NORDIC DEVELOPMENT FUND Annual Report 2012
INDEX Report of the Board of Directors 2012
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Board of Directors 09 Control Committee 09 Management and Staff
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Income Statement 11 Balance Sheet 12 Changes in Equity 13 Cash Flow Statement 13 Notes to the Financial Statements
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Auditors’ Report 20 Grant Portfolio 23 Credit Portfolio 25
Summary of 2012 During 2012, the Board approved grant financing for 11 projects for a total value of EUR 27.9 million. Four credit projects were completed in the course of the year. A total of eight credit projects are still under implementation at the beginning of 2013. Disbursements of credits amounted to EUR 14.1 million in 2012 (2011: EUR 26.9 million). The disbursements of grant aid amounted to EUR 27.1 million (2011: EUR 20.1 million). The net result for the year before adjustments for currency exchange fluctuations and after disbursements of grant aid totalled EUR -25.0 million in comparison with EUR -13.7 million the previous year. The decrease is a result of higher disbursements to projects and lower income from the private sector projects. The effects of currency fluctuations showed a result of EUR -5.1 million (2011: EUR 6.7 million). After hedging measures, the effects from currency fluctuations are EUR -3.5 million. After three and a half years of climate change operations, NDF has, by the end of 2012, approved a total of EUR 134.5 million for altogether 50 projects in 14 countries. In early 2012, an independent evaluation of NDF’s progress under the first two years of the climate change mandate concludes that NDF’s instruments and work fit well into the international climate financing agenda and states positive results regarding fulfillment of objectives, increased value added, streamlined procedures, and the organisation’s results orientation.
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Highlights of activities under NDF’s climate change mandate in 2012 During 2012, the Board approved grant financing for 11 projects for a total value of EUR 27.9 million. Under the climate change mandate, from 2009 to 2012, NDF has approved 50 projects for a total value of EUR 134.5 million for climate change projects. The reduction of greenhouse gases for all approved NDF mitigation projects has been estimated at 4 million tons of CO2 equivalents per year. In early 2012, an independent evaluation of NDF’s progress under the first two years of the climate change mandate was performed by an external consultant, Vista Analysis AS. The evaluation report concludes that NDF’s instruments and work fit well into the international climate financing agenda and that NDF’s funding reaches the countries most in need. Furthermore, the report states positive results regarding fulfillment of objectives, increased value added, streamlined procedures, and the organisation’s results orientation. NDF is fully committed to the internationally agreed principles on development effectiveness, as expressed in the Paris Declaration for Aid Effectiveness, and confirmed and supplemented thereafter at international summits in Accra, Ghana and Busan, South Korea. According to the independent external evaluation, NDF adheres well to these principles, and compares favourably when ranking aid agencies. NDF’s operational mode of co-financing combined with its results-oriented approach provides a good basis for efficiency. Furthermore, NDF’s structure allows it to be flexible and act quickly with minimal bureaucracy. Through this operational model, NDF can add substantive value to its co-financed projects, for example, by enhancing climate aspects and components into the projects, providing specific knowledge or expertise or influencing its bigger co-financing partners. NDF’s criteria for project identification and screening underwent further revision in 2012. Whereas the earlier criteria from 2010 tended to concentrate efforts on defining climate adaptation and mitigation criteria, the revised criteria includes more detail on multiple developmental issues aimed at a balanced focus on NDF’s dual mandate on climate and development. During 2012, NDF has reviewed its approach on anticorruption in order to further improve its practices and procedures in this area. The work resulted in the approval of the new Policy on Anticorruption and Integrity and the Anticorruption Guidelines which entered into force on 1 October 2012. NDF’s cooperation and coordination on anticorruption issues with other international financial institutions, particularly with the World Bank, was continued and strengthened. NDF was also instrumental in bringing together in Helsinki, in December, anticorruption authorities of the World Bank, European Investment Bank, Transparency International, and the three Nordic financing institutions NIB, NEFCO and NDF, to discuss further cooperation and common approaches in these questions. The current NDF Strategy covers the years 2012-2013. The strategy focuses on consolidation of experiences from on-going climate change-related interventions with special emphasis on implementation. The strategy also sharpens the focus on the selection of funding opportunities
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for added value and synergy benefits. As a Nordic institution, NDF will continue to promote a broad scope of Nordic priorities in the area of climate change and development. After three and a half years of climate change operations NDF has, by the end of 2012, approved a total of EUR 134.5 million for altogether 50 projects in 14 countries. Nearly half of the approved euro volume is allocated to countries in Sub-Saharan Africa (46%), and the rest for Asia and Latin America. The number of projects approved is noteworthy, especially taking into account the rigorous preparation that each operation undergoes prior to discussion at the Board of Directors. Four projects with credits from NDF were completed in the course of the year. A total of eight credit projects are still under implementation at the beginning of 2013. Disbursements of credits amounted to EUR 14.1 million in 2012 (2011: EUR 26.9 million). The disbursements of grant aid amounted to EUR 27.1 million (2011: EUR 20.1 million). The net result for the year before adjustments for currency exchange fluctuations and after disbursements of grant aid totalled EUR -25.0 million in comparison with EUR -13.7 million the previous year. The decrease is a result of higher disbursements to projects and lower income from the private sector projects. The effects of currency fluctuations showed a result of EUR -5.1 million (2011: EUR 6.7 million). After hedging measures, the effects from currency fluctuations are EUR -3.5 million. In 2012, the Nordic Council passed a resolution recommending to the Nordic countries’ governments that more capital be allocated to NDF to further enhance its climate change-related activities. A joint response to the recommendation is being prepared by the Nordic governments. The recommendation was also discussed at the Board of Directors meeting on 11 December 2012. NDF participated in the Rio+20 summit in Rio de Janeiro, Brazil in June 2012.
NDF’s climate change projects in 2012 Under the climate change mandate, from 2009 to 2012, NDF has approved 50 projects for a total value of EUR 134.5 million for climate change projects in 14 countries (eight countries in Africa, and three countries each in Asia and Latin America). Nearly half of the approved euro volume is allocated to countries in Sub-Saharan Africa (46%), and the rest for Asia and Latin America. Approximately 45% of the projects use parallel financing and 55% are jointly financed. Approved Financing by Region - EUR 134,5m
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During 2012, the Board of Directors approved grant financing for 11 projects with a total value of EUR 27.9 million. NDF has been active in three broad clusters; infrastructure, natural resources and climate change capacity-building. During 2012, NDF continued to approve and implement activities under the Small Grant Facility (SGF) which is a financing frame of EUR 5 million to be allocated as small-scale financing for studies, project preparatory activities or small project components relating to climate change adaptation and/or mitigation.
Africa Projects approved in Africa NDF financing EUR m Regional (E-Africa) Geothermal Exploration Project 5.0 Mozambique Transforming Hydro-Meteorological Services 4.5 Mozambique Coastal Cities and Climate Change 3.8 Senegal Flood Risk Management 3.0 Kenya Training in Geothermal Drilling 1.5 Tanzania SGF - Hydropower Sustainability Assessment 0.5 Tanzania SGF - Climate Smart Solutions for Water & Energy 0.5 In Africa, NDF’s activities were strengthened with seven new projects, six of which are co-financed with the World Bank, and one is with the Icelandic International Development Agency (ICEIDA). With a grant of EUR 5 million, NDF is supporting the Geothermal Exploration Project in East Africa. The project is the initial phase of the Geothermal Compact Partnership, initiated jointly by the Icelandic Ministry for Foreign Affairs and the World Bank, in cooperation with the partner countries in the region, to increase the East Africa Rift Valley States (EARS) access to geothermal energy. The ICEIDA and NDF-financed Geothermal Exploration Project intends to assist the EARS countries in completing the exploratory phase of geothermal development and building required capacity in the field. The aim is to mitigate and distribute the risk associated with geothermal exploration, thus contributing to the acceleration of geothermal development in the region. At the end of the project, it is expected that participating countries will have i) a realistic assessment of their geothermal potential, ii) plans for further action where applicable, and iii) capacity to move forward on the basis of those plans and submit exploration drilling projects into funding pipelines. In Mozambique, NDF is financing Transforming Hydro-Meteorological Services with a grant of EUR 4.5 million. The project objective is to strengthen hydrological and meteorological information services to deliver reliable and timely information that increases climate resilience, in turn lowering water and weather-related risks to local communities and economic development. The NDF component will be implemented by the National Institute for Meteorology (INAM). The NDF funding will be provided as parallel co-financing. The project is a sub-project to the World Bank National Water Resources Development Project, which aims to strengthen the development and management of national water resources. The World Bank project is under the
umbrella of the Strategic Program for Climate Resilience, a multi-donor long-term investment programme that will play a catalytic role in promoting climate-resilient growth strategies. Also in Mozambique, NDF provides a grant of EUR 3.8 million to strengthen adaptive capacity of the coastal cities. The World Bank’s Cities and Climate Change Project has the general objective of strengthening municipalities’ capacity to provide sustainable urban infrastructure and environmental management, enhancing resiliency to climate-related risks. The focus of NDF support is on developing adaptive capacity at central level and in the municipalities of Beira and Nacala. This will generate experience and guidance for building climate resilience into coastal urban planning, vital infrastructure and development elsewhere in Mozambique. The NDF component will be implemented by the national Agency for Water and Sanitation Infrastructure. In Senegal, NDF is supporting Flood Risk Management with a grant of EUR 3 million. The project is under the Senegal Storm Water Management and Climate Change Adaptation Project (PROGEP), which is supported by the World Bank. The objective of PROGEP is to improve storm water drainage and flood prevention in peri-urban Dakar for the benefit of local residents. With NDF’s contribution, the climate change adaptation aspects of the project are strengthened; flood risk reduction and adaptation measures are designed and integrated into communal action plans. Furthermore, NDF is supporting climate resilience-related capacity-building, public awarenessraising, knowledge dissemination as well as preparing the ground for extending climate change adaptation initiatives to other cities in Senegal. With a grant of EUR 1.5 million, NDF is financing an extensive geothermal drilling training programme under the World Bank’s Electricity Expansion Project in Kenya. The main objective of the Training in Geothermal Drilling is to accelerate the development of Kenya’s geothermal resources by taking the already available and incoming drilling equipment into efficient use. The programme will consist of two parts: a training needs assessment and training in drilling operations. The total cost of the project is estimated at EUR 2.7 million. Developing the country’s own human resources will be cost-effective and, in the long run, benefit the whole East African region. In Tanzania, NDF is financing a Hydropower Sustainability Assessment with EUR 500,000. The general objective of the project is to assess the sustainability of existing and identified hydropower schemes in Tanzania. More specifically, the study will assess the impacts of climate change on the future production of hydropower, assess the impacts of upstream human activities on power generation, and propose concrete adaptation investments and capacity development. The project has the potential to change the current fossil fuel-based energy generation practice towards a more hydro-based system by providing information and advice on how to adapt to future change in hydrological conditions. Another project in Tanzania is the Climate Smart Solutions for Water and Energy. The project will introduce the LifeLink™ water system in rural and urban areas of Tanzania with special focus on rural pastoral communities. Through the installation of 20 LifeLink™ systems, the project seeks to further utilise the off-grid solar power production by developing additional features that will allow users to not only fetch water but also charge mobile phones and household LED lamps, thereby boosting revenue and allowing full cost recovery.
