE: FC sfocus ng more attention on educaton Sudamericano as well as a specified pool of pre ects n Lain America mortgage loans. We have also been working with Sudamericano and other lenders to stan- dardize their mortgage lending documenta- tion and underwriting requirements to reduce We further developed housing to mobilize foreign financing for all three the margins of this business, lower the cost finance in Argentina through our projects under the B-loan program. of mortgage finance for homeowners, and participation in a secondary mortgage To reach Andean countries more generate higher volumes of business and market companv. We made progress effectively, in FY 2001 we opened a higher-quality loans for lenders. Follow-on toward establishing housing finance regional office in Bogota, Colombia. investments are being made to offer true, corporations in Colombia, and in o Mexico and Peru we signed or expect Supporting the financial off-balance-sheet mortgage-backed securi- to sign deals that will lead to new sector and access to capital ties. The Sudamericano and follow-on housing opportunities and more IFC is committed to developing the transactions are opening up the investment sophisticated financial markets (see domestic financial sector in Latin pipeline to the local capital markets, thus boxes, p. 55 and right). America by helping financial institu- providing a new asset class for institutional We are continuing efforts to reduce tions. Such development is critical to investors who lack high-quality, long-term, "Custo Brasil"-the high cost of infra- increasing access to financing by local fixed-income instruments that are suitable structure services that businesses have to middle-market firms and smaller matches for their liabilities. bear. With this in mind, we undertook businesses, and even entrepreneurs in The Banco Sudamericano transaction is projects with two Brazilian companies the poorest areas. a practical step to help develop Peru's with the goal of improving roads and In Argentina, where all but the top- port facilities. In one of Costa Ricfs first tier companies lack access to external nascent capital markets, while providing privatizations, we invested in the enter- financing or domestic long-term credit, Banco erian owth lonterm prise that won the management contract we provided a credit line to Nuevo funding to expand its mortgage portfolio. to operate the Aeropuerto IJS in Banco de Santa Fe, a bank serving Our efforts will have a broad, positive, and competitive bidding. WXle were also able midsize provincial businesses. Brazil has long-term impact by fostering competition among mortgage lenders in Peru and could eventually lead to the creation of a secondary mortgage market company. Such a company would make possible mortgages with lower interest rates and longer tenors, all leading to significant improvements in housing affordability. 0 N CK F-ANDv55 BELOW: Better arc mnore affordab e reusing is needed throughout Lat r Amre ca. IFC supports hocsing finance in several countres in the regior. the largest pool of middle-market the Caribbean Loan Facility, an agency companies in the region, so more equi- line with The Bank of Nova Scott,. table distribution of wealth depends (Scoriabank). The facility leverages upon the ability of such companies ro Scotiabank's exrensive network to reacl- find financing. To support them, IFC the smaller companies of the Caribbean. arranged a loan to Banco BBA * Jo f ~~~~~~~Creditanstalt to help midsize Brazilian Furthering sustainable exporters and agroprocessors. growth and employment In Mexico, we worked to establish IFC supports profitable, xvell-managec Financiera Compattamos, a new finan- companies that are critical to growtl' cial entity that will take over the and employment. microlending operations of a non- We provided financing to Cemenros governmental organization with branches del Caribe, a cement manufacturer i across Mexico (see box, p. 59). It will Colombia, to allow Caribe to continue provide opportunities for poor, tural xvith its new investment program an(] clientele to build businesses. In the growth objectives. Despite the exit ol' Caribbean Nve committed financing to foreign commercial banks from the local *~~ . 4 . - 4 * I . 6 4 44t . 44 - 4 44-- 6 4 4 I 4 - S * 4. . . 4~~~~~~~~~4 * 4 4 4. 4.~~~~~~~~~6 44~~~ ..4 * 4. . . . 40.~~~~~~~~~~~~ * - 4 4 . . 4 . - .4. ...4 - - - S 44 4 -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. - .4 4 *44 4 . 4 4 S . -g~~; *\ _ ._.i ~ *- . * * * g .4. _ *44 4 44 4 4 .4 * . A g* S 4 4~~ 4 * - 0 4~~ S ~ . S S S 44~~ I. .N.CK4F * .4. 4EL .. Bete an .or .fora S. .osn is needed - S I 4 ~ 4 . -hog,u . at Amrc 4F suport .hou ..sing4 4 financ: ~ In *eea gonre in th regiom.n.44 4 45 5 4 * - . 4 ~4*4 4 -.4 4 4. . 0 4.. * 4. . . . 4 *2 _ - .4 . 4 .4*A * 4 -4 0. Finance for the Poor In Mexico, the Asociaci6n Programa Compartamos has been helping tens of thousands of rural borrowers earn a living. It could do even more operating as a regulated financial entity on a commercial U ~~~~~~~~~~~~~basis. IFC is working with a newly created entity, Financiera Compartamos, to make IT * .0 _;mn>i. iXi sure the microfinance operations have the resources needed to bring opportunities to even more people. Financiera Compartamos will take over a -HARD 'RPD quality microlending portfolio, reaching over 50,000 rural borrowers, mostly women, under a village banking technology. It has a growing clientele of new urban borrowers. term market, an IFC loan syndication of IFC has been leading the private With an average loan below $140, the port- $48 million was also successfully sector in Latin America in advancing folio iscomposed of the poorestsegments of arranged for this project. good corporate governance. With the Supporting a business that will result OECD and the World Bank, we orga- the population. in lower consumer prices for hasic goods, nized the first meeting of the Latin IFC's investment will support the transi- we committed financing to PriceSmart, American Corporate Governance tion from a nongovernmental organization to a chain of discount club superstores, in Roundtable. We are preparing a white a for-profit regulated entity. We will provide its expansion in Barbados, Costa Rica, paper to advocate specific reform close to $2 million of fresh funds to be used Dominican Republic, El Salvador, measures throughout the region. Our to finance the portfolio purchase. Our pres- Honduras, Guatemala, Panama, and interest in this area affects our financing ence substantially enhances the prospects Trinidad. activities. In several countries in the for the new financial institution's success. We also committed to a project region we worked closely on direct Our equity investment, loan covenants, and involving sustainable forestry in investments that were conditioned an IFC-sponsored policy statement will Venezuela. A tourism project with an upon improved corporate governance strengthen Financiera Compartamos's finan- ecotour operator in Peru was particu- practices to ensure the sustainability cial discipline thus improving its access to larly noteworthy (see p. 16). of their operations. cial market Fthermoren wil help financial markets. Furthermore, we will help the institution secure credit enhancement if needed; boost the institution's credibility with the authorities, the regulators, the commercial banks, and the rating agencies; and introduce the institution to responsible environmental management. -'V '51! 55 t5 5'5 MIDDLE EAST & NORTH AFRICA Paving the way for the private sector The Middle East and North Africa proved a fertile area for IFC business this year. We are paving the way for broader private sector participation, particularly in infrastructure and financial markets. Afghanistan Algeria e _ Millions of U.S. Dollars Bahrain FYW0 FY01 Arab Republic of Egypt Islamic Republic of Iran Financing committed for IFC's account 66 341 Iraq Loans 49 217 I Jordaq Equity and quasi-equity* 17 31 Jordan Loan guarantees and risk management 0 93 Kuwait Loan syndications 40 615 Lebanon TOTAL COMMITMENTS SIGNED 106 956 Libya Committed portfolio for IFC's account 802 842 Morocco Loans 470 542 Oman Equity 212 205 Saudi Arabia Loan guarantees and risk management 120 95 Committed portfolio held for others 195 734 Syrian Arab Republic (loan participations) Tunisia TOTAL COMMITTED PORTFOLIO 997 1,576 United Arab Emirates Financing approved for IFC's account 83 327 West Bank and Gaza Loans** 56 297 Republic of Yemen Equity and quasi-equity* 27 31 Loan syndications and underwriting 2 634 TOTAL FINANCING APPROVED 85 961 Zincludes loan and equity-type, quasi-equity nvestments nciudes loan g.arantees and isX management fRevised FYO figures show committed guarantee and risk manageerent products rocco: tter Phone Access Lower Prices Some Middle Eastern and North African Cairo-based regional director is nowx governments have made strides in closer to clients. Much of the emphasis vate sector competition en opening their economies to private this year focused on rebuilding the ephone companies to provide s sector participation, but there is still pipeline of investments that can lead to re people at better prices. B much to be done. Other countries are greater impact down the road. That twork, however, requires hug just starting the economic liberalization strategy is beginning to pay off with nts, for which financing is no process. Together with the World Bank, increasing financing in the region. -dily available in emerging mark we expect to play a major role in In FY01, IFC committed $956 When Medi Telecom won a co supporting the development of the million in 18 investments. Of that ito build and operate the secon private sector in the region. volume, $341 million was for IFC's own de cellular telephone network in The region presented us with a wide account, and $615 million was mobi- helped make this $1.6 billio range of political and economic lized through banks participating in ble. Our experience in str circumstances that affected the type IFC's B-loan program. For IFC, this was lecom transactions in similar and scope of our investment activity. a record level of loan syndications for .ped attract $900 million fr Those countries opting for greater the region, in large part due to the economic liberalization are seeing the commitment of a number of sizable inders.Wioblizedc$31 milke benefits that result from these policies. infrastructure investments. The total e international financial market Some countries in the region have new committed portfolio now equals $1.6 nject. Combined with financing leaders, who have started to push for billion in the region. In account, this was one of th greater economic openness. Investment Our investments this year were in a oject financings in North Afric . opportunities are dwindling in areas wide variety of sectors, entered new id was named Telecom Project ol troubled by a less stable environment countries, and broke ground in other a Global Finance magazine. and conflict, which negatively affect ways. Following our strategic priorities The initial stage of the pro investor confidence. for the region, our work included partic- plemented in only eight months ipation in large infrastructure projects, impany launched its commerci A focused strategy small information technology companies, ns in 2000. Under the license a- Last year, IFC embarked on a strategy to large capital market investments, and produce better results in the Middle institution-building investments in the edie is rered o e - East and North Africa region. Our financial sector. thveraie o er of th pic E ithin five years of winning its lic - roduction of competition has sig .... ...... ....... _. ; duced tariffs in Morocco and i FINANCIAL ,._ e number of cellular phone us Middle East and North Afr ca. Commitments 0,000 at the end of 1999 to over _ the end of 2000. 100------------------------ r --- ------ -------- -- 9~~'~~ -X a3 X Sa ndMdu nepiei _ ~~~~~~~~~-_------------I1 -------- 7 r- ml n Mdu nep e 5 0 ------ 5~~~~7 4 LetAi 50 FY9 FYO jY1 1.' , 2 vestmFnanc a nterrned or s' ftp -- ---- 2 ~~~~~INVESTMENTS BY PROJECT ~ o ~~~~~~~~~~~~~~~~RgtA ss 0 ~~~~~~~~~~~~~~~~Foonanciol Irternediorieso 0 ---- - ------- Smoll sod Med um Entmerpr se - FY99 FY00 FY01 trvsotmerto 1n0 uOO euaratees sod rs, roeoogenoert eroducts -in ides mvestinertso on sencias ar,o nsuraons c,mpao noes eel as no lect e nvestment veb ces_ l rlon-lccs nveotos t ass stonsc to ml -rora , ard medsurr ;rtero l, sn-est1eots include a' r.styseytrs, :- md noon al sector PROJECTS AND COUNTRIES Financial sector and MOdd e Last ans North Africa Middle East and North Afr ca smaller businesses COMMITMENTS F'YOO FYO1 In the ftnancial sector, IFC commitred 1,000 - r -- - ects - - - - - to investing in a range of projeojevs. Number cf Prejects 12 is Number ot C6o t,ies 7 In Algeria, we provided $300,000 in 800 equity to a small investment baink, APPROVALS fYOC FYO1 Algiers Investment Partnership. In Eg; pt 600-aNucber of PFjects 16 1t we agreed to provide a $30 million loan , 400 -- ------ Number tO countries 10 6 to EFG Hermes. IlC also commiti od $34 million in a regional trade finance 7 200 -- _ -- facility, the MENA Forfaiting Facili:y, c-lE *l * Infrastructure expansion which will support exporters in Egypt, o-- ---- I-------w ----------- IFC committed funds to three infra- Jordan, Lebanon, Morocco, and Tunis a. FY99 FY00 FY01I structure projects. Each of these projects Our financial sector activity in the was complex, allowing us to draw on our region works in tandem with otir effiort Syndcatiors and underwritng experience in structuring project finance, to develop small and medium businesses a F riancin* for I FCAs cwn acccMrt our capacity to provide long-term funds, and move away from direct financing of and our reputational standing to ensure small businesses. For example, an agree- the transactions were completed. ment was signed this year to finance In Egypt we arranged financing of Saudi Orix Leasing Company. It is & _ nearly $400 million for EDF Port Said expected to support the development of Middle East and North Afr ca Easr Power and EDF Suez Gulf Power small and medium enterprises in Saudi (see box, below). These two projects Arabia and to be instrumental in 1,000. - mark our first commitments to power building capaciry in the financial sector. 800.00 generation in Egypt, which recently We are also making a concerted effort opened this sector to private finance. in the leasing sector in other countries. O 600 .-- - --_-In Morocco, we financed $89 We committed $10 million to Lebanese million forourown accountandarranged Leasing Company. This investment 400------- ------------------ ------ loans of another $310 million for Medi allowss small and medium enterprises to T'elecom (see box, p. 61). IFCs invest- access financing alternatives to tradition;al 200-- ------------------ ment in Meditel capped off a successful bank loans for machines and equipmenr. effort for the World Bank Group. The We continue to assess the technical FY99 F'YO0 FY01 Bank had provided advice on liberal- assistance and advisory vwork that can te izing the sector. provided to support the smaller businesses Syraicatiors and underwriting so critical to economic developmentr itl * F rancing for )FC's own accourt the Middle East and North Africa. zZ~~~5. . ..x~:a:5 tttl- .. l : _t . - 5 - . . 4 4 5 5 45- 55 * 4 -~ . 555 m,,* Sm . 5 ** *m* * . .. . .. -. _ . . m. . rr, 555*S E S i 55 _W- 4 * 4. ** . . 4 - * S@ S . s _ ~S 5 0l- ,F,,,,,, Z i S , ~~~~~~~~~~~Jordan- u l * ~~~~~~~~~~~~~~~~~~and Better Skil ls IFC's investment in a luggage manufacturer . 11....., .. ^ , is the first to support the Jordanian policy fostering investment in and development of Qualifying Industrial Zones (QIZs), a special category of export zone established under bilateral trade agreements with the United States. IFC support is expected to be a cata- 6 lyst for significant expansion of skilled and semiskilled manufacturing industries in LEFT: IFC support for leasing comnpan es helps Irbid and the Jordanian QlZs. The $15 small and medium enterprises gain access to - =''p'' finance for capital equiprnent. million transaction will help the country tuOi,:e..i2.ai.3..tt_.,s . . ............... ,s2pw6rWisXylegmb ~.......... % ' b ecome the center of worldwide luggage manufacturing operations for the Boscan Group, creating thousands of jobs and boosting Jordan's export industries. Together with local colleges, Boscan is Support for new company in Syria, bringing the first creating training programs to develop a sectors and businesses company from that country into our more qualified local labor pool. Information technology is essential to portfolio. In Jordan, IFC invested $8 Boscan produces soft-side brand-name strengthening the private sector in million in a luggage manufacturer and luggage products for the U.S. market. It developing countries. It allows for more exporter, demonstrating the potential of began operations in Jordan in 1998 and efficient operations and greater integra- our work to encourage investment by employs more than 3,000 workers. The tion into the world economy. Egypt. other foreign investors. In this case, we expansion of Boscan's operations will create with its strong educational infrastruc- were joined by a sponsor from China an additional 2,300 jobs, more than half for ture, is particularly well placed within that was seeking an opportunity to the region to build this sector. To leverage Jordan's investment zone and women, in a region where unemployment - exceeds 20 percent. Boscan, which is support private businesses in this new free trade agreement with the exceeds a group Bof hich is industry, we invested in IT Worx, a United States (see box, right). majority owned by a group of Chinese entre- consulting and software development By providing a guarantee, we helped preneurs, produces luggage, garments, and firm. The investment will allow the existing client Egyptian Cement textiles in Dubai, Jordan, and the People's company to expand business, develop Company replace its $30 million foreign Republic of China. an ambitious Internet strategy that exchange loan with an cquivalent includes incubation of regional e-busi- Egyptian pound loan. Since nearly all the nesses, and compete with other globally companys revenues are locally generated, oriented software companies from the transaction should lower its overall emerging markets. risk profile by reducing exchange rate I On the indcustrial side, we signed a exposure. This local currency financing - deal to finance an irrigation technology was our first in the region. NOP3cRT SCHILLER (2 LEFT: ~FC supporfed two of shie first pnrivafe povver projects in Egypt th s year, ncluding one atthe fn fa of Ssez. RIGHT: A qua ity asusran:-e spec a of reviews software at IT Worn, is an ch IC invested tn s year ANNUAL REVIEWV Financial Review 65 Portfolio Review 69 Operations Evaluation Review 72 Project Commitments 73 Project Approvals 90 64't Technicial Assistnew an6dioy5rjcs9 Appendixes 105 FINANCIAL REVIEW Operating income in FY 2001 was $241 million, below the $380 million earned in FYOO and $249 million in FY99 (operating income excludes the effects of adopting new accounting standards for derivatives and hedging activities for FY01; including these effects, IFC's net income totaled $345 million in FY 2001). The Corporation's operating results in FY01 reflected some further deterioration in portfolio performance and a higher level of loss provisioning than in the previous year. Offsetting these negative factors on operating results was a strong performance in liquid assets. These effects, combined with lower realized equity portfolio income and lower loan interest collections, resulted in a decline in the return on average net worth from 6.9 percent in FYOO to 4.1 percent in FY01. The loan portfolio generated a net operating loss of New investment commitments for IFC's account $11 million in FY01 (after charges for borrowing amounted to $2.7 billion (including $0.5 billion in costs, nonaccruals, specific loss provisions, and admin- signed guarantees), and an additional $1.3 billion istrative expenses). This follows net operating income in loan syndications were signed. The disbursed invest- of $55 million in FY00. The equity and quasi-equity ment portfolio at June 30, 2001, was unchanged at portfolios-that is, the portfolios funded from net $10.9 billion from June 30, 2000. The Corporations worth-recorded a net operating loss of $10 million administrative expenses increased in FY01 in line in FY01, compared to net operating income of$191 with approved budget funding to allow a better million in FY00, mainly because of higher loss provi- response to IFC's development mandate in global sions. This included realized capital gains of $91 financial markets that continued to present signifi- million from sales of equities as well as dividend cant investment risks. As a share of average disbursed receipts of $131 million (compared with $132 million investment portfolio, total administrative expenses and $130 million, respectively, in FY00). Net oper- were 2.8 percent in FY01, higher than the 2.6 ating income from IFC's invested net worth and trea- percent in FY00. sury activities provided a significant contribution to IFC's borrowings continued to keep pace with its the Corporation's net income, amounting to $280 growing lending activities. New borrowings in the million after administrative expenses in FY01, international markets totaled $3.6 billion equivalent compared to the $146 million earned in FY00. in FY01. IFC'S FINANCIAL PERFORMANCE HIGHLIGHTS Mil ions of U.S. Dollars FY00 FY01 CLIENT SERVICES-OPERATING INCOME 219 (56) Loan-operating income 55 (11) Equity/quasi-equity-operating income 191 (10) Technical assistance (8) (13) Contributions to facilities (7) (16) Corporate charges and other (12) (6) IFC TREASURY SERVICES-OPERATING INCOME 161 297 lFC treasury services-liquid assets 146 280 Lending-related treasury activity 15 17 IFC OPERATING INCOME 380 241 FINANCIAL PERFORMANCE OF MAJOR PRODUCT LINES Disbursed and outstanding loans (excluding loan-type profit of $191 million in FY00, mainly because of quasi-equities) declined 3 percent from $7.2 billion in higher specific loss provisioning ($226 million in FY00 to $7.0 billion in FY01. IFC's loan portfolio FY01 compared with $62 million in FY00). This showed a net operating loss in FY01 of $11 million, was equivalent to a loss of capital employed of 0.3 compared to net operating profit of $55 million in percent in FY0 1, after a positive return of 6.3 percent FY00. IFC's interest collection rate was lower in FY01 in FY00. than in FY00, investment-related service fee income Total provisions for losses for FY01 were $402 weakened, and specific loss provision charges were million (including $13 million in respect of guaran- higher. The net loss on the loan portfolio was equiva- tees), higher than the $215 million provided in FY00. lent to 1.0 percent of capital employed, compared to The accumulated reserve against losses on loans and a positive return of 5.0 percent in FY00. equity investments increased to 20.3 percent of the The equity and quasi-equity portfolio, IFCs net year-end disbursed and outstanding portfolio, worth funded portfolio, grew by 6 percent in FY0 I to compared with 18.0 percent in FY00. IFC believes th .s $3.9 billion. This portfolio recorded a net operating level of loss provisioning to be prudent, given the risks loss of $ 10 million in FY0 1, compared to an operating to investment in the current environment. CAPITAL AND RETAINED EARNINGS IFC's net worth consists of retained earnings and paid- 2001, cumulative payments under the SCI totaled in capital. IFC's paid-in capital was $2.4 billion, $119 million. Another $9 million for subscriptions unchanged from the end of FY00, while net income of remains unpaid, and due by August 1, 2001. $345 million increased retained earnings to $3.7 billion. On June 30, 2001, IFCs capital adequacy ratio Subscriptions and payments under the general (paid-in capital, retained earnings, and adjusted capital increase (GCI) and the special capital increase general reserves compared with risk-weighted assets, (SCI) closed on August 1, 1999, except for members both on- and off-balance sheet) stood at 48 percent. that subscribed under an extended payment schedule This is well above the policy minimum of 30 percent, for reasons of economic hardship; they have elected to defined under the capital adequacy framework pay subscriptions in installments. The total number of adopted by the Board of Directors in May 1994. IFC.s member countries increased by one to 175. leverage ratio-which is outstanding borrowings and Cumulative payments under the GCI totaled guarantees measured in relation to the sum of $958 million. Further payments totaling $5 million subscribed capital and retained earnings-was 2.6 to 1, are due by August 1, 2001, from subscriptions by well within the limit of 4.0 to I prescribed by the countries facing economic hardship. As of June 30, Articles of Agreement. 