AFD - Annual Report by Agence Française de Développement

AGENCE FRANÇAISE DE DÉVELOPPEMENT

ANNUAL REPORT

2012

CON TENTS CONTENTS 2012 AFD / ANNUAL REPORT

4 6 7

Interview with the Chief Executive Officer

Addressing the structural causes of crises in fragile states

36 37

Supporting the initiatives of NGOs

Letter from the Chairman of the Board About AFD An institution commited to development Development: One mission, many tools

Project finance: The heart of AFDâ&#x20AC;&#x2122;s role and mission

2012 Highlights

Evaluating funded projects

CORPORATE RESPONSIBILITY

A MULTI-ACTOR PROCESS

Promoting sustainable development for balanced economic growth

Good governance, transparency and accountability

40 42 44

Thinking about development aid modalities

Capitalizing on human resources and curbing environmental impacts

Strengthening local capabilities

Mitigating risks to ensure long-term operations

THE AFD TEAM

2012 ACTIONS

Board of Governors

Key numbers and map: AFD serves international solidarity

48 49 50

22 26

Sub-Saharan Africa takes priority

APPENDICES AFD office network

Preserving the environment and regional balances in Asia

Meeting urban and environmental challenges in Latin America

52 54 56 58

Promoting the French Overseas Provincesâ&#x20AC;&#x2122; dynamism

AFD 2012 project approvals

Bolstering transitions in the Middle East and North Africa

Working with other donors Consolidating partnerships with nongovernmental entities

Management team Organization chart

Books, periodicals and videos Financial statements AFD Group 2012 funding approvals

AFD

2012 ANNUAL REPORT

INTERVIEW WITH

Dov ZERAH Chief Executive Officer

What stood out in 2012? October 2012 saw the endorsement of our new Strategic Orientation Plan, a great landmark. The plan sets our latest goals, serving as our road map until 2016. We also expanded operations into three new countries: Libya, Myanmar and Peru. Our financing activity continued to grow to €7 billion, in particular because both PROPARCO and the overseas provinces had an outstanding year. Our work shone during important international events such as the World Water Forum in Marseilles in March, and the “Rio+20” Earth Summit in June. New partnerships expressed our aims to expand and deepen the scope of our work, for example with the Islamic Development Bank, the United Nations Development Program (UNDP), the Community of Sant’Egidio, and the French Hospital Federation. We also did outreach to inform the French public about our work by touring a photo exhibition called “Objectif Développement: A New Look at Developing Countries,” shown in several venues throughout France. What is the basis of the 2012-2016 Strategic Orientation Plan approved last year? The concept of different projects for different geographies underpins our Strategic Orientation Plan. In each of our operating regions, we focus on a few sectors that our beneficiaries identify as priorities, deploying funding instruments suitable for each recipient’s financial capacity. In sub-Saharan Africa – our top priority – we mainly finance agriculture and infrastructure with subsidized loans, and health and education with grants. In North Africa, we use slightly subsidized loans to create jobs, enhance employability, redistribute territorial and social resources, and improve living conditions. In emerging countries, we promote green and inclusive growth models that cost France nothing. In fragile and post-conflict states, our grants aim to improve lives and to combat the factors that contribute to fragility. AFD has also set ambitious goals for itself in the French Overseas Provinces, where it is the leading financier of the economy.

What are the other Strategic Plan orientations? AFD acts responsibly in the service of international solidarity. Our strategy requires exemplary conduct, bolstered by three guiding principles: corporate responsibility, ethical standards, and anti-corruption measures. In June 2012, we published our inaugural social, environmental and governance report; a third-party agency gave it a very good, B+ rating. All of our managers, from headquarters to the field offices, signed onto a new professional code of ethics. We also strengthened our anti-corruption policies; AFD has some of the strictest procedures among its peers for fighting graft, money laundering, tax evasion, and so forth. Another strategic direction situates AFD in an increasingly dense partnership network. We want to expand the work we do with other development actors. We have set up an internal unit to improve dialogue with French local governments engaged in international aid. More generally, we want to increase our influence and make better use of experts, especially French ones. Simultaneously, we continue strengthening AFD’s operations by reinforcing our business model, procedures, and human capital. This is an obligatory step for an institution doubling its balance sheet, as AFD is doing. Finally, sustainable development stands as our overarching principle. Beginning this year, we will create a “second-opinion” procedure for sustainability matters which, alongside our regulatory “second-opinion” process, will independently review environmental, social and governance aspects of all our projects.

How does AFD’s corporate responsibility policy affect internal workplace policies? AFD’s overall corporate responsibility policy translates into solid progress in work-related matters. The organization is fully committed to gender parity; in 2012, women outnumbered men for the first time. Ten years ago, only 18% of managers were women, compared to one in four today. Female employees have also gained substantial ground in the field offices, from less than 10% in 2002 to nearly 25% today. And we will soon have seven women directing field offices and eight women serving as deputy directors. At the end of 2012, we also signed an agreement with all our workplace representatives to integrate the disabled. The agreement was approved by France’s regional office of work and employment, and has already resulted in the creation of a mission statement and in job-training for the disabled. AFD has also signed a partnership agreement with a nonprofit, “One Internship and After;” this program helps middle-school students from underprivileged neighborhoods find and prepare for pre-secondary-school internships. AFD will help at least five students per year. Finally, AFD bolstered its efforts in continuing employee education, dedicating a larger share of payroll to training: 4.4% at the end of 2012.