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Asia
Global
Projects approved in Asia NDF financing EUR m Regional (Asia) SGF - Resilient Cities in the GMS: Adapting Cities to Climate Change 0.5
Projects approved Globally NDF financing EUR m Global SGF - Social Analysis and Adaptation to Climate Change in Developing Countries 0.2
In co-financing with the Asian Development Bank, NDF approved in 2012 financing for one new project in Asia.
Under the Small Grants Facility, NDF approved a grant of EUR 200,000 for the financing of a study on Social Analysis and Adaptation to Climate Change in Developing Countries. The main purpose of the study is to demonstrate the role of social analysis in designing effective and equitable responses to climate change in developing countries. The main result of the project will be a book and a policy workshop. The project will examine the human and social dimensions of climate change in the context of development, with a focus on vulnerability, adaptation and the potential for transformation. The project will use Nordic research and provide insights from the social sciences to enhance our understanding of what is at stake in a changing climate, and what constitutes equitable and sustainable adaptation in response to this challenge. The main audience will be people working in the field of development and development cooperation both on a policy and practical level. The coordinating institution is the Fridtjof Nansen Institute in Norway and the editorial committee includes three central IPCC authors. Through this project, it may be possible to also explore areas for NDF´s future strategic and value-adding role.
In the Greater Mekong Subregion (GMS), NDF provides financing to Resilient Cities in the GMS: Adapting Cities to Climate Change, a project that aims to assist GMS cities to develop tools and processes that will enhance their ability to adapt to climate change in an efficient and equitable manner. The project will result in a handbook and a series of high-level policy dialogue events, such as seminars and workshops, to be conducted between national and local governments and the private sector.
Latin America Projects approved in Latin America NDF financing EUR m Nicaragua Adaptation to Climate Change in Road Transport Sector 4.4 Bolivia Rural Electrification with Renewable Energy 4.0 In Latin America, two new projects will benefit from NDF financing in collaboration with the Inter-American Development Bank (IDB). With a grant of EUR 4.4 million, NDF is supporting Adaptation to Climate Change in Road Transport Sector in Nicaragua. The project is part of the Road Sector Support Program financed by IDB. The general objective of the program is to make road transport in Nicaragua more efficient in order to stimulate economic activity and contribute to the well-being of the population, while facilitating integration within the country and with the rest of Central America. The NDF contribution will focus on development of adaptive capacity in key institutions and furthermore, integrate climate change aspects into the maintenance, planning and design of road transport infrastructure. The NDF component will be implemented by the Ministry of Transport and Infrastructure. In Bolivia, NDF is supporting Rural Electrification with Renewable Energy with a grant of EUR 4 million. The project is part of an on-going IDB Rural Electrification Program which aims to assist the Government of Bolivia to achieve its targets of universal access to electricity in urban areas by 2015 and in rural areas by 2025. NDF-financed activities will mitigate climate change by replacing fossil fuels with renewable energy in rural areas and at the same time increase the access to energy and the reliability of the energy supply.
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Nordic Climate Facility The Nordic Climate Facility (NCF) is financed by NDF and implemented in cooperation between NDF and the Nordic Environment Finance Corporation (NEFCO). Through the facility, NDF provides grants to development projects that have the potential to combat climate change and reduce poverty in low-income countries. It encourages innovation and promotes technological transfer in sectors susceptible to climate change. The facility is based on calls for proposals and each call has specific themes. By the end of 2012, NCF has received funding for three calls for proposals, in total EUR 18 million. The latest allocation was approved in 2011. Each call for proposals focused on one or two specific themes relating to climate change, and the budget for each call amounted to EUR 6 million. The themes covered by the three calls included energy efficiency and water resources, urban adaptation to climate change and renewable energy, as well as innovative low-cost climate solutions with a focus on local business development. Since the start of NCF, a total of 442 proposals have been received. After a screening and selection process, at the end of 2012, 39 proposals had been selected, and were thereby in various stages of implementation in 17 countries, mostly in Africa. Many of the projects operate in an interesting area between the public and private sectors, thereby aiming to strengthen NDF´s value-adding, innovative and risk-sharing role in this area.
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ProClimate Facility
NDF’s participation in the HIPC Initiative
The ProClimate Facility, established in 2010, has undergone a major restructuring during 2012. The partial guarantee and technical assistance facility is designed to support small and medium-sized climate friendly investment projects and amounts to EUR 10 million. The proposal for the restructuring of the facility was approved by the Board of Directors in September 2012. The detailed design of the facility took place during 2012 in collaboration with the InterAmerican Development Bank. The facility will enable financing, through partial guarantees, for energy efficiency investments to be made by companies in the region based on energy audits financed earlier by a separate NDF grant. The facility is expected to be operative in early 2013.
Since the World Bank and the International Monetary Fund adopted the “Debt Initiative for Heavily Indebted Poor Countries” (HIPC), NDF has participated in the initiative through the HIPC Trust Fund, which is administered by IDA. By the end of 2012, NDF had made allocations to the HIPC Initiative for debt relief to nine of the Fund’s borrowing countries.
Signing of agreements and dialogue with larger co-financing partners
Nordic cooperation
During 2012, NDF entered into agreements regarding financing of five new projects in Africa, two new projects in Asia and six new projects in Latin America.
NDF has close contact and maintains a dialogue on mutually interesting issues both with the Nordic Council and the Nordic Council of Ministers.
In April 2012, the World Bank and NDF signed an amended and restated Cooperation Agreement, which provides the general framework for cooperation between the institutions. The agreement also reflects the co-financing modalities used today and is an update of the initial agreement from 1991.
NDF also has a close cooperation with the Nordic bilateral development institutions. NDF strives to promote the cooperation with relevant institutions through dialogue on topics of common interest, and in some cases through co-financing. During 2012, representatives of such institutions have also been invited to seminars and events arranged by NDF and its partners.
In September, NDF signed a Memorandum of Understanding (MoU) with the Integrity Vice Presidency of the World Bank Group. The objective of the MoU is to facilitate cooperation between the institutions in matters relating to prevention, detection and investigation of fraud and corruption and in other activities of common interest.
During the year, NDF has continued its cooperation with NEFCO through the Nordic Climate Facility, and also other dialogue on mutually interesting topics.
Regular policy and operational level dialogue with the Asian Development Bank and the Inter-American Development Bank were continued during the year. Dialogue with the African Development Bank (AfDB) was enhanced, most notably through two visits to AfDB (January and December) where possibilities for concrete cooperation and co-financing were explored.
The allocations made in previous years from NDF’s accumulated net income before foreign exchange differences amounts to EUR 29.6 million to cover the obligations of the Fund under the enhanced HIPC initiative. This amount has been paid into the HIPC Trust Fund.
NDF cooperates closely with the Nordic Investment Bank (NIB) through shared office premises, staff administration, IT services, accounting and liquidity management. The limited overlap in partner countries does not allow extensive co-financing between NIB and NDF. However, NIB, NDF and the Inter-American Investment Corporation share a Memorandum of Understanding aimed at facilitating joint activities in the area of energy efficiency and renewable energy in Latin America.
Capital and accounting currency
Credits At the end of 2012, NDF had entered into 188 credit agreements, the total value of which, including additional financing and adjusted for cancellations and calculating the EUR/SDR currency exchange rate as at 31 December 2012, amounted to EUR 914.8 million (2011: EUR 924.4 million). Of these agreements, 160 were credits to public sector projects (EUR 873.3 million), 25 were loans with equity features or equity investments (EUR 29.3 million) and three were other loans (EUR 12.1 million).
In 2000, the Nordic Council of Ministers decided that the Fund should change its capital and accounting currency from SDR to EUR as from 1 January 2001. In the annual reports for previous years, the Board of Directors has paid attention to the fact that, since NDF will have outstanding credits denominated in SDR for many years to come, fluctuations in the SDR-EUR exchange rates may lead to substantial variations in financial results, positive or negative, from one year to another. Therefore, and based on the Board of Directors earlier authorisation, during 2012 hedging measures were taken to decrease the effect from the SDR-EUR exchange rate fluctuations. About 35% of the credits denominated in SDR are hedged against these effects.