600 --------- ---------------------- ------ ---------------------- ----- ------ ----- ------ ------< 12% : 600 . . . . .. -12% m X 400 . . -8% a Z < = _ - ~~~~~~~~~~~~~--- ------ -- -- - -- 6% O 200 ----- ------ - - ------------ ------- -|- --------F 4% c -- | ------- ----- - - - ------------------ ------- j 2% o 0 --- ---- ---- -- -- - - - - - - -- ---- - - - ---- -------- - 0% FY97 FY98 FY99 FYOQ FYOI l N Operat rg income -Return on average net worth 3~~~~~~~~oC FUNDING MANAGEMENT FY01 through its U.S. dollar benchmark issue, 15 In FY01, IFC borrowed $3.6 billion equivalent in the percent in the U.K. domestic sterling market, 7 percent international capital markets. In FY01, IFC also repur- in Hong Kong dollars, and 30 percent through smaller chased $134 million in outstanding debt. These repur- structured trades targeted to Japanese institutions. All chases were undertaken as part of IFCs strategy of borrowings were swapped into floating-rate U.S. enhancing the liquidity of its outstanding bond issues. dollars. Most loans made by IFC are denominated in IFC issued securities in four main currencies- U.S. dollars on a floating-rate basis. The below-LIBOR U.S. dollars, pounds sterling, Hong Kong dollars, and cost achieved through the use of currency and interest Japanese yen. The largest borrowing of the year was a rate swaps as well as the income generated through US$1 billion global bond issue. debt repurchases also contributed to maintaining IFC's IFC raised 48 percent of total new borrowing in low funding cost and profitability in FY01. LIQUIDITY MANAGEMENT LIQUID ASSET ALLOCATION Total liquid assets rose during the year from $12.2 billion to $13.3 billion, a 9 percent increase. The majority of liquid assets are held in U.S. dollars, with A R small euro and yen balances held to support operational ,r 33 AA Rated disbursements. w n 9% A Rstsd IFC's liquid asset portfolios performed well this fiscal year. The sharp slowdown of the U.S. economy and the easing of monetary policy by the U.S. Federal Reserve Bank buoyed bond markets. The sharp bond market rally primarily helped IFC's sizable portfolio allocation in longer duration assets-the value ofwhich designed as a cash account to process all of IFC's oper- is most sensitive to interest rate movements. ational loan and equity disbursements and receipts and After attributable costs, the liquid asset portfolios borrowing transactions, as well as to fund all of IFC's generated $280 million in net income, with $34 million administrative expenses. The P1 portfolio consists of in spread income from funded liquidity and $255 funded liquidity, namely, the proceeds of variable-rate million in total income from net worth liquidity, offset borrowings, which are invested in matching variable- by $9 million in administrative expenses. This compares rate investments pending disbursements of approved with $146 million during FY00, which included $27 loans. IFCs objective is to capture a carrying gain on million in spread income from funded liquidity and this portfolio with minimal exposure to market risk. $128 million in total income from net worth liquidity, This carrying gain averaged 38 basis points during offset by $9 million in administrative expenses. FY01, compared with 39 basis points during FY00. IFC's liquid assets are invested in line with policies Significant accomplishments in FY01 in the manage- and standards set under the Investment Authority ment ofPl liquidity were: (1) adopting a new replicable granted by the Board of Directors. The Authority spec- money market performance benchmark (comprising a ifies the types of instruments and entities eligible for portfolio of six-month LIBID deposits); (2) introducing investment. IFC is authorized to invest its liquid assets new quantitative risk management tools for measuring in the obligations of highly rated governments, agencies, and controlling market and credit risk exposure; and corporations, and commercial banks. Within the (3) moving to hedge the overall P1 portfolio with Authority's framework, IFC's senior management has LIBOR futures and swaps. established prudent guidelines for managing the The P2 portfolio corresponds primarily to the different dimensions of risk inherent in a large, diversi- Corporation's paid-in capital and accumulated earnings. fied bond portfolio with particular regard to market P2 is managed against a three-year duration benchmark (interest rate) risk and credit risk. (including the residual fixed-rate loan portfolio). The For management and reporting purposes, IFC's portfolio is actively managed on a total return basis liquid assets are separated into four distinct portfolios against this benchmark. The annualized return for FY01 and invested globally in the highest-quality assets, was 9.8 percent versus a benchmark return of 9.0 including sovereign and triple-A-rated corporate bonds. percent- a margin of 0.8 percent over benchmark. This The P0 portfolio, launched in January 2001, has been compares with the FY00 absolute return of 4.9 percent. The jump in total return from last year reflects the drop six external firms-four global fixed-income managers in yields that began toward the end of calendar year with $409 million under management and two 2000. As interest rates fall, the value of assets with fixed mortgage-backed securities (MBS) specialists with rates of return such as bonds tends to rise. The favorable $347 million under management. During FY01, the return to benchmark was mainly due to: (1) an over- external managers of the P3 portfolio returned 0.7 weight bond position during the recent bond market percent over their benchmark target return for the rally; (2) a series of ongoing relative value trades within assets they manage in a market where volatility the U.S. Treasury and other markets; and (3) active continued to be high. This compares with 1.0 percent securities lending, which continued to benefit below target in FY00. The significant bond market from the general reduction in the supply of U.S. rally, particularly in the United States, as well as peri- Treasury bonds. odic MBS spread tightening, helped the portfolio The P3 portfolio consists of borrowed variable- deliver a positive return in FY01. Portfolio and rate funds assigned to external managers to be invested manager diversification continued to be advantageous actively against a U.S. dollar LIBOR index. At the to the portfolio return by mitigating the total P3 end of FY01, the external portfolio constituted about portfolio risk, which remains well below the 1 percent 6 percent of the total liquid assets portfolio, and IFC tracking error limit. had a total of $756 million under management by RISK MANAGEMENT The measurement and management of financial risk investment operations. This function is handled by in IFCs treasury operations complement the manage- an independent risk management group to ensure a ment of risks arising from the Corporation's separation from risk-taking functions. Market risk Market risk in IFCs treasury operations arises primarily portfolio (P2) is funded by net worth and managed from the liquid asset portfolio (divided into funded against a three-year-duration benchmark. Finally, the liquidity, net worth liquidity, and externally managed externally managed liquidity portfolio (P3), funded by liquidity). In the funded liquidity portfolio (P1), IFC market borrowings, is subject to IFC'.s risk guidelines. minimizes exposure to market risk by requiring that IFC treasury also hedges the market risks on its loas assets and liabilities be broadly matched by currency portfolio. Loans are hedged with swaps or other liabil- and interest rate characteristics and by market risk ities that have matching currency and interest rate char- limits. This matched-funding policy provides strong acteristics, and residual currency and interest rate risks protection against market risk, while credit risk is are monitored and managed on a portfolio basis. managed as described below. The net worth liquidity Credit risk Credit risk in IFC's treasury operations arises through to eligibility criteria and credit limits for derivative the investment of the Corporation's liquid assets in counterparties with the IBRD. sovereign bonds, corporate bonds, and deposits. To protect against deterioration in counterparties' Counterparty credit risk is also generated through the creditworthiness after undertaking derivatives use of derivatives for hedging purposes. In particular, contracts, IFC has entered into collateral agreements IFC uses swaps to create synthetic-LIBOR funding with a large number of swap counterparties. Under and investments, to manage loan assets versus these agreements, a counterparty is required to underlying liabilities, and to hedge client risk manage- post collateral with IFC when the netted marked-to- ment products. To manage credit risk, IFC sets market exposure exceeds predetermined thresholds eligibility criteria and credit limits for its counterpar- (which decline with rating). Through these arrange- ties that are approved by the Finance and Risk ments, IFC is better able to manage its exposure Committee, a subcommittee of the Management to counterparties over time, particularly if their Group. IFC closely coordinates credit policies relating credit deteriorates. 1S PORTFOLIO REVIEW IFC's committed portfolio' at the end of FY 2001 increased by 2.6 percent to $14.3 billion, from $14.0 billion in FY00. Nearly 69 percent of the committed portfolio was in loans amounting to $9.9 billion, and 25 percent was in equity investments amounting to $3.6 billion. Guarantees of $589 million accounted for 4 percent of the committed portfolio as a result of significant new commit- ments during the year. IFC also held $215 million (2 percent of the committed portfolio) in risk management products. In addition, IFC held and managed for participants $7.5 billion in loans it had syndicated. At the end of FY01, the committed portfolio included loan and equity investments, risk management products, and guarantees in 1,378 companies in 117 countries. The net increase in committed portfolio was $359 Most of the Corporation's investments are denom- million after taking into account new commitments, inated in U.S. dollars, but IFC borrows in a variety of repayments, sales, cancellations, prepayments, write- currencies to diversify access to funding and reduce offs, and translation adjustments. Loan repayments borrowing costs. The currency breakdown of the totaled $1.2 billion, and $207 million in equity invest- disbursed loan portfolio on June 30, 2001, is shown in ments were sold or redeemed. the notes to the financial statements (see volume two of The total disbursed portfolio for IFC's own account IFC Annual Report). The Corporation minimizes its decreased slightly to just under $10.9 billion at the end risk exposure to off-balance-sheet transactions by of FY01, from $10.9 billion in FYOO. During the fiscal entering into offsetting swap, option, or forward year, the disbursed loan portfolio declined by 1.8 contract positions with highly rated market counter- percent, whereas the disbursed equity portfolio grew parties and by performing thorough credit reviews of by 3.9 percent. all counterparties. - Committed portfolio includes guarantees and risk management products, which are off-balance sheet. Commitments for FY00 have been restated to include these itemns. BREAKDOWN OF IFC PORTFOLIO ON JUNE 30, 2001 MIllions of U.S. Dollars COMMITTED PORTFOLIO FOR IFC'S OWN ACCOUNT 13,517 Loans 9,882 Equity 3,635 Total disbursed portfolio 10,890 Total undisbursed portfolio 2,627 OFF-BALANCE-SHEET EXPOSURE 804 (on guarantees & risk management products) TOTAL COMMITTED PORTFOLIO FOR IFC'S OWN ACCOUNT 14,321 TOTAL COMMITTED PORTFOLIO HELD FOR PARTICIPANTS 7,530 On June 30, 2001 (Millions of U.S. Dollars) $174.5 (1.2%)-Health care $121.9 10.9%)-Piastic & rubber $206.7 (1.4%)-Agriculture & forestry $58.2 (0.4%i-Education services $174.5 (1.73)-Wholesale & retail trade $24.1 (0.2%)-Professional, scientific, & technical services $364.9 (2.5%)-Puip & paper $23.5 (0.2%)-Construction & real estate $400.2 (2.8%)-TextHies, apparel, & leather $3,231.7 (22.6%)-Firance & nsurance $426.6 (3.0%)-Accommodation & tourism services $580.8 (4.1%)-lndustrial & consumer products $721.7 (5.0%)-Primary metals $778.5 (5.4%)-lnformation $1,216.7 (8.5%)-Utilities $830.6 (5.8%)-Nonmetallic mineral product manufacturing $1,196.9 (8.4%)-Collective investment vehicles $866.6 (6.1%)-Transportetiior & warehousing ~ =l_ $897.1 (6.3%)-Chemica s $1,040.1 (7.3%)-Oil, gas, & mining $909.8 (6.4%)-Food & beverages [ncludes guarantees and risk management products - ~~~~~~~~~~~~TOTAL: $14,321 COMMITMENTS AND DISBURSEMENTS New commitments for IFC's own account were accounted for by trade finance facilities in Africa, Asia. concentrated in the Asia (28 percent), Latin America and the Middle East and North Africa. and Caribbean (26 percent), Africa (18 percent), and Disbursements in FY01 were $1.5 billion, down Europe and Central Asia (15 percent) regions. The from the $2.2 billion FY00 level. Loan disburse- business sectors with the largest volume of new ments were $1.2 billion and equity disbursements commitments were finance and insurance with 40 $335 million. IFC also disbursed $835 million on percent and infrastructure (utilities, transportation, behalf of financial institutions participating in itS and information) with 23 percent. There were new syndicated loans. guarantee commitments of$547 million, the majority PORTFOLIO MANAGEMENT As part of its supervision efforts, IFC closely increasingly been assigned to supervisory tasks. IFC' monitors compliance with investment agreements, makes special efforts to ensure that banks participating visits sites to check on project status, and helps find in IFC loans are kept regularly informed of project solutions to problem projects. To strengthen portfolio developments through the B-Loan Management supervision, the Corporation has in place portfolio Division. There is always a close and continuing management units in all investment departments, each consultation between IFC and its participants. under a portfolio manager. This structure helps iden- Operational departments evaluate projects case by tify problems early and address them in a timely case when difficulties arise. For projects with particu- manner. The adoption of a more sophisticated risk- larly severe problems, the Special Operations rating system also supports this process. Furthermore, Department determines appropriate remedial action. headquarters staff continues to be relocated to the In such situations, it seeks to negotiate agreements with field, and local staffmembers in resident missions have all creditors and shareholders to share the burden of 13 IFC COMMITTED PORTFOLIO, FY1997-2001 Millons of U.S. Dollars --------------- -------------- ----------------- ------------ ---- --------- ------ ---- ---- ---- 1,400 z 16 ,0 0 0 --------------------------- --------------------------- ------------------- 1,350 g V ---------- - ------ ----------------------------- - -V ------------ ----------- V1,300 12,000 , - - -1,250 , 3>------| - ----------- ---l||;/--- |----------------l --------- ------ ---------- 1,200 a800 ---- ---------- ---- -----------;----------- ln| - ------- 1.150 _0 ---- ----------X-------- ------------ ----------- -- 1,100 '3 4 ,000 ----- - ------- - ----- ---- -- ----- - ------- - ----- 1,050 °'00------ ----------- |---------|- ---------n------------- ----- 1,050 ° 0 --- --- ------ --------- ----------- |-----f 0 O FY97 FY98 FY99 FY00 FY01 TOTAL: $18,992 TOTAL $20,608 TOTAL: $21,685 TOTAL: $22,168 TOTAL: $21,801 U For FC's own accou-r U Held for others - Number of firms Totals for IFC's own accouon for FY99-01 inc Lde guarantees asd risk management products restructuring so that problems can be worked out received dividends of $132 million, compared with while the project continues to operate. In exceptional $130 million during FY00. The $1 million difference cases, when the parties reach an impasse in negotia- between the FY01 figure and the $131 million tions, IFC takes all neccssary and appropriate reported in the financial statements is due to fees paid measures to protect its interests. to State Street Corporation for custody of the equity During FY01, portfolio income of $938 million portfolio. The FY01 dividends were higher than the on both equity and loans fell below the budget plan $115 million in the budget plan, mainly due to estimate of$ 1.01 billion. The quality of the loan port- commodity price increases. folio declined during the fiscal year, mostly as a result Reserves against losses increased to $2.2 billion in of the poor performance of a few large projects. In FY01, representing 20.3 percent of the disbursed port- particular, principal outstanding on nonaccruing loans folio, up from 18.0 percent in FY00. The increase as a percentage of the disbursed loan portfolio was resulted from $389 million in provisions for losses net 12.9 percent on June 30, 2001, compared with 11.1 of a $12.7 million currencyrevaluation effect on non- percent on June 30, 2000. During the same period, U.S.-dollar loss reserves, and write-offs of $136.2 principal in arrears as a percentage of the disbursed loan million. The loss reserves comprise specific reserves for portfolio reached 6.2 percent, up from 5.6 percent. impaired investments as well as a general reserve. There was a small increase in the estimated unre- Management determines reserves against losses alized gains on the equity portfolio during FY01. The on the basis of portfolio reviews and recommenda- decline in stock markets worldwide was reflected in tions by the Portfolio Management Units in the lower unrealized gains in IFC's listed portfolio, investment departments. For this purpose, the entire although this was offset by increased unrealized gains portfolio is reviewed quarterly. The Corporation's in the unlisted portfolio. Capital gains of $91 million external auditors examine closely the recommenda- were realized, a decline from $132 million in FY00, tions, policies, and methods for determining the and below budget plan estimates for the year. IFC reserves against losses. OPERATIONS EVALUATION REVIEW The Operations Evaluation Group's Annual Review 2000 presents the cumulative evaluation findings from four years of IFC investment operations. It describes significant performance patterns among 176 randomly selected operations from 1991-94 approvals that were evaluated at early operating maturity between 1996 and 1999. The review draws implications from past performance for current strategy and makes recommendations to management and the Board for improving IFC's results in pursuit of its strategy. ANNUAL REVIEW FINDINGS EVALUATION PROCESS This year's Annual Review found that most IFC projects Each year, IFC investment departments evaluate a achieved successful development outcomes based on random sample of investments that have reached early their overall contribution to living standards, private operating maturity, typically five years after approval. sector development, economic growth, environmental Within statistical limits the sample is representative of the sustainability, and company business success.The earlier year's entire approvals. The investment depart- report found that these projects were most effective in ments complete the research and analysis necessary to increasing the living standards of those affecred by identify lessons learned and rate each investment on 11 projects-customers, employees, suppliers, and distinct indicators, proposing ratings on a four-point taxpayers-beyond their financiers. Projects also scale: unsatisfactory, partly unsatisfactory, satisfactory, contributed effectively to development of the private and excellent. sector by building links throughout the economy, Each of the 1 Iperformance indicators relates to one demonstrating sustainable business practices, under- of three outcome ratings. The first is development taking privatizations, orpromotingprogressive regulatory outcome-a project's contribution to a country's changes. Most operations, including many that did not sustainable private sector development and improved fully succeed financially, met IFC's standards for envi- living standards. The second is investmenr outcome- ronmental sustainability. Most also achieved an economic an investment's contribution to IFC's profitability. rate of return in excess of 10 percent. Finally, it provides a rating of IFC's effectiveness-how The report found that project developmental well IFC did its job throughout the project cycle. outcomes were weakest in the category of business OEG conducts independent research; reviews the success, which is measured by the project's profit contri- scope, relevance, and appropriateness of the identified bution relative to the company's cost of capital. In this lessons; verifies each rating to ensure that evaluation stan- dimension, results were very