AFD acts responsibly in the service of international solidarity. What has been done for your priority region – Africa? Sub-Saharan Africa remains the primary beneficiary of our funding. In 2012, 34% of our aid (not including the portion earmarked for France’s overseas provinces) targeted the African continent. Even more significantly, Africa received two-thirds of our grants and interest-rate subsidies. Our work provides support for Africa’s overall and urban populations – which will double and triple respectively between now and 2050. We should bolster agricultural policies to feed those two billion Africans; and we need to build up infrastructure to improve access to basic services such as water and electricity. We also emphasize education and healthcare, particularly for mothers. Maternal health is indispensible to better controlled birth rates and permanently improved living conditions among the poorest. We especially focus on these issues in Sahelian countries. What is happening in Arab countries? As we have expected, political and economic transitions take a long time and call for our increased attention. Growth models have to be redirected toward job creation: just to keep unemployment at its current level

will require creating 34 million jobs in the next 20 years. The region needs better sharing of the fruits of economic growth. Arab countries must also truly improve their populations’ living conditions. The €1.2 billion in funding that we approved in 2012 for countries in the Middle East and North Africa aims to meet these enormous challenges. What is AFD doing in emerging countries? Over the past ten years, AFD has been authorized to work in several new countries: Brazil, China, Colombia, India, Indonesia, Mexico and Turkey, among others. However, these additions have not occurred at the expense of long-time beneficiaries. Three principles have guided our expansions: (1) incurring no cost to France; (2) supporting projects that favor green and inclusive growth; and (3) helping create economic and expert partnerships in these countries. In emerging countries, we have positioned ourselves to address global problems, particularly climate change: 70% of our funding in emerging countries must have a positive effect on the climate. We are building a common language with these countries as they request French experience and expertise in sustainable development. AFD appears to have crossed a threshold in the French Overseas Provinces, correct? That is true. Historically, our funding amounted to about €1 billion; in 2012, we reached €1.5 billion through our very vigorous support of the private sector. AFD has unarguably proven itself as one of the growth engines in the overseas provinces. Our funding represents 3% of their GDP. We meet about 40% of local-government financing needs. And we supply half of all social housing through our equity interests in seven overseas property companies. Four years after transferring the cofinancing of NGO initiatives to AFD, what results do you see? They are very positive. AFD and the NGOs really grew closer through shared efforts to understand each other. AFD worked hard to better accommodate the NGOs’ specificities. This uniting of efforts was essential for at least three reasons. Country-to-country cooperation is insufficient because it does not necessarily take into account citizen aspirations; working with civil society brings us closer to populations’ needs. In addition, NGOs can act in emergencies where AFD cannot. And finally, NGOs liaise on our behalf with French citizens who want to have a better understanding of development issues. Beyond creating ties by working together on projects, we support NGO initiatives in the field, and their efforts to educate the French public about development, by including French civil society in all our intervention designs. This organic relationship with international nonprofits will be bolstered further; the goal is to double the amount of French aid that flows through NGOs.

AFD

2012 ANNUAL REPORT

LETTER FROM

Pierre-André PÉRISSOL CHAIRMAN OF THE BOARD OF GOVERNORS

This year, the Agence Française de Développement (AFD or “the Agency”) continued its expansion of aid funding while working to improve the quality of its offerings and consolidating its corporate responsibility systems. AFD strengthened its good practices, supported by its new Strategic Orientation Plan for 2012-2016. In June 2013, AFD published its first corporate responsibility report, rated B+ by a third-party agency. The organization also adopted a new professional code of ethics. In the fall of 2012, the board of governors took steps to strengthen anti-corruption measures and to review AFD’s procedures for fighting money laundering, corruption and terrorism financing. For all of these concerns, AFD has set standards for itself that place it among the most stringent of donors. At the same time, financing activity has increased, with funding approvals reaching €6.977 billion in 2012, of which 28.9% is destined for sub-Saharan Africa. This region – a top priority – accounted for 69% of the budget allotted to AFD by the French government. In particular, these funds finance agriculture and infrastructure via subsidized loans, and health and education via grants. The Agency also increased its financial commitments to North Africa in support of the Arab Spring, and to Latin America and Asia for fostering green and inclusive growth. In France’s overseas provinces, where AFD plays a leading role in financing the economy, 2012 was a record year – nearly €1.5 billion of approved funding commitments, compared to historical funding levels of about €1 billion. Furthermore, AFD has extended financing activities to three new countries: Libya, Myanmar and Peru. The year 2012 also saw stronger ties between AFD and other development actors, particularly nongovernmental organizations (NGOs) and French local

governments engaged in international development actions. AFD provided €45 million toward French NGO initiatives; forty-one nonprofits received an average of €860,000 for 52 projects. AFD also pursued its knowledge-creation activities and evaluated the impact of its fieldwork, enriching its expertise in development aid. During the year, AFD shared its expertise and practical experience by participating in important meetings of the international community: the World Water Forum in Marseilles in March, the Rio+20 Conference in June, the World Urban Forum, the 6th Africités Summit in Senegal, and the Conference of Parties to the United Nations Convention on Climate Change in Doha. AFD continued touring the Objectif Développement photo exhibition, entitled “A New Look at Developing Countries.” The exhibit traveled to Nantes, Dijon, Montpellier and Grenoble, and went on to Dakar in December. Through these activities, AFD retains its central role in France’s international foreign-aid system, contributing to the nation’s influence. Financing provided through the Agency represented 46% of France’s bilateral aid in 2012. AFD’s network of field offices is especially extensive and recognized worldwide. In numerous ways, AFD affirms its commitment to the populations of developing countries and to the fight against poverty, as well as to debating and strategizing about development challenges – all in close collaboration with the French government. AFD accomplishes all this thanks to its employees and agents, whom I wish to acknowledge and to thank for their expertise and know-how, their commitment and motivation – all of which constitute AFD’s primary assets.

AN INSTITUTION COMMITTED TO

DEVELOPMENT

France’s bilateral aid efforts find their primary outlet in the Agence Française de Développement (French Development Agency). It promotes international solidarity and is an important contributor to the development of France’s overseas provinces.

complements traditional bank financing, filling a gap in the market. It also strives to promote the highest environmental and social standards among its fund recipients. PROPARCO backs its financing with a €3.1 billion investment portfolio and €740 million worth of funding agreements signed in 2012, combining strong financial performance with high-impact on development issues.

Sustainable development serves as a common thread running through all of AFD’s aid activities, in alignment with policy directions from the French government, set by the French president and the prime minister. AFD’s international actions are based on France’s development and cooperation framework; the findings of the Interministerial Committee for Operations in the French Overseas Provinces guide its operations in non-mainland French territories. In 2011, a “means and objectives” contract drawn up between AFD and the French government formalized these strategic orientations, as did AFD’s Third Strategic Orientation Plan, which was approved in October 2012.