As at 31 December 2012, disbursements under signed agreements amounted to EUR 829.3 million; approximately 57.9% of this amount is denominated in SDR. As a result of the weakening of the SDR against the euro, the value of the outstanding SDR credits decreased by EUR 5.1 million. After the hedging measures, the decrease in value is EUR 3.5 million. The costs for hedging 35% of the SDR-denominated credits for a period of ten years was EUR 3.73 million. Furthermore, SEB is charging about EUR 20,000/year for managing the collateral that Nordea has placed with NDF.
The Fund’s financial result for 2012 shows a foreign exchange difference of EUR -5.1 million before hedging and EUR -3.5 million after hedging (2011: EUR 6.7 million). This difference is to a large extent due to the fact that the US dollar represents 41.9% of the SDR currency basket and the ensuing decrease of the purchasing power of the US dollar during 2012 against NDF’s capital and accounting currency, the euro.
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Liquidity and capital
Financial results and allocation
The liquid assets of NDF are managed by the Nordic Investment Bank on behalf of NDF. The average interest rate has been approximately 0.05% (2011: 0.8%). NDF’s deposits are relatively short-term (up to 6 months). The liquidity as per 31 December 2012 was EUR 93.1 million (2011: EUR 93.6 million). During 2012, the Board of Directors authorised NDF to also use commercial banks for its liquidity management.
NDF’s total assets as of December 31, 2012 amounted to EUR 874,716,461 (2011: EUR 877,660,600). This amount includes outstanding credits to public sector projects, other loans with equity features and equity investments to the amount of EUR 769,053,590 (2011: EUR 776,031,567) and placements with credit institutions to the amount of EUR 93,141,728 (2011: EUR 93,594,470). An increase of provisions against possible losses on other loans, loans with equity features and equity investments amounting to EUR 132,816 was made in the accounts of 2012. The previous year showed a reversal of EUR 830,439.
During the year, disbursements amounted to EUR 41.2 million (2011: EUR 47.0 million), EUR 27.1 million on grants and EUR 14.1 million on credits. At the end of the year, accumulated disbursements on grants amounted to EUR 55.8 million (2011: EUR 28.7 million) and EUR 829.3 million (2011: EUR 815.1 million) on credits. Upon request by the Board, member countries paid in EUR 25.5 million of Fund capital in 2012 (2011: EUR 8.2 million and SDR 25.0 million).
Commitments under credits, signed but not yet disbursed, were distributed as follows:
MEUR Credits
2012 33.0
2011 50.3
During 2012, NDF received repayments under disbursed credits amounting to EUR 14.3 million.
Board of Directors The Chair of the Board for the period 1 January to 30 April 2012 was Satu Santala (Finland), with Egill Heiđar Gislason (Iceland) as Deputy Chair. As from 1 May 2012 Egill Heiđar Gislason took over the chair with Harald Tollan (Norway) as Deputy Chair. The chair will pass on to Norway’s board representative on 1 May 2013 and Sweden’s representative will then become Deputy Chair. Jukka Pesola was appointed the new Finnish alternate member as of 26 January 2012, succeeding Riikka Laatu. On 29 March 2012, Anna Westerholm succeeded Tomas Danestad as the Swedish member of the Board.
As of December 31, 2012, NDF’s capital consisted of SDR 515 million and EUR 271.4 million in paid-in fund capital (2011: SDR 515 million and EUR 245.9 million) and EUR -88,497,429 (2011: EUR -60,032,975) in accumulated net income after adjustments for currency exchange fluctuations. The Fund’s income during 2012, amounting to EUR 5,369,001 (2011: EUR 8,344,227), consisted of income from credits to the public sector to the amount of EUR 5,993,800 (2011: EUR 5,871,278), interest on placements with credit institutions of EUR 50,880 (2011: EUR 653,299) and EUR -677,034 (2011: EUR 1,808,650) as remuneration on equity loans and other loans. Zimbabwe continues to be in arrears to NDF. All of its accrued, outstanding obligations towards NDF were therefore placed in non-accrual status.
A list of NDF Board members and their alternates can be found on page 9.
Administration
Administrative expenses were EUR 3,198,647 (2011: EUR 2,853,216). The largest single item of expenditure consists of salaries and ancillary expenses of EUR 1,887,806 (2011: EUR 1,692,811).
The NDF office has, along with the NIB headquarters, been certified as a Green Office by WWF Finland since 2009. The biggest share of NDF’s carbon footprint comes from air travel, which in 2012 amounted to 180 tons of CO2 equivalents.
The net income for the year, which after adjustments for currency exchange fluctuations and hedging measures of EUR -3,458,513 (2011: EUR 6,738,503), amounts to EUR -28,464,455 (2011: EUR -6,934,254), is carried forward to the new account.
Pasi Hellman, a Finnish national, was appointed Managing Director of the Fund from 1 November 2012 succeeding Helge Semb. As of 31 December 2012, thirteen people were employed by NDF (2011:12 employees). In addition, NDF has a long-term agreement with an in-house consultant. A summary of the employees can be found on page 9.
The income statement, balance sheet, changes in equity, cash flow and notes can be found on pages 11-13.
Control Committee The Control Committee ensures that the Fund’s operations are conducted in accordance with its Statutes and is responsible for its audit. The Committee presented its annual auditor’s report to the Nordic Council of Ministers in March 2012. The Control Committee met twice in 2012. A list of the members of the Committee can be found on page 9.
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Helsinki, 6 March 2013 EGILL HEIĐAR GISLASON Chair of the Board CHRISTOFFER BERTELSEN LARS ROTH PASI HELLMAN Managing Director
SATU SANTALA HARALD TOLLAN
Photo: Lehtikuva
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BOARD OF DIRECTORS *)
CONTROL COMMITTEE *)
MANAGEMENT AND STAFF
DENMARK Christoffer Bertelsen, Senior Adviser, Ministry of Foreign Affairs
CHAIRMAN Bill Fransson, Managing Director
Pasi Hellman, Managing Director (from 1 November 2012)
Deputy: Flemming Winther Olsen, Senior Adviser, Ministry of Foreign Affairs
DENMARK Thomas Jensen, Member of Parliament
FINLAND Satu Santala, Deputy Director General, Ministry for Foreign Affairs Deputy: Jukka Pesola, Director, Ministry for Foreign Affairs ICELAND Egill Heiđar Gislason, Advisor, Chair of the Board Deputy: Anna Karlsdóttir, Assistant Professor, University of Iceland
ICELAND Ragnheiđur Ríkharđsdóttir, Member of Parliament NORWAY Hans Frode Kielland Asmyhr, Member of Parliament
Leena Klossner, Deputy Director Juhani Annanpalo, Country Program Manager Hannu Eerola, Country Program Manager Martina Jägerhorn, Country Program Manager Aage Jørgensen, Country Program Manager
SWEDEN Åsa Torstensson, Member of Parliament
Linda Lundqvist, Country Program Manager and Chief Counsel
AUDITORS APPOINTED BY THE CONTROL COMMITTEE
Emeli Möller, Country Program Manager
Sixten Nyman, Authorised Public Accountant, KPMG, Finland
Johanna Palmberg, Country Program Manager (from 1 May 2012)
SWEDEN Anna Westerholm, Deputy Director, Ministry for Foreign Affairs
Per Gunslev, State Authorised Public Accountant, KPMG, Denmark
Mats Slotte, Manager, Financial Administration
Deputy: Lena Kövamees, Senior Programme Manager, Sida
Secretary to the Control Committee Birgitta Immerthal, KPMG, Finland
Jessica Suominen, Financial Administrator
Observer: Johan Ljungberg, Senior Director, Nordic Investment Bank
*) As of 31 December 2012
Ann-Christin Lundin, Secretary
NORWAY Harald Tollan, Senior Adviser, the Royal Ministry of Foreign Affairs, Deputy Chair of the Board Deputy: Hans Olav Ibrekk, Policy Director, the Royal Ministry of Foreign Affairs
*) As of 31 December 2012
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FINLAND Tuula Peltonen, Member of Parliament
Helge Semb, Managing Director (until 31 October 2012)
Maria Talari, Administration and Information Officer
Photo: Aage Jørgensen
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I N C O M E S TAT E M E N T ( a m o u n t s i n E U R )
Note 1.1 - 31.12.2012 INCOME Service charges from credits 5,789,489.64 Income from loans with equity features -677,033.75 Fee and commission income 204,310.79 Interest income from placements with credit institutions 50,880.21 Interest income from cash and balances with banks 1,353.61 Total income 5,369,000.50 EXPENSES Grant financing for climate projects Refund of grant financing Fee and commission expenses Commission expenses, derivative instruments General administrative expenses (9) Depreciation/amortisation on tangible and intangible assets (7) Changes in provision for credit losses, write-down of loans and reversals (6) Total expenses Net result for the year before foreign exchange differences and SDR hedging Foreign exchange differences Unrealised gains/losses on fair value of derivative instruments (2) Realised gains/losses on derivative instruments (2) Foreign exchange differences, net Net result for the year
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1.1 - 31.12.2011 5,478,779.84 1,808,650.45 392,498.63 653,298.74 999.78 8,334,227.44
27,118,799.56 -89,637.28 2,380.28 1,213.71 3,198,646.68
20,089,507.43 -116,900.37 2,462.88 2,853,215.86
10,723.59
9,138.20
132,815.59 30,374,942.13
-830,439.49 22,006,984.51
-25,005,941.63
-13,672,757.07
-5,087,507.87
6,738,503.48
1,624,595.00
-
4,400.00 -3,458,512.87
6,738,503.48
-28,464,454.50
-6,934,253.59
BALANCE SHEET (amounts in EUR)
Note
ASSETS Cash and cash equivalents (1) Other long-term financial placements (1)
31.12.2012
92,915,353.02 226,374.89 93,141,727.91
31.12.2011
93,369,448.38 225,021.28 93,594,469.66
Other assets 5,966,596.30 6,771,657.58 Derivative instruments (2) 5,354,595.00 Accrued income 1,174,737.33 1,241,410.06 Credits with government guarantee oustanding (3) 758,785,662.23 762,887,426.65 Other loans outstanding (4) 6,149,829.76 6,697,189.92 Loans with equity features and equity investments outstanding (5) 4,118,098.15 6,446,950.12 Intangible assets (7) 222.05 277.53 Tangible assets (7) 24,992.21 21,218.49 Total assets
874,716,460.95
877,660,600.02
LIABILITIES AND EQUITY
Liabilities Other liabilities
377,409.60
357,094.17
Equity (8) Fund capital SDR 515,000,000 Fund capital EUR 330,000,000 Paid-in fund capital
962,836,480.71
937,336,480.71
Accumulated net result