similar to success rates dards are applied consistently throughout IFC; and then reported in a recent survey of companies operating in the synthesizes its findings in each year's Annual Review. The same regions. The small minority of projects with report summarizes crosscutting lessons and makes completely unsuccessful development outcomes were detailed recommendations for addressing core business outright business and development failures, mostly as a process and strategy issues raised by the findings. The result of unforeseeable market developments and lessons learned are entered into a searchable database management problems. that is designed for ease of access by operations staff in their screening, appraisal, and structuring of new invest- ment operations and portfolio supervision work. PROJECT COMMITMENTS 73 SUB-SAHARAN AFRICA 77 ASIA AND THE PACIFIC 81 EUROPE AND 85 LATIN AMERICA AND 88 MIDDLE EAST AND Benin, Botswana, Burundi, Bangladesh, China, India, CENTRAL ASIA THE CARIBBEAN NORTH AFRICA Cameroon, Crte d'lvoire, Indonesia, Republic of Albania, Armenia, Bosnia and Argentina, Bolivia, Brazil, Algeria, Arab Republic of Ghana, Kenya, Mali, Korea, Lao People's Herzegovina, Bulgaria, Chile, Colombia, Costa Rica, Egypt, Jordan, Lebanon, Mauritania, Mozambique, Democratic Republic, Croatia, Czech Republic, Guyana. Jamaica, Mexico, Morocco, Saudi Arabia, Namibia, Nigeria, Senegal, Nepal, Pakistan, Estonia, Georgia, Kazakhstan, Peru, Uruguay, Republica Syrian Arab Republic South Africa, Swaziland, Philippines, Sri Lanka, Kyrgyz Republic, Lithuania, Bolivariana de Venezuela Tanzania, Togo, Uganda, Thailand Former Yugoslav Republic of Zambia Macedonia, Moldova, Poland, Romania, Russian Federation, Slovak Republic, Tajikistan, Turkey, Ukraine, Uzbekistan View and sort projects on the Web at www.ifc.org/ar2001/projects (millions of U.S. dollarsl I IFC IFC RISK TOTAL |QIFC IFC QUASI- GUAR- SYNDI- MGT FY01 DESCRIPTION LOAN EQUITY EQUITY ANTEE CATIONS PRODUCTS COMMITTED SUB-SAHARAN AFRICA Benin Finadev Microfinance, first commercial-microfinance venture - 0.34 | - - I 0.34 in Francophone West Africa, will contribute to closing gap l I between commercial banks and microfinance institutions. Botswana Abercrombie & Kent Botswana (Proprietary) Ltd will help j 1.97 - I , - 1.97 attract increased numbers of visitors and provide new employ- ment opportunities in tourism. I i Burundi Vegetables & Flowers Export SA will produce cut roses for 0.47 j - - - - 0.47 export by air to Europe, mainly during winter season. (AEF) Cameroon I - j - , 0.6 Banque Internationale du Cameroun pour I'Epargne et le 0.63 -0.63 Cr6dit will be privatized to develop term lending and trade finance activities. . I i Horizon Bilingual Education Complex, Douala-based private 0.33 - - - - 0.33 bilingual school (English and French) with over 1,200 students offering modern and practical approaches to education, will expand complex and increase student enrollment. (AEF) i I C6te d'lvoire SIMMEQ will construct and operate 71-bed private hospital 1.15 b - - I - 1.151 in Abidjan. Hospital will offer pain relief center, emergency treatment, general surgery, intensive care unit, and medical transport unit. (AEF) Ghana PharmaCare Industries Limited will acquire equipment, 0.40 , - I - - 0 40 construct a new warehouse, and renovate existing factory to i i bring about increase in toothpaste and collapsible tube E production. I , j Ghana Microcredit Corporation Ltd will be established - i 0.13 - - I - | 0.13 as commercial microfinance institution to serve registered I . 1 l micro and small entrepreneurs in northern metropolitan suburbs of Accra. I Note: This table includes projects signed and processed by IFC ur ng FY01 Certa n transactions s gned n FY00 for wh ch processing was not completed unti FY01 are also inc uded in this table. PROJECT COMMITMENTS (millions of U.S. dollars) IFC IFC RISK TOTAL IFC IFC QUASI- GUAR- SYNDI- MGT FY01 DESCRIPTION I LOAN EQUITY j EQUITY ANTEE i CATIONS PRODUCTS COMMITTED ELAC will establish long-term insurance company in Ghana. - 0.10 0.10 NIIT Computer Training School will be set up in Accra under | 0.23 i I i 0.23 franchise arrangement with NIIT Limited of India. School will provide Ghanaian students and professionals the computer i I i know-how to compete in domestic and global economies. (AEF) Ghana Telecommunications Company Limited will expand its 40.00 j - - 60.00 100.00 fixed-line network, establish nationwide cellular network, and invest in regional submarine cable. i Kenya Kipevu Powerwill build 74 megawatt engine generation plant - I - - 1.70 1.70 in Mombasa. Lesiolo Grain Handlers Limited will establish grain-handling 2.50 i - - 2.50 and storage plant that will provide cleaning, drying, and , storage services for maize, wheat, and barley producers within Kenya. LGHL will manage imported grain by local millers and grain in transit to Uganda. (AEF) Mali Fibromat-Mali will relocate and expand its production j 0.10 - - - I o 0.10 capacity of facing stones and cement materials. (SEF) Mauritania l 3 k s o N Complexe Touristique Lemhar S.A. will construct a seaside 0.39 - j - 1 | 0.39 resort club, located 30 km south of Nouakchott. (SEF) Mozambique Ausmoz Farm Holdings, Lda., will install irrigation equipment, 0.99 - - - | - 0.99 construct buildings, clear land, purchase machinery, and recruit staff to sow and cultivate cotton, maize, wheat, I i sunflowers, and soybeans. (SEF) Banco de Microfinan,as de Mo,ambique will provide - 0.20 0.20 financial services tailored to demands of small and medium I j j enterprises. Lending services will be offered countrywide. i Merec Industries, Lda., will establish new plant for processing - , - 1.30 - 1.30 of imported wheat, with capacity of 30,000 tonnes per I , annum. It will also construct silos with storage capacity of 15,000 tonnes. (SEF) I Mozal S.A.R.L. will double capacity of the Mozal I smelter, 25.00 2- - - - -5.00 an existing IFC investment near Maputo, to produce additional j 250,000 tons per annum of aluminum metal. The project will have a significant impact on the local economy and Mozambique's net foreign exchange earnings. Namibia Nedbank Investment Bank will establish Namibia's first full- | 1 0.23 0.50 - - - I 0.73 service merchant bank offering range of services including i private equity, corporate finance, project finance, and asset management. Nigeria Diamond Bank, commercial bank with strong focus on 20.00 - - - 2.00 manufacturing, oil, gas, transportation, and general commerce, will lend to private local enterprises for rehabili- tation and new investment projects. 74~[j PROJECT COMMITMENTS (millions of U.S. dollars) i~~~~~~ i IFC IFC j RISK TOTAL I IFC I FC QUASI- GUAR- SYNDI- MGT FY01 DESCRIPTION LOAN EQUITY EQUITY ANTEE CATIONS PRODUCTS COMMITTED Oha Motors (Nigeria) Limited, transport business company, will 0.90 - . 1 j 0.90 acquire 6 new 55-seat buses to start Lagos-Abuja route. (AEF) i I , Safety Center International Limited, will set up country's first i 0.50 | | - - - 0.501 training center for fire brigade and safety personnel. (AEF) ' GuarantyTrust Bank Plc will develop lending to private sector , 20.00 20.00 companies operating in a variety of sectors, serving export or - - j | I 200 domestic markets. , I I FSB International Bank will receive IFC term loan to be 22.50 - I - 22.50 on-lent to private Nigerian enterprises for rehabilitation , I project finance, trade finance, working capital, and new investment projects. ' j Investment Banking and Trust Company Limited will receive 20.00 - - I - - - 20.00 IFC term loan up to $20.0 million to be on-lent to private I Nigerian enterprises for rehabilitation, project finance, trade i finance, working capital, and new investment projects. Citibank Nigeria will provide Nigerian enterprises loans for 40.00 - - I - . 40.00 rehabilitation, trade finance, working capital, and new invest- | ment projects. I i Senegal Banque Internationale pour le Commerce et l'industrie du - - . | 3.17 | - 3.17 SngaIl will introduce new credit technologies to the market and improve the existing infrastructure for SME lending. South Africa Kiwane Capital Holdings Limited will help local businesses 10.10 - - I - - i - 10.10 raise funds directly from market, which will increase compe- tition and reduce cost of borrowing. Tusk Project Management, company providing loans and 1.67 0.10 - - - - 1.77 project management services to small contractors to build schools, clinics, low-cost housing, and other public buildings | for local authorities, will expand nationally. (AEF) j South African Home Loanswill provide sufficient warehousing 6.17 I - - - - - j 6.17 capacity to fund growing mortgage originations in advance of securitization of loans in domestic market. Printability Ltd. will establish medium-size printing company 3.21 j 1.56 2.46 - - | 7.23 with high-quality color printing capacity using latest technology in web and sheet-fed presses. Rubico Holding S.A. (Pty) Ltd, South African software devel- - j 5.00 - - j | 5.00 opment company, is targeting financial services industry. Investment will help Rubico fund access to U.S. and West European markets and develop international sales channels. Swaziland Swazi Wattle Industries (Pty.) Ltd. produces tanning extract for - 0.29 0.79 I - I 1.08 leather industry; will expand facilities to produce high-quality I I I powder extract from wattle trees. (AEF) Tanzania National Bank of Commerce, country's largest financial - 10.00 - - - - 10.00i institution, will be privatized. NBC will be largest privatiza- | tion in the region. i S I , S i j I I~~~~~~~~~~~~~~~~~~7 PROJECT COMMITMENTS (millions of U.S. dollars) A I Ffi IFC IFC RISK TOTAL~ IFC IFC j QUASI- GUAR- SYNDII- MGT FY01I DESCRIPTION LOAN EQUITY I EQUITY ANTEE CATIONS PRODUCTS COMMITTED Boundary Hill Lodge Limited will establish 16-bed lodge on the 0.20 - - - 0.20 boundary of Tarangire National Pak in northern Tanzania. (AEF) Togo Cafe lnformatique will renew specialized equipment to 0.35 - - - - 0.35 provide better access and connections to subscribers. (AEF) Uganda CelTel Limited (Uganda), a follow-on investment, will help 4.00 0.70 1 - - - 4.70 expand digital cellular network to eastern and northern regions of Uganda. Long Freighters Limited, long-distance heavy haulage company 0.80 - i . | | 0.80 with fleet of 32 prime movers in the region, will expand operations by acquiring 10 Mercedes trucks. (AEF) Kabojja Junior School will establ sh high-quality 0.35 - - -I - - 0.35 co-educational private primary school in Kampala targeting middle-income Ugandans. A bursary fund for underprivileged children from rural and slum areas is included to expand educational opportunities. (AEF) Zambia Maraza Holding Ltd, 400-room hotel located in diplomatic 4.60 - a I | 4.60 area of Lusaka, will renovate and refurbish facilities, | upgrading service to five-star standards. REGIONAL AIG Global Investment Company (East Africa) Limited is a - 0.15 - j 0.15 private sector asset management company in East Africa . which aims to launch and manage various types of funds. Cameroon Oil Transportation Company S.A. (COTCO) will trans- 100.00 - - - 100.00 - 200.00 port oil produced in Chad through Cameroon to an export g loading terminal on the coast. Tchad Oil Transportation I Company S.A. (TOTCO) will transport by pipeline oil produced locally by a consortium (ExxonMobil, Petronas, and Chevron) through Chad for onward transmission across Cameroon to the sea. Mining and Contracting Services will provide specialist 30.00 4.00 34.00 contract mining services to mine owners in various African countries. Mobile Systems International Cellular Investment Holdings - 3.32 - - 3.32 will construct, expand, and operate mobile cellular commu- nications networks in Africa. Sub-Saharan Africa Petroleum Trade Finance Facility (SAPTF) I - I - 80.00 - 80.00 will mobilize much-needed financing to small domestic oil producers and service providers in Africa. PROJECT COMMITMENTS (milions of U.S. dollars) _____________-~~~~~~ - - - -. - ---. - ---------------------- _ _ _ _ _ , -.------.----- -~- ~ __ i IFC IFC RISK' TOTAL | IFC IFC 1 QUASI- GUAR- SYNDI- MGT FY01 DESCRIPTION LOAN EQUITY EQUITY ANTEE CATIONS 1 PRODUCTS COMMITED ASIA AND THE PACIFIC l Bangladesh Bangladesh Trade Enhancement Facility will establish two- - - 13.00 j 13.00 year $52 million guarantee facility in Bangladesh to meet increasing demand for trade finance and need for longer | tenors in local market. Scancement Bangladesh Ltd. will construct clinker grinding 10.00 -10.00 plant with annual capacity of 680,000 tonnes of cement at I | Kanchpur near Dhaka. i China China Forfaiting Facility will broaden Chinese trade finance | - - 4.00 , 4.00 market. The financing instrument facility will promote higher trade volume and strengthening of Chinese economy. New China Life Insurance Company is country's only private - 30.70 - - ' - 30.70 sector life insurance company. Operating nationwide, it will use new capital for business expansion. Plantation Timber Products Holdings Limited will establish 1.53 - - 1.53 i several medium-density fiberboard processing plants in interior provinces of China. Sichuan SME Investment Fund will provide equity and credit - 6.00 - - - 6.00 guarantees for small and medium enterprises in interior province of Sichuan. Fund is structured to supplement China Project Development Facility. Wuhan International Container Transshipment Company - - - 5.00 - 5.00 i Limited will be city's first modern port and transshipment facility. India I Ballarpur Industries Limited will expand and modernize its X - - - 27.00 - r - 27.00 manufacturing facilities to complement its recent restruc turing and enhance its competitiveness. i Bharti Telecom Limited will expand cellular network in - - 44.71 -| - 44.71 Karnataka and Andhra Pradesh to further develop competitive i telecommunications sector. Bhartiya Samruddhi Finance Limited provides financial 1.00 - - - 1.00 services to farmers and nonfarm enterprises in rural areas. The 1.00 investment will support expansion of company's activities. 9.0 I -. I Continental Carbon India Limited will debottleneck and 9.00 11.50 - 20.50 expand existing facilities from 25,000 to 65,000 metric tons per year and improve environmental conditions at the plant. I Global Trade Finance (Pvt.) Limited will assist Indian exporters, who generally are small and medium entreprises, - 2 50 - - - 2.50 with new financial products such as factoring and small I item forfaiting. Global Trust Bank is raising additional share capital to meet 20.00 - I - | 20.00 minimum capital requirements necessary to enter newly liber- alized insurance industry. IndAsia Fund Limited will provide growth capital to family- 15.00 1b.U0 owned Indian companies to expand and become globally competitive. , 77 PROJECT COMMITMENTS (millions of U.S. dollars) IFC IFC | RISK TOTAL IFC IFC QUASI- GUAR- SYNDI- MGT FYOI DESCRIPTION LOAN EQUITY EQUITY ANTEE CATIONS PRODUCTS COMMITTED Indian Seamless Metal Tubes Limited will modernize, expand, 10.50 0.70 - - 1- 11.20 and restructure to become globally competitive player. Jet Airways (India) Ltd. will expand and modernize its existing - - 15.00 -5. fleet, improve its existing service level, expand services to Il remote areas in India, and force increased competition in air transport sector in India. Learning Universe Pvt. Limited will provide on-line "learning - 0.25 - - - 0.25 universe" to students in India through an optimized integra- l tion of technology, content, and training. Mahindra Infrastructure Developers Limited will develop, - 10.00 | - - - 10.00 finance, and operate infrastructure projects. NIIT Limited will provide financing for students participating - - - 1.93 - - 1.93 in NIIT's flagship graduate educational program. Orchid Chemicals & Pharmaceuticals Limited will expand - - 30.00 - - - 30.00 and diversify its manufacturing and research activities to sustain its profitability. SREI International Finance Limited will further expand its 10.00 5.00 | - 15.00 small and medium scale infrastructure finance activities in the power, transportation, and port sectors. Tanflora Infrastructure Park Limited will set up floriculture - 0.51 - - - | 0.51 park to provide common facilities to small growers for culti- vation, packaging, transportation, and marketing of roses at Hosur in Tamil Nadu. Varun Shipping Company Limited will acquire shipping assets. - 0.37 - - 0.37 Vysya Bank Limited will reposition itself as technology-driven I - 7.29 7.29 bank focused on small and midsize corporates. Spryance, Inc., will provide high-quality, competitive, remote - 2.00 - - - - 2.00 services to global market, with initial focus in health infor- I mation services industry. Company will focus on medical tran- scription market in the U.S., where it outsources medical transcription services to India via Web-enabled process. Indonesia Ciluluk Village, microfinance cooperative that produces woven 0.04 0.04 mats using reeds, cotton, and polyester yarns, will expand l l - i hand-loom activities, thus preserving unique traditional craft. | PT. Bank NISP, Indonesia's fourth oldest private bank, will - 5.00 - - - 5.00 strengthen capital base to respond to economic crisis. i PT. Dianlia Setyamukti will expand to meet increasing 4.00 -. - 5.00 demands for its services. IFC's investment will support growth of critically important mining sector in Indonesia. Indonesia Trade Credit Facility will provide export-oriented - - 40.00 40.00 Indonesian companies with working capital and enhance j prospects for further transactions with international bank. j 78~~~~ ~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ PROJECT COMMITMENTS (millions of U.S. do lars) __ _ _ __ _ _ ___ _ __ _ _ _ _ _ _ 1. IFC IFC 1 RISK TOTAL IFC IFC QUASI- GUAR- SYNDI- MGT FY01 DESCRIPTION j LOAN EQUITY EQUITY ANTEE I CATIONS PRODUCTS COMMITTED PT. Indorama Synthetics TbK will swap proposed 1 trillion - - | - - 20.00 20.00 Indonesian rupiah local currency financing into U.S. dollars, f resulting in loan equivalent exposure for IFC's account of about 20 percent of notional amount swapped. Swap will f minimize currency exposure on company's balance sheet and strengthen textile exporter's future financial position by helping reschedule debt service obligations to better match cash flows. l PT. Sigma Cipta Caraka will expand its software development - 3.00 - - . - - 3.00 operations in Indonesian market as well as in U.S. and European markets to meet growing demand for its services. i Standard Chartered Bank will establish five-year $125 million - I - - 50.00 - 50.00 facility to guarantee documentary letters of credit originated by selected commercial banks in Indonesia. At close of fiscal year, project was under review. Sumitomo Bank will establish a $125 million five-year trade - - - 50.00 i - 50.00 finance facility to meet working capital needs of private- 'I sector importers. Facility will provide credit confirmation to local banks that offer short-term financing to local busi- ! nesses. At close of fiscal year, project was under review. i Korea, Republic of Cheil Jedang Investment Trust & Securities will recapitalize f - 13.62 j 32.06 f - 45.68f and introduce Prudential Life Insurance of America as foreign i f strategic investor to develop new approaches that will modernize industry. Korea Mortgage Corporation, country's first company special- 41.02 13.20 - - - 54.22 izing in secondary mortgage market, will develop and expand j f housing finance sector. j - Lao People's Democratic Republic I i Belmont Hotel Investments (Laos) Ltd. will restructure its 0.18 1- - II - .8 existing loans and secure additional financing to complete refurbishing of hotel. Villa Santi will build additional hotel rooms and expand its 1.15 - - I - - - 1.15 other hotel facilities to meet growing demand for better quality rooms in historic Luang Prabang area. Nepal l i 0 - j i I International Leasing & Finance Company Limited will 0.30 0.30 increase capital base and strengthen its focus on lease finance while remaining in other areas of consumer and small and medium business finance. Pakistan Pakistan Trade Enhancement Facility Fibromat will provide 50.00 - j - f 50.00 two-year facility to guarantee documentary credits originated by selected commercial banks in Pakistan. D.G. Khan Cement Company Limited will restructure, using i - - 14.54 - 14.54 an IFC guarantee to secure local currency financing. f | Philippines , f I Asian Hospital Inc. will acquire state-of-the-art medical equip- I 14.00 E i 14.00 ment and construct 247-bed hospital and medical office to house 200 doctors to increase private competition, promote greater efficiency, and improve quality of medical services. f ! . . X~~~~~~~~~~~~~~~~~~~~~7 PROJECT COMMITMENTS (millions of U.S. dollars) __ .................................................................... ....T.. 1 , TT I j IFC IFC RISK TOTAL IFC IFC QUASI- GUAR- SYNDI- MGT FYO1 DESCRIPTION LOAN EQUITY EQUITY ANTEE CATIONS PRODUCTS COMMITTED .. '- -I - - ''I- I ' /i ePlanters will enable local small and medium enterprises to - 0.23 i 0.23 gain affordable access to markets via Internet. MFI Micro Enterprise Bank of the Philippines will establish - I 0.12 - - i - 0.12 a private microfinance institution. I , l PlantersBank will strengthen capital base to provide more 15.00 - 8.88 - - - 23.88 long-term financing to small and medium enterprises. Stradcom Corporation will improve efficiency of driver's 12.00 - 8.00 - 20.00 license and motor vehicle registration applications through a i concession for a modernization and computerization of the 247 Philippine Land Transportation Offices nationwide. Sri Lanka Apollo Lanka will establish modern private hospital in - 1.10 - - 1.10 Colombo that will have general as well as tertiary acute-care services. It will provide diagnostic, curative, and surgical facilities in wide range of medical disciplines. i Suntel Limited, one of two wireless local loop operators, will 20.91 7.50 - L | | 28.41 expand nationwide network. Thailand i Thailand International Rating Agency will provide full - 0.12 - - - | 0.12 range of rating services using international standards and methodologies. REGIONALlll Asia Paper Markets will provide electronic hub to assist - 1.00 - - - - 1.00 trading in pulp and paper industry in Southeast Asia, Middle East, and Africa. South Asia Forfaiting Facility will establish three country- - - - 28.00 - 28.00 specific forfaiting facilities for commercial banks in India, Sri Lanka, and Bangladesh. Thailand and Philippines Forfaiting Facility will provide trade i - - - 20.00 - 20.00 | finance facilities for commercial banks in Thailand and Philippines. so~~ ijII1 PROJECT COMMITMENTS (milions of U.S. dollars) S , I IFC IFC i RISK TOTAL IFC IFC QUASI- j GUAR- SYNDI- MGT FY01 DESCRIPTION LOAN EQUITY EQUITY ANTEE CATIONS PRODUCTS COMMITTED EUROPE AND CENTRAL ASIA Albania American Bank of Albania will receive partial loan guarantee I - 2.50 - - 2.50l to increase ABA's small and medium enterprise loan portfolio. Seament will rehabilitate and environmentally improve quarry 15.00 I - - - - 15.00 and cement milling operations, and construct dry process kiln line to expand production capacity of Elbasan Cement i Factory. Armenia Armenia Hotel Closed Joint Stock Company, primary hotel - - 3.57 - | 3.57 operator in Yerevan, will establish 223-room hotel aswell as office space for lease. i Bosnia and Herzegovina Bosnalijekd.d., country's only pharmaceutical company, will 2.11 i - - I - - 2.11 complete reconstruction of tablet and capsule manufacturing I i plant. I Microenterprise Bank d.d. Sarajevo, a commercial bank, will - 0.38 - - - - 0.38 use capital increase to expand micro-lending operations in Bosnia. Bulgaria l BulbankADwill seekto increase lendingto underserved busi- - I 17.26 i - 17.26 ness and retail clients and introduce new products, thus broadening and deepening the financial markets. Doverie Brico will construct and operate five-store integrated 2.86 - .67 - - 4.53 distribution system in Bulgaria and Macedonia, offering home improvement and repair products and specialized services. EPIQ Electronics Assembly Ltd. will modernize and expand 7.70 - - - - 7.70 existing electronics manufacturing facilities. Florina Bulgaria S.A., country's third largest fruit juice 3.60 - - . - - 3.60| producer, will establish integrated fruit Juice and carbonated drinks company. Kronospan Bulgaria EOOD will substitute previously planned 6.43 - 2.76 - 9.19 particleboard line and further increase melamine pressing facility as part of ongoing investment program for Kronospan | Bulgaria EOOD. ProCredit Bank AD will receive equity investment of DM2.4 - 1.05 - , . 