AFD partners with other aid agencies, emerging donors, development finance institutions and charitable foundations. In France, AFD supports the foreign aid activities of international solidarity organizations; it also supports French local governments and businesses involved in development work. In addition, the Agency maintains an ongoing dialogue with public and private organizations interested in development policy; it works with them to raise the French public’s awareness about development issues.

AFD is a public industrial and commercial entity combined with a specialized financial institution. The Agency provides funding and technical assistance for development projects and programmes that enhance more sustainable and shared economic growth – efforts that improve living conditions for the poorest, preserve the environment, and stabilize countries in fragile situations. AFD employees work closely with public- and private-sector local, regional and national partners, through AFD’s headquarters in Paris, its business university in Marseilles, and 70 other offices and bureaus in foreign countries and in France’s overseas provinces. This geographic reach allows AFD employees to offer financing, risk analysis and hedging tools, and to tailor professional-training and capacity-building assistance to specific localities. In 2012, AFD Group (AFD and PROPARCO) approved funding rose to € 6.977 billion.

Since 2007, AFD has been committed to taking steps toward social, environmental and governance responsibility. It constantly seeks out best practices for financed projects and for internal operations, using a system of controls to prevent corruption and money laundering. It also follows good social and environmental practices, implementing aid-effectiveness principles and monitoring and evaluating impacts.

An AFD subsidiary, PROPARCO, helps the private sector in emerging and developing countries with a complete range of long-term, non-concessional financial instruments. PROPARCO’s goal is to encourage sustainable and inclusive growth in the developing world. It

Uganda – Bujugali Dam

AFD

2012 ANNUAL REPORT

DEVELOPMENT: ONE MISSION, MANY TOOLS

AFD offers a varied palette of tools to its beneficiaries and partners, tailored to their needs and projects. AFD is a public nonprofit institution that combines funding resources to meet three imperatives: adapting to beneficiary capacities, respecting its assigned strategic directives, and carefully optimizing public funds received from the French government.

AFD’s financial instruments The Agency’s main financial products include:

India – Bangalore Metro construction site

• Loans: AFD makes (1) “sovereign” loans to central governments and public entities that enjoy a government guarantee; and (2) “non-sovereign” loans to private-sector companies and public- or privatesector entities without government backing. All loans may be “concessional” (interest rates or other terms may be subsidized via a grant component) or “nonconcessional” (interest rates or other terms follow the market).

• Grants and Subsidies: AFD provides grants and subsidies for high-impact projects that do not generate sufficient profit over the short term to allow for loan repayment, such as projects in healthcare, education and small-scale agriculture. Grants and subsidies primarily fund the poorest African countries and NGO-led projects.

• Guarantees: AFD uses credit guarantees to motivate commercial banks to make loans, especially to small and medium-size businesses, for capital investment, job creation and environmentally-friendly projects.

• Private Equity: A specialized investment capital team at PROPARCO manages equity stakes, providing funding required by companies and financial institutions for long-term growth.

DIVERSIFIED FINANCIAL INSTRUMENTS AFD allocates highly concessional funding – grants, subsidies, subsidized loans – to the poorest countries, particularly for projects in sectors that create indirect profits, such as health, education and small-scale agriculture. In 2012, the Agency concentrated 69% of its government-provided resources on sub-Saharan countries. Conversely, in intermediate-income countries and, a fortiori, in the larger emerging countries, AFD’s funding is only slightly subsidized. Often, the aim is to promote innovative development approaches; in such cases, AFD limits grant-giving to project-related technical assistance, thereby encouraging knowledge transfer, discussions about the best sectoral policies, or even joint innovation. AFD increasingly cofinances projects with other donors, especially its European peers. Cofinancing funds largescale projects that no single entity could finance alone. It also creates opportunities to discuss development finance modalities, particularly within the International Development Finance Club.1

1. The International Development Finance Club provides a meeting ground for bilateral and regional development banks and agencies; AFD joined its steering committee in 2012.

Public and private financial resources Funding from international markets AFD finances itself with its own funds, publicly-issued bonds, and private equity. The AA+ credit rating on its bonds allows the Agency to offer below-market loans. Financial support from the French government Funds provided by the French Ministry of Foreign Affairs allow AFD to finance projects with grants, including some co-development projects. Funds provided by the Ministry of the Economy and Finance essentially serve as loan subsidies. Funds from the Ministry of the Overseas Provinces support projects in those regions.

In 2012, the French government allocated a total of €871 million to AFD-led development actions; this included €571 million for grants and subsidies. AFD’s ability to raise low-cost funds from financial markets and to design innovative cofinancing arrangements allows borrowers to benefit from leverage effects; this makes the economic profitability of their capital investments higher than their debt service costs.

China – Rebuilding Szechuan

Tunisia – Tunis tramway

In the same vein, countercyclical loans help profitable enterprises in highly cyclical markets. Such loans feature variable grace periods that are determined by market indicators, adjusting loan repayments to match the borrower’s receipts. Increasingly, AFD Group lends directly to local governments in the developing world despite their lack of a central-government guarantee. AFD also loans directly to local and national financial services companies; their branch networks make them essential relays for local development, capable of providing long-lasting, largescale services to individuals and small businesses locally.

AID THAT GOES BEYOND FUNDING AFD also offers technical assistance to its funding beneficiaries, ensuring better functioning in funded projects. Such assistance includes knowledge sharing, local capacity-building, help with institutional project-funding arrangements, and support for organizational performance improvement, expert consultancy services, and so forth. AFD also implements a large share of France’s commercial capacity building programme, in the same spirit of assistance.