-88,497,429.36
-60,032,974.86
Total equity
874,339,051.35
877,303,505.85
Total liabilities and equity
874,716,460.95
877,660,600.02
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CHANGES IN EQUITY (amounts in EUR 1,000)
Paid-in fund capital Accumulated net income Result for the year Equity as of 1 January 2011 901,147 -53,099 0 Transfers between equity items -6,934 6,934 Paid-in fund capital 36,189 Result for the year -6,934 Equity as of 31 December 2011 937,336 -60,033 0 Transfers between equity items -28,464 28,464 Paid-in fund capital 25,500 Result for the year -28,464 Equity as of 31 December 2012 962,836 -88,497 0
CASH FLOW STATEMENT (amounts in EUR 1,000) 31 Dec 2012 Cash flow from operating activities: Net result for the year Depreciation/amortisation on tangible and intangible assets Foreign exchange differences Fair value of derivative instruments Changes in derivative instruments Changes in accrued income Changes in provision for credit losses and write-down of loans Cash flow from operating activities
31 Dec 2011
-28,464 11 5,088 -1,625 -5,355 67 133 -30,146
-6,934 9 -6,739 0 0 31 -830 -14,463
-14,095 12,938 -5 3,795 547 -1 825 -14 3,989
-27,058 15,556 -18 1,001 1,643 -225 -2,846 -13 -11,960
Cash flow from investing activities: Credits disbursed Amortisations of credits Disbursed other loans, equity loans and equity investments Repayments of other loans, equity loans and equity investments Amortisations of other loans and equity loans Changes in placements with a maturity longer than 6 months Changes in other assets and liabilities Changes in tangible and intangible assets Net cash flow from investing activities
Cash flow from financing activities:
13
Paid-in fund capital
25,500
36,189
Foreign exchange differences
203
-138
Changes in cash and cash equivalents
-454
9,629
Cash and cash equivalents consist of:
31 Dec 2012
31 Dec 2011
Cash and balances with banks Placements with a maturity of less than 6 months
4,469 88,447
3,387 89,983
Total cash and cash equivalents
92,915
93,369
Total 848,049 0 36,189 -6,934 877,304 0 25,500 -28,464 874,339
N O T E S T O T H E F I N A N C I A L S TAT E M E N T S
General operating policies The purpose of the Nordic Development Fund (NDF, “the Fund”) is to promote economic and social development in developing countries through participation in financing, on concessional terms, of projects of interest to the Nordic countries. The headquarters of the Fund are in Helsinki, Finland, at the premises of the Nordic Investment Bank. On 9 November 1998, a new Agreement regarding NDF was signed by its member countries. The new Agreement, which replaced the earlier Agreement of 3 November 1988, entered into force on 18 September 1999. The new Agreement contains provisions concerning the Fund’s immunity and the exemption of the Fund’s assets and income from all taxation. The Fund has the legal status of an international legal person, with full legal capacity. A Headquarters Agreement between NDF and the Government of Finland was signed on 14 October 1999. This agreement is connected to the 1998 Agreement regarding NDF. Pursuant to the recommendation of the NDF Board of Directors to the Nordic Council of Ministers, the Nordic Cooperation Ministers approved amendments to NDF’s bylaws in 2009. These amendments give NDF a new mandate to support interventions aimed at adaptation to and mitigation of the negative effects of climate change. The capital of NDF shall in the future be utilised in the form of grant aid for climate-related interventions in low-income countries. This capital, approximately one billion euros over a period of 35 years consists of repayments on the 188 credits NDF granted during 1989-2005 The last repayment is due in 2045. Summary of significant accounting policies
Basis of preparation of financial statements The Financial Statements have been prepared in accordance with methods of valuation and recognition of income and expenses as described below. As from 1 January 2001, the Fund’s Financial Statements are presented in euro in accordance with the decision of the Nordic Council of Ministers of 24 August 2000 to replace SDR with EUR. The paid-in fund capital has been converted into euro. The Fund’s Financial Statements are presented in euro. With the exceptions noted below, they are based on historical cost. Assessments in preparation of financial statements The preparation of financial statements requires management to make assessments and estimates that affect the result, financial position and additional disclosures. Such assessments and estimates are based on available information. Actual results may differ materially from the assessments made. Foreign currency translation Monetary assets and liabilities denominated in currencies other than euro are translated into euro at the rate quoted by the European Central Bank (see Note 11). Any gain or loss arising from the valuation appears in the Income Statement as “Foreign exchange differences” and are mainly related to the SDR rate. As NDF will for many years to come have outstanding credits denominated in SDR, changes in the SDR-euro rate may lead to the Income Statement showing substantial foreign exchange differences since these currency positions are not hedged against
changes in foreign exchange rates. However, in 2012, measures were taken to reduce the effects from the foreign exchange differences by hedging 35% of the credits denominated in SDR. Non-monetary assets are recorded in euro at the euro rate prevailing on the date of their acquisition. Cash and cash equivalents Cash and Cash Equivalents consist of monetary assets and placements with an original maturity of up to 6 months. Derivative instruments Approximately 35% of the SDR portfolio is protected against exchange rate effects through currency options. The derivative instruments are valued at fair value at the end of the year and the change in fair value is recognised in the income statement. Placements with credit institutions NDF has invested its monetary assets with the Nordic Investment Bank at current market interest rates. The placements are mainly in EUR and are initially recognised at cost (normally nominal value) at settlement date. Placements are also recorded at cost in the Annual Report. Accrued interest on placements is recorded within Accrued Income in the Balance Sheet. In 2012, the Board authorised NDF to place a maximum of 50% of its cash and cash equivalents with Nordic commercial banks. Placements with credit institutions longer than 6 months are shown as investments in the Cash Flow Statement. The amount is included in the Balance Sheet as Other long-term financial placements. Credits with government guarantee outstanding The recipient countries for NDF credits are low-income developing countries. The credit period for credits with government guarantee is 40 years, including a 10-year grace period. The loans are interest-free. The credits are initially recognised at cost at settlement date. For payments which are more than 180 days overdue, the Fund places all credits to the borrower in question in non-accrual status, whereupon the Fund stops recording accrued service charges and fee and commission revenue as income on the Income Statement. All accrued but unpaid income in respect of the borrower in question that had been recorded as income is then deducted from the Income Statement. As of 31 December 2012, Zimbabwe was more than 180 days overdue with payments. There is a considerable concessionality in the credits from NDF as they are interest-free and have very long maturities. Provision for loan losses NDF’s lending conditions allow for a long-term view to be taken of the repayment capacity of recipient countries. In the event of debt consolidation, it is assumed that credits from NDF will be treated in the same manner as loans from other multilateral institutions. Credits outstanding are recognised in the Balance Sheet at their recoverable amount. Loans with government guarantee outstanding are recorded net of provisions for possible loan losses and actual loan losses. Provision for possible loan losses is established based on the assessment of the nature and maturity structure of the credit portfolio.
14
N O T E S T O T H E F I N A N C I A L S TAT E M E N T S
Other loans outstanding Other loans outstanding consist of loans with financial liability features to the private sector. The loans are initially recognised at cost at settlement day. In the Balance Sheet, other loans outstanding are recorded net of provisions for actual and possible loan losses. A provision for possible loan losses is established based on the assessment of the nature and maturity structure of the loan portfolio. Loans with equity features and equity investments The statutes of NDF enable the Fund, as an integrated and permanent part of its operations, to provide financing to private sector activities in developing countries without government guarantee. Loans with equity features and equity investments are recognised in the Balance Sheet at cost after write-down. The value of outstanding loans with equity features and equity investments are continuously revalued by the Fund. If the book value exceeds the valuation made, a corresponding write-down is made. Write-downs are presented separately in the Income Statement.
Income from service and commitment charges, loans with equity features and equity investments The Fund’s long-term lending with government guarantee is interest-free, but a service charge of 0.75% per annum is collected on outstanding amounts. A commitment charge of 0.5 % per annum is collected on any undisbursed balance one year after the loan agreement has been signed. Income from other loans is presented within Service charges from credits in the Income Statement. Income from loans with equity features is normally related to the return received by the shareholders of the company. Income from service charges on lending and income from loans with equity features and equity investments are presented as separate items in the Income Statement. Commitment charges are presented within Fee and commission income.
Intangible assets Intangible assets mainly consist of investments in software and software licenses for IT-systems. The investments are carried at historical cost and are amortised over the assessed useful life of the assets, which is estimated to be between 3 and 5 years. The amortisations are made on a straight-line basis.