1 1.05 million, representing 20% ownership stake. Sofia Med will revamp and modernize copper processing | 11.55 11.55 facility to improve production methods and facilitate transi- tion to production of value-added products. CroatiaI Pliva d.d., leading pharmaceutical company in central and 25.00 | 10.00 12.50 i - 47.50 eastern Europe, is constructing new research and develop- ment facility that will comply with international quality requirements while focusing on new-product R&D. PROJECT COMMITMENTS (millions of U.S. dollars) IFC IFC RISK TOTAL IFC IFC QUASI- GUAR- SYNDI- MGT FYO1 DESCRIPTION LOAN EQUITY EQUITY ANTEE CATIONS PRODUCTS COMMITTED _ . . . ._,_ - t -f- - ----f Czech Republic Konsolidacni Banka, established by government in 1991 for - 2.72 14.59 - j 7.31 | recovery and disposal of problem assets, initiated pilot | programtosell nonperformingloanstointernational investors. ! Estonia, Kreenholmi Valduse A.S., vertically integrated producer 4.93 - 2.51 - 10.61 - L8.05 of cotton-based textiles, will streamline operations, diversify product range, and upgrade environmental conditions of facilities. Horizon Tselluloosi Ja Paberi Aktsiaselts, only producer of - 1 0.06 C- - 0.06 1 unbleached pulp and paper in Estonia, will promote devel- opment of value-added, export-oriented industry using local raw materials. Georgia I Georgian Glass and Mineral Water Company NV., a Netherlands j 0.18 0.18 Antilles-based holding company, undertook capital increase. Kazakhstan | CASPI Limited will expand and develop three-star hotel in 2.50 | I - - - - 2.50 Atyrau (western Kazakhstan) and small guesthouse in i j Bautino, close to Caspian oil fields. f First International Oil Corporation will expand Sazankurak oil - j 0.01 field in western Kazakhstan. LP-GAZ will provide liquid petroleum gas in cylinders and bulk 2.00 - - - - 2.00 tankers to domestic consumers for use in home cooking and heating. Sazankurak Joint Stock Company will expand Sazankurak oil 15.00 5.00 -f - 20.00f field in western Kazakhstan. I ii OJSC NefteBank, regional privately owned commercial bank, - - 2.50 - - 2.50 will lend to local oil and gas companies and small and medium enterprises. (SEF) Kyrgyz Republic I f Kyrgyz Investment and Industrial Credit Bank will provide full i - i 1.40 - - j - 1.40 range of commercial banking services to private companies, companies undergoing privatization, and small and medium i enterprises. Lithuania i Vilniaus Bankas AB will improve its capital position in order to - - 18.32 j 1 8.32 prudently expand its operations to better serve corporate sector, mainly small and medium enterprises. f Macedonia, former Yugoslav Republic of Komercijalna Banka A.D. Skopje will on-lend funds to private 4.28 I j 4.28 small and medium enterprises for business expansion and modernization. f Moldova Micro Enterprise Credit (MEC) din Moldova S.A. will estab- 0.90 C- j 0.90 lish private microfinance institution. MoldinconbankS.A., partof threesmall, privatelyowned banks, 1.50 - - - 1.50 will receive comprehensive technical assistance and credit lines to provide term loans to small and medium enterprises. I PROJECT COMMITMENTS (millons of U.S. dollars) IFC IFC RISK TOTAL IFC IFC QUASI- GUAR- SYNDI- MGT FY01 DESCRIPTION LOAN EQUITY EQUITY ANTEE CATIONS PRODUCTS COMMITTED Voxtel S.A. will operate first nationwide GSM mobile cellular - - 31.00 - 31.00 telecommunications network in Moldova. Poland Global Hotels Development Group Poland S.A. will develop 3.01 - 3.76 ! - - I 6.77 and operate a chain of Holiday Inn franchised hotels in major regional cities. Intercell S.A., second largest producer of unbleached pack- - 2.04 - - i - 2.04 1 aging paper in Poland, expanded capital to finance investments. Romania Banca Romaneasca S.A. will establish a banking institution 6.00 - - - j - - 6.00 and creditworthy private enterprises, which could eventually i become attractive opportunities for foreign direct investment. i l Romlease S.A. will establish new facility to support growth in 4.00. - - - - - 4.00 lease revenues, which is instrumental to company turnaround. Mobil Rom S.A. will expand nationwide GSM cellular network. 15.00 - - - 20.00 - 35.00 Russian Federation Baring Vostok Private Equity Fund will make equity invest- - 15.00 - - - , - 15.00 ments in companies of former Soviet Union that operate in oil and gas, telecommunications, information technology, i consumer products, and forestry sectors. New Medical Center in St. Petersburg will eventually include 2.10 - i - - - - 2.10 family medicine clinic, outpatient and inpatient clinics, clinical laboratory, and imaging diagnostic department. Omsukchansk Mining and Geological Company will develop 8.50 . | 1.50 - - - 10.00 Julietta gold and silver mine in Magadan. Ramenka 000, one of Moscow's largest food retailers, will 30.00 - I - - - - 30.00, constructthird hypermarket, minimall, and two supermarkets , in Moscow. i i ZAO Stora Enso Packaging will build and operate corrugated - 1.50 - - - - 1.50 board production facility in Moscow. Slovak Republic j Vseobecna Uverova Banka, A.S., will improve governance and - 50.00 j - , - 50.00| compliance with international norms following privatization, thus contributing to overall strengthening of financial sector. I i Tajikistan M & P w , l I Holland-Tajik Joint Venture M & P will expand "Holland 0.40 0.40| Supermarket" in Dushanbe. Tajikistan Finconsult Company will be first local consultancy i - 0.05 - - . - 0.05 and auditing services firm meeting international standards. Company will assist international and Tajik clients in prepa- ration of feasibility studies, provide training in financial management and accounting, and audit banks and companies. l TAMO Joint Stock Company will expand existing marble manufacturing unit that produces decorative items and will 0.49 0.49 develop granite quarry. . I i l~~~~~~~~~~~~5 PROJECT COMMITMENTS (millions of L.S. dollars) _ IFC IFC RISK TOTAL IFC IFC QUASI- GUAR- SYNDI- MGT FYO1 DESCRIPTION i LOAN EQUITY EQUITY ANTEE CATIONS PRODUCTS COMMITTED Turkey Arcelik, A.S., Turkey's market leader in home appliance 30.00 I 49.70 jI 9.70 sector, will establish corporate investment program to support continued growth and strategic development. Banvit Bandirma Vitaminli Yem Sanayi A.S. will implement 20.00 5.00 - - - 25.00 modernization and expansion program of integrated poultry j i business. Outgrower farms will increase from 500 to 800. CBS Printas Baski Murekkepleri ve Gerecleri A.S. will support - 0.01 0 - 0.01 ongoing operations of printing ink manufacturer. Isiklar Ambalaj A.S., will complete Celhart Pulp and Paper - - 0.30 - -j 0.30 Mill project in Bulgaria and restructure company's debt. Istanbul Bilgi University will expand and modernize its facil- 12.00 L- - - [2.00 ities to accommodate new students and establish on-line i education programs. I Ukraine Microfinance Bank of Ukraine will establish first Ukrainian - 1.67 - - - 1.67 bank dedicated to micro and small enterprise lending. Uzbekistan Osiyo Granite Ltd. will establish new granite processing plant 1.25 j 0.40 | - 1.65 in existing building in Tashkent. Private Closed Joint Stock Commercial Bank "Parvina Bank," | - 1.00 - - 1.00 commercial bank in Samarkand, will provide long-term financing for fledgling small business community in Samarkand and Andijan regions. (SEF) Open Joint Stock Commerce Bank "Hamkorbank" will provide - 1.00 - 1.00 subloans to small and medium enterprises to help develop I 1 l 100 nascent Uzbek private sector. (SEF) l l Uzbek Leasing International A.O., will lease equipment to i - 0.30 0i - .30 small and medium enterprises. I REGIONAL i SEAF Growth Fund will make equity and quasi-equity invest- - 3.26 - - - 3.26 ments in small and medium enterprises in Poland, Bulgaria, j Croatia, FYR Macedonia, and three Baltic states. Trans-Balkan Fund LLC will make equity and quasi-equity - 4.82 - I - I 4.82 investments in small and medium enterprises in Balkan countries affected by Kosovo conflict. (SEF) i 84~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ PROJECT COMMITMENTS (m I [ors of U.S. dollars) IFC IFC I RISK TOTAL1 | IFC IFC QUASI- GUAR- SYNDI- MGT FYO1 DESCRIPTION LON EQUITY EQUITY ANTEE CATIONS PRODUCTS jCOMMITED LATIN AMERICA AND THE CARIBBEAN Argentina Aguas Provinciales de Santa Fe wil I provide potable water and 20.00 j i - 20.00 sewage services to 15 districts in Santa Fe under 30-year concession. Nuevo Banco de Santa Fe S.A. will provide long-term funding 20.00 - - I - - 20.00 for Argentina and specifically for Santa Fe region. Investment will develop local capital market, reduce dependence on inter- national investors, and improve efficiency of local small and medium corporates. I Secondary Mortgage Market Company (SMMC) will be 50.00 | - I - . 50.00 Argentina's first major secondary mortgage company. It will provide more affordable mortgage financing and enhance devel- opment of local capital markets. | j Universidad del Salvador will expand its Pilar campus in order 1 10.00 - - - - | 10.00 to alleviate shortage of space and improve campus services. Universidad Torcuato Di Tella will purchase and renovate a 9.00 - - - 9.00 new education building to accommodate enrollment growth. I i Bolivia Caja Los Andes S.A., commercial bank specializing in microen- - i - - 1.30 1.30 terprise lending, will swap C1.5 million euro-denominated loan into U.S. dollars to hedge currency risk. Telef6nica Celular de Bolivia S.A. will expand and digitize its 10.00 - 5.00 - 10.00 - 25.00 existing cellular network, improving the communication sector. Brazil l Banco BBA Creditanstalt will provide a credit line targeted at 40.00 - - - - 40.00 medium-sized export-oriented borrowers in Brazil. i l Concessionaria do Sistema AnhangUiera-Bandeirantes S.A. will 35.00 - - 31.00 66.00 rehabilitate Anhango3era and Bandeirantes highways near So | li Paolo, extend Bandeirantes road by 78.5 ki, and add three toll plazas. | Escol@24Horas.com, mini-education portal providing 24-hour , 3.25 E - I 3.25 tutoring support by e-mail, will extend learning capacity and resources of schools to students at home using e-mail and|ijl Internet. Hospital Samaritano will complete rehabilitation and modern- 20.00 - - 20.00 i2ation of facilities. Josapar Oliveira Participa,coesS.A., country's largest processor 8.00 - 7.00 | - ' 15.00 and marketer of white rice, will expand and upgrade facilities. i l I i Parboiled rice and packaging plant will be relocated. Minerac6es Brasileiras Reunidas S.A. will fund mine develop- 20.00 - - - - 20.00 ment, plant construction, and facility improvement with aim of increasing iron ore production capacity. Tecon Salvador S.A. will rehabilitate and operate container 3.50 1 1.00 - - 5.00 - 9.50' and general cargo terminal of Port of Salvador, in northeastern Brazil. I 4 ' 11 I~~~~~~~~~~~~~~~~~~8 PROJECT COMMITMENTS (milHions of U.S. dol lars) I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ * IFC IFC I RISK TOTAL IFC IFC QUASI- GUAR- SYNDI- MGT FY01 DESCRIPTION LOAN EQUITY | EQUITY , ANTEE CATIONS PRODUCTS COMMITTED Chile Minera Escondida Limitada will use funds to finance part of - - b750 i - 7.50i Escondida's capital expenditure, working capital, and debt j service requirements. San Antonio Terminal Internacional, S.A., largest port in 35.00 3.70 - - 65.00 - 103.70 Chile, will expand and improve facilities. Colombia - Cementos del Caribe, S.A., Colombia's leading cement i 15.00 10.00 - - 48.00 - '3.00 producer, will upgrade capacity and reduce production costs and bottlenecks at two of its plants, Cales y Cementos Toluviejo in Colombia and Corporaci6n de Cemento Andino i | C.A. in Venezuela. Program includes postprivatization invest- ment program for Andino. Costa Rica Gesti6n Aeroportuaria AGI de Costa Rica S.A. will manage, 35.00 - j - - 85.00 - 120.00 operate, rehabilitate and expand Aeropuerto Internacional i Juan Santamarfa (AIJS), which handles an estimated 2.3 million passengers annually. Banco Interfin S.A. will on-lend funds to small and medium 15.00 - | - j 15.00 enterprises for expansion and modernization projects. Guyana Guyam Bank, Guyana's first merchant bank, will provide j 1.00 i - - 1.00 consulting services and term finance to the private sector. Jamaica Mossel (Jamaica) Limited will construct nationwide digital 18.00 - 12.00 - - 30.00 GSM cellular network to bring competition to mobile telecom- | j munications sector. Mexico American British Cowdray Medical Center l.A.R will support 30.00 - - - 14.00 44.00 construction and operation of hospital's second facility and I allow for future growth in Santa Fe area. Financiera Compartamos S.A. de C.V., S.O.F.O.L., a regulated 1.00 0.63 i j i 1.63 financial intermediary, will take over a quality microlending ' , portfolio under a village banking technology. Clients include i i over 50,000 rural (mostly women) borrowers and growing clientele of urban borrowers. G.W. Servicios S.A. de C.V., through its wholly owned 10.50 1.90 j - - 10.00 - 22.40 subsidiary Ferrocarriles Chiapas Mayab S.A. de C.V.(FCCM), will rehabilitate existing railroad infrastructure and rolling stock in some of poorest Mexican states as well as introduce I | ' i intermodal services on Chiapas Mayab line. Hipotecaria Su Casita S.A. de C.V., S.O.F.O.L., Mexico's second | - 11.01 | - - - 11.01 largest mortgage lender, founded in 1994, will continue to focus on providing mortgages for low-income households. IFC will take 14.4% equity stake in company to enable expansion I I of business operations and increase lending capability. Industrias Innopack S.A. de C.V., medium-sized company | - 15.00 | - - - - I 5.00 that manufactures one-way PET bottles and caps for domestic l soft drinks and bottled water industries, will undertake expan- | sion and financial restructuring program. I InverCap S.A. de C.V., a mutual fund management company - 0.07 U | - | 0.07 that targets individuals and corporations, will use financing I for next phase of growth and to bolster its marketing efforts. a63 PROJECT COMMITMENTS (mi lions of U.S. do lars) IFC IFC RISK TOTAL IFC IFC QUASI- GUAR- SYNDI- MGT FY 01 DESCRIPTION ,~LOAN EQU ITY EQU ITY ANTEE iCATIONS PRODUCTS COMMITTED Promotora de Centros Educativos S.A. de C.V. will construct 1 6.50 - - j - -i - 6.50 and operate K-12 schools in the states of Oaxaca, Durango, Michoacan, Sinaloa, and Morelos. Tenedora Nemak S. A. deC. V., major producer of aluminum - , - 1.51 - - i 1.51 cylinder heads for automotive engines, will acquire two aluminum auto parts plants. IFC increased investment to | maintain existing stake. , | Turborreactores S.A. de C.V. will rehabilitate, upgrade, and 14.00 - - - 4.00 - 18.00 expand plant facilities for overhaul and repair of aeronautical jet engines. Peru Agro-Guayabito S.A., producer of tomatoes, asparagus, and live 2.00 - | i - - 2.D0 chickens for export and domestic market, will use investment to alleviate liquidity crisis. i Inka Terra, Peru S.A.C., hotel operator specializing in eco- 5.00 - - - - 5.00. tourism properties, will eypand operations and restructure I finances. j Minera Quellaveco S.A. will receive funding for final stage of - 0.75 | I , - , - 0.75 j feasibility program. Peru Orient Express Hotel will refurbish existing Machu 10.00 - - | 10.00 Picchu Sanctuary Lodge, Monasterio Hotel in Cusco, and . , convert adjacent building to a 58-suite, 5-star hotel. i Universidad Peruana de Ciencias Aplicadas, S.A., one of top 7.00 - - I , . | 7.00i five private universities in Lima, will expand and modernize its facilities. Uruguay j i Universidad de Montevideo will consolidate its position of 5.00 - _ I - - - 5.00| leadership by enhancing its research and teacher training, I , | reaching greater number of qualified students of lower j! income, and expanding overall enrollment. . i Venezuela, Republica Bolivariana de i , . Forestal Trillium, an integrated forestry products company, 16.80 6.00 j . 10.00 - 32.80 will invest in design, construction, and operation of oriented- j strand-board mill. Electricidad de Caracas S.A.C.A will bring electricity to poor 30.00 j -J - 30.00 neighborhoods devastated by flooding. i REGIONAL Convergence Communications, Inc. will provide broadband c 2.15 j - - - 2.15 connectivity in Central America, Mexico, and Venezuela. Medical Systems Finance Holding Limited, medical equip- - - | 5.00 | 5.00 ment company based in Uruguay and serving Brazil, Argentina, and Mexico, will use funding to expand on busi- ness growth related to initial IFC investment in 1998. f i PriceSmart, Inc., will expand existing warehouse-stores in 22.00 i 10.00 i I 32.00, Central America and Caribbean by constructing 13 no-frills j membership-shopping warehouses. HSBC Argentina Holdings S.A., a $300 million private equity - 20.00 - - | - 20,00 fund targeting investments in small and medium privately I i held enterprises in Mercosur region, will be managed by j HSBC Private Equity Latin America L.P. PROJECT COMMITMENTS (millions of U.S. dollars) IFC IFC RISK TOTAL IFC IFC QUASI- GUAR- SYNDI- MGT FYO1 DESCRIPTION LOAN EQUITY EQUITY ANTEE CATIONS PRODUCTS COMMITrED Softbank Latin America Ventures will establish Internet- - 15.00 | 5.00 related businesses in Latin America. Investment will bring leading-edge Internet models to the region and foster local enterprises. Certifica.com will provide Web traffic measurement, as well as | 1.50 - j , - 1.50 auditing and analysis for Internet sites across Latin America. I Caribbean Loan Facility will provide term financing to small 25.00 - 25.00 - 5.00 and medium enterprises undertaking greenfield expansion and I l restructuring investments, particularly in export sectors. Facility will be managed by The Bank of Nova Scotia, IFC's partner in the project. MIDDLE EAST AND NORTH AFRICA Algeria i Algiers Investment Partnership S.P.A., first investment and - 0.30 | | 0.30 securities company in Algiers, will be involved in broad range . of investments in banking services, including corporate i j finance services relating to privatization. Egypt, Arab Republic of EDF Suez Gulf Power S.A.E. and EDF Port Said Power S.A.E. 90.00 - - i 305.00 - 395.00 will develop, construct, and operate two 682.5 MW steam l generation plants to provide long-term source of low-cost power for homes and industries. EFG Hermes Holding S.A.E., leading investment bank in Egypt, 30.00 - - j - - 30.00 will expand presence by establishing joint ventures in Jordan, Saudi Arabia, and United Arab Emirates. Egyptian Cement Company S.A.E. will receive IFC's first local i - 34.39 - - 34.39 currency financing in MENA region to support construction and operation of dry-process cement plant. IT Worx will provide software development and IT consulting - 2.50 - - - - 2.50 services in various fields including e-solutions, customer rela- tionship management, desktop application development, and enterprise solutions. i Unipak Nile Limited will establish greenfield facility to 3.00 -- - 3.00 produce corrugated cardboard packagingfor domestic market. It will create wider product line offering, reduce costs, and provide extra storage capacity. Jordan International Luggage Manufacturing Company, manufacturer 8.00 i i - 8.00 of soft-side luggage products, will expand production line and export merchandise to U.S. market. Jordan Gateway Projects Company will develop and operate 10.00 10.00 -- -, 20.00 industrial estate at Jordan-Israel border. I j Middle East Investment Bank (MEIB) will recapitalize and - - 2.15 - | 2 15 restructure to modernize banking services, enhance compe- I l tition, and foster greater regional banking relationships and cooperation. l Lebanon Banque Saradar S.A.L. will on-lend to small and medium - I 1.00 | | | | 1.00 enterprises and extend term housing loans to middle- income families. l l PROJECT COMMITMENTS (millions of U.S. dollars) IFC IFC I IK TOTAL IFC IFC GUAR- SYNDI- M FYO DESCRIPTION LOAN EQUITY EQUITY ANTEE CATIONS PRODUCTS COMMITTED Lebanese Credit Insurer S.A.L., country's first specialized I - 0.50 - I 0.50 credit insurance company, will provide small and medium businesses with new mechanism for managing asset risk and affordable financing. Lebanese Leasing Company S.A.L., successful leasing 10.00 - - j - 10.00 company providing small and medium enterprises with flex-I ible alternatives to traditional bank financing, will strengthen long-term funding base. I Morocco | i Medi Telecom S.A. will build and operate second nationwide 66.38 - | 22.13 j i 309.70 - 398.21 GSM 900 network in Morocco. Project is expected to improve I quality and delivery of telephone service, and contribute to I increased wireless telephone penetration rates. I ' Saudi Arabia , j Saudi Orix Leasing Company (SOLC), first Saudi leasing - 1.60 1.60 company, will provide small and medium enterprises access 1 I o to credit. Syrian Arab Republic Arab Drip Irrigation Technology Ltd (Adritec) will finance new 1.00 , - - 1.00 production facilities in Latakia, expanding and upgrading water-conserving irrigation systems, and extending reach of company into markets across region. REGIONAL j Middle East North Africa Forfaiting Facility (MFF) will foster I - 34.00 - 34.00 trade by supporting local company access to international| markets and expand availability of medium-term finance for cross-border trade. Facility will cover Egypt, Jordan, Lebanon, Morocco, and Tunisia. WORLD Gerling Credit Insurance Group will make credit insurance - 8.56 - - - - 8.56 company investments in emerging market countries through) new entities and acquisition of existing credit insurance companies. I