A growing part of AFD’s services assists funding beneficiaries in managing risk. The Agency helps risky but solvent borrowers gain access to financial markets by guaranteeing their loans or accepting secondary-creditor status, vouching for their independence and growth potential. Besides offering various funding instruments, AFD puts its beneficiaries at the center of the development process, granting free access to its highly diversified expertise. The Agency offers technical engineering and support for public policy design by collaborating with a network of institutions and leading academics, among other means. This large partner network also allows AFD to connect specialist organizations from beneficiary countries with their French peers – for example, by pairing them with equivalent organizations, through decentralized cooperation agreements, or by collaborating with nonprofits. In addition, AFD manages the French Global Environment Facility (FGEF), which cofinances projects, taking into account global climate and biodiversity preservation issues. AFD also manages the secretariat for the French Alliance for Cities and Territorial Development (or PFVT), which brings French experts together around the topic of sustainable cities.

AFD

2012 ANNUAL REPORT

2012 HIGHLIGHTS

15-22 juNE

5 no v e m b E r

Rio +20 3 new foreign-aid countries AFD is authorized to intervene in Libya, Myanmar and Peru.

1,48 billion

Euros for the French Overseas Provinces

AFD affirms its status as the leading financier of France’s overseas provinces with a record level of funding in 2012 to support local economies.

45 million Euros in grants to 41 French NGOs for 52 project initiatives

AFD attended the Rio+20 Summit, reaffirming its commitment to sustainable development, which it sees as 1 5 O C T O B E R a dynamic balance between the economic, social and environmental dimensions.

Strategy

JU N E

Corporate Responsibility 1st Corporate Responsibility Report, rated B+ by a thirdparty In addition to publishing a social, environmental and governance responsibility report (SER) and a new professional code of ethics, AFD bolstered its anticorruption measures and reviewed its procedures to fight money laundering, corruption and terrorism financing.

12-17 marCH

A Thirsty World

During the World Water Forum in Marseilles, AFD discussed solutions for universal access to water and sanitation. A movie financed by AFD, La Soif du Monde (A Thirsty World) by Yann Arthus-Bertrand, premiered at the conference.

27 SEPTEMBER

Partnership with the Association des Régions de France (ARF)

An agreement with ARF counts as the 24th signed by AFD with a decentralized cooperation partner. The partnership aims to better integrate economic development in the regions’ foreign aid actions, offer joint vocational-training services, assist in the French Overseas Provinces’ cooperation efforts, and take advantage of regional networks.

The Launch

of Hearings on Development and International Solidarity

AFD actively participated in a vast governmentThe board of initiated discussion about governors approves the priorities, modalities AFD’s 2012-2016 and accountability of France’s foreign aid Strategic Orientation policy. All contributors to Plan France’s developmentThe plan foresees aid efforts participated: intervention modalities parliamentarians, NGOs, differentiated according migrant worker organizations, to the situation in each trade unions, businesses, beneficiary country; it aims for sustainable development foundations, local governments, and research as a key feature of all AFD actions, strengthened funding centers. activities, and exemplary behavior by all employees 2 - 1 1 d E ce m b E r and agents.

Exhibition

O ctobe r

Energy

AFD adopted an intervention framework for 20122016 that will guide its actions in the energy sector. During the period, AFD will allocate €6 billion, concentrating on renewables and energy efficiency.

Objectif Développement in Africa

After touring France, the Objectif Développement exhibition travelled to three African cities, starting with Dakar during the 6th Africités Summit.

RESPONSIBILITY

RESPONSIBLE

CORPORATE

AFD

C O R P O R AT E R E S P O N S I B I L I T Y

PROMOTING SUSTAINABLE DEVELOPMENT FOR

BALANCED ECONOMIC GROWTH AFD made sustainable development its “identity marker” in its 2012-2016 Strategic Orientation Plan. This involves reconciling social and economic progress with environmental preservation. ATTENDING TO LONG-TERM CHALLENGES AFD’s emphasis on sustainability derives from an awareness of development’s complex and interlocking challenges in a time of changing foreign aid practices. Although economic growth remains the main engine of social progress, increased inequality, intensified global competition, and recent systemic crises show that growth must be regulated to have an effective impact on development and well-being. Efforts to alleviate poverty have gradually evolved toward defense of a universal right to basic goods and services: providing basic services access to a billion of the planet’s poorest looms as a major development-policy challenge. At the same time, the last few decades have underscored how current development modes, when combined with rapid population growth, create unsustainable tensions; these arise from the need to meet an exponential demand for energy and raw materials, manage externalities affecting the environment and living conditions, and control heightened competition for land and natural resources. This kind of development has reached the limit of what the planet can support, affecting major environmental balances. A collective management of such balances, which nation-states cannot carry out alone, henceforth requires global regulatory and financing processes, ones that target natural resource conservation, biodiversity preservation, and climate-change effects mitigation.

Biodiversity in Indonesia

A new sustainable-development aid policy must therefore include an approach that preserves global natural balances; it must also support work that will benefit the poorest countries. Consequently, such an approach must inspire and support new and transformational development policies in all countries – policies that attend to social and environmental impacts alongside financial ones. In its aid interventions, AFD targets those who mainly focus on innovation and these long-term challenges. Its experience confirms that there is no universal recipe for sustainable development; anyone can make contributions to it. Sustainable development must be seen as part of a continuous improvement process, supported in turn by social, political and institutional processes. Improvements are made by disseminating information, supplying financial tools, and transferring the expertise needed to change production and consumption conditions. This emphasis on sustainable development – as a dynamic balance among the economic, social and environmental dimensions of development – also matches the main directions set during the Rio+20 Summit in June 2012; the international community plans to define sustainable development goals by 2015.

1st Corporate Responsibility Report In 2012, AFD published its inaugural report on corporate responsibility and received a B+ rating according to standards set by the Global Reporting Initiative. Taking steps toward corporate responsibility gives vital expression to AFD’s concern for accountability, both in the projects it finances and in its internal operations. The Agency’s 2007-2011 social, environmental and governance policies also underwent evaluation by a third party.