Grant financing As a disbursement is made to a climate project, the cost is accounted under “Grant financing for climate projects” in the income statement. Upon completion of a project or cancellation of a grant, any refund is written back as a reduction of the total costs for the year under “Refund of grant financing”.
Tangible assets Tangible assets are recognised at historical cost, less any accumulated depreciation based on their assessed useful life. The depreciation period for tangible assets is determined by assessing the individual item, usually 3 to 5 years.
General administrative expenses NDF receives a host country payment from the Finnish government equal to the tax levied on the salaries of the Fund’s employees. The host country payment, which the Fund received in 2012, amounted to EUR 413,584 (2011: EUR 363,076). The payment is accounted for as a reduction in the Fund’s administrative expenses.
Write-downs and impairment of intangible and tangible assets The Fund’s assets are reviewed annually for impairment. If there is any objective evidence of impairment, the impairment loss is determined based on the recoverable amount of the assets. Equity In August 2000, the Nordic Council of Ministers passed a resolution to increase the capital of NDF by EUR 330 million. After this replenishment, the capital of the Nordic Development Fund amounted to SDR 515 million and EUR 330 million. As of 31 December 2012, SDR 515 million - the equivalent of EUR 691.4 million- and EUR 271.4 million, totalling EUR 962.8 million has been paid in by the owners. Payment of the remainder of the subscribed capital will take place upon request by the Fund’s Board of Directors. Since the World Bank and the International Monetary Fund (IMF) initiated the “Debt Initiative for Heavily Indebted Poor Countries” (HIPC) in 1996, NDF has participated in this debt relief initiative through the HIPC Trust Fund which is administered by IDA. The enhancement of the initiative carried out in 1999 called for further financial commitments by NDF. To this end, the Nordic Council of Ministers in 2000 approved the amendment of NDF’s statutes in order to provide a general authorisation for the Fund to provide its part of shared contributions under debt relief initiatives in the framework of internationally co-ordinated initiatives in which other multilateral organisations participate.
15
The allocated funds for HIPC were a total of EUR 29.6 million. These funds have been paid in to the HIPC Trust Fund between 1999 and 2010.
Employees’ pensions and insurance The Fund is responsible for offering pension protection to its personnel. In accordance with the host country agreement between the Fund and the Finnish Government, the Fund has adopted the Finnish government employee pension plan for the Fund’s personnel. The Fund’s liability in respect to pension rights is completely covered. Contributions to the pension plan, which are paid to the State Pension Fund, are calculated as a percentage of the salaries. The Finnish Government determines the basis for the contributions, and the Republic of Finland State Treasury establishes the actual amount of the contributions. Under the Finnish pension system at present, the usual age of retirement is 63-68. NDF has also introduced an additional pension system for its permanent employees. The additional pension insurance is a group pension insurance plan that is based on a defined contribution plan. In addition to the Finnish social security system for its employees, NDF has subscribed to a comprehensive life, accident, health, disability and travel insurance programme.
N O T E S T O T H E F I N A N C I A L S TAT E M E N T S
Notes to the Income Statement and the Balance Sheet
Credits outstanding:
(Note 1) Cash and cash equivalents and placements with credit institutions
(EUR 1,000): Bangladesh Benin Bolivia Botswana Burkina Faso Cambodia Cape Verde China Colombia Dominican Republic Ethiopia Ghana Honduras Indonesia Jamaica Kenya Kyrgyz Republic Lao PDR Malawi Maldives Mauritius Mozambique Mongolia Namibia Nepal Nicaragua Pakistan Philippines Rwanda Senegal Sri Lanka Tanzania Tunisia Uganda Vietnam Zambia Zimbabwe Credits outstanding Credits in default (Zimbabwe) Total, credits outstanding
(EUR 1,000) 31 Dec 2012 31 Dec 2011 Cash and cash equivalents Cash and balances with banks 4,469 3,387 Placements with credit institution 88,447 89,983 Total, cash and cash equivalents 92,915 93,369 Placements with credit institution Placements with credit institution 226 225 Total, placements with credit institutions 226 225 Total, cash and cash equivalents and placements with credit institutions 93,142 93,594 The remaining maturity of placements, counted from the balance sheet date to maturity, is as follows: (EUR 1,000) Up to and including 3 months
31 Dec 2012 88,447
31 Dec 2011 89,983
(Note 2) Derivative instruments (EUR 1,000) Purchased option contracts Fair value of option contracts at end of year Change in fair value
31 Dec 2012 31 Dec 2011 3,730 0 5,355 0 1,625 0
NDF has received adequate collateral that covers the derivative instruments’ market value.
(Note 3) Credits with government guarantee outstanding Credits according to lending currency: (Face value in EUR 1,000) EUR-credits SDR-credits Total, outstanding credits
31 Dec 2012 468,996 289,790 758,786
31 Dec 2011 461,547 301,340 762,887
31 Dec 2012 28,586 18,721 30,341 4,862 10,204 9,262 2,007 4,559 1,179 7,666 26,429 47,338 31,562 11,385 5,721 25,969 4,497 52,557 22,185 9,275 2,761 61,319 25,441 1,656 19,366 45,820 10,151 14,469 12,499 48,998 20,298 23,079 5,182 55,596 24,408 20,704 16,010 762,066 3,280 758,786
31 Dec 2011 29,168 18,920 31,354 5,120 10,204 9,262 2,091 4,670 1,227 7,987 27,145 45,882 30,170 12,070 5,961 25,969 4,598 53,587 23,023 9,581 2,924 62,693 26,226 1,696 18,885 47,254 10,579 14,983 12,499 50,552 21,026 23,068 5,305 51,387 24,601 17,832 16,295 765,797 2,909 762,887
In addition, agreements have been signed on a further EUR 33.0 million (2011: EUR 50.3 million) in credits not yet disbursed.
16
N O T E S T O T H E F I N A N C I A L S TAT E M E N T S
Amortisations on credits outstanding as at 31 December 2012 show the following maturity profile:
(Note 5) Loans with equity features and equity investments outstanding
(EUR 1,000) 31 Dec 2012 2012 2013-2015 53,490 2016-2020 120,039 2021-2025 150,054 2026-2030 165,754 2031-2035 142,161 2036-2040 93,535 2041-2045 33,752 Total, credits outstanding 758,786
Loans with equity features and equity investments are distributed as follows:
31 Dec 2011 13,961 53,609 119,566 149,148 163,531 139,817 90,714 32,540 762,887
(Note 4) Other loans outstanding Other loans outstanding are distributed as follows: (EUR 1,000) 31 Dec 2012 31 Dec 2011 East African Development Bank 6,150 6,697 Total, other loans outstanding 6,150 6,697 Amortisations on other loans outstanding as at 31 December 2012 show the following maturity profile: (EUR 1,000) 31 Dec 2012 2012 2013-2015 957 2016-2020 1,366 2021-2025 1,366 2026-2030 1,366 2031-2035 1,093 Total, other loans outstanding 6,150
31 Dec 2011 547 957 1,366 1,366 1,366 1,093 6,697
(EUR 1,000) 31 Dec 2012 China 0 Mekong Enterprise Fund 1,103 Nepal 2,913 ECP 5 Central American Small Enterprise Investment Fund 765 Aureos Southern Africa Fund 602 Aureos West Africa Fund 102 Total, loans with equity features and equity investments outstanding 5,489 Write-down -1,371 Total, loans with equity features and equity investments outstanding after write-down 4,118
31 Dec 2011 2,049 1,434 2,913 0 911 1,742 231
9,279 -2,832
6,447
As at 31 December 2012, the write-down for impairment totalled EUR 1,370,982 (2011: EUR 2,831,907) based on assessment of the risk of losses which exists or may exist. The reversals for 2012 of previously made provisions for credit losses amounted to a total of EUR 1,460,926.
(Note 6) Loan losses, write-down of loans and reversals The total net loan losses, write-down on loans and reversals during 2012 totalled EUR 132,816 (2011: EUR -830,439). Provisions for loan losses and reversals amounted to EUR 1,460,926 in 2012 (2011: EUR -830,439) and realised loan losses amounted to EUR 1,593,742 in 2012 (2011: EUR 0).