InfrastructureWorld.com (IWorld), global Internet portal for - 5 00 - i 5.00 infrastructure, is expected to become important resource for participants in large-scale infrastructure projects and busi- - nesses. IWorld expects to become preferred hub for informa- tion and electronic transaction facilitator for infrastructure sector worldwide. i I Internationale Micro Investitionen (IMI) will take strategic - 1.70 - 7 - I 0 equity positions in for-profit microfinance institutions in I emerging markets. Round 1 will expand availability of Private Equity Street to - 1.50 i - i 1.50 emerging markets. PES is a Web-based private equity portfolio i management and reporting product. I i Solar Development Corporation will provide finance and busi- I - 5.50 | 5.50 ness advisory services with objective of accelerating use of solar photovoltaic systems in developing countries. AEF=Afrca Enterprise Fund SEF= Small Enterprise Fund PROJECT APPROVALS 90 SUB-SAHARAN AFRICA 91 ASIA AND THE PACIFIC 93 EUROPE AND 95 LATIN AMERICA AND 96 MIDDLE EAST AND Botswana, Burundi, Cape Bangladesh, China, Fiji, CENTRAL ASIA THE CARIBBEAN NORTH AFRICA Verde, Ghana, Kenya, India, Indonesia, Republic Albania, Azerbaijan, Bosnia Argentina, Belize, Bolivia, Algeria, Arab Republic of Madagascar, Mali, of Korea, Lao People's and Herzegovina, Bulgaria, Brazil, Colombia, Costa Egypt, Jordan, Lebancn, Mozambique, Namibia, Democratic Republic, Croatia, Cyprus, Czech Rica, El Salvador, Jamaica, Morocco, Syrian Arab Nigeria, Rwanda, Senegal, Maldives, Mongolia, Nepal, Republic, Estonia, Georgia, Mexico, Nicaragua, Peru, Republic Seychelles, South Africa, Pakistan, Philippines, Hungary, Kazakhstan, Kyrgyz Trinidad and Tobago, Tanzania, Uganda, Zambia Sri Lanka, Thailand, Republic, Latvia, Lithuania, Uruguay Vietnam Former Yugoslav Republic of Macedonia, Moldova, Romania, Russian Federation, Slovak Republic, Tajikistan, Turkey, Ukraine, Uzbekistan view and sort projects on tne Web at www.ifc.orglar2001/projects (in millions of U.S dollars) I 4 i TOTAL IFC PROJECT PROJECT COUNTRY/PROJECT SECTOR FINANCING SYNDICATIONS FINANCING SIZE SUB-SAHARAN AFRICA Botswana j Africa Banking Corporation Finance' 20.00 - 20.00 20.00 Burundi Florex Limited Agriculture2 0.28 - 0.28 0.99 j Cape Verde Moura Company Transportation' 0.47 - 0.47 1.20 Ghana Diamond Cement Ghana Limited Minerals' 6.00 - 6.00 15.00 Ghana Printing and Packaging Industries Limited Pulp & Paper 1.70 - 1.70 4.25 Kenya l Celinico Flowers Limited Agriculture2 0.23 - 0.23 0.46 Gapco Kenya Trade i 15.00 - 15.00 42.00 Industrial Promotion Services Rights Issue Finance 0.66 - 066 0.66 i Kenya Commercial Bank Finance' 30.00 i - 30.00 | 30.00 Madagascar Aquaculture de la Mahajamba (AQUALMA) Agriculture' 15.23 - 15.23 82.70 Cotona Clothing Company Textiless 2.59 | 2.59 10.20 La Cotonniere d'Antsirabe Textiles5 7.76 j 7.76 20.00 Mali Banque Malienne de Cr@dits et de D@pots I Finance' 5.80 - 5.80 5.80 Fibromat-Mali Minerals' 0.12 - 0.12 0.25 Mozambique Autobody Grand Prix Lda. Indus/Cons Products' 0.44 - 0.44 I 1.23 Mozal S.A.R-L. Metals7 25.00 | 25.00 1,024.00 | Namibia Life Office of Namibia Limited Finance' 0.81 - 0.81 5.00 Nedbank Investment Bank Finance' 0.74 - 0.74 0.90 Nigeria Citibank Nigeria-ETM Finance' 30.00 30.00 _30.00 First City Merchant Bank Ltd. Finance' 10.00 - 10.00 10.00 Niger Delta Contractor Revolving Credit Facility j Finance' I 15.00 - 15.00 1 30.00 i Novotel Port Harcourt Hotel i Tourism' 4.00 - 4.00 | 3.10 United Bank for Africa (pic) Finance' 30.00 30.00 30.00 Rwanda Dreamiand Towers Tourism' 0.80 - 0.80 3.24 90 Note: This table ncludes projects approved for f nancing by IFC during FYCI. PROJECT APPROVALS (In mi ]tons of U.S. dollars) TOTAL - ~~~~~~~~~~~~~~~~~~~~~~~I IFC PROJECT PROJECT COUNTRY/PROJECT SECTOR FINANCING SYNDICATIONS I FINANCING SIZE Senegal Royal Saly S.A. Tourism' 1.00 1.00 3.62 Seychelles Seychelles Stock Exchange and Brokerage Company Finance' 0.15 - 0.15 0.15 l South Africa Comesa Financial Exchange On-line (Pty) Ltd Information 1.00 j 1.00 2.51 Cornerstone College Education Services 0.28 - 0.28 0.57 Franchize Partners Finance' 2.50 j - 2.50 6.25 Freecom (Proprietary) Limited Indus/Cons Products' 0.40 | 0.40 1.33 1 Printability Ltd. Pulp & Paper 7.23 | 7.23 30.20 Rubico Holding SA (Pty) Ltd. Information 5.00 1 5.00 10.00 Spier Estate Hotel Tourism' 19.50 - 19.50 81.25 Tanzania . Boundary Hill Lodge Limited Tourism0 0.20 - 0.20 0.80 2000 Industries Food' 1.60 - 1.60 4.80 Uganda I | Golf Course Holdings Limited Trade'" 1.00 | 1.00 5.40 Kabojja Junior School Education Services 0.35 - 0.35 1.25 i Zambia i Michelangelo Executive Lodge Limited Tourism' 0.20 0.20 0.50 Protea Hotel Chingola Tourism0 0.96 0.96 2.39 REGIONAL INVESTMENTS A & K Resorts Tourism0 14.00 i - 14.00 61.00 Africa Media Group Limited Information 5.00 | 5.00 22.20 AIG Global Investment Company (East Africa) Ltd. Funds" 0.15 j 1 0.15 j 1.00 Mining and Contracting Services Oil, Gas, & Mining 34.00 40.00 74.00 100.00 Mobile Systems International Cellular I Investments Holdings, B.V| Information 31.00 3 | 1.00 261.00 Privatization Fund for Africa Funds" 50.00 - 50.00 50.00 Sunu Assurances Finance' 1.43 - 1.43 1.60 ASIA AND THE PACIFIC Bangladesh , Bangladesh Trade Enhancement Facility Finance' 26.00 - 26.00 52.00 BRAC Bank Finance' 3.00 - 3.00 10.00 Unique Hotels Tourism0 8.75 - 8.75 35.00 I China Asian American Coal Inc. Oil, Gas, & Mining 2.00 - 2.00 2.00 China Minsheng Banking Co., Ltd. Finance' 23.50 j I 23.50 23.50 Maanshan Carbon Chemicals I 11.00 5.00 16.00 22.00 Nanjing City Commercial Bank Finance' 26.58 - 26.58 26.58 New China Life Insurance Company Finance' 30.93 j | 30.93 125.50 | Peak Pacific Investment Company Utilities 25.00 - 25.00 100.00 Shanxi Asian American I j Daning Energy Company Limited Oil, Gas, & Mining 15.00 15.00 30.00 75.00 Sino-Forest Plantation Indus/Cons Products' 25.00 - 25.00 50.00 Fiji Hiliview Limited Tourism' 0.32 - 0.32 i 1.74 India i Ballarpur Industries Limited Pulp & Paper 27.00 - 27.00 126.10 Bharti Telecom Limited Information 70.00 - 70.00 500.00 Bhartiya Samruddhi Finance Limited Finance' 1 00 1.00 10.00 Continental Carbon India Limited Chemicals .00 11.5 20.5 35.25 GI Wind Farms Limited Utilities 10.80 i - 10.80 29.90 Global Trade Finance (Pvt.) Limited Finance' 12.41 - 12.41 30.001 PROJECT APPROVALS (in mili ons of U.S. dollars) TTOTALf IFC PROJECT PROJECT COUNTRY/PROJECT SECTOR FINANCING SYNDICATIONS FINANCING SIZE Global Trust Bank Finance' 20.00 | 20.00 40.00 ICICI - GF Finance' 40.00 | 40.00 40.00 ICICI Limited Finance' 50.00 | 50.00 1 50.00 Indian Infrastructure Equipment Limited Finance' 10.00 | 10.00 44.00 Indian Seamless Metal Tubes Limited Metals7 11.40 I 11.40 28.60 Internet Express Ltd. I Information 5.00 | 5.00 32.00 Jet Airways (India) Ltd. Transportation3 15.00 - 15.00 445.00 Learning Universe Pvt. Limited Education Services 0.25 - 0.25 19.10 Mahindra Infrastructure Developers Limited Utilities 10.00 | 10.00 50.00 NIIT Limited Education Services 10.68 | 10.68 1 72.50 Orchid Chemicals & Pharmaceuticals Limited Chemicals 30.00 - ' 30.00 I 116.00 Samtel Color Limited, Samcor Glass Limited Indus/Cons Products' 21.30 - 21.30 I 58.10 Spryance, Inc. Information 2.00 - 2.00 | 3.80 State Bank of India Finance' 50.00 - 50.00 330.00 Varun Shipping Company Limited Transportation' 0.38 - 0.38 0.38 Vysya Bank Limited Finance' 7.30 7.30 7.30 Indonesia PT. Berlian Laju Tanker 11 Transportation3 12.00 - 12.00 49.00 PT. Dianlia Setyamukti Oil, Gas, & Mining 5.00 5.00 10.40 PT. Indorama Synthetics TbK Textiles5 20.00 20.00 233.00 PT. Sigma Cipta Caraka Professional Services" 3.00 - 3.00 6.50 Standard Chartered Bank Finance' 50.00 I 50.00 125.00 Sumitomo Bank Finance' 50.00 - 50.00 125.00 PT. Sunson Textile Manufacturer TbK Textiles' 13.00 18.00 31.00 36.10 Korea, Republic of Cheil Jedang Investment Trust & Securities Finance' 50.20 50.20 1 77.00 Lao People's Democratic Republic Villa Santi Tourism' 1.15 - 1.15 2.80 Maldives Maldives Leasing Company Finance' 4.25 j | 4.25 12.00 Mongolia X.A.C. Co. Ltd. Finance' 0.40 0.40 1.90 Nepal International Leasing and Finance Co., Ltd Finance' 0.31 0.31 1.10 Pakistan Crescent Greenwood Ltd Textiles' 10.50 I 6.90 17.40 17.40 Lasmo Oil Pakistan Limited Oil, Gas, & Mining 40.00 i 40.00 120.00 Sarah Textiles Textiles8 1.60 - 1.60 1.60 Philippines Asian Eye Institute Health Care 1.00 - 1.00 4.20 Avalon Professional Web Trade Pte. Ltd. Information 1.00 - 1.00 8.00 Filinvest Alabang Inc. Construction" 22.00 - 22.00 44.00 Manila North Tollways Corporation I Transportation' 46.00 - 46.00 365.00 Philippine Export Development Facility Finance' 6.00 - 6.00 12.00 Philippine International Air Terminal Corporation Transportation' 50.00 75.00 125.00 642.50 Sri Lanka South Asia Gateway Terminals (Private) Limited | Transportation' 3 1.50 - 1.50 1.50 Thailand Alusiam Light Metal Industry Co., Ltd. Metals7 8.75 | 8.75 35.00 Standard Chartered Nakornthon Bank i Finance' 50.00 - 50.00 125.00 TelecomAsia Corporation Plc Information 99.45 ' 99.45 500.00 Thai Tap Water Company Limited I Utilities 56.45 56.45 235.00 Thailand International Rating Agency Finance' 0.12 0.12 1.20 Vietnam RMIT International University Vietnam Education Services 7.50 - 7.50 33.80 PROJECT APPROVALS (In m IlIons of U.S. dollars) TOTAL j P IFC PROJECT PROJECT I COUNTRY/PROJECT 4 SECTOR FINANCING SYNDICATIONS FINANCING SIZE ~~~~~~~~~~~~~~~~8.0 REGIONAL INVESTMENTS| Asia Paper Markets Pulp & Paper 1.00 - 1.00 8.00 One Studio Information 3.00 j 3.00 13.30 Pacific NetMarkets Limited Pulp & Paper 2.00 - 2.00 8.00 EUROPE AND CENTRAL ASIA Albania American Bank of Albania Finance' 2.50 2.50 5.00 Anglo Albania Petroleum Limited Oil, Gas, & Mining 10.00 10.00 197.50 Seament Minerals' 15.DO - 15.00 60.00 Azerbaijan Ko,bank Azerbaijan Finance' 0.06 - 0.06 0.06 1 Bosnia and Herzegovina Bosnalijek d.d. Chemicals 2.30j - 2.30 1 5.90 i Microenterprise Bank d.d. Sarajevo Finance' | 0.37 - 0.37 1 1.50 Privredna Banka Sarajevo Group Finance' . 13.68 | 13.68 14.30 Bulgaria I Bulbank AD Finance- ! 17.95 ! 17.95 250.00 Doverie Brico i Trade'" 4.80 - 4.80 14.40 EPIQ Group Indus/Cons Products' 7.98 | 7.98 21.66 Kronospan Bulgaria EOOD Indus/Cons Products' I 6.36 2.73 9.09 I 18.00 ProCredit Bank AD i Finance' 1.05 1.05 ' 5.25 Sofia Med Metals7 11.55 - 11.55 80.00 Croatia I Locat Leasing Croatia, D.O.O. Finance' 6.20 | 6.20 22.00 Pliva d.d. . Chemicals 35.00 12.50 47.50 113.00 Cyprus Bravo Holdings Limited Food' 10.00 - 10.00 10.00 Czech Republic Konsolidacni Banka Finance' 22.50 - 22.50 50.00 Estonia Krenholmi Valduse A.S. Textiles' 6.66 9.49 16.15 41.70 Georgia ' I Microfinance Bank of Georgia Finance' 0.29 - I 0.29 2.40 Hungary Hungary Energy Efficiency Co-Finance Program 2 Finance' 12.00 - 12.00 70.00 Kazakhstan CASPI Limited Tourismrn 2.50 - 2.50 i 5.90 Closed Joint Stock Company "Kaztak A.S." Metals' 2.60 - 2.60 8.40 Ispat Karmet JSC Funds" 3.40 | 3.40 3.40 OJSC Kazkommertsbank Finance' 15.00 - l 15.00 15.00 OJSC NefteBank Finance' 2.50 2.50 2.50 Kyrgyz Republic Akun Ltd. Food' 2.40 2.40 10.80 FINCA International, Inc. Finance' 1.00 - 1.00 2.50 Latvia Linstow Varner SIA Trade"2 25.00 35.00 60.00 146.04 Il I PROJECT APPROVALS (in millions of U.S. dol ars) T T ~ TOTAL IFC PROJECT PROJECT COUNTRY/PROJECT SECTOR | FINANCING SYNDICATIONS FINANCING SIZE Lithuania Vilniaus Bankas AB Finance' 18.72 - 18.72 20.00 Macedonia, former Yugoslav Republic of Komercijalna Banka A.D. Skopje Finance' 4.66 - 4.66 5.00 Stopanska Banka A.D. Skopje Finance' 0.55 - 0.55 5.00 Moldova Retelele Electrice (mun. Chisinau) S.A., Retelele Electrice de Distributie Centru S.A. and Retelele Electrice de Distributie Sud S.A. Utilities 25.00 - 25.00 136.00 Victoriabank Finance' 5.00 i I 5.00 5.00 Voxtel S.A. Information 0.31 - 0.31 6.00 1 Romania Banca Romanesca S.A. Finance' 6.00 6.00 6.30 ICME i Metals7 12.94 12.94 43.50 Kronospan Romania SRL IndustCons Products6 30.20 45.73 75.93 143.00 Romlease Finance' 4.00 - 4.00 4.00 Russian Federation Baring Vostok Private Equity Fund Funds" 15.00 15.00 i 175.00 Bema Gold Corporation Oil, Gas, & Mining 1.00 - 1.00 1.00 000 Bravo International Food9 15.00 7.00 22.00 40.00 Ford Motor Company ZAO Indus/Cons Products6 55.00 55.00 1 10.00 221.40 New Medical Center I Health Care 2.10 - 2.10 9.00 Omsukchansk Mining and Geological Company Oil, Gas, & Mining 10.00 -0.00o 76.49 Probusiness Bank Finance' 5.00 - 5.00 5.00 Ramenka 000 Trade'° | 30.00 1 - 30.00 125.50 Ruscam Minerals' 13.00 - 13.00 25.00 ZAO Stora Enso Packaging Pulp & Paper 0.20 - 0.20 0.21 Volga-Dnepr Airlines Transportation' 25.00 25.00 50.00 65.90 Slovak Republic Slovenska Konsolidacna, A.S. Finance'1 20.00 - 20.00 54.00 Vseobecna Uverova Banka, A.S. i Finance' 50.00 - I 50.00 50.00 Tajikistan Somon Food' 0.40 i I 0.40 1.12 Tajikistan Finconsult Company Professional Services" 0.15 - 0.15 0.42 Turkey Akbank T.A.S. Finance' 45.00 80.00 125.00 225.00 Arcelik A.S. Indus/Cons Products6 30.00 100.00 130.00 o00.00 CBS Printas Baski Murekkepleri ve Gerecleri A.S. Indus/Cons Products6 0.01 - 0.01 0.14 Gunkol/TEBA I ndus/Cons Products6 10.00 - 10.00 25.00 Istanbul Bilgi University Education Services 12.00 - 12.00 38.20 Turkish Private Equity Fund Funds" 10.00 10.00 40.00 Ukraine JSC Damen Shipyards Okean Indus/Cons Products6 10.00 , 10.00 ! 40.70 Uzbekistan OJSC Hamkorbank Finance' I 2.00 - 2.00 2.00 Private Closed Joint Stock Commercial Bank "Parvina Bank" Finance' 1.00 - 1.00 2.50 REGIONAL INVESTMENTS Baltic SME Fund I Funds" 7.50 i 7.50 40.00 Central Asia Early Stage Investment Fund Funds" 2.50 - 2.50 20.00 PROJECT APPROVALS (n millions of U.S. dollars) TOTAL IFC PROJECT PROJECT COUNTRY/PROJECT SECTOR FINANCING | SYNDICATIONS FINANCING SIZE LATIN AMERICA AND THE CARIBBEAN Argentina Edenor SME Line Utilities 20.00 - 20.00 20.00 Formatos Eficientes S.A. Trade'3li 12.00 ! , 12.00 l 86.20 Gasnor S.A. Utilities 21.00 20.00 41.00 103.00 Instituto Tecnol6gico de Buenos Aires Education Services 7.00 - 7.00 26.90 Nuevo Banco de Santa Fe S.A. Finance' 20.00 ! 20.00 . 20.00 Universidad del Salvador Education Services 10.00 - 10.00 20.00 Belize Nova Toledo Ltd. and Nova Laguna Ltd. | Agriculture2 6.00 I - 6.00 12.00 Bolivia Banco Ganadero Finance 5.00 U - 5.00 5.00 Caja Los Andes S.A. Finance' 0.15 - 0.15 0.20 Central Aguirre Portuaria, S.A. Transportation' 2.50 | - 2.50 5.20 Petroquimica Boliviana S.A. Chemicals I 10.50 - 10.50 | 30.12 Telef6nica Celular de Bolivia S.A Information 15.00 10.00 25.00 j 80.80 Brazil , AG Concession Infrastructure 30.00 30.00 | Apolo Produtos de A,o S.A. , Indus/Cons Products6 8.00 8.00 27.10 Bradesco Templeton Funds" 20.00 - 20.00 100.00 Cataguazes Leopoldina Utilities 45.00 40.00 85.00 119.99 Escol@24Horas.com Education Services 3.25 - 3.25 11.50 Grupo Peixoto de Castro (GPC) Participacoes S.A. l Indus/Cons Products6 9.00 9.00 11.10 Satipel Industrial S.A. . Indus/Cons Products6 30.00 30.00 128.00 Synteko Produtos Quimicos S.A. . Indus/Cons Products6 18.00 - 18.00 42.00 Tecon Salvador S.A. r Transportation3 4.50 5.00 9.50 16.30 Universidad do Sul de Santa Catarina Education Services 15.00 - 15.00 45.00 Colombia Cementos del Caribe, S.A., Cales y Cementos de Toluviejo, and Corporaci6n de Cemento Andino C.A. Minerals4 25.00 | 48.00 73.00 88.50 Colombia Capital Growth Fund Funds" 19.00 _ 19.00 76.00 Colombian Home Mortgage Corp. (CHMC) Finance' 140.00 - 140.00 200.00 Costa Rica Alterra Partners Costa Rica S.A. | Transportation' 35.00 85.00 120.00 160.99 Banco Interfin S.A. Finance' 15.00 - 15.00 15.00 El Salvador i CAESS/EEO Distribution Companies Utilities j 45.00 75.00 120.00 j 120.00 Jamaica Mossel (Jamaica) Limited Information 30.00 21.00 51.00 . 150.00 Mexico Banco BBVA - Bancomer Finance: 100.00 - 100.00 100.00 Combustibles Ecol6gicos Mexicanos, S.A. de C.V. Chemicals 10.00 - 10.00 27.50 Compania Tratadora de Aguas Negras de Puerto Vallarta, S.A. de C.V. Utilities 1.00 i - 1.00 1.00 Financiera Compartamos, S.A. de C.V., SOFOL Finance' 1.90 j 1.90 1.90 Greenmanor S.A. de C.V. Agriculture' 7.00 - 7.00 i 27.00 Grupo Financiero Banorte, S. A. de C.V. j Finance' 1 100.00 100.00 ! 200.00 1 200.00 Hipotecaria Su Casita, S.A. de C.V. - SOFOL Finance' 13.40 - 13.40 | 22.40 InverCap S.A. de C.V. ! Funds" 0.07 | 0.07 0.07| Pan American Silver Corporation , Oil, Gas, & Mining 1.20 - 1.20 1.20 Plata Panamericana, S.A. de C.V. Oil, Gas, & Mining 10.30 18.30 j 28.60 50.80 Tenedora Nemak S.A. de C.V. Indus/Cons Products6 1.52 - 1.52 44.00 Nicaragua Banexpo Finance' 5.00 - 5.00 I 5.00 PROJECT APPROVALS (in millions of U.S. dollars) TOTAL] IFC PROJECT PROJECT COUNTRY/PROJECT SECTOR FINANCING SYNDICATIONS FINANCING SIZE Peru Agro-Guayabito S.A. Food9 2.00 - 2.00 - Banco Sudamericano Finance' i 7.50 | 7.50 30.00 Inka Terra Peru, S.A.C. Tourism8 8.00 - 8.00 15.00 Minera Quellaveco S.A. Oil, Gas, & Mining 0.75 - 0.75 3.75 Peru Orient Express Hotel Tourism8 10.00 - 10.00 26.00 Tecnofil S.A. I Indus/Cons Products6 7.40 - 7.40 21.00 Universidad Peruana de Ciencias Aplicadas, S.A. | Education Services 7.00 - | 7.00 14.00 Trinidad and Tobago Royal Merchant Bank and Finance Company Finance' 40.00 - 40.00 40.00 Unicell Paper Mills Caribbean Ltd. Pulp & Paper 9.00 1 9.00 32.30 Uruguay Banco Montevideo S.A. Finance' 18.00 - 18.00 18.00 Universidad de Montevideo Education Services 5.00 | 5.00 10.52 REGIONAL INVESTMENTS Certifica.com Information 5.50 - 5.50 3.25 Convergence Communications, Inc. Information 2.15 - 2.15 I 20.00 HSBC Argentina Holdings, S.A. Funds" 19.67 - 19.67 250.00 HSBC Private Equity (South America) Ltd. Funds" 0.33 | 0.33 0.50 Medical Systems Finance Holding Limited Finance' 15.00 j 15.00 15.00 PriceSmart, Inc. Trade'" 32.00 32.00 115.00 MIDDLE EAST AND NORTH AFRICA Algeria Algerie Leasing Finance' 4.70 4.70 20.00 Arab Republic of Egypt I Amreya Casting Company Indus/Cons Products' | 4.74 | 4.74 14.50 E.D.F. Port Said East Power S.A.E., and , E.D.F. Suez Gulf Power S.A.E. | Utilities 96.00 305.00 401.00 686.40 EFG Hermes Holding SAE Finance' 30.00 - . 30.00 45.00 Egyptian Cement Company S.A.E. Minerals4 35.00 |- 35.00 IT Worx Professional Services99 " 2.50 - I 2.50 6.00 ORIX Leasing Finance9 6.00 - 6.00 6.00 Unipak Nile Limited Pulp & Paper , 3.00 - 3.00 6.00 Jordan Txl International Luggage Manufacturing Company ITextiles 15.00 j - 15.00 39.00 Jordan Gateway Projects Company Construction9" 10.00 - 10.00 35.60 Lebanon Banque Saradar S.A.L. Finance' 10.00 10.00 10.00 Lebanese Leasing Company S.A.L. Finance' 10.00 - 10.00 10.00 Morocco Medi Telecom S.A. Information 93.95 328.82 422.77 1674.99 Syrian Arab Republic Arab Ceramic Roof Tiles Company Minerals' 6.62 - 6.62 22.10 WORLDWIDE Gerling Credit Insurance Group Finance 8.2 - 8.82 18.37 InfrastructureWorld.com (IWorld) Information i 10.00 - j 10.00 40.00 Round 1 _Funds99 3.00 3.00 6.00 AEF=Africa Enterprise Fund 1. Finance & Insurance 7. Primary Metals SEF= Small Enterprise Fund 2. Agriculture & Forestry 8. Accommodation & Tourism Services 3. Transportation & Warehousing 9. Food & Beverages 4. Nonmetallic Mineral Product Manufacturing 10. Wholesale & Retail Trade 5. Textiles, Apparei, & Leather 11. Collective Investment Vehicles 6. Industrial & Consumer Products 12. construction and Real Estate 13. Professional, Scientific, & Technical Services TECHNICAL ASSISTANCE & ADVISORY PROJECTS COUNTRY PURPOSE DESCRIPTION (DEPARTMENT UOR FUNDING SOURCE) SUB-SAHARAN AFRICA Botswana Privatization i Provided services as lead advisor n privatization of Air Botswana. (PSAS, TATF - Canada) Cameroon Privatization Lead advisor on the successful pr vatization of SON EL, the electric I utility. (PSAS) Chad i SME Analyzed VITA Pep Chad, one of the country's top microfinance institutions. (SCBF) SME Provided financing and capacity building initiative for local suppliers of oil pipeline. (SCBF) Congo, Republic of FDI Undertook review of country's investment law. (FIAS) Ethiopia FDI Provided assistance to Ethiopian Investment Authority in developing a strategic approach for promoting FDI. (FIAS) Kenya Sector Study Conducted strategic review of Kenya pulp and paper industry. (TATF - Finland) SME Financed feasibility study for small and medium enterprise factoring company. (SCBF) Madagascar Sector Study Assessed crayfish stocks and developed sustainable management plan. (TATF) Financial Sector Surveyed potential market for life and nonlife insurance in Madagascar. (FM, TATF - Sweden) Mauritania FDI Reviewed tax system and fiscal incentives and developed action plan. (FIAS) Privatization Lead advisor to government on completed privatization of Mauritel, national telecommunication company. (PSAS) Mozambique SME Designed training program for small and medium enterprises to integrate into the supply chain of large companies. (SCBF) FDI Reviewed and evaluated implementation process for removal of admin- istrative barriers to investment. (FIAS) Nigeria Privatization Lead advisor to government on privatization of Lagos Water. (PSAS, TATF - Norway, Netherlands, Sweden, Austria) FDI Reviewed Nigerian Investment Promotion Commission. (FIAS) FDI Undertook diagnostic study of environment for nonoil sector FDI. (FIAS) i Sector Study Conducted market study of pharmaceutical products. (TATF - Canada) SME Supported establishment of financing facility for small enterprises i serving the oil sector. (SCBF) Financial Sector Provided viability study for creating insurance or asset management company. (FM, TATF - Norway) Sao Tome and Principe FDI Reviewed business climate, with special attention to legal, institutional, and administrative framework. (FIAS) FDI Conducted review of country's draft Investment Code. (FIAS) FDI = Foreign direct investment PSAS = Private Sector Advisory Services FIAS = Foreign Investment Advisory Service SCBF = Small and Medium Enterprise Department FM = Regional financial markets division or Capacity Building Fund Financial Markets Advisory Department SME = Small and medium enterprise PEP = Private Enterprise Partnership TATF = Techn cal Assistance Trust Funds program COUNTRY PURPOSE DESCRIPTION (DEPARTMENT &IOR FUNDING SOURCE) - Senegal Infrastructure Developed short-term and long-term system expansion plan for electricity sector. (TATF - Switzerland) SME Performed study on regional credit bureau feasibility. (SCBF) FDI Analyzed enterprise tax burden and efficiency of existing fiscal incentives. (FIAS) FDI Provided advice on establishing Investment Promotion Agency. (FIAS) South Africa Privatization Lead advisor in successful commercialization program for South Africa National Parks. (PSAS, TATF) SME i Supported establishment of entrepreneurship center at University of Cape Town. (SCBF) Tanzania Privatization Provided services as lead advisor in privatization of Air Tanzania Corporation. (TATF - Denmark) Sector Study Reviewed potential for providing credit to smaliholder farmers through Abood Group. (TATF - Denmark) Sector Study Studied feasibility of establishing aquaculture operation on Lake Victoria. (TATF - Canada) Uganda Infrastructure Assisted government in developing profitable and sustainable rural electrification program. (TATF - USA) Zambia SME Reviewed