Tunisia – Windfarm in El Haouaria

AN APPROACH INTEGRATED INTO ALL SECTORS OF ACTIVITY Awareness of sustainable development must translate into action across all of AFD’s procedures and interventions, as may be seen in the care taken to comply with proper working conditions and workers’ rights. It is also seen in AFD’s efforts to rehouse displaced people, preserve biodiversity, and protect cultural heritage. AFD has set out written action goals for each of its operating regions and sectors: education, health, rural development, water, energy, and so on. AFD is currently revisiting its strategic sectoral frameworks, in order to integrate a sustainable development angle into each one. AFD is also preparing a sustainable development “second-opinion” process, following decisions made in 2012 in its Third Strategic Orientation Plan. Responsibility for formulating this “second-opinion” will not rest with the chief operating officer, who examines project finance proposals. Rather, it will be the remit of an independent office, who will verify that AFD financing conforms to the Agency’s sustainable development principles and objectives.

Combatting climate change In 2012, AFD Group approved funding commitments of €2.4 billion to fund 54 so-called “climate” projects in developing countries and in France’s overseas provinces. “Climate” projects deliver both development and anti-climate-change benefits. This €2.4 billion – a 22% increase over 2011 – raises the Group’s approved funding commitments for climate projects to a total of €12 billion since 2005. This financing primarily affects development projects and programmes that abate or eliminate greenhouse gas emissions. In particular, AFD supports renewable energy, energy efficiency, and urban mass transit. In 2012, for example, AFD provided €100 million to fund a 100 MW solar power plant in South Africa. The Group also finances assistance for central and local government policies that simultaneously expand economic growth and combat climate change. For example, AFD committed to €20 million to fund a climate change response programme in Vietnam. AFD also supports countries and populations in their efforts to adapt to climate change – focusing on Africa but also on global water conservation. In 2012, AFD allocated €30 million to Morocco to reduce leaks in water supply systems in 30 cities. This funding will also increase Morocco’s water storage capacity, alleviating its high water stress.

AFD

C O R P O R AT E R E S P O N S I B I L I T Y

GOOD GOVERNANCE, TRANSPARENCY AND ACCOUNTABILTY

AFD has committed to many best practices, with the aim of setting a good example. Three central concerns shape these practices: the fight against corruption, responsible corporate governance, and professional ethics. Transparency and accountability also play essential roles in these practices. A GOVERNANCE ALIGNED WITH A PUBLIC-INTEREST MISSION Inasmuch as AFD is a public institution fulfilling a public-interest mission, it determines its chief directions in tandem with the French government, working with three key ministries: the Ministry of Foreign Affairs, the Ministry of the Economy and Finance, and the Ministry of the Overseas Provinces. AFD’s governance depends on four councils and committees that ensure good management in the service of international solidarity:

The Interministerial Council for Cooperation and Development defines France’s foreign aid policy. AFD’s supervisory ministries (Foreign Affairs, Economy and Finance, Overseas Provinces) act as the council’s secretariat.

The Interministerial Council for Overseas Provinces, chaired by the French president, sets

policy guidelines for operations in France’s overseas provinces.

The Strategic Orientation Board, presided over

by the deputy minister of development, reinforces the articulation between the government’s policy guidelines and AFD’s operational implementations. Members of the strategic orientation board include representatives from AFD’s key ministries and board of governors.

The Board of Governors, chaired by Pierre-André Périssol since June 2010, comprises 18 members: six representatives from the supervisory ministries; two AFD employee representatives; four parliamentarians, and five experts. They deliberate on the Agency’s strategic directions, project funding, and financial activities, and approve a “means and objectives” contract negotiated with the French government. A government commissioner also sits on this board. The Board of Governors may delegate part of its authority to AFD’s chief executive, who must in turn answer to the board. Or the governing board may delegate – within pre-set funding limits – to one of three special committees: the Committee for Operations in the French Overseas Provinces, the Committee for Operations in Foreign Countries, and the Committee to Support Nongovernmental Organizations’ Initiatives.

Greater accountability to parliamentarians In recent years, relations between AFD and French parliamentarians have grown closer, following changes to the constitution and a July 2010 law governing France’s actions abroad. By deepening its engagement with AFD, the French parliament affirms its strong interest in the effective execution of France’s foreign aid policy. The main exchanges between lawmakers and the Agency occur during the design phase of AFD’s strategy, particularly its “means and objectives” contract, and during the draft phase of budget bills, especially when AFD answers budgetary questions. In 2012, ties between the Agency and the parliament also took form in eight parliamentary reports that examine France’s development policy. Other interactions included testimony by AFD’s chief executive at 29 Senate and National Assembly hearings to inform the work of various commissions.

The Objectif Développement exhibition in Dakar

ONGOING CONVERSATIONS WITH CIVIL SOCIETY As part of its effort to improve aid effectiveness, AFD maintains an ongoing dialogue with its partners – borrowers and project beneficiaries, civil-society and nongovernmental organizations, local governments – and with the French public. This outreach has included informational events and debates about AFD’s strategic direction, adapting each engagement to a region, such as Asia or Latin America, and to a sector of activity: energy, climate and health, among others. The debates help define action guidelines prior to their submission to the board of governors for approval. The events brought together lawmakers, nongovernmental professionals, researchers, businesspeople, and representatives from foundations, local governments, and trade unions. AFD also initiates many conferences which provide opportunities to discuss its work and that of other development professionals. Such events facilitate constructive dialogue and knowledge and idea sharing, helping to create a common vision. In 2012, as part of its public outreach, AFD organized three debates under one overarching label: “What Lessons Can Be Learned from Best Practices in Foreign Aid?” One debate addressed regional development, the second education, and the third healthcare-access.

AFD also continued touring the Objectif Développement photo exhibition entitled “A New Look at Developing Countries.” It travelled to Nantes, Dijon, Montpellier and Grenoble, and went on to Dakar in December 2012. Conferences, films and debates took place during each exhibition, featuring topics selected with officials in each partner city. These events brought the public together with experts from AFD, NGOs, and local governments, broadening awareness about often-misunderstood development aid issues. They also presented AFDfunded projects and, more generally, France’s foreign aid policy.

The adoption of a new code of ethics AFD Group revised its professional code of ethics in 2012 to better define “AFD’s culture” via clear and common principles. These embody central values: commitment, integrity, openness and flexibility. The code defines the individual and collective commitments as well as the behaviors that these principles entail. After extensive internal debate and discussion, the code was adopted and signed by all AFD directors, at headquarters and in the field offices, before its distribution to all employees and agents.