(Note 7) Intangible and tangible assets (Amounts in EUR) 2012 2011 Computer Computer Intangible assets software software Acquisition value at beginning of year 5,527 5,527 Acquisitions during the year 270 0 Acquisition value at end of year 5,797 5,527 Accumulated amortisation at beginning of year 5,249 4,027 Amortisation according to plan for the year 325 1,222 Accumulated amortisation at end of year 5,575 5,249 Net book value 222 278 Office Office Tangible assets equipment equipment Acquisition value at beginning of year 33,498 20,168 Acquisitions during the year 14,172 13,330 Acquisition value at end of year 47,670 33,498 Accumulated depreciation at beginning of year 12,280 4,364 Depreciation according to plan for the year 10,398 7,916 Accumulated depreciation at end of year 22,678 12,280 Net book value 24,992 21,218 Intangible and tangible assets total 25,214 21,496 (Note 8) Equity The total Fund capital amounts to SDR 515.0 million and EUR 330.0 million. Of this, the paid-in capital as of 31 December 2012 amounted to SDR 515.0 million*) (equivalent to EUR 691.4 million) and EUR 271.4 million i.e. a total of EUR 962.8 million. The payments by the member countries in 2012 amounted to EUR 25.5 million. *) The EUR value of SDR is based on the historic EUR/SDR currency rate on the date of payment
17
N O T E S T O T H E F I N A N C I A L S TAT E M E N T S
The member countries have subscribed the following amounts of the total Fund capital: Subscribed fund capital as at 31 December 2012 (EUR 1,000) Denmark Finland Iceland Norway Sweden Subscribed fund capital
SDR 115,067 96,726 5,453 101,591 196,163 515,000
% 22% 19% 1% 20% 38% 100%
EUR 82,500 58,740 3,300 74,250 111,210 330,000
The member countries have paid in the following amounts of the total fund capital: Fund capital Fund capital Paid-in fund capital (EUR 1,000) 31 Dec 2011 in SDR Translated into EUR 31 Dec 2011 in EUR Denmark 115,067 153,858 61,483 Finland 96,726 130,592 43,776 Iceland 5,453 7,303 2,458 Norway 101,591 136,354 55,336 Sweden 196,163 263,299 82,878 Paid-in fund capital 515,000 691,405 245,931
% 25% 18% 1% 23% 34% 100%
Fund capital 31 Dec 2011 Total 215,341 174,368 9,761 191,689 346,177 937,336
% 23% 19% 1% 20% 37% 100%
Paid-in fund capital (EUR 1,000) Paid-in during 2012 in SDR Translated into EUR Paid-in during 2012 in EUR Paid-in total during 2012 Denmark 0 0 6,375 6,375 Finland 0 0 4,539 4,539 Iceland 0 0 255 255 Norway 0 0 5,738 5,738 Sweden 0 0 8,594 8,594 Paid-in fund capital 0 0 25,500 25,500
Fund capital Fund capital Paid-in fund capital (EUR 1,000) 31 Dec 2012 in SDR Translated into EUR 31 Dec 2012 in EUR Denmark 115,067 153,858 67,858 Finland 96,726 130,592 48,315 Iceland 5,453 7,303 2,713 Norway 101,591 136,354 61,073 Sweden 196,163 263,299 91,472 Paid-in fund capital 515,000 691,406 271,431
Fund capital 31 Dec 2012 Total 221,716 178,907 10,016 197,427 354,771 962,837
% 23% 19% 1% 20% 37% 100%
18
N O T E S T O T H E F I N A N C I A L S TAT E M E N T S
(Note 9) General administrative expenses including compensation for the Board of Directors, the Control Committee and the Managing Director
Compensation for the Chairman of the Board of Directors, the Board, the Control Committee and the Managing Director appears from the table below:
General administrative expenses (EUR 1,000) Personnel costs Pension premiums in accordance with the Finnish state pension system Other pension premiums Office premises costs Other general administrative expenses Cost coverage, NIB Total Host country reimbursement according to agreement with the Finnish Government Net
2012 2011 Compensation/ Compensation/ (amounts in EUR) taxable income taxable income Chairman of the Board of Directors 5,325 5,325 Other members of the Board 18,624 16,647 Managing Director 332,331 336,478 Control Committee 1,969 1,921
2012
2011
1,671
1,472
340 53 160 1,099 289 3,612
281 30 143 998 293 3,216
-414 3,199
-363 2,853
During 2012, NDF paid a total of EUR 110,205 (2011: EUR 111,054) in pension premiums for the Managing Director.
(Note 10) Transactions between closely related partners
Compensation for the Board of Directors and the Control Committee is set by the Nordic Council of Ministers. Compensation for the Fund’s Managing Director is set by the Board of Directors and is paid in the form of a fixed annual salary and usual salary-based benefits. The Managing Director is permitted to borrow from a commercial bank at interest rates that are the same for all of the Fund’s employees. The rates are set with reference to the so-called base rate determined periodically by Finland’s Ministry of Finance.
NDF receives services and enters into transactions with NIB. The outstanding claims and debts between NDF and NIB as well as interest charged during the year are presented in the table below. The interest charged corresponds to the normal market rate (EUR 1,000): Interest collected NDF’s outstanding debt to NIB NDF’s outstanding claim on NIB 2012 51 2 88,450 2011 653 11 90,013
(Note 11) Currency exchange rates The pension benefits for the Managing Director are based on the Finnish State pension system, with certain additions. Professional staff (including the Managing Director) who move to Finland for the sole purpose of taking up employment in the Fund, are entitled to certain expatriate benefits, such as an expatriate allowance and a spouse allowance. In addition, NDF assists the expatriate in finding a residence and in other practical arrangements. Such staff members are required to reimburse the Fund part of the rent equivalent to the minimum tax value of the accommodation benefit received. The tax value is determined annually by the Finnish tax authorities.
DKK ISK NOK SEK USD SDR
EUR rate on 31 Dec 2012 EUR rate on 31 Dec 2011 Danish krone 7.461 7.4342 Icelandic króna 170.2 158.65 Norwegian krone 7.3483 7.754 Swedish krona 8.582 8.912 US dollar 1.3194 1.2939 Special Drawing Rights 0.85776* 0.84279*
* The exchange rate is calculated in such a way that the market rate for USD/relevant currency provides the EUR/relevant currency rate. The exchange quotation USD/relevant currency is per 31 December 2012.
19
A U D I T O R S ’ R E P O RT
INDEPENDENT AUDITORS’ REPORT TO THE CONTROL COMMITTEE OF
including the assessment of the risks of material misstatement of the financial statements,
THE NORDIC DEVELOPMENT FUND
whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements
Independent Auditors’ report on the financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the
In our capacity as auditors appointed by the Control Committee of the Nordic Development
purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit
Fund we have audited the accompanying financial statements of the Fund, which comprise
also includes evaluating the appropriateness of accounting policies used and the reasonableness
the balance sheet as at 31 December 2012, and the income statement, statement of changes in
of accounting estimates made by management, as well as evaluating the overall presentation of
equity and statement of cash flows for the year then ended, and a summary of significant
the financial statements.
accounting policies and other explanatory notes. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
The Board of Directors’ and the Managing Director’s responsibility for the financial statements
basis for our audit opinion.
The Board of Directors and the Managing Director are responsible for the preparation of the financial statements in accordance with the accounting principles described in the notes to the
Opinion
financial statements and for such internal control as they determine is necessary to enable the
In our opinion, the financial statements, which comprise the balance sheet as at 31 December
preparation of financial statements that are free from material misstatement, whether due to
2012, and the income statement, statement of changes in equity and statement of cash flows for
fraud or error.
the year then ended, and a summary of significant accounting policies and other explanatory notes, are prepared in all material respects in accordance with the accounting principles described in
Auditor’s responsibility
the notes to the financial statements.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards
Report on the other requirements
require that we comply with ethical requirements and plan and perform the audit to obtain rea-
In accordance with the Terms of Engagement our audit also included a review of whether the
sonable assurance whether the financial statements are free from material misstatement.
Board of Directors’ and the Managing Director’s administration have complied with the Statutes
An audit involves performing procedures to obtain audit evidence about the amounts and dis-
of the Fund. It is our opinion that the administration of the Board of Directors and the Managing
closures in the financial statements. The procedures selected depend on the auditor’s judgment,
Director complied with the Statutes of the Fund.
Helsinki, 7 March 2013 Sixten Nyman
Per Gunslev
Authorised Public Accountant
State Authorised Public Accountant
KPMG Oy Ab
KPMG, Statsautoriseret Revisionspartnerselskab
Mannerheimintie 20 B
Osvald Helmuths Vej 4
00100 Helsinki
2000 Frederiksberg
Finland
Denmark
20
A U D I T O R S ’ R E P O RT
STATEMENT BY THE CONTROL COMMITTEE OF THE NORDIC DEVELOPMENT FUND ON
Following the audit performed, we note that:
THE AUDIT OF THE ADMINISTRATION AND ACCOUNTS OF THE FUND
To the Nordic Council of Ministers
• the Fund’s operations during the financial year have been conducted in accordance with the Statutes, and that • the financial statements, which comprise the balance sheet as at 31 December 2012,
and the income statement, statement of changes in equity and statement of cash
flows for the year then ended, and a summary of significant accounting policies and
Statutes and to bear responsibility for the audit of the Fund. Having completed our assignment
the accounting principles described in the notes to the financial statements. The
for the year 2012, we hereby submit the following report.
financial statements show a loss of EUR 28,464,454.50, which will be carried
forward to new account.
In accordance with section 9 of the statutes of the Nordic Development Fund, we have been appointed to ensure that the operations of the Fund are conducted in accordance with the
other explanatory notes, are prepared in all material respects in accordance with
The Control Committee met during the financial year as well as after the Fund’s financial statements had been prepared, whereupon the necessary control and examination measures
We recommend to the Nordic Council of Ministers that:
were performed. The Fund’s Annual Report was examined at a meeting in Helsinki on 7 March
• the income statement and the balance sheet be adopted, and
2013, at which time we also received the Auditor’s Report submitted on 7 March 2013 by the
• the Board of Directors and Managing Director be discharged from liability for
authorised public accountants appointed by the Control Committee.
the administration of the Fund’s operations during the accounting period
examined by us.