opportunities for small and medium enterprises to integrate into supply chains of larger firms. (SCBF, TATF - Japan) Zimbabwe FDI Advised Zimbabwe Investment Centre on strategic planning issues. (FIAS) Africa Region SME Produced Web site oriented to small and medium enterprises. (FM, TATF) i SME i Trained loan officers to evaluate credit risk of loan applications from small and medium enterprises. (FM, TATF) SME Provided corporate governance training and assisted in development. (FM, TATF - Norway, Denmark) FDI Provided assistance to the Common Market for Eastern and Southern Africa in designing and developing regional investment promotion agency. (FIAS) FDI Advised World Bank and West African governments on regional strategy for private sector development. (FIAS) ASIA AND THE PACIFIC Bangladesh SME Identified important textile subsectors with growth potential and also identified sectoral constraints. (TATF - Denmark) SME Helped prepare for initiative to support private sector small and I medium enterprises. (TATF - Denmark) Bhutan FDI Reviewed draft investment policy statement prepared by government. (FIAS) Cambodia SME I Supported Hagar Crafts handicrafts business. (SCBF) FDI I Assisted government move to performance-based incentives. (FIAS) Financial Sector I Provided advice and diagnostic assessment of Foreign Trade Bank. jD |(FM, TATF - Australia) FDI i Provided advice on improving investment and business climate through establishment of a Private Sector Forum (PSF) secretariat. (TATF - Australia) FDI Provided assistance to assess revenue implications of various foreign investment incentives regimes. (FIAS) China Financial Sector |Reviewed Nanjing City Commercial Bank's financial performance and provided advisory assistance. (FM, TATF - Ireland) Financial Sector Prepared report on corporate governance practices among mainland- listed companies. (TATF) COUNTRY PURPOSE DESCRIPTION (DEPARTMENT WOR FUNDING SOURCE) China (cont.) SME Conducted seminar on an enabling environment for small and medium enterprise development. (FM, TATF - Australia) Sector Support Convened two-day mining roundtable conference with the Ministry of Land Resources. (TATF -Australia) Sector Study I Prepared report to evaluate investment opportunities in medical insurance sector. (FM, TATF) SME Undertook preparation for initiative to support private sector small and j medium enterprises in Sichuan Province. (FM, TATF - Netherlands) Financial Sector Provided best practice assistance to an insurance company on range of business elements. (FM, TATF - Switzerland) FDI Provided support to roundtable investment seminar in Shaanxi Province, with participation of provincial government officials and foreign investors focusing on FDI issues over which the provincial government has jurisdiction. (TATF - Australia) Financial Sector Provided Chinese Securities Regulatory Commission and other institutions with support to develop a curriculum for training directors of Chinese listed companies (with a particular focus on responsibilities of outside directors). (TATF - Australia) East Timor I FDI Performed preliminary diagnostic study of foreign investment environ- ment and designed foreign investment code. (FIAS) FDI F Participated in mission for preparation of country economic memorandum. (FIAS) Fiji SME j Designed environmentally sensitive (bio-gas) and sustainable effluent disposal/management system. (TATF - New Zealand) India Infrastructure Analyzed wind resources and technical aspects of a project. (TATF - Denmark) SME i Strengthened BASIX, a leading local microfinance institution. (SCBF) E Social Sector Enabled more students to access high-quality tertiary education by providing necessary financing. (TATF) Project Preparation Assessed operations and provided assistance to upgrade effectiveness I of an agro-processing company. (TATF - United Kingdom) Indonesia SME Assessed viability of business development services program. (TATF - Switzerland) SME | Assessed feasibility of coordinated approach to supporting small and medium enterprises. (TATF - Australia) FDI Examined potential problems for investors in government decentraliza- | tion and provided recommendations. (FIAS) FDI Assisted AusAID in redesigning a foreign investment implementation F project. (FIAS) Lao People's Democratic Republic Sector Study Assisted tourism authority development of pilot ecotourism plan, targeting the Luang Nam Ha National Biodiversity Conservation Area. (TATF - Japan) Sector Study Assisted in improving environmental and social regulatory, manage- ment, and monitoring framework for the mining sector in Lao PDR. (TATF - Australia) Maldives SME I Finalized regulatory, fiscal, and legal framework and provided training on leasing. (FM, TATF - Japan) Mongolia FDI Reviewed draft investment law and provided comments. (FIAS) SME j Assisted in establishing transparent legislation for domestic leasing industry. (FM, TATF - Japan) Palau FDI Reviewed draft legislation of foreign investment act. (FIAS) Papua New Guinea SME Assisted in restructuring private hospital and developed management information and accounting systems. (TATF - Australia) Samoa FDI Supported sourcing, recruitment, and training of three local executives. (TATF - New Zealand) COUNTRY PURPOSE DESCRIPTION (DEPARTMENT JOR FUNDING SOURCE) Samoa (cont.) FDI Supported MedCen Samoa Holdings through first year of ISO (international standards) certification. (TATF - Australia) FDI I Provided assistance for design of duty-suspension scheme for exporters. (FIAS) Financial Sector Provided assistance for the institutional strengthening program for the National Bank of Samoa Ltd. (FM, TATF - New Zealand) Thailand Financial Sector Assisted development of local derivatives markets to improve risk Financial management capabilities for local institutions. (FM, TATF - Japan) Tonga FDI Reviewed and assessed effectiveness of tax-based scheme. (FIAS) Vietnam SME Designed and marketed self-study management workbooks. (SCBF) SME Supported Internet-based business to link Vietnamese exporters with S overseas buyers. (SCBF) Financial Sector Provided diagnostic review of legal, business, and banking sector i issues related to student loan program. (FM, TATF - Australia) Project Preparation I Prepared Resettlement Action Plan. (TATF - Australia) Asia and the Pacific Region FDI Provided support, including program development and paper on investor screening, for meeting of Pacific heads of investment promo- tion agencies. (FIAS) | FDI Addressed foreign investment issues in the development of tuna management plans of Solomon Islands, Palau, and Vanuatu. (FIAS) Sector Study Provided independent feasibility study for regional telemedicine sector. (TATF - Ireland) Sector Study Assessed feasibility of providing economic incentives to encourage fishermen to replace cyanide fishing. (TATF - Japan) Sector Study Prepared strategy for promoting sustainable private mining investments. (TATF - Japan) FDI Prepared report on International Dispute Resolution Conventions for EUROPE AND CENTRAL ASIA the Forum of Economic Ministers Meeting. (FIAS) EUROPE AND CENTRAL ASIAj Albania 1 FDI Conducted diagnostic review of investment climate and identified i g priority areas for reform. (FIAS) I Sector Study Assisted in strengthening the insurance industry by providing recom- mendations on legal and regulatory framework changes for the sector. (TATF - Luxembourg) Armenia FDI Conducted administrative barriers study. (FIAS) FDI Developed institutional framework for foreign investment promotion. (FIAS) f Azerbaijan Financial Sector Provided assistance to State Committee for Securities and Baku Stock Exchange for strengthening of institutions. (FM, TATF - Netherlands) Bosnia and Herzegovina FDI Conducted administrative barriers study and reviewed the commercial and legal framework. (FIAS) Financial Sector Assisted restructuring and privatization of Privredna Banka Sarajevo. (FM, TATF- Italy) Bulgaria S Sector Study Helped apricot and peach farmers improve businesses and imple- BulgariaISector Study I mented program to support fruit production. (TATF - Greece) Croatia SME I Provided advisory and consulting services to five agribusiness and wood processing companies. (TATF - Netherlands) Financial Sector Reviewed insurance law and provided recommendations. (FM, TATF - F! I I Sweden) FDI i Conducted an administrative barriers study. (FIAS). i FDI Provided assistance to government on tax incentives reform and other FDI-related tax issues. (FIAS) 1I0I COUNTRY 1 PURPOSE , DESCRIPTION (DEPARTMENT &IOR FUNDING SOURCE) Georgia Privatization , Provided services as lead advisor in privatization of Georgia Power. (PSAS) Financial Sector Provided assistance in converting two privately owned banks to interna- j . tional accounting standards and contributed to creating procedures and steps necessary to convert local accounting and reporting systems to IAS. (TATF - France) Hungary Environment Provided assistance to help reduce greenhouse gas emissions and support implementation of energy efficiency projects. (TATF - Austria, Netherlands) Kazakhstan SME Provided consulting services to strengthen local firms. (FM, TATF - Netherlands) SME I Provided financial sector institution building and small and medium enterprise development. (FM, TATF - Netherlands) SME , Supported local business integration into supply chain of Ispat Karmet steel plant. (SCBF, TATF) SME Assisted corporate citizenship program for privatized local steel mill's plan to work with small and medium enterprises. (TATF) Kyrgyz Republic Financial Sector i Conducted market analysis related to conversion of FINCA Kyrgzstan into a commercial bank. (FM, SCBF) SME Assisted local businesses' incorporation into supply chain of Kumto gold mine. (SCBF) Sector Study Carried out study of tourism sector and recommended investment approach. (TATF) Sector Study Assisted small packaging company in reviewing and strengthening marketing strategy function. (TATF - Finland) Sector Study Developed a planning document for use by government and interested private sector parties that could be used to stimulate tourism sector i investment. (TATF - Switzerland) FDI l Provided review of draft investment law. (FIAS) Latvia Sector Study Conducted analysis and survey on use and quality of public space in c ty center of Riga. (TATF - Denmark) Lithuania Project Preparation l Provided assistance in developing marketing proposal for textile plant and manufacturing machinery sale. (TATF) Moldova Sector Study Conducted market and feasibility study for new hotel, including prepa- ration of market and financial projections. (TATF - United Kingdom) Sector Study Completed review of investment options for selected vineyards. (TATF- Italy) i Sector Study i Conducted study assessing technical and market constraints and opportunities faced by a local chocolate and candy producer. (TATF- Italy) Romania Financial Sector Reviewed insurance company accounting procedures and advised I management on best practices. (TATF - Sweden) Privatization I Provided assistance to privatized chemical, textile, fiber, and yarn manufacturer in bringing operations in line with Romanian and international guidelines. (TATF- Switzerland) FDI Conducted study on administrative barriers and investigated procedural impediments. (FIAS) Russian Federation FDI Conducted administrative barriers study of four regions. (FIAS) Social Sector Trained management and medical teams. (TATF - Finland) Financial Sector Provided advice from Leasing Development Group through on-site visits. (FM, TATF - United Kingdom) Financial Sector Supported reengineering of Probusinessbank. (FM, TATF - United Kingdom) Slrvak Republic FDI Conducted administrative barriers study. (FIAS) I i.~~~~~~~~~~~~~~~~~~~~~~~~~0 COUNTRY PURPOSE DESCRIPTION (DEPARTMENT &OR FUNDING SOURCE) Tajikistan Financial Sector Provided hands-on advisory services to transform private bank into sustainable business. (FM, TATF - Switzerland) Financial Sector Provided staff members training on financial management services. (FM, TATF - Italy) Infrastructure Provided financial, legal, economic, energy, and social advisors needed to structure and finance joint venture company. (TATF - Switzerland) Turkey FDI Helped government in organizing and implementing conference on foreign direct investment. (TATF - Spain, Austria) FDI Diagnosed FDI environment, focusing on legal and macroeconomic policies and institutional issues. (FIAS) FDI Provided follow-up to diagnostic study and conducted an administrative l barriers study. (FIAS, TATF) Turkmenistan Financial Sector Provided assistance to leading private bank to transform it into sustainable business. (FM, TATF) Ukraine Financial Sector Screened and identified potential partner banks, implementation of I work plan, and potential credit lines to meet needs of small and medium enterprise borrowers. (TATF - Netherlands) SME Supported production of annual survey of legislative, I administrative, financial, market environment for SME development. (TATF - Norway) Uzbekistan Sector Support Helped government organize and implement seven-day conference to I | promote textile arrangements. (TATF - Switzerland) SME Provided assistance to two small private banks and provided capacity- building support services. (FM, TATF - Japan) Financial Sector I Provided assistance to help banking institutions become effective intermediaries to channel credit to small and medium enterprises. (TATF - Ireland) Sector Study I Reviewed textile sector in Andijan and Karakalpakstan Oblasts and the competitiveness of Uzbekistan's textile sector in relation to the needs of international markets. (TATF - Switzerland) Yugoslavia, Federal Republic of j FDI Completed review of FDI law and provided guidelines for new law. (FIAS) Other Provided project coordinator to monitor responsiveness of IFC interventions. (TATF - Sweden) j Sector Study Investigated potential of pharmaceutical, agriculture, food and processing, and garment sectors. (TATF - Sweden) Sector Study Performed assessment of information technology and telecommunications sectors. (TATF - Sweden) Financial Sector Conducted retail banking survey and assessed growth potential for I domestic and foreign financial institutions. (FM, TATF - Sweden) Financial Sector I Assisted review of economic transformation through open, transparent, and competitive private sector. (FM, TATF - Sweden) Project Preparation Assisted a fresh juice company in introducing management information system and cost control program, and carrying out IAS audit. (TATF- Sweden) Europe and Central Asia Region SME Provided assistance for new fund targeted at small and medium | enterprises in Estonia, Latvia, and Lithuania. (TATF - Austria) Financial Sector Provided consulting services to support investment program in Central Asia. (FM, TATF) SME Assessed regulatory framework for leasing in three central Asian republics. (FM, TATF-Japan) SME Provided assistance to investment target companies of small and medium enterprises fund. (TATF - Austria, Finland) SME Supported implementation of business plan to establish Agribusiness | Support Foundation related to investment. (TATF - Netherlands) FDI i Conducted fieldwork related to FDI. (FIAS) Sector Study j Provided comprehensive analysis of housing market and mortgage lending markets. (FM, TATF - Netherlands) COUNTRY PURPOSE DESCRIPTION (DEPARTMENT &OR FUNDING SOURCE) LATIN AMERICA AND THE CARIBBEAN Belize 1 Sector Study Assessed acceptable operating practices and established standards for aquaculture operations. (TATF - Japan) Brazil j Privatization Lead advisor to government of Pernambuco on completed privatization DI |of Port of Suape. (PSAS) FDI S Reviewed nvestment environment with special emphasis on export- i oriented FDI. (FIAS) FDI Conducted an administrative barriers study with a focus on Sao Paolo and Rio de Janeiro. (FIAS) Costa Rica FDI Assisted interministerial committee in evaluating options on tax structure and incentives. (FIAS) SME Helped Costa Rica-based group build small and medium enterprise investment capacity in Latin America. (SBCF) Dominican Republic Financial Sector Provided support to a regional capital markets seminar in Santo Domingo. The seminar was intended to increase understanding of opportunities and constraints to capital market development as well as encourage closer regional cooperation. (FM, TATF - Sweden) El Salvador Sector Study Assisted government in undertaking comprehensive feasibility study I on innovative, private sector-led reform being proposed for San Salvador's bus system. (TATF - Switzerland) Honduras Financial Sector Drafted legislation to promote natural disaster insurance and reinsur- ance. (FM, TATF - France) FDI Reviewed business environment for FDI with objective of setting a i broader strategic reform agenda. (FIAS) Mexico Sector Study Evaluated feasibility of post-harvest financing for grain farmers, traders, and processors, using warehouse receipts. (TATF - Canada) Panama Privatization Lead advisor for market assessment and privatization of Howard Air Force Base. (PSAS) Peru SME Reviewed criteria for formation of warehouse and distribution center and wholesale market on shared site in Chiclayo. (TATF - Netherlands) Latin America and the Caribbean Region SME Assisted Central American businesses in countries affected by Hurricane Mitch, with project development, training, skills develop- ment, and funding. (FM) 10 COUNTRY PURPOSE DESCRIPTION (DEPARTMENT &/OR FUNDING SOURCE) MIDDLE EAST AND NORTH AFRICA Egypt, Arab Republic of Social Sector Conducted fact-finding study on providing Internet services to "Smart Schools." (TATF - New Zealand) FDI Developed institutional framework for foreign investment promotion. (FIAS) Lebanon Privatization Prov ded services as lead advisor in privatization of Middle East Airlines. (PSAS) Financial Sector Assisted government in implementing insurance law passed in 1999. (FM, TATF -Canada) Morocco FDI Performed review of investment charter. (FIAS) Project Preparation Provided assistance for creating weather risk management company. Activities included basic meteorological fact-finding, product design, options on corporate structure, preparation of business plan, and implementation strategy. (FM, TATF - Italy) Sector Study Carried out market and feasibility study for establishing country's first private university. (TATF - Italy) Saudi Arabia FDI Conducted analysis of institutional framework for effective investment promotion, facilitation, and new investment law. (FIAS) Syrian Arab Republic SME Assisted in development of textile industry. (TATF - Italy) Financial Sector Provided review of Syrian banking sector and legal and regulatory framework for banking activities, including impediments to banking sector development. (FM, TATF - France) Middle East and North Africa Region I Sector Study Provided market analysis of information technology sector and invest- ment outlook in Algeria, Egypt, Morocco, Tunisia, West Bank and Gaza, Jordan, Lebanon, and Syria. (TATF - Italy, France) WORLDWIDE World Region / Global Sector Study Conducted study of life sciences sector, aiming to increase investment and development impact. (TATF - Japan) SME Prov ded micro- and small business lenders with information on tech- nological innovations. (FM, TATF - Sweden) Environment Developed new approach to environmental review of projects. (TATF - France) Financial Sector Performed global survey of financial intermediaries. (FM, TATF - Ireland) j Environment I Developed methodology for factoring quantified environ mental costs and benefits into decision-making process. (TATF - Switzerland) Financial Sector Analyzed and structured investment proposal for nonbank financial institutions. (FM, TATF - Japan) SME Supported new microfinance institutions in Moldova, Turkey, Ghana, and the Philippines. (SCBF) SME Strengthened U.S.-based microfinance group at organizational level. (SCBF) SME Built institutional capacity of U.S.-based SME equity investment fund manager. (SCBF) i SME Supported capitalization facility to strengthen U.S.