AFD also launched the “Ideas for Development” (ID4D) conference cycle in 2012, producing 16 conferences attended by about 100 people each. The conferences explored a variety of topics: “Food Challenges Arising by 2050,” “Does the Private Sector Develop the South?” and “Combining Poverty Alleviation, Social Cohesion and Mental Health,” among others.

In China, French senators meet the users of an urban-heating project

AFD

C O R P O R AT E R E S P O N S I B I L I T Y

CAPITALIZING ON

HUMAN RESOURCES AND CURBING ENVIRONMENTAL IMPACTS In 2012, AFD took new steps toward greater social and environmental responsibility, improving workplace cohesion and career variety for its 1,742 employees and agents. It also reduced its environmental impact. AFD strengthened its worldwide office network by hiring new recruits locally, particularly highly-qualified managers. It primarily seeks out talent for technical and financial engineering, knowledge creation, and health and education expertise, as well as for management functions such as risk analysis, internal controls, project management, and auditing.

EMPLOYEE GEOGRAPHIC DISTRIBUTION as of 31 December 2012 (outside of mainland France) French Overseas Provinces

17% Latin America, Caribbean and the Pacific

Sub-Saharan Africa, Indian Ocean

49% Asia

15% Middle East and North Africa

12% AFD Group employee headcount

2011

2012

France (mainland)

955

1,005

Field offices and bureaus

151

148

1,134

1,179

French Overseas Provinces

108

110

Foreign countries

439

453

Total local and foreign employees

547

563

1,681

1,742

367

362

Technical assistants Transferees Total mainland France employees

Total AFD Group employees Reserve bank employees* International volunteers (AFD Group and reserve banks)

* The reserve banks act in the name of the Banque de France, under its authority and upon its behalf. They operate as central banks in Franceâ&#x20AC;&#x2122;s overseas provinces. However, their employees come under the economic and social unit, AFD/Reserve Banks.

CONTINUING EDUCATION Continuing education forms a vital pillar in AFDâ&#x20AC;&#x2122;s human resources policy. The Agency spent a substantial 4.15% of its gross payroll on training in 2012, and extended it to more collaborators: 90% of its agents attended at least one training session during the year. In addition, AFD made a special effort to reach out to locally recruited agents in the field offices, organizing training sessions for them at headquarters and producing various regional seminars. Training covers all financial, technical, economic and linguistic topics. In 2012, AFD emphasized sectorspecific technical courses to disseminate skills internally, providing as much help as possible to those responsible for internal and external operations.

GENDER PARITY At the end of 2012, women accounted for 51.7% of all employees working for AFD Group and the reserve banks. The average age for female employees is 42.7 years, compared to 45.4 for male employees. AFD made progress toward employment parity between women and men, as stipulated in a new June 2011 labor agreement. It sets targets for greater parity at all levels of the organization and covers those employed under French law; these number 1,179 employees in AFD Group and 102 transferees working for the reserve banks in France’s overseas provinces. In 2012, 45.2% of managers were women; the target for the end of 2013 is 50%. Women held 24.6% of senior management positions; the 2013 target is 33%. In the field offices, women comprise 24.2% of the personnel; the 2013 target is 28%.

EMPLOYMENT AND WORKFORCE INTEGRATION FOR THE DISABLED Once AFD’s senior managers and trade union representatives noted the organization’s low employment rate for the disabled (1.7%), they instituted a new “Handicap” labor agreement in December 2012. It covers employees working under French law and actively focuses on hiring and integrating the disabled, and on maintaining employment for AFD employees who become disabled during their career. AFD has also committed to bringing in participants from a French jobs programme, “Occupational Preparation for Collective Employment;” they begin with internships, followed by work-training contracts. The French jobs agency Pôle Emploi, Opcalia Île-de-France, and the National Center for Professional Training have set up this programme. It aims to make it easier to hire disabled workers by providing personalized training for specific job openings in partner enterprises.

Promoting workplace integration for young people In October 2012, AFD signed a partnership agreement with a nonprofit, “One Internship and After.” The organization assists middle-school students from disadvantaged neighborhoods, using pre-secondary-school internships to help them consider career paths. The goal is to allow each student, no matter his or her background or scholastic aptitude, to discover various types of work and to obtain an internship that will be useful for their future. AFD has committed to taking in at least five middle-school students each year. Two were welcomed in December 2012; they spent five days learning about various professions. The Agency also expanded its work-study program, increasing the number of student workers from six in 2011-2012 to eleven for 2012-2013.

The AFD Chad team

The AFD Reunion team

Employee safety abroad AFD actively and constantly watches over the safety of employees working abroad, monitoring threats such as terrorist activity, earthquakes, or health risks, especially in troubled regions. When an event threatens employee safety, a crisis unit mobilizes and assesses the situation on a daily basis, assisting local and expatriate employees in whatever way is necessary.

A responsible procurement and waste management policy AFD has created a procurement department that has systematized responsible practices by including social and environmental clauses in its contracts. For example, headquarters buys paper that is guaranteed as recyclable and approved by an environmental watchdog and the Forest Stewardship Council; such paper represented 76% of AFD’s total consumption in 2012. In addition, AFD requires subcontractors to reduce wrapping materials and deliver only unpackaged products. In 2011-2012, AFD audited waste management at its headquarters; the findings will enable the organization to improve the coordination of existing practices and define others worth implementing.