Helsinki, 7 March 2013 Bill Fransson
Thomas Jensen
Hans Frode Kielland Asmyhr
Åsa Torstensson
Tuula Peltonen Ragnheiður Rikhardsdóttir
21
Photo: Jørgen Schytte
22
G R A N T P O RT F O L I O
Signed Grant Agreements; Volume mEUR and number (cumulative)
AFRICA
ASIA
Country/ Lead Investment Year of Project Agency million, NDF signing Benin Increased Access to Modern Energy Project Modernizing Biomass Energy Services IDA 1.5 EUR 2010 Ghana Studies on Landfill Gas Capture and Utilization IDA 2.0 EUR 2011 Greater Accra Septage Digesters Project IDA 2.5 EUR 2013* Kenya Electricity Expansion Project IDA 4.0 EUR 2012 Training in Geothermal Drilling IDA 1.5 EUR 2013* Mozambique Coastal Cities and Climate Change IDA 3.8 EUR 2012 Transforming Hydro-Meteorological Services IDA 4.5 EUR 2013* Rwanda Promotion of Solar Water Heaters IDA 4.0 EUR 2011 Senegal Transport and Urban Mobility Project Environmental Activities IDA 4.0 EUR 2011 Water and Sanitation Millennium Project Cambérène Climate Change IDA 4.0 EUR 2011 Senegal Biomass IDA 3.0 EUR 2011 Flood Risk Management IDA 3.0 EUR 2013* Tanzania Impacts of Climate Change in Coastal Areas IDA 0.8 EUR 2012 SGF - Hydropower Sustainability Assessment IDA 0.5 EUR 2013* SGF - Climate Smart Solutions for Water and Energy IDA 0.5 EUR 2013* Uganda Increasing Access to Modern Energy Packages in Rural Areas IDA 3.0 EUR 2010 Regional (Afica) Africa Regional - Addressing the Vulnerability of Africa’s Infrastructure IDA 0.6 EUR 2012 SGF - Insurance Instruments for Africa Climate Adaptation IDA 0.5 EUR 2012 SGF - Technologies for Low Carbon Development in Africa IDA 0.5 EUR 2012 Geothermal Exploration Project in East Africa Iceida 5.0 EUR 2012
Country/ Project
23
Regional Distribution of Approved Financing
Distribution by Lead Agency
Lead Agency
Investment million, NDF
Year of signing
Cambodia Adaptation Approaches for the Transport Sector ADB 4.2 EUR 2011 Water Resources Management ADB 3.0 EUR 2011 Lao PDR Pakse Urban Environmental Improvement Project ADB 0.4 EUR 2009 Capacity Enhancement for Coping with Climate Change ADB 2.0 EUR 2010 Vietnam Support for the National Target Program on Climate Change ADB 2.21 EUR 2011 Vietnam Climate Proofing of Roads ADB 2.0 EUR 2012 Pilot Programme for Mitigation Action in NOAK/Nefco 1.5 EUR 2013* the Cement Sector Regional (Asia) Mekong Energy and Environment UM Finland 3.0 EUR 2010 Partnership (EEP) GMS Bioenergy ADB 3.1 EUR 2011 Gender and Climate Change ADB 2.0 EUR 2011 SGF - Resilient Cities in the GMS: Adapting Cities to Climate Change ADB 0.5 EUR 2012
G R A N T P O RT F O L I O
GLOBAL
L AT I N A M E R I C A Country/ Project
Lead Agency
Investment million, NDF
Year of signing
Bolivia Rural Electrification with Renewable Energy IDB 4.0 EUR 2013* Honduras Indigenous Peoples and Climate Change IDB 3.5 EUR 2012 Nicaragua Sustainable Electrification and Renewable Energy Program IDB 4.5 EUR 2011 Programme for Disaster Management and Climate Change IDB 2.5 EUR 2011 Biogas Market Facilitation Program IDB/MIF 1.5 EUR 2011 Adaptation to Climate Change in Road Transport Sector IDB 4.4 EUR 2012 Regional (LAC) GreenPYME: Energy Efficiency for Small and Medium-sized Enterprises IIC 2.2 EUR 2010 Climate Proofing and Review of Infrastructure Investments IDB 1.5 EUR 2011 Central America: Adaptation to Climate Change in Honduras and Nicaragua IDB 0.5 EUR 2011 Regional Microfinance and Climate Change Programme IDB/MIF 1.5 EUR 2011 Central America - Regional Centre for Geothermal Energy IDB 1.5 EUR 2012 Economics of Climate Change IDB 0.5 EUR 2012 GreenPyme II IIC 3.0 EUR 2012 Latin America - Climate Change and Sustainable Cities IDB 2.1 EUR 2012
Country/ Project
Lead Agency
Investment million, NDF
Year of signing
Nordic Climate Facility 1 Nordic Climate Facility 2 Nordic Climate Facility 3 SGF - Social Analysis and Adaptation to Climate Change Pro Climate Facility
n/a n/a n/a
6.0 EUR 6.0 EUR 6.0 EUR
2010 2011 2011
None IDB/IFC
0.2 EUR 10.0 EUR
2012 2013*
*) tentative
24
C R E D I T P O RT F O L I O
AFRICA
Country/ Project
Lead Agency
Investment million, NDF
Year of signing
Public Sector Projects Benin Transport Sector Investment IDA 4.7 SDR 1997 Energy Services Delivery IDA 13.8 EUR 2005 Burkina Faso Power Sector Development IDA 10.2 EUR 2005 Botswana Mochudi-Molepolole Groundwater Exploitation NIB 1.1 EUR 1990 Trans-Kgalagadi Road AfDB/NIB 0.5 EUR 1992 Transmission Line Francistown-Maun NIB 5.0 EUR 1993 Cape Verde Integrated Fisheries Development
ICEIDA
2.0 SDR
1994
Ethiopia Addis Ababa Airport Improvement Energy II Road Sector Development Road Sector Development II
EIB IDA IDA IDA
5.0 7.0 4.8 8.6
1998 1998 1998 2003
SDR SDR SDR EUR
Ghana Urban II IDA 5.2 EUR 1994 National Electricity IDA 6.1 EUR 1994 Accra Tema Water Supply Rehabilitation AfDB 5.2 EUR 1994 Urban Environment Sanitation IDA 2.6 EUR 1996 Mining Sector Development and Environment IDA 4.0 SDR 1996 Health Sector Support IDA 5.0 SDR 1998 Urban V IDA 2.1 SDR 2000 Health Services Rehabilitation III AfDF 8.3 EUR 2003 Land Administration IDA 7.0 EUR 2004 Urban Water Project IDA 6.0 EUR 2004 Urban Environment Sanitation II IDA 6.8 EUR 2004 Kenya Northern Transport Corridor Improvement IDA 16.0 EUR 2004 Energy Sector Recovery IDA 10.0 EUR 2004
25
Country/ Project
Lead Agency
Investment million, NDF
Year of signing
Malawi Fisheries Development IDA 2.8 EUR 1991 National Water Development IDA 5.3 SDR 1995 Power V IDA 5.0 SDR 1997 Preparatory Programme to Support the Telecommunications Sector Danida 5.1 EUR 1998 Road Maintenance and Rehabilitation (ROMARP) IDA 4.8 SDR 1999 Mauritius Environmental Investment for Sustainable Development IBRD 4.1 EUR 1990 Mozambique Urban Household Energy IDA 5.6 EUR 1989 Cahora Bassa Interconnection NORAD 4.6 EUR 1994 Danida/ICEIDA 3.6 SDR 1996 Semi Industrial Fisheries National Water Development IDA 5.2 SDR 1997 Municipal Development IDA 3.4 SDR 2001 Mineral Resources Management Capacity Building IDA 12.6 EUR 2001 The Roads and Bridges Management and Maintenance IDA 11.7 EUR 2001 Agricultural Sector Public Expenditure (PROAGRI) IDA 7.2 EUR 2002 Energy Reform and Access (ERAP) IDA 10.1 EUR 2003 Namibia Seaflower - Whitefish Corporation
NIB
2.0 EUR
1994
Rwanda Urgent Electricity Rehabilitation Urban Infrastructure and City Management
IDA IDA
7.5 EUR 5.0 EUR
2005 2005
AfDB IDA IDA IDA
4.3 6.1 5.0 2.1
EUR EUR SDR SDR
1992 1995 1997 1999
IDA AfDB IDA
3.7 SDR 7.5 SDR 1.9 SDR
1999 1999 2000
Senegal Women’s Groups Support Water Sector Integrated Health Sector Development Second Transport Sector Long Term Water Sector Project Water Resources Management Poverty Alleviation Quality Education for All
C R E D I T P O RT F O L I O
Country/ Project
Lead Agency
Long Term Water Sector Project Urban Sanitation, Thiès Urban Mobility Improvement
IDA IDA
Tanzania Electricity IV Power VI Mineral Sector Development Technical Assistance Songwe River Stabilisation Study Central Transport Corridor Roads The Lake Tanganyika Integrated Regional Development (PRODAP) Tunisia Second Forestry Development Water Supply and Sewerage Uganda Second Power - Installation of SCADA System First Urban Third Power - Owen Falls Extension Transport Rehabilitation Northern Reconstruction Telecommunications component
Second Economic and Financial Management (EFMP2)
Roads Development Program, Phase II (RDPPII) Fourth Power Sustainable Management of Mineral Resources (SMMRP) Farm income Enhancement and Forest Conservation Project Zambia Environment Support Power Rehabilitation Copperbelt Environment Road and Rehabilitation and Maintenance Project - In Support of ROADSIP II (Phase I)
Zimbabwe Urban Sector and Regional Development Cahora Bassa Interconnection Pungwe Mutare Water Transfer
Investment million, NDF 11.5 SDR 5.3 SDR
Year of signing 2000 2002
Country/ Project
Lead Agency
Investment million, NDF
Year of signing
Private Sector Projects Loans with equity features Benin Cimbenin S.A.
Swedfund
0.7 SDR
1996
Ghana Paper Conversion Company Ltd. Ghana Emulsion Company Ltd. Danafco Ltd.
Swedfund IFU IFU
0.5 SDR 0.4 SDR 0.2 SDR
1995 1996 1998
AfDB IDA IDA IDA IDA
6.1 6.0 6.7 1.3 4.1
EUR EUR SDR EUR EUR
1993 1995 1999 1999 2004
AfDF
6.0 EUR
2005
Mozambique Maputo Port Privatisation and Rehabilitation
Swedfund
0.9 SDR
2003
IBRD IBRD
4.4 EUR 1.8 EUR
1994 1996
Namibia Seaflower Whitefish Corporation Ltd.