-based group's affiliates and leverage commercial funds. (SCBF) SME Supported launch of global knowledge-sharing institution linking investors, governments, and others. (SCBF) Environment Developed clear-cut environmental and social performance guidelines for targeted industrial and business sectors. (TATF - Denmark) Financial Sector I Reviewed e-banking practices among market leaders in new 1 business-mainly the Nordic countries-and identified approaches and components that can be applied to small and medium enterprises and rural finance in emerging markets. (FM, TATF - Finland) SME Provided support to financial institutions to encourage more efficient i financial services for small and medium enterprises on a profitable 1 basis. (SCBF) APPENDIXES Appendix A GOVERNORS and ALTERNATES June30.2001 MEMBER GOVERNOR ALTERNATE A Afghanistan (vacant) (vacant) Albania Anastas Angjeli Fatos Ibrahim Algeria Mourad Medelci Omar Bougara Angola Ana Dias Lourenco Job Graca Antigua and Barbuda I ester B. Bird Asot A Michael Argentina Domingo Fe pe Cavallo Pedro Pou Armen a Vahram Nerc ssantz Karen Chshmarityan Austra a Peter Costello Kay Patterson Austria Karl-Heinz Grasser Thomas Wieser Azerbaijan Elman Siradjogly Rustamov (vacant) B Bahamas, The William C. Allen Ruth R. Millar Bahrain Abdulla Hassan Saif Zakaria Ahmed Hejres Bangladesh Shah A.M.S. K b a A.K.M. Masihur Rahman Barbados Owen S. Arthur Grantley W Smith Belarus Andrei V. Kobyakov Vladim r N. Sh mov Belgium Didier Reynders Guy Quaden Belize Said W. Musa Yvonne S. Hyde Benin Bruno Amoussou Pierre John Igue Bolivia Jose Luis Lupo Flores Bernardo Requena B anco Bosnia and Herzegovina M rsad Kurtovic Dragan Covic Botswana Baledzi Gao athe Serwalo S.G. Tumelo Brazil Pedro Sampaio Malan Arminio Fraga Neto Bulgaria Murave Radev Mart n M.haylov Zaimov Burkina Faso Jean Baptste Compaore Patrice Nikiema Burund Charles Nihangaza Dieudonne N ntunze C Cambod a Keat Chhon Ouk Rabun Cameroon Martin Okouda Dan el Njankouo Lamere Canada Pau Martn Leonard M Good Cape Verde Caros Augusto Duarte Burgo (vacant) Central African Republic Erc Sorongope Alexis Ngomoa Chad Ahmed Lamine Ai Etienne Djimram Moyta Chile Nicolas Eyzaguirre Mario Marcel China Xiang Huaicheng Jun Liqun Co ombia Juan Manuel Santos Ca deron Juan Carlos Echeverry Comoros Djaffar Mmadi Moindjte Saadi Congo, Democratic Republic of Matungulu Mbuyamu ank r Jean-C aude Masangu Mulongo Congo, Republic of Mathias Dzon Clement Mierassa Costa Rica Leonel Baruch C. Eduardo Lzano Fait Cote d'lvoire Affi N'Guessan Bouabre Bohoun Croatia Mato Crkvenac Josip Kulisic Cyprus Takis Klerides Andreas Tryfonides Czech Republic Jiri Rusnok Odrich Dedek D Denmark An ta Bay Bundegaard Carsten Staur Djibouti Yacin Elmi Bouh Nouh Omar Miguil Dominica Ambrose George Ambrose M.J. Syvester Dominican Republic Francisco M. Guerrero Prats-R. Luis Manuel Piantini E Ecuador Jorge Gallardo Zavala A exander Mej a Pcnafiel Egypt, Arab Republic of Medhat Hassanein Ahmed Mahrous El-Darsh El Salvador Juan Jose Daboub Rafael Barraza Equatorial Gu nea Fortunato Ofa Mbo Melchor Esono Edjo Eritrea Gebrese assie Yosef Gabriel Fass I Ogbazghy Estonia Siim Kallas Mihkel Parnoja Ethiopia Suf an Ahmed Girma B rru F Fji Jone Yavala Kubuabola Solomone S Kotobalavu Finland Sauli Niinisto Satu Hassi France Laurent Fabius Jean-Pierre Jouyet te G Gabon Casim r Oye-Mba Claude Ayo Iguendha Gambia, The Famara L. Jatta Dodou B. Jagne Georgia Zurab Nogaideli Ivan Chkhartishvili Germany Heidemarie Wieczorek-Zeul Caio K. Koch-Weser Ghana Yaw Osafo-Maafo Victor Selormey Greece Yannos Papantoniou Yiannis G. Zafeiropoulos Grenada Anthony Boatswain Swinburne Lestrade Guatemala Eduardo Humberto Weymann Fuentes Lizardo Anuro Sosa Lopez Guinea Check Ahmadou Camara Cellou Dalein Diallo Guinea-B ssau Purna Bia Verissimo Nancassa Guyana Bharrat Jagdeo Saisnarine Kowlessar H Haiti Fred Joseph Fritz Jean Honduras Gabrie a Nunez de Reyes Victoria Asfura de Diaz Hungary Miha y Varga Peter Adamecz Iceland Haildor Asgrimsson Ge r H mar Haarde India Yashwant Sinha Aj t Kumar Indonesia Rizal Ramli Achjar lijas Iran, Islamic Republic of Hossein Namazi Parviz Davoodi Iraq Issam Rashid Hwaish Hashim All Obaid Ireland Charlie McCreevy John Hurley Israel David Klein Avi Ben-Bassat Italy Anton e Fazio Mario Draghi J Jamaica Omar Llcyd Davies Wesley George Hughes Japan Masajure Shickawa Masaru Hayam Jordan Jawad Hadid Abderrzaq Bani Hani K Kazakhstan Oraz Jandosov Zhaxybek Kulekeyev Kenya Chrysanthus Barnabas Okemo Martin Luke Oduor-Otieno Kiribati Ben am na Tinga Bureti Williams Korea, Republic of Nyum J n Chol-Hwan Chon Kuwait Yousef Hamad Al-Ebraheem Bader Meshar A -Humaidhi Kyrgyz Republic Temirbek Akmataliev Kubat Abduldaevich Kan metov L Lao People's Democratic Republic Soukanh Maharat Phouphet Khamphounvong Latvia Roberts Zile Aigars Kalvitis Lebanon Fuad A.B. S n ora Basil R. Fuleihan Lesotho Kelebone Alben Macpe Molelekeng E. Rapolaki _iberia Amelia A. Ward M. Nathaniel Barnes Libya Alojeli Abdel Salam Breeni Ali Ramadan Shnebsh Lithuania Jonas L onginas Arvydas Kregzde Luxembourg Luc Frieden Jean Gu M Macedonia, former Yugos av Republic of Nikola Gruevski Dragan Martinovsk Madagascar Pierrot J. Rajaonarivelo Simon Constant Horace Malawi Mathews A.P Chikaonda Mapopa Chipeta Malaysia Mahathir Mohamed Samsudin bin Hitam Maldives Fathulla Jameel Adam Maniku Ma i Bacari Kone Toure Alimata Traore Marshall Islands Michael Konelios Sm th Michael Mauritan a Mohamed Ould Nany Abdallah Ould Hormtallah Maurtius Khushhal Chand Khushiram Philippe Ong Seng Mexico Francisco Gil Diaz Agustin Carstens Micronesia, Federated States of John Ehsa Sebastian L. Anefal Moldova M hail Manoli Dumitru Ursu Mongolia Chultem Ulaan Ochirbat Chuluunbat Morocco Fathallah Oualalou Ahmed Lah mi Mozambique Adriano Afonso Ma eiane Manuel Chang Myanmar Khin Maung The n Soe in N Nam ba Saara Kuugongelwa Usutuaije Maamberua Nepal Ram Sharam Mahat Bimal P. Koirala Netherlands Gerrit Zalm Eveline Herfkens New Zea and Michael Cullen Alan Bollard Nicaragua Esteban Duque Estrada Francisco Agu rre Sacasa N ger Ali Badjo Gamatie Maliki Barhouni Nigeria Adamu Ciroma Ramsey Oubromoro Mowoe Norway Anne Krstin Sydnes Sigrun Mogedal 0 Oman Ahmed Mack Mohammed bin Nasser Al-Khasibi p Pakistan Shaukat Aziz Nawid Ahsan Palau Casmir Remengesau Lawrence Alan Goddard Panama Norberto Delgado Duran Domingo Latorraca Papua New Guinea Mekere Morauta Koiari Tarata Paraguay Francisco Oviedo Britez James Spalding Peru Javier Silva Ruete Alfredo Jaliee Awapara Philippines Jose Isdro N. Camacho Rafae B. Buenaventura Poland Leszek Ba cerowicz Ryszard Kokoszczynski Portugal Joaqu m Pina Moura Manuel Pedro da Cruz Baganha R Romania M,hai Nicolae Tanasescu Emil lota Ghizar Russian Federation Viktor Khr steriko German 0 Gref Rwanda Donald Kaberuka Jean Marie Karekezi S St. Kitts and Nevis Denzil Douglas Wende.. E Lawrence St Lucia Kenny D. Anthony Bernard La Corbiniere Samoa Misa Telefon Retzlaff Hinauri Petana Saudo Arabia Ibrahim A Al-Assaf Hamad Al-Sayari Senegal Makhtar Diop Oumar Khassimou Dia Seychelles Jeremie Bonnelame Aain Butler-Payette Sierra Leone Peter J. Kuyembeh Samura Kamara Singapore R chard Hu Tsu Tau L m S ong Guan Slovak Republic Ivan M klos Manan Jusko Sloven a Anton Rop Irena Sodin Solomon Is ands Snyder Rin Shadrach Fanega Somalia (vacant) (vacant) South Africa Trevor Andrew Manuel Mandisi Bongani Mpah wa Spain Rodrigo de Rato Figaredo Juan Costa Climent Sri Lanka Chandr ka Bandaranaika Kumaratunga P.B. Jayasundera Sudan Abdul Rahim Hamd Sabir Mohamed Hassan Swaziland Guduza Musa D Fakudze Sweden Bosse Ringhelm Maj-lnger Klingvall Switzerland Pascal Couchepin Joseph Dess Syrian Arab Republic Mohammed Khaled Al-Mahayni Mohamad B ttar T Talikistan Safarali Najmuddinov Sharif Rakhimov Tanzania Nassoro W. Malocho Peter J. Ngumbu u Tha and Somkid Jatusripitak Somcha nuk Engtrakul Togo Simfertcheou Pre Kossi Assimaidou Tonga Siosua T.T. Utoikamanu 'Aisake V Eke Trinidad and Tobago Gerald Yetming Leroy Mayers Tunisia Fethi Merdassi Abdelhamid Triki Turkey Fa k Oztrak Aydin Karaoz Turkmenistan Seitbay Kandymov Serdar Bayriev U Uganda Gerald M. Ssendaula C. M. Kassami Ukraine YryYekhanurov Vasy Rohovyi United Arab Em rates Hamdan bin Rashid Al-Maktoum Mohammed Khalfan Bin Khirbash United Kingdom Clare Short Gordon Brown United States Pau H. O Ne Alan P. Larson Uruguay Alberto Bens on Ariel Davrieux Uzbekistan Rustam S. Azimov (vacant) V Vanuatu Joe Boma Carlo Jeffery Wtlfred Venezuela, Republica Bolivariana de Jorge Antonio Giordani Cordero Jose Alejandro Rojas Ramirez Vietnam Le Duc Thuy Duong Thu Huong V Yemen, Repubpic of Ahmed Mohamed Sofan Anwar Rizq Al-Haraz. Yugoslavia, Federa Republic of M roijub Labus Dragisa Pesic z Zambia James Mwalimu Mtonga Stella M. Chibanda Zimbabwe Simba Herbert Stanley Makoni Leonard Lad slas Tsumba Appendix B DIRECTORS and ALTERNATES and THEIR VOTING POWER June30,2001 ALTERNATE PERCENT DIRECTOR DIRECTOR CASTING VOTES OF TOTAL VOTES OF TOTAL APPOINTED Jan Piercy' (vacant) Lnited States 569,629 23.73 Yuzo Harada Masanori Yoshda Japan 141,424 5.89 Helmut Schaffer Eckhardt Biskup Germany 129,158 5.38 Jean-Claude Milleron2 Emmanuel Moulin France 121,265 5.05 Stephen Pickford Rosemary B. Stevenson United Kingdom 121,265 5.05 ELECTED Philippe M. Peeters Emin Dedeoglu Austria, Belarus, Belgium, Czech Republic, Hungary, (Belgium) (Turkey) Kazakhstan, Luxembourg, Slovak Republic, Slovenia, Turkey 125,221 5.22 Franco Passacantando Helena Cordeiro Albania, Greece, Italy, Portugal 98,866 4.12 (Italy) (Portugal) Balmiki Prasad Singh Mahbub Kabir Bangladesh, Ind a, Sri Lanka 98,264 4.09 (Inda) (Bangladesh) Moises Pineda Jose H. Machillanda Costa Rica, El Salvador, Guatemala, Honduras, Mexico, 97.478 4.06 (Mexico) (Rep. Bol. de Venezuela) Nicaragua, Spain, Venezuela (Republica Bolivariana de) Terrie O'Leary Sharon Weber Antigua and Barbuda, The Bahamas, Barbados, Belize, Canada, Dominica, 92,944 3.87 (Canada) (Jamaica) Grenada Guyana, Ire and, Jamaica, St. Kitts and Nevis, St. Lucia Finn Jonck Anna M. Brandt3 Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, Sweden 86,693 3.61 (Finland) (Sweden) Pieter Stek Tamara Solyanyk Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Georgia, 86,423 3.60 (Netherlands) (Ukraine) Israel, Macedonia (former Yugoslav Republic of), Moldova, Netherlands, Romania, Ukraine Andrei Bugrov Eugene Miagkov Russian Federation 81,592 3.40 (Russian Federat on) (Russian Federation) Jaime Ru z Luis Anton o Balduino Brazil, Colombia, Dominican Republic, Ecuador, Hait, Panama, 75,980 3.16 (Colombia) (Brazil) Philippines, Trinidad and Tobago Neil F. Hyden Lewis D. Holden' Australia, Cambod a, K ribati, Korea (Republic of), Marshal Islands, 73,309 3.05 (Australia) (New Zealand) Micronesia (Federated States of), Mongolia, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Vanuatu Mario Soto-Platero Roberto Garcia-Lopez Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay 64,144 2.67 (Uruguay) (Argentina) Matthias Meyer Jerzy Hylewski Azerbaijan, Kyrgyz Republic, Poland, Switzerland, Tajikistan, 60,548 2.52 (Switzerland) (Poland) Turkmenistan, Uzbekistan Abdu Azz Mohd. Yaacob Nguyen Doan Hung Fiji, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, 59,912 2.50 (Malays a) (Vietnam) Nepal, S ngapore, Thailand, Tonga, Vietnam Girmai Abraham Richard H. Kaijuka Angola, Botswana, Burundi, Eritrea, The Gambia, Kenya, Lesotho, Liberia, 58,496 2.44 (Eritrea) (Uganda) Malaw, Mozambique, Namibia, Nigeria, Seychelles, Sierra Leone, South Africa, Sudan, Swaziland, Tanzan a, Uganda, Zambia, Zimbabwe Ahmed Sadoudi Ineamul Haque Algeria, Ghana, Iran (Is amic Republic of), Iraq, Morocco, Pakistan, Tunisia 46,016 1.92 (Algeria) (Pakistan) Kha d M. Al-Saad Mohamed Kamel Amr Bahrain, Egypt (Arab Republic of), Jordan, Kuwait, Lebanon, Libya, Maldives, 34,079 1.42 (Kuwait) (Arab Republic of Egypt) Oman, Syrian Arab Republic, Un ted Arab Emirates, Yemen (Republic of) Yahya Abdulla M. Ayahya Abdulrahman M. Almofadh Saudi Arabia 30,312 1.26 (Saudi Arabia) (Saudi Arabia) Zhu Guangyao Chen Huan China 24,750 1.03 (China) (China) Bassary Toure Paulo F. Gomes Benin, Burkina Faso, Cameroon, Cape Verde, Central African Repub c, 22,947 .96 (Mali) (Guinea-Bissau) Chad, Comoros, Congo (Democratic Republ c of), Congo (Republic of), Cote d'lvo re, 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 October 31, 2000: DIRECTOR END OF PERIOD OF SERVICE ALTERNATE DIRECTOR END OF PERIOD OF SERVICE Zhu Xian February 28, 2001 Pilar Alvarez December 15, 2000 (China) (Rep. Bo. de Venezuela) Note: Afghanistan (361 votes), Ethiop a (377 votes), and Soma a (333 votes) did not participate in the 2000 Regular Elect cn of Directors. The Federal Repub c of Yugoslavia (2,053 votes) became a member after that election 1 Carole Brookins (U.S.) will serve as director effective August 20, 2001. 2 Resigned effect ve August 1, 2001; to be succeeded by Pierre Duquesne (France) effective August 20, 2001. 3 Resigned effective Ju y 31, 2001; to be succeeded by nkeri Hirvensalo (Finland) effective August 23, 2001. 4 Resigned effect ve J uly 6, 2001; to be succeeded by Dong-Soo Chin (Republ c of Korea) effect ve J u y 23, 2001. Appendix C BANKING ADVISORY GROUP 2001 Mr. Abdlatif Y. Al-Hamad Mr. Gerd Hausler Mr. Isaac Takawira Director General/Chairman of the Board Senior Advisor Managing Director Arat Fund for Economic & Social Development Deutsche Boerse AG Barclay's Bank of Kenya Safat, Kuwait Frankfurt am Main, Germany Nairobi, Kenya Mrs. Ana Patricia Botin Mr. Rainer Masera Mr. Marc Vi6not Banco Santander Central Hispano Managing Director President d'Honneur Madrid, Spain San Paolo IMI S.p.a. Soci6t6 Generale Torino, Italy Paris, France Mr. Fernao Bracher Presidente Mr. Roberto Mendoza Mr. Wang Xuebing Banco BBA Creditansta t S.A. Founder President Sao Paulo, Brazil Hancock, Mendoza, China Construction Bank Dachille and Merton Beijing China Mr. Richard Fisher New York, U.S.A. Chairman of the Executve Committee Sir David Scholey Morgan Stanley Dean Wilter & Co. Mr. Deepak Parekh Chairman of the BankingAdvisory Group New York, U.S.A. Chairman London, United Kingdom Hous ng Development Finance Mr. Toyoo Gyohten Corporation L mited President Mumbai, India Instrute for Internatona Monetary Affairs Tokyo, Japan Appendix D ORGANIZATIONAL CHART BOARD OF GOVERNORS and IFC MANAGEMENT BOARD OF DIRECTORS Meg Taylor Compliance Adv sor James D. Wolfensohn Cheikh Ibrahima Fall & Ombudsman' Pres dent Vice President & Corporate Secretary2 Peter L. Woicke Managing Director for World Bank Executive Vice President IFC Joseph O'Keefe William E. Stevenson Gavin Murray Guy Pierre Pfeffermann Manager Director Director, Env ronment and Socia Director Corporate Re ations Operations Evaluation Group Development Department Economics Department Nemat Talaat Shafik Assaad J. Jabre Farida Khambata Dorothy H. Berry Carol F. Lee Vice President, Private Sector Vice President Vice President Vice President, Human V ce President & _ Development & Infrastructure3 Operat os _ Portfolio & Risk Management _ Resources & Administration G enera Counsel IlI Mohsen Khalil Bernard Sheahan Jean-Paul Pinard Christian Grossmann Director (Bank/IFC), Globa. Info. Senior Manager Director Director Jennifer Sullivan & Communication Technologies' Operations Strategy Group Agribus ness Controller's & Budgeting Deputy General Counsel James Bond Suellen L. Lazarus Karl Voltaire Guy-Pierre de Poerck Director IBankWI FC) Director, Syndications Director Chief Information Officer Barbara Kafka Mining & International Securit es Department Globa Financial Markets Department Corporate Business Informatics Conflicts Officer' Rashad-Rudolf Kaldany Andreas Raczynski Declan J. Duff Marc Babin D rector IBank IFC) Director Director Director, Corporate Portfolio Oil, Gas & Ctemicalsa Technical Services Department Infrastructure & Risk Management Harold Rosen Motoharu Fujikura Francisco Tourreilles Paul Hinchey Director IBank/IFC) Director Director Director Small & Medium Enterprises' Tokyo Office Power Cred t Review Michael Klein Nina Shapiro Teresa Barger Avi Hofman Director (Bank IFC) Treasurer Director, Private Equity and Senior Manager Private Sector Advisory Services' Treasury Department Investment Funds Department Financial Operations On t Karl Voltaire Jyrki Koskelo Director, Globa Practice Group Senior Manager for Social Sectors Special Operations Department Haydee Celaya Udayan Wagle Director Director Sub-Saharan Africa Trust Funds Department Javed Hamid Director East Asia & Pacific9 I Vice presidenta rank, serves same role for MIGA 2 Jointly IFC and IBRD Mary Ellen Iskenderian 3 Word Bank v ce pres dent reporting to Peter Wo cke in his Director capacity as managing director of the Bank South Asia 4 Joint IFC-IBRD department 5 Also reports to Bank VP for East Asa and Pacific Edward A. Nassim 6 Reports jointly to IBRD and IFC general counse s Director Central & Eastern Europe Khosrow K. Zamani Director Southern Europe & Central Asia Bernard Pasquier Director Latin America & the Caribbean Sami Haddad Director Middle East & North Africa r7to IFC MANAGEMENT July2001 President' James D. Wolfensohn Central and Eastern Europe Department D rector (Moscow) Edward Nassini Executive Vice President' Peter L. Woicoe Associate Director (Moscow) Richard Ranken Vice President and Corporate Secretary' Che kh Ibrah ma Fa Associate Director, Portfolio and Credit Review Robin G antz Compliance Advisor/Ombudsman' Meg Taylor Manager, Financial Markets Ritva Laukkanen Vice President and General Counsel Carol F. Lee Manager, General Manufacturing Dim tris Tsits ragos Vice President, Human Resources and Administration Dorothy H. Berry Manager, Strategy and Coordination Kutlay Ebiri Vice President, Operations Assaad J. Jabre Vice Pres dent, Portfolio and Risk Management Farida Khambata Southern Europe and Central Asia Department Vice Pres dent, Private Sector Nemat Talaat Shafik D rector (Istanbul) Khosrow Zamani Development and Infrastructure, IBRD Head of Portfolio, Financial Markets S Aftab Ahmed Head of Portfolio, General Manufacturing Antanio David REGIONAL DEPARTMENTS Manager, Financial Markets Mark Alloway Sub-Saharan Africa Department Country Team Leaders: Director Haydee Ce aya Albania, Bosnma, Croatia, Macedonia, Yugoslavia Sita Ramaswami Assoc ate Director Abdelkader H. Allaoue Azerbaijan, Bulgaria, Moldova, Romania, Turkey Sujata Lamba Kazakhstan, Kyrgyz Republ;c, Tajikistan, Richard Rutherford Head of Portfolio, F nanc al Markets Alain Soulard Turkmenistan, Uzbekistan Manager, Portfo o and Credit Review (Genera Manufacturing) Colin Warren Regional Manager, West and Centra Africa Saran Kebet-Kouliba y Latin America and the Caribbean Department (Abidjan, Cote d'lvo re) Director (Rio de Janeiro) Bernard Pasquier Regional Manager, Southern Africa G Michael Tl er Associate Director Jerome Sooklal (Johannesbu,rg. South Africa) Manager, F nanc al Markets (vacant) Regional Manager, Eastern Afrca (Nairob , Kenya) Saleem Karimjie Manager, Portfolio and Credit Review Stanley Greg East Asia and Pacific Department Chief of Strategy and Coord nation Toshiya Masuoka Director (Hong Kong) Javed Hamid Country Manager, Mexico (Mexico City) Manue Nunez Manager, General Manufacturing Azmat Taufiqae Manager, Portfolio and Credit Review (Hong Kong) Timothy Krause Middle East and North Africa Department D rector (Cairo) Sami Haddad Manager, Strategy C eep Wagle Manager, General Manufacturing Vinod Busjeet Manager, Financial Markets Shidan Derakhshani Manager, Portfolio and Credit Rev ew Michae Essex Country Manager, Vietnam (Hanoi) Deepak Khanna Manager, Financial Markets M. Rohil Hafeez Country Manager, Indonesa (Jakarta) Amitava Banerjee Country Manager, Ph pp nes (Man a) Sergio Pimenta Country Manager, Ch na and Mongolia (Beijing) Kane Finkelston INDUSTRY DEPARTMENTS Country Manager, Thailand (Bangkok) Tmothy Ryan Agribusiness Department D rector Jean-Paul Pinard South Asia Department Manager, New Investments Sulyporn Kulsrethsiri Director Mary Elaen skenderan Manager, Portfolio and Credit Review Macadou N'Daw Manager. Portfolio atd Credit Review M chael Essex Manager, Financial Markets Georgina Baker Global Financial Markets Group G reeter Karl Voitaire Manager, Strategy and Coordination Neil Gregory Senior Adv sor, Capital Markets Claudia J. Morgenstern Country Manager, Pakistan Farid Dossani and Techn ea Ass stance Country Manager, nd a (New Delh ) Vipul C. Prakash Head of Structured Finance Arun Kumar Sharma Global Information and Communication Technologies Department' PROJ ECT DEVELOPMENT FACILITIES Director Mohsen Khalil Africa Project Development Facility (APDF) Manager, Portfolio and Credit Review Joseph So an General Manager (Johannesburg, South Afr ca) John James Manager, New Investments Stephanie von Fredeburg Regional Manager (Johannesburg, South Africa) Jesper Kjaer Head of Internet Group Rav Vish Regional Manager (Na robi, Kenya) Mischek Ngatunga Regional Manager (Abidjan, Cote d'lvoire) Henri Rabarijohn Global Practice Group for Social Sectors Director Karl Vo ta re Regional Manager (Accra, Ghana) Modou Badara Njie Manager, Business Development Oscar Chemer nski China Project Development Facility (CPDF) Technical Manager GLy Ellena General Manager (Chengdu, China) Eric Siew Infrastructure Department Developing Enterprises in South Asia (DESA) Director Declan J. Duff General Manager (Dhaka, Bangladesh) (vacant) Senior Manager, Transport Services Ravinder Bugga Mekong Project Development Facility (MPDF) Manager, Portfolio and Credit Review Paul Baribeau General Manager eelano, V etnam) Mario F sche Manager, Infrastructure Amnon Mates Regional Manager (Laos/Cambodia) Adam Sacv Manager, Utilities Usha Rao-Monari Regional Manager (Ho Chi Minh City, Vetnam) Anil Sinha Mining Department' South Pacific Project Facility (SPPF) Director James Bond General Manager (Sydney, Australia) (vacant) Manager, New Investments Kent E. Lupberger Manager, Portfolio and Credit Review (vacant) Southeast Europe Enterprise Development (SEED) General Manager Mariann Kurtz (Sarajevo, Bosnia-Herzegovina) Oil, Gas, and Chemicals Department' Director Rashad-R udolf Kaldany Manager, Chemicals Sh pa Pate DEPARTMENTS Manager, Portfolio and Credit Review (vacant) Controller's and Budgeting Department Manager, Oil and Gas Som t Varma Director Christian Grossmann Senior Manager, Budgeting Richard J. Moss Power Department Director Francisco Toureilles Senior Manager, Internal Controls and Special Projects Allen F Shapiro Manager, New Investments Darius Lilaoonwala Senior Manager, Facilities Financial Contro Simon V. Fowler Manager, Portfolio and Cred t Review Apinya Suebsaeng Manager, Financial Reporting and Account ng Policy Paul B. Bravery Manager, Loss Provisioning Guy A. de Clercq Private Equity and Investment Funds Department Director Teresa C. Barger Corporate Business Informatics Department Chief Information Officer Guy-Pierre de Poerck Small and Medium Enterprise Department Manager, Development and Informatics Wajdi Bustani Director Harold Rosen Manager, Business Informatics Paul Standen Manager, Facilities Thomas Davenport Manager, Capacity Building Facility Vincent Rague Corporate Portfolio and Risk Management Department Director Marc Babin Syndications and International Securities Department Head of Equity and Portfolio Management Sebastian Thiriez Director Suellen Lambert Lazarus Manager, Risk Management Lakshmi Shyam-Sunder Manager, B Loan Management Mary Elizabeth Ward Corporate Relations Unit Trust Funds Department Manager Joseph O'Keefe Director Udayan Wagle Manager, Trust Funds (vacant) Credit Review Department Operations Evaluation Group6 D rector Paul Hinchey Director William E Stevenson Associate Director Sakdiyiam Kupasrimonkol Operations Strategy Group Chief Credit Officer Mun Fui Wong Senior Manager Bernard Sheahan Chief Credit Officer Eduardo Abello Chief Credit Officer Mamta Shah Technical Services Department Director Anoreas M, Raczynsci Chief Credit Officer Maria DaG. Dom ngues Associate Director, Technica Servces Garth Hedley Chief Credit Officer V ncent Polizatto Manager. I nsurance Unit Merunisha Ahmicl Economics Department Director Guy Pierre Pfeffermann Treasury Department Treasurer Nina Shapiro Lead Economist Franc J. Lysy Manager, Fund ng Operations John Borthwick Environment and Social Development Department Manager, Liquid Assets and Cash Management Mark Spindel Director Gavin Murray Manager, Client Products and Asset Liability Management Shanker trishnan Manager, Environmenta Markets Group Louis Boorstin Manager, Applizations Development Group Takehisa Eguchi Manager, Project Support Group William Bulmer Financial Operations Unit OTHER Senior Manager Rvi Hofman Private Sector Advisory Services4 Manager, Loan and Equity Operations Support Soon-Wan Ooi D rector Michae Klein Manager, Treasury Operations Support Isaku Higa Manager, Privatization Policy and Transactions Denise Leonard Manager, Privatization Policy and Transactions David Dona dson Human Resources and Administration Manager, Busmess Env ronment and Foreign nvestment Joseph Battat Vice President Dorothy H. Berry Manager, Compensation and Policy Implementation Jean Bradier Reg ona Manager (Sydney, Austra a) Andrew Proctor Manager, Global Staffing and Recrurtment Esteban Altschul Special Operations Department Manager, Learning and Staff Development Gail Davenport D rector Jyrki Koskelo Human Resources Team Manager Eva Mennel I lunan Resources Team Manager Anne Sahl Manager, Facilit es and Administration Geoffrey A. Willing 1These offcers hod the same positon n BRD Legal Department Vice President and General Counsel Carol F Lee 2 Also serves as Managing Director for the World Bank, with responsibi ity for Private Sector Development across the Bank Groip. Deputy General Counsel Jennifer A. Sullivan 3 Reports d recty to James D. Wo fensohr Chief Counse Fernando Cabezas 4 Reports to IBRD Vice Pres dent, Private Sector Deve opment and Infrastructure. Chief Counsel, F nance Victoria C. Choy aswell as FC Vice Presidert, Operatrons and IFC Vice Pres dent, Portfolio and R sk Management on portfo io matters Chief