Energy consumption and carbon emissions One hundred percent of the electricity purchased for AFD headquarters comes from renewables. In 2012, energy use decreased by 2% and electricity use by 8%, due to high-environmental-quality, low-consumption installations and retrofits at headquarters and in some foreign offices. Employee travel accounted for more than 50% of the Group’s total carbon emissions, since in-country missions are crucial for monitoring projects. Nonetheless, AFD’s efforts to curb its carbon footprint lowered emissions from employee travel by 3% in 2012. 17

AFD

C O R P O R AT E R E S P O N S I B I L I T Y

MITIGATING RISKS TO ensure

LONG-TERM OPERATIONS

While taking risks is inherent in development financing, risk-taking should not imperil AFD’s longevity. That is why AFD has monitoring procedures to ensure risk mitigation. COMPLYING WITH BANKING REGULATIONS As a specialized financial institution, AFD is subject to bank regulation and must comply with rules governing credit institutions, such as maintaining adequate solvency ratios. AFD pays particular attention to fights against money laundering, terrorism financing, and corruption. This entails complying with banking laws and helping in the international effort to reduce such diversions of funds. In 2012, AFD bolstered already stringent use-offunds oversight procedures as part of its new anticorruption measures. It will review these procedures to improve coordination between all of the means used to combat these forms of illicit funds diversion.

MAINTAINING SOLVENCY To ensure its own solvency, AFD carefully analyzes credit risks. It assesses borrowers’ ability to repay longterm debts, using credit scoring methods that have been adapted for each intervention sector and each borrower’s specific characteristics. It reviews the quality of its entire loan portfolio every three months.

INTERNAL CONTROLS ENSURE GOOD PRACTICES AFD Group deploys an internal control system that monitors proper financing conduct, financial reporting reliability, and legal and regulatory compliance.

The risk division reviews every loan that AFD plans to make. It identifies possible project risks, looking at the type of borrower, the country (especially its banking system and sociopolitical risks), the international situation, and other factors. It also maps the risks, presenting a comprehensive view that helps predict the likelihood of a risk occurring. AFD has also implemented a system to record operational incidents; it helps monitor corrective actions that will prevent reoccurrences. Alongside this continuous monitoring, AFD’s Internal Auditing Department audits each other department and foreign office to ascertain a posteriori proper financing processes, actual risk levels, and compliance with procedures. The audit periodically examines the effectiveness and suitability of audit and control measures. Frequent reports on these monitoring activities are submitted to the Internal Control Committee.

The Audit Committee assesses the quality of internal controls The Audit Committee works for the Board of Governors, with the task of verifying information and assessing the relevance of accounting procedures for the entire AFD Group. The committee also evaluates the quality of internal controls. The Audit Committee is comprised of one member of the governing board and four external advisors.

2012

ACTIONS

AFD

2012 ACTIONS

AFD SERVES INTERNATIONAL

SOLIDARITY

In 2012, AFD Group approved 648 new fundings for a total of €6.977 billion BRUSSELS / EUROPEAN INSITUTIONS LIAISON MARSEILLES / CEFEB, AFD BUSINESS UNIVERSITY PARIS / HEADQUARTERS

17.4%

of all financing commitments €1,217.7 million in funding approvals 11 offices and bureaus

17.4%

of all financing commitments €1,214.1 million in funding approvals 7 offices and bureaus

28.9%

Multidisciplinary funding represents 0.6% of commitments and cannot be allocated to a single geographic region

of all financing commitments €2,013.5 million in funding approvals 30 offices and bureaus

2012 AFD GROUP FUNDING APPROVALS (€ million)

In developing and emerging countries

In the French Overseas Provinces

LOANS

GUARANTEES

LOANS, GRANTS AND SUBSIDIES

GRANTS

EQUITY PARTICIPATIONS

SME GUARANTEES AND FINANCING

(Grants, subsidies, debt relief and development contracts, budget aid, support for NGOs)

140

2006

1,262

832

475

370

TOTAL

3,140

2011

4,841

167 631

671

436

TOTAL

6,884

138 115

2012

4,723

571

980

498

TOTAL

6,977

The numbers on these two pages do not include approvals for delegated funds that AFD deploys on behalf of third-party donors, such as the European Union, DIFD, or others. Funding approval values based on commitments made by AFD and its subsidiary, PROPARCO. Together these represent 99% of AFD Group net banking income.

IN 2012 AFD APPROVED FUNDING THAT WILL HELP:

14.5%

DEVELOPING AND EMERGING COUNTRIES

of all financing commitments €1,010.1 million in funding approvals 12 offices and bureaus

French Overseas Provinces

THE FRENCH OVERSEAS PROVINCES

I mprove drinking water access and supply for 1.79 million people

Support five healthcare facilities used by 1.3 million patients

rovide sanitation systems P for the equivalent of 360,000 inhabitants

Build 3,300 social housing units financed by property companies in which AFD holds equity

uild and refurbish mass B transit systems used by 3.23 million riders annually

21.2%

of all financing commitments €1,478.4 million in funding approvals 9 offices and bureaus

I mprove trash collection and removal services for 4.7 million citizens annually nsure primary schooling E for 10 million children and secondary schooling for 3 million rovide professional training P for 207,000 adults Abate 3.6 million metric tons of CO2 equivalent emissions per year

olster 1,100 companies via B credit guarantees that resulted in bank loans worth €227 million and created 1,770 jobs

Methodology: These indicators reflect the expected outcomes of projects and activities that AFD approved funding for in 2012. They are based on AFD’s ex-ante analyses (conducted prior to funding approval) that are updated during funding proposal reviews for each project. The updates estimate the outcomes that should be achieved once a project is completed. These indicators take into account the impact of AFD’s direct as well as leveraged contributions to these development efforts.

SECTORS FINANCED BY AFD GROUP IN 2012 Distribution of funding approvals Agriculture and Food Security Environment and Natural Resources Water and Sanitation Education, Health, Anti-HIV/AIDS Multi-sector and Other

Infrastructure and Urban Development of which Energy

16%

6% 6.5%

47%

8.5%

Number of funding approvals* Agriculture and Food Security (8%) Environment and Natural Resources (5%) 52 34 Water and 33 Sanitation (6%) 39 Education, Health, Anti-HIV/AIDS (10%)

Infrastructure and Urban Development (17%) of which Energy (5%)

112

64 206

21%

Business, Industry and Trade Dans les pays d’intervention et dans les Outre-mer, hors garanties dans les Outre-mer et financement dans le cadre du mandat de gestion Oséo.