NBVF
0.7 SDR
1999
IDA IDA IDA IDA
4.9 5.8 5.8 4.4
EUR EUR EUR EUR
1990 1991 1994 1994
South Africa Nielsen Tap (Pty) Ltd. Princeton Computing Training Solutions (Pty) Ltd. New Africa Signs and Graphics (Pty) Ltd. Danforge Engineering (Pty) Ltd.
IFU IFU IFU IFU
0.1 0.02 0.04 0.04
SDR SDR SDR SDR
1995 1996 1997 1998
IDA IDA IDA IDA
5.0 3.2 7.0 12.7
SDR SDR SDR EUR
1998 2000 2001 2002
Tanzania Sao Hill Timber Ltd.
NORAD
0.3 SDR
1997
IDA
5.9 EUR
2005
Uganda MTN (Uganda) Ltd.
Swedfund
1.5 SDR
1999
AfDF
5.0 EUR
2006
IDA IDA IDA
0.9 EUR 6.1 EUR 9.6 EUR
1997 1999 2003
Zimbabwe Imperial Derby Refrigeration Ltd. Oscars Fine Foods Frese (Zimbabwe) (Pvt) Ltd. Powervision (Pvt) Ltd.
IFU IFU IFU IFU
1.0 0.1 0.3 0.1
SDR SDR SDR SDR
1995 1995 1996 1997
IDA
8.0 EUR
2004
Regional African Infrastructure Fund Aureos Southern Africa Fund (ASAF) Aureos West Africa Fund
Swedfund Norfund Norfund
1.5 SDR 3.4 EUR 3.0 EUR
1999 2003 2004
IBRD NORAD Sida
4.4 SDR 3.5 SDR 5.9 SDR
1990 1994 1996
AfDB
6.8 EUR
1995
n/a
4.2 EUR
2003
Credit Lines Fifth Line of Credit and Technical Assistance to the East African Development Bank Second NDF Credit Line to the East African - Develpment Bank (EADB)
26
C R E D I T P O RT F O L I O
ASIA
Country/ Project
Lead Agency
Public Sector Projects Bangladesh KAFCO IFU Jamuna Bridge Access Roads ADB Urban Primary Health Care ADB Southwest Road Network Development ADB West Zone Power System Development ADB Dhaka Clean Fuel Project ADB Power Sector Development ADB
! 27
Investment million, NDF
4.0 1.5 1.2 2.7 10.0 9.4 8.3
Year of signing
SDR SDR SDR SDR EUR EUR EUR
1993 1997 1998 2000 2002 2003 2004
Cambodia Greater Mekong Subregion (GMS) Transmission
ADB
9.3 EUR
2004
China Beishigiao Wastewater Treatment Plant, Xi’an City Hedong Wastewater Treatment Plant, Urumqi City Tanggu Geothermal Plant
NIB NIB NIB
1.6 EUR 3.1 EUR 0.8 EUR
1993 1993 1994
Indonesia Central Nurseries Establishment Indonesia/Nordic Forestry Digital Marine Mapping
NIB NIB NORAD
3.9 SDR 3.8 SDR 5.0 SDR
1990 1993 1995
Kyrgyz Republic Power and District Heating Rehabilitation
ADB
5.1 EUR
1997
Lao PDR Highways Improvement Airports Improvement Bridge Construction Theun Hinboun Hydropower Third Highway Improvement Power Transmission and Distribution Road Maintenance Northern Area Rural Power Distribution Roads For Rural Development
IDA ADB Sida ADB IDA ADB IDA ADB ADB
4.8 5.7 6.0 6.0 3.9 6.4 4.5 12.3 7.4
EUR EUR EUR EUR SDR EUR SDR EUR EUR
1991 1994 1994 1995 1997 1997 2001 2003 2004
Country/ Project
Lead Agency
Investment million, NDF
Year of signing
Maldives Third Fisheries Male-Water and Sewerage Third Power System Development
IDA IFU ADB
4.2 EUR 2.1 EUR 4.7 EUR
1992 1995 1998
Mongolia Telecommunications Power Rehabilitation Transport Infrastructure Development Social Security Sector Development, SSSDP Second Education Development
ADB ADB IDA ADB ADB
4.9 3.9 3.8 4.4 8.5
SDR SDR SDR EUR EUR
1994 1995 2001 2001 2002
Nepal Power Sector Efficiency Fifth Telecommunication Biratnagar II Multifuel Power Plant Extension Khimti Power Transmission Melamchi Water Supply
IDA IDA Finland Finland ADB
5.1 EUR 5.8 EUR 5.4 EUR 1.7 EUR 7.5 EUR
1992 1993 1996 1997 2001
Pakistan NLC - Radio Link WAPDA Twelfth Power Sector Provincial Highway
NIB ADB ADB
3.3 EUR 6.9 EUR 4.3 EUR
1993 1993 1994
C R E D I T P O RT F O L I O
Country/ Project
Lead Agency
Investment million, NDF
Year of signing
Country/ Project
Lead Agency
Investment million, NDF
Year of signing
Bangladesh Scancement International
Norfund
1.4 SDR
2000
China Scana Leshan Machinery Company Limited
IFC
1.6 SDR
1999
Private Sector Projects Loans with equity features
Philippines Industrial Restructuring Leyte-Cebu Geothermal Local Government Units (LGU), Urban Water and Sanitation Mindanao Basic Urban Services Sector Technical Education and Skills Development
IBRD IBRD
2.8 EUR 4.2 EUR
1992 1995
IBRD ADB ADB
0.6 SDR 4.3 SDR 5.0 SDR
1998 2000 2000
Sri Lanka Second Power Distribution and Transmission Southern Transport Development Skills Development Secondary Education Modernization
IDA ADB ADB ADB
5.4 3.7 6.3 4.5
EUR SDR SDR SDR
1996 1999 1999 2000
Nepal Khimti Hydropower
ADB / IFC
2.1 SDR
1996
Thailand Thailand Research Test Center (TRTC)
Norfund
0.3 SDR
1998
Sida ADB Sida ADB
7.4 4.3 5.9 11.6
EUR SDR EUR EUR
1996 1999 2001 2005
Regional Mekong Enterprise Fund Ltd. (MEF)
ADB
3.4 EUR
2002
Vietnam Song-Hinh Hydropower Vocational and Technical Education Bai Bang Paper Mill Central Region Transport Network
28
C R E D I T P O RT F O L I O
L AT I N A M E R I C A A N D T H E C A R I B B E A N Country/ Project
Lead Agency
Public Sector Projects Bolivia Energy Generation, Transmission and Distribution IDB Environment, Industry & Mining IDA National Land Administration IDA Ventilla - Tarapaya Highway IDB Institutional Reform Project (IRP) IDA Bolivian Epidemiological Shield and Support for Health-Sector Reform Program IDB Road Rehabilitation and Maintenance IDA Environmental and Social Protection in the - Santa Cruz-Puerto Suàrez Corridor IDB Colombia Pacific Coast Sustainable Development IDB
Jamaica Primary Education Improvement Multisectoral Pre-investment Airport Reform and Improvement
29
Year of signing
4.8 5.0 5.0 2.6 1.3
1991 1995 1996 1999 2000
EUR SDR SDR SDR SDR
5.0 SDR 4.8 EUR
2000 2002
3.5 EUR
2002
1.4 SDR
1997
5.1 SDR 2.7 SDR
1993 1998
IDA IDB IDB
7.8 SDR 1.5 SDR 7.0 EUR
2000 2000 2001
IDB IDA
3.4 EUR 5.6 EUR
2002 2005
IDB
5.6 EUR
2005
IDB IDB IDB
2.0 SDR 1.8 SDR 2.0 SDR
1993 1994 1997
Dominican Republic Energy Control Center / SCADA System IDB Health Sector Modernization and Restructuring IDB Honduras Road Reconstruction and Improvement Potable Water and Sanitation Investment National Education Reform Three National Sustainable Development Program for - Upper Lempa River Basin Land Administration Support for Rural Electrification and the Energy Sector
Investment million, NDF
Country/ Project
Lead Agency
Investment million, NDF
Year of signing
IDB
2.7 SDR
1992
IDB IDB IDB IDB IDA IDA
4.8 4.0 3.2 6.9 2.3 2.5
1992 1993 1996 1997 1997 1999
Sida
3.0 SDR
2000
IDB IDA IDB
2.5 EUR 4.6 EUR 9.5 EUR
2002 2003 2004
Colombia Owens Corning Andercol TuberÌas S.A.
NORAD
1.4 SDR
1996
Regional Central American Small Enterprise Investment Fund (CASEIF)
Norfund
3.1 EUR
2003
Nicaragua Electric Power System Rehabilitation Rehabilitation of the Water Supply & Sewerage Systems Rural Road Rehabilitation and Upgrading Forestry Resource Management and Conservation Management of Lake Managua Atlantic Biological Corridor Health Sector Modernization II Road Yalag¸Ìna-Las Manos, Rehabilitation and Improvement Socioenvironmental and Forestry Development Program II - (POSAF II) Land Administration Transport Program for Improved Competition
SDR SDR SDR SDR SDR SDR
Private Sector Projects Loans with equity features
441 014 Printed matter
Nordic Development Fund • Annual Report 2012 • Lay-out: Kubik advertising • Photos: Mikkel Østergaard, Lehtikuva, Aage Jørgensen and Jørgen Schytte • Printed by Libris, Finland
Nordic Development Fund (NDF) P.O. Box 185 FIN-00171 Helsinki, Finland Offices: Fabianinkatu 34 Telephone +358 10 618 002 Telefax +358 9 622 1491 E-mail: info.ndf@ndf.fi Internet: http://www.ndf.fi