Counsel David Harris 5 Reports d recty to Vice President and General Counsel of both IBRD and IFC Chief Counsel Eduardo A. Hernandorena 6 Reports d recty to Robert Picc ottc, Director General, Operat ons Evaluat on, Chief Counsel Davd McLean BRD and to IFC Executive Vce Pres dent. Chief Counse Chrstian Ph ip Chief Counsel George Springsteen Conflicts Office Senior Manager5 Barbara Kafka Appendix E FIELD REPRESENTATIVES and CONTACTS COUNTRY CITY NAME TITLE Albania Tirana Elira Sakiqi Program Coordinator Argentina Buenos Aires lieana Boza Resident Representative Armenia Yerevan (vacant) Australia (FIAS) Sydney Andrew Procter Regional Manager Australia (SPPF) Sydney (vacant) Azerbaijan Baku A ya Nuriyeva Program Coord nator Bangladesh Dhaka Hafeezudin Ahmad Res dent Representative Belarus Minsk Carl Dagenhart Project Manager Bolivia La Paz Juan Carlos Echeverria Investment Officer Bosnia & Herzegovina Sarajevo Hars Kuskunovic Investment Officer Bosnia & Herzegovina, SEED Sarajevo Mariann Kurtz Genera Manager Brazil Rio de Janeiro Bernard Pasquier Director Brazil Sao Paulo Wolfgang Bertelsmeier Deputy Chief of Mission Rulgaria Sofia George Alexancirov Program Coordinator Cambodia Phnom Penh Deepak Khanna Country Manager Cambodia/Lao PDR, MPDF Phnom Penh Adam Sack Regional Manager Cameroon Douala Mohamadou Diop Regional Representatve China Beijing Karin Finkelston Country Manager China Hong Kong JSaved Hamid Director China, CPDF Chengdu Eric Siew General Manager Colomba Bogota Paolo Martelli Resndent Representative COte d'lvoire Abidjan Saran Kebet-KouJibaly Regional Manager Cbte d'lvoire, APDF Ab djan Henri E. Rabarijohn Regional Manager Croatia Zagreb Vedran Antoljak Program Coordinator Czech Republic Prague Charles van der Mandete Head of Spec al Operations Dominican Republic Santo Domingo Salem Rohana IFC Representative Egypt, Arab Republic of Cairo Sami Haddad Director Ethiop a Addis Ababa Andrew Danino Sr. nvestment Officer France Paris Anthur Levi Special Representative Georgia Tbilisi Anna Akhalkatsi Program Coordinator Germany Frankfurt Oltmann Siemens Special Representative Ghana Accra Antoine Courcelle-Labrousse Senior Investment Officer Ghana, APDF Accra Modou Badara Njie Regional Manager Guatemala Guatema a City Yolande Duhem Resident Representative India Mumbai Loy P res Head India New Delhi Vipul Prakash Country Manager Indonesia Jakarta Amitava Banerjee Country Manager Japan Tokyo Motoharu Fujikura Director, Tokyo Kazakhstan Almaty Jim Anderson Regional Program Coordinator Kenya Nairobi Saleem Karimjee Regonal Manager Kenya, APDF Na robi Mischeck Ngatunga Regional Manager Korea, Republic of Seoul Tae-Hee Yoon Advisor Kyrgyz Republic Bishkek (vacanit) Lao PDR Vientiane Deepak Khanna Country Manager Macedonia, FYR Skopje Slobodanka Matakova Program Officer Mexco Mexico City Manuel E. Nunez Country Manager Moldova Chisinau A a G rjau Program Coordinator Mongolia Ulaanbaatar Shannon Atkeson Investment Officer Mozambique Maputo (vacant) Nepal Kathmandu Sudhir Mittal Resident Representative Nigeria Lagos Akbar Husain Resident Representative Pakistan Islamabad Farid Dossani Country Manager Philippines Manila Sergio Pimenta Country Manager Poland Warsaw Laurence Carter Regional Representative Romania Bucharest Ana Maria M haescu Chief of M.ssion, Roman a Russian Federation Moscow Edward Nassim Director Senegal Dakar Souleymane Traore Regional Coord nator Singapore S ngapore Francois Grossas Principal Investment Officer South Afrca Cape Town Henn ngAmelung Sr. Investment Officer South Afrca Johannesburg G. Michael Tiller Regional Manager South Africa, APDF Jonannesburg John James General Manager Sri Lanka Colombo Sanj va Senanayake Country Manager Thailand Bangkok Timothy Ryan Country Manager Trinidad and Tobago Port of Spain Kirk Ifill Regional Representative Turkey Istanbu Khosrow Zamani Director Uganda Kampala Dan Kasirye Projects Officer Ukraine Kiev Elena Voloshina Program Officer United Kingdom London Arthur Levi Special Representatve for Europe Uzbekistan Tashkent Elbek Rikhs yev Administrative Assistant Vietnam Hanoi Deepak Khanna Country Manager Vietnam, MPDF Hanoi Mario Fischel General Manager Vietnam, MPDF Ho Ch Minh City Anil S nha Regional Manager West Bank & Gaza Dahiat Al-Bareed Tamara Lansky Resident Representative Zimbabwe Harare Imoni Akpoftjre Resident Representative Zimbabwe, APDF Harare James Hellerman Project Manager Appendix F IFC ADDRESSES Headquarters Brazil, Fortaleza - Ceara Egypt, Cairo 2121 Pennsylvania Avenue, N.W. Rua Oswaldo Cruz, No. 1 World Trade Center Bldg. Washington, DC 20433, U.S.A. Room 1810 1191 Corniche El Nil, Boulac Telephone: (202) 473-9331 60125-150 Fortaleza - Ceara, Brazil Cairo, Egypt Facsim e: (202) 974-4384 Telephone: (55-85) 242-4994 Telephone: (20-2) 579-9900/6565/5353 Facsimnie: (55-85) 242-4990 Facsimile: (20-2) 579-2211 Albania, Tirana Rruga Deshmoret e 4 Shkurtit Brazil, Rio de Janeiro Ethiopia, Addis Ababa Vila. 34 Rua Redentor, 14-lpanema c/o World Bank Tirana, Albania Rio de Janeiro - 22421-030, Brazil P.O. Box 5515 Telephone: (00355) 4-240587/8/9; Telephone: (55-21) 550-8990; 525-5850 Addis Ababa, Ethiopia (00355)-4-230016/7 Facsimile: (55-21) 550-8999; 525-5879: 513-3800 Telephone: (251-1) 627-715/6 Facsimile: (00355)-4-240590 Facsimile: (251-1) 627-717 Brazil, Sao Paulo Argentina, Buenos Aires Av. Roque Petron Junior, 999 France, Paris Bouchard 547, piso 3° 8th Floor, Rooms 81/82 66, avenue d'lena 1 106 Buenos Aires, Argentina 04707-910 S0o Pauo SP, Braz 1 75116 Paris, France Telephone: (54-11) 4315-1666 Telephone: (55-11) 5181-6252 Telephone: (33-1) 4069-3060 Facsimile: (54-11) 4312-7184 Facsimile: (55-11) 5181-8252 Facs m le: (33-1) 4720-7771 Armenia, Yerevan Bulgaria, Sofia Georgia, Tbilisi Av Sargsyan Street, Republic Square 36 Dragan Tzankov Blvd. 18a Chonkadze Street Yerevan 375010. Armenia World Trade Center /INTERPRED Tbilisi, Georgia 380 005 Telephone: (374-1) 545-241/242/243 1057 Sofia, Bulgaria Telephone: (995-32) 990-448 Facs mile: (374-1) 599-542 Te ephone: (359-2) 9181 4225 Facsim le: (995-32) 995-288 Facsimile: (359-2) 9181-4333 Australia, Sydney (FIAS) Germany, Frankfurt Regional Manager Cameroon, Douala Bockenheimer Landst. 109 Level 18, CML Bldg., 14 Manin Place 96 rue Fetters D-60325 Frankfurt, Germany Sydney, NSW 2000, Austral a Suite 305 Telephone:(49-69) 7434-8230 Telephone: (61-2) 9223-7155 B.P. 4616, Bonanjo Facsim le:(49-69) 7434-8239 Facsimile: (61-2) 9223-7152 Douala, Cameroon Teephone: (237) 428-033;429-451 Ghana, Accra Azerbaijan, Baku Facsimile: (237) 428-014 No. 150A Roman Road 91-95 Mirza Mansur Str., Icheri Sheher Roman Ridge Baku 370 004, Azerbaijan China, Beijing P.O. Box C2638 Telephone: (994-12) 921-941;922-807 9th Floor, Tower B Accra, Ghana Facsimile: (994-12) 921-479 Fuhua Mansion Telephone: (233-21) 778-109; 8 Chaoyangmen Beidajie 779-804/5; 783-093/4 Bangladesh, Dhaka Beijing 100 027. PR China Facsim le: (233-21) 774-961: 776-245 c/o World Bank Telephone: (86-10) 6554-4191 3A Paribagh Facsim e: (86-10) 6554-4192 Guatemala, Guatemala City Dhaka 1000, Bangladesh 13 Calle 3-40, Zona 10 Telephone: (880-2) 861-1056; 966-9301 C8te d'lvoire, Abidjan Edificio Atlant s, 14 Nive Facsim le: (880-2) 861-7521 Crnr. Booker Washington & Guatemala City 01010, Guatemala Jacques Aka Streets Telephone: (502) 367-2275 Belarus, Minsk 01-B.P. 1850 Facs m le: (4502) 366-9851 6a Partizansky Prospekt Abidjan-01, Cobte d'lvoire Minsk 220033, Belarus Telephone: (225) 2244-6550 India, Mumbai Telephone: (375-172) 228-231; 281-779 Facs mile: (225) 2244-4483 Godrej Bhavan, 3rd Floor Facsimile: (375-172) 227-440 Murzban Road Croatia, Zagreb Fort, Mumbai 200 001, India Bolivia, La Paz Trg. J.F Kennedya 6b/I I Telephone: (91-22) 231-1235 Edificio Gundlach Zagreb 10000, Croatia Facsim le: (91-22) 231-1236 Piso 10 # 1003 Telephone: (385-1) 238-7236 La Paz, Bolivia Facs mile: (385-1) 238-7233 India, New Delhi Telephone: (591-2) 338-110 No. 1, Panchseel Marg, Chanakyapuri Facsimile: (591-2) 391-038 Czech Republic, Prague New Delhi 110 021, India Husova 5 Telephone: (91-11) 611-1306 Bosnia and Herzegovina, 11000 Prague 1, Czech Republic Facsim le: (91-11) 611-1281 Banja Luka Telephone: (420-2) 2440-1402/3 Vase Pelagica 12 Facsimile: (420-2) 2440-1410 Indonesia, Jakarta 51000 Banja Luka Jakarta Stock Exchange Bldg. Bosnia and Herzegovina Dominican Republic, Santo Domingo Tower 2, 13th Floor Telephone: (387-33) 319-680 Calle Virgilio Diaz Ordonez #36 JI. Jenderal Sudirman Kav. 52-53 Facsimile: (387-33) 319-683 esq, Gustavo Mejiia R cat Jakarta 12190. Indonesia Edificio Mezzo Tempo, Suite 401 Telephone: (62-21) 5299-3001 Bosnia and Herzegovina, Sarajevo Santo Domingo, Dominican Republic Facsim le: (62-21) 5299-3002 H. Kresevljakovica 19 Telephone: (809) 566-6815 71000 Sarajevo Facsim le: (809) 566-7746 Bosnia and Herzegovina Telephone: 387-(0) 33 440-293 Facsimile: 387-(0) 33 440-108 Japan, Tokyo Nigeria, Lagos Sri Lanka, Colombo 10th Floor, Fukoku Seimei Building Maersk House, 1st F oor 73/5 Galle Road 2-2-2, Uchisaiwai-cho. Chiyoda-ku Plot 121 Louis Solomon C ose Colombo 3, Sri Lanka Tokyo 100-0011, Japan Off Ahmadu Bello Way Telephone (94-1) 448-070 ext. 325 Telephone: (81-3) 3597-6657 Victoria Island, Lagos, Nlgera Facsimile (94-1) 471-536 Facsimile (81-3) 3597-6698 Telephone: (234-1) 262-6455-64 Facsim e: (234-1) 262-6465/66 Thailand, Bangkok Kazakhstan, Almaty Diethelm Tower A 41, Kazybek Bi Street, 4th Floor Pakistan, Islamabad 17th Floor AJmaty 480100, Republic of Kazakhstan 20 A, Shahrah-e-Jamhuryat 93/1 Wireless Road Telephone: (7-3272) 980-580 Ramna 5 (G-5/1), P.O. Box 3033 Bangkok 10330, Thailand Facsimi e: (7-3272) 980-581 Is amabad, Pakistan Telephone: (66-2) 650-9253/8 Telephone (92-51) 227 9631/2/3 Facsimile: (66-2) 650-9259 Kenya, Nairobi Facsimile: (92-51) 282 4335/282 4166 Hill Park Building Trinidad and Tobago, Upper Hill Philippines, Manila Port of Spain P.O. Box 30577 11th Floor, Tower One The Mutual Center Nairobi, Kenya Ayala Triangle, Ayala Avenue 16 Queen's Park West Telephone: (254-2) 260-300/720-467 MaKati 1226, Manila. Philippines P.O. Box 751 Facsimile: (254-2) 260-383/717-390 Telephone: (63-2) 848-7333/38 Port of Spain, Trinidad and Tobago Facsimile: (63-2) 848-7339 Telephone: (868) 628-4417/5074 Korea, Seoul Facsimile: (868) 622-1003 11th Floor, Youngpoong Building Poland, Warsaw Chongro-ku Warsaw Financial Center Turkey, Istanbul Seoul 110-110, Korea Emilii Plater 53, 9th Floor Is Kuleleri Telephone: (82-2) 399-0905/6 00-113 Warsaw, Poland Kule 11 - KAT 3 Facs mile: (82-2) 399-0915 Telephone: (48-22) 520-6100 80620-4 Levent Facsimile: (48-22) 520-6101 Istanbul, Turkey Kyrgyz Republic, Bishkek Telephone: (90-212) 212-6535/4513 214 Moskovskaya Street Romania, Bucharest Facsimile: (90-212) 275-0810/1146 720 010 Bishkek, Kyrgyz Republic 83. Dacia Boulevard, Sector2 Telephone: (996-312) 610-650 Bucharest, Romania Uganda, Kampala Facsimile: (996-312) 610-356/481 Telephone: (40-1) 211-2866 1 Lumumba Avenue Facsimile: (40-1) 201-0364/211-3141 Rwenzori House Macedonia, FYR, Skopje P.O. Box 4463 Leninova 34 Russian Federation, Moscow Kampala, Uganda Skopje 91000, Republ c of Macedonia 7/5 Bolshaia Dmitrovka Street Bldg 2 Te ephone: (256-41) 230-094/236-825 Telephone: (389-2) 117-159 103009 Moscow, Russa Facsimile (256-41) 230-094/340-386 Facsimile: (389-2) 117-627 Teephone: (7-095) 755-8818 Facsimile. (7-095) 755-8298 Ukraine, Kiev Mexico, Mexico City 4 Bogomoltsa Street, 5th Floor Prado Sur 240, Suite 402 Senegal, Dakar Kiev 01024, Ukraine Lomas de Chapu tepec 3 Place de l'lndependence Telephone (380-44) 253-0539 Del. Miguel Hida go Bldg. S.D.I.H., 7th Floor, B.P. 3296 Facsimile: (380-44) 490-5830 Mexico D.F., 11000, Mexico Dakar, Senegal Telephone: (52-5) 520-6191 Telephone: (22-1) 849-50-49 United Kingdom, London Facsimiae: (52-5) 520-5659 Facsimile: (22-1) 849-50-44 4 Milibank London SWIP 3JA, U.K. Moldova, Chisinau Singapore Telephone: (44-207) 222-7711 76/6 Sciusev Street 10 Shenton Way Facs mile: (44-207i 976-8323 MD 2012, Chisinau, Moldova #15-08 MAS Building Telephone: (373-2) 237-065;232-737 S ngapore 079 117 Uzbekistan, Tashkent Facsimile: (373-2) 233-908 Telephone: (65) 324-4612 43 Academician Suleymanova Street Facsimile: (65) 324-4615 700 017 Tashkent, Uzbekistan Mongolia, Ulaanbaatar Telephone: (998-71) 133-2185 11-A Peace Avenue South Africa, Cape Town Facsimile (998-71: 120-6215 Ulaanbaatar 210 648, Mongolia 1 Thibault Square, 13th Floor Telephone: (976-11) 312-694 Long Street Vietnam, Hanoi Facsimile (976-11) 312-696 Cape Town 8001, South Africa 7th Floor, 63 Ly Thai To, Hoan Kiem P.O. Box 2452, Cape Town 8000 Hanoi, Vietnam Mozambique, Maputo Telephone: (27-21) 418-7180 Telephone: (84-4) 934-2282 Ave. Kenneth Kaunda, nr. 1224 Facsimile. (27-21) 418-7183 Facsim le: (84-4) 934-2289 Maputo, Mozambique Telephone: (258-1) 492-841/51 South Africa, Johannesburg West Bank & Gaza, Dahiat Al-Bareed Facsimile: (258-1) 492-893 Oxford Gate, 1st Floor P.O. Box 54842 Hyde Park Lane Jerusalem, Israel Nepal, Kathmandu Johannesburg 2196, South Africa Telephone: (972-2) 236-6517/6547 c0o World Bank P.O. Box 41283, Craignall 2024 Facsimile: (972-2) 236-6521 Yak & Yeti Hotel Comp ex Telephone: (27-11) 341-9000 GPO Box 798 Facsimi e: (27-11) 325-0582 Zimbabwe, Harare Kathmandu, Nepal 101 Union Avenue, 7th Floor Telephone (977-1) 268-123; 439-571 Harare, Zimbabwe Facsimile: (977-1) 223-443 PO Box 2960, Harare Telephone: (263-4) 794-868/869/860 Facsimile (263-4) 793-805 PROJECT DEVELOPMENT FACILITIES African Management Services Company (AMSCO) Caribbean and Central America Business Netherlands, Amsterdam Advisory Service (BAS) Africa Project Development Facility (APDF) Headquarters Trinidad and Tobago, Cameroon, Douala Friedman Building Port of Spain 96 rue Flatters Hogehilweg4 Enterprse Development Limited (EDL) PO. Box 4616 1101 CC Amsterdam The Mutual Center Douala, Cameroon The Netherlands 16 Queen's Park West, NW Penthouse Telephone: (237) 428-033 Telephone: (31 20) 664 1916 PO. Box 751 Facsimile:(237) 428-014 Facsimile: (31 20) 664 2959 Port of Spain, Trinidad and Tobago Telephone: (868) 628-5074 C8te d'lvoire, Abidjan CBte d'lvoire, Abidjan Facsimile: (868) 622-1003 Immeuble CCIA, 17th Floor Regional Office Francophone West Afr ca 01 B.P 8669 AMSCO/APDF, C.C.I.A., 17th Floor Mekong Project Development Facility (MPDF) Abidjan-01, C6te d'lvoire 01 BP 2049 ABJ 01 Abidjan Cambodia, Phnom Penh Telephone: (225) 2021-9697 C6te d'lvoire c/o UNDP Service Center Facsimile: (225) 2021-6151 Telephone: (225) 20219697 164 Pasteur Street Facsimile: (225) 20216151 PO. Box 877 Ghana, Accra Phnom Penh, Cainbodia No. 150A, Roman House Ghana, Accra Telephone: (855-23) 720-164 Roman Ridge Country Office Facsimile: (855-23) 720-146 Accra, Ghana No. 150A, Roman House Telephone: (233-21) 776-245;778-109 Roman Ridge Lao PDR, Vientiane Facsimile: (233-21) 774-961 Accra, Ghana Novotel Hotel, Suite 141 Telephone: (233 21) 779804/5 Unit 9 Kenya, Nairobi Facsimile: (233 21) 774961/776245 Samsenthai Road International House P.O. Box 585 P.O. Box 46534 Kenya, Nairobi Vientiane, Lao PDR Nairobi, Kenya Regional Office Eastern Africa Telephone: (856-21) 219-099 Telephone: (254-2) 217 368/9/70 A.C.S. Plaza, Lenana Road Facsimile: (856-21) 219-098 Facsimile: (254-2) 339-121/330-436 PO. Box 46534 Nairobi, Kenya Vietnam, Hanoi Nigeria, Lagos Telephone: (254 2) 574748 7th Floor, 63 Ly Thai To, Hoan Kiem Maersk House, 1st Floor Facsimile: (254 2) 571822 Hanoi, Vietnam Plot 121 Louis Solomon Close Telephone: (84-4) 824-7892 Off Ahmadu Bello Way Mauritius, Port-Louis Facsimile: (84-4) 824-7898 Victoria Island, Lagos, Nigeria Indian Ocean Office Telephone: (234-1) 262-6455-64 Anglo-Mauritius House Vietnam, Ho Chi Minh City Facsimile: (234-1)262-6465/66 PO. Box 253 Unit 3B Port-Louis, Maurit us Somerset Chancellor Court South Africa, Johannesburg Telephone: (230) 2081237 21-23 Nguyen Thi Minh Khai Str 1st Floor, Victoria Gate West Facsimile: (230) 2084871 District 1 Hyde Park Lane, Hyde Park Ho Chi Minh City, Vietnam Johannesburg 2196, South Africa Nigeria, Lagos Telephone: (84-8) 823-5266 ro. Box 411552, Craighali 2024 Country Otfice Facs mile: (84-8) 823-5271 Telephone: (27-11) 341-9000 Maersk House Facsimile: (27-11) 325-0582 Plot 121, Lou s So omon Close South Pacific Project Facility (SPPF) Off Ahmadu Bello Way Australia, Sydney Zimbabwe, Harare Victoria Island. Lagos, Nigeria Level 18, CML Building 68-70 Un on Avenue Telephone: (234 1) 262 6455/64, 2626470 GPO Box 1612 PO. Box UA 400 Facsimile: (234 1) 262 6465/66 14 Martin Place Harare, Zimbabwe Sydney, NSW 2000, Australia Telephone: (263-4) 701-232/3/4/5 Zimbabwe, Harare Telephone: (61-2) 9223-7773 Facsimile: (263-4) 701-231/236 Regional Office Southern Africa Facsimile: (61-2) 9223-2533 6h Floor, Takura House 67-69 Union Avenue PO. Box UA 128 Harare, Zimbabwe Telephone: (263 4) 250546/7/8 - 701680 Facsimile: (263 4) 701682 Appendix G PARTICIPANTS IN LOAN SYNDICATIONS SIGNED IN FY 2001 ABB Export Bank Deutsche Bank AG ABC International Bank pc Deutsche Verkehrs-Bank AG ABN AMRO Bank NV Dexia Group Arab Bank Plc Dresdner Bank AG Arab Investment Company SAA Erste Bank der oesterreichischen Sparkassen AG Banco Bilbao Vizcaya ForeningsSparbanken AB (publ) (Swedbank) Banco BPI SA Forts Bank NVISA Banco Espirito Sants SA HVB Group Banco Santander Central Hispano ING Group Bank of Nova Scotia IntesaBCI Spa Bank of Scotland KBC Bank NV Bancue et Caisse d Epargne de I Etat, Luxembourg Landesbank Rheinland-Pfalz Girozentrale Banque Worms SA Leonia Bank pc Barclay's Bank PLC MashReqBank PSC Bayerische Landesbank Girozentrale Natexis Banques Populaires BNP Paribas Nederlandse F;nancierings-Maatschappij voor Ontw kkelings anden NV (FMO) Brit sh Arab Commercial Bank NORDEA Group Caisse des Depbts et Consignatons Raiffeisen Zentralbank Desterreich AG Caixa Geral de Depositos S.A. Royal Bank of Scotland plc California Commerce Bank San Paolo IMI SpA Citigroup, nc. Societe Generale Comenca Bank Standard Chartered Bank Credit Agricole Indosuez Sumitomo Mitsui Banking Corporation Cred t Lyonnais Transamerica Leasing Inc Dar-Ichi Kangyo Bank Lim ted Union Europeenne de C C Westdeutsche Landesbank Girozentrale Acronyms, Notes, and Definitions ACRONYMS ADB Asan Deveopment Bank IPO initial public offering AEF Africa Enterprise Fund LAC Latin America and the Caribbean AfDB African Developmenit Bank LIBID Lonidoni interbarrk bid rate AMSCO African Management Serv ces Company LIBOR London nterbank offered rate APDF Africa Project Deve opment Facility MENA Middle Eas- and North Africa ASEAN Association of Southeast Asian Nations MIGA Multilateral Investment Guarantee Agency BOT build-operate-transfer MPDF Mekong Project Deveopment Facility BOOT build-own-operate-transfer NGO nongovernmenta organization CFA African Financ al Community OECD Organization for Economic Cooperation and Development CLF Caribbean Loan Facility CEG Operations Evaluation Group CPDF China Project Deve opment Facility PIIF Pacific Islands nvestment Facility EBRD European Bank for Reconstruction and Cevelopment SADC Southern Afr can Development Community ESSA Enterprise Support Services for Africa SCI special captal increase FDI foreign direst investment SEED Southeast Europe Enterprise Development FIAS Foreign Investment Advisory Service SEF Small Enterprise Fund GCI general capital increase SME small and medium enterprise GDP gross domestic product SOE state-owned enterprse GDR global depository receipt SPPF South Pacific Project Facility GEF Global Environment Facility TATF Technical Assistance Trust Funds GNP gross national product UEMOA West African Economic and Monetary Un on IBRD Internationa Bank for Reconstruction and Development UNDP United Nations Development Programme IDA Internatona DevelopmentAssociation USAID United States Agency for lnternational Development IFC Internatona Finance Corporation WTO World Trade Organizaton IMF International Monetary FLund NOTES and DEFINITIONS 1. IFC's fiscal year runs from July to June 30. Thus, FY01 began on 6. A single eoan agreement between IFC and the borrower normally stipu ates July 1, 2000, and ended on June 30, 2001. the full amount of financing to be provided by IFC and the participat ng institutions. The IFC loan is typically n two portions: 2. The World Bank includes both IBRD and IDA. The World Bank Group The A- oan is FC's own portion, funded with IFC's own resources and includes IBRD, IDA, IFC, and MIGA. subject to its agreed loan .erms. The B-loan is funded by participants on terms that may differ from those 3. Investment amounts are given in U.S. dollars, regardless of the currencies of of FC. the investment. nvestment amounts n non-U.S.-dollar currencies are revalued on the ending day of the month n which they are approved. 7. On-lending: The process of ending funds raised from the Corporation's own sources through intermediar es, such as local banks. 4. Figures cited in connection with project f nancing may refer to the following: Approvals-Loans, syndicated loans, guarantees, equity and quasi-equity 8. Quasi-equity instruments ncorporate both loan and equity features, which are investments, risk management products and underwritings approved by the designed to provide vary rg begrees of risk/return trade-offs that lie between Board of Directors during FY01. those of straight loan and equity investments. Commitments-Loans, investments, guarantees, and risk management products for which agreements were signed by IFC dur ng FY01. 9. IFC and participants fully share the commercial credit risks of projects, but, Disbursements-Loans and investments actually paid out during FY01. because IFC is the lender of record, participants receive the same tax and country risk benefits that IFC der ves from its special status as a mu tilateral 5. In some tables, totals may differ from the sum of individual figures because financial institution. of rounding. Our Mission: We promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. PROJECT MANAGER & EDITOR: ENGLISH PROOFING: f,v<''r" d rj'(:t Sr.eH:v I^:: CORPORATE RELATIONS INTERNS: CONTRIBUTORS: Drf r; Nadr-' I Tr-k-4te Mvil.r, r Al-air ' i.raL:"a- . tP i: ei-;l -Bra BP" vii Mtl mj AF:, (W:r. TRANSLATION & PROOFING: h,ser: ioftrr t. alIo A-L,nul,t r Arabic:A: : iii r:m:,: PRIMARY IFC STAFF Chinese: I a : :i a CONTRIBUTORS: Fw ~,r r ; e Aab.d iGe fo;Mbrll, rPO-il's )jig e r- G)dvwC a- KA0 ! ar -I at, French & Spanish:Vv rV.d B-k Rr;.'2- .; I4 At::' C: A2EDI ~ ,j ,it r';;'r.lleAfltl; mi t':c, ''L.-iu1 ,_isl f')] i Russian: sb iv MIP fkiar |aiN Anthi-, IAyliW9rJ GYCZ5:$;RSl::J§:S SPF?11 .V DESIGN F?:-1B:age,.' ~ ~ ~ ~ ~ ~ Ia I a I : I 'i; app. S;!]CV B ".'' alaC-) '.pal:: 'P2S51;'.,:t iE1£k PORTRAIT PHOTOGRAPHY: 'laly IrC ! Nd:.r F'rC I'r- Jit -;. s E>; er: ~ ;; .,.l PROJECT PHOTOGRAPHY: -I-V ~~~~~~~~~~~aklC-kaaF:aejA i rNI hr- ,k rIra: LrC, reirrtvPt1l.t W l K::lV:r PRINTING: -i Iad J..C- I li' t, U .; a: , I1FC INTERNATION\AL FINANCE CORPORATION 2121 Pennsyvania Avrnue, NW, Washingtor, CC 20433 USA Telephone 202 473-7711 Facs mile 202-974 4334 www.ifc.org wwwJifc.org/ar2001 iSB3N 3-8213-5012-9 r, Primteed o recyc ed paper