Multi-sector and Other (22%)

142

Business, Industry and Trade (32%)

* Does not include credit guarantees in the French Overseas Provinces and delegated funding from OSEO. 21

AFD

2012 ACTIONS

SUB-SAHARAN AFRICA TAKES PRIORITY

AFD finances infrastructure access, agriculture and food security in close partnership with all development stakeholders in sub-Saharan Africa. The Agency works toward reducing inequalities and building up the private sector, a robust source of job creation. A dynamic population, rising cities, strong and resilient economic growth, a wealth of resources, and a middle class driving the emergence of more trustworthy governments and larger internal markets – all these trends create great hopes for the region. They also frequently mask strong – sometimes extreme – disparities between countries, regions and peoples. The intensity and rapidity of these transformations collide with state weaknesses. Because of structural deficiencies, sub-Saharan economies fail to create enough jobs or to reduce poverty and inequalities, preventing the sustainable management of natural resources. Furthermore, the fragile situation of many Sahelian countries was further aggravated in 2012.

AFD Group’s funding approvals for sub-Saharan Africa reached €2 billion in 2012. In light of this situation, AFD Group’s funding approvals for sub-Saharan Africa reached €2 billion in 2012. African countries south of the Sahara remain AFD’s priority for aid interventions, representing 29% of the Group’s total funding approvals by value and 47% by number of funding approvals. The region also received 69% of the official development assistance that France allocates to AFD, a total of €603 million. These financial resources include loan subsidies, project grants, general budget aid, and debt relief. The 17 poorest priority countries for French foreign aid received 78% of the grant monies.

Medical clinic in the Central African Republic

STRENGTHENING AGRICULTURE AND PRESERVING ECOSYSTEMS African farmers must increase yields to meet the continent’s demographic and food challenges. The agricultural sector employs 65% of sub-Saharan workers and constitutes the principal entryway to the job market for young people. AFD supports agriculture and the entire food-processing industry with project financing, while preserving – or even restoring – Africa’s fragile and often threatened natural capital. In 2012, AFD Group mobilized €266 million and used its entire range of financial instruments to help support small-holder farmers, bolster agricultural and foodprocessing industries, set up farm cooperatives, commercialize farm products, and sustainably manage ecosystems. This support especially reinforced the institutional capacities of rural development sectors in Cameroon; it also improved food security and the economic development of rural areas in Matam Region, Senegal. In Nigeria, a country with nearly 80 million rural residents, joint AFD and World Bank financing will refurbish rural roads and facilitate access to isolated populations in four federal states, making it easier to bring village food production to market. PROPARCO completes AFD’s aid approach with direct loans to private-sector agricultural and food-processing companies. AFD also financed biodiversity preservation for ecosystems in Mozambique and the development of sustainable logging models in Cameroon and the Central African Republic.

SECTORS FINANCED IN SUB-SAHARAN AFRICA (AFD Group, 2012)

AFD GROUP 2012 FUNDING APPROVALS FOR SUB-SAHARAN AFRICA (€ million) 750.1

274.7

Sovereign Loans Non-sovereign Loans

195.1 Grants and Subsidies

250.7

440.6 PROPARCO and FISEA

TOTAL :

2,013.5

Guarantees 102.2 Budget Aid and HIPC Initiative

NUMBER OF FUNDING APPROVALS Agriculture and Food Security Environment and Natural Resources Water and Sanitation

Infrastructure and Urban Development

18 Education, Health and Anti-HIV/AIDS

Business, Industry and Trade

154

Multi-sector and Other

DISTRIBUTION OF FUNDING APPROVALS

Support for the Forest and Environment Sector Programme in Cameroon

Environment and Natural Resources

2.5% Water and Sanitation

PROMOTING SUSTAINABLE INFRASTRUCTURE AFD promotes African infrastructure upgrades while taking care to reduce environmental and climate change impacts. In line with decisions made by the G20 in Cannes, AFD Group interventions primarily target energy, transportation, and urban development, reaching €673 million in 2012. AFD financing chiefly expands access to renewable energy (€515 million in 2012) and has helped exploit largely underdeveloped hydroelectric opportunities. In Cameroon, for example, AFD supported a hydroelectric dam project that will better exploit the energy-production potential of the Sanaga River Basin, providing electricity to populations in the region. AFD also promotes the development of alternatives to fossil fuels. In Mauritania, for example, AFD financed the construction of a pioneering hybrid solar-thermal power plant. The regional dimension of energy issues also requires strengthening organizations dedicated to the problem. In 2012, AFD helped the West African Development Bank (or BOAD) implement regional policies for power production, transmission, and distribution in West Africa.

11.9%

Agriculture and Food Security

10.4% Infrastructure and Urban Development

33.4%

Education, Health and Anti-HIV/AIDS

12.3% Multi-sector and Other

13.4%

Business, Industry and Trade

16.1%

The numbers on this page do not include approvals for delegated funds that AFD deploys on behalf of third-party donors, such as the European Union.

Transport infrastructure is also needed to open up isolated areas and integrate African economies into regional and international trade. In 2012, AFD Group dedicated €88.6 million to international transport infrastructure, financing capacity expansion for an ocean port in Mauritius, an airport in Abidjan, and an air traffic control agency serving Africa and Madagascar, the Agency for Air Navigation Safety (or ASECNA). Finally, improved basic services capacity in African cities took up €69 million of AFD funding in 2012. Works included urban waste management in Djibouti, drainage infrastructure and roads in Koumasi (Ghana), and a storm-water treatment project and lagoon repairs in Lomé, in a cofinanced partnership with the European Union.

AFD

2012 ACTIONS - SUB -SAHARAN AFRICA

EXPANDING ACCESS TO HEALTHCARE, EDUCATION AND DRINKING WATER Among its priority social concerns, AFD first concentrates aid on maternal and infant health, making grants worth €46.3 million to the poorest countries in 2012. These grants, part of France’s Muskoka commitment in 2010, bolster healthcare systems with equipment and skills; grant monies also fund affordable treatments. In Senegal, for example, funds for a reproductive health and newborn programme will also strengthen capacities at the Ministry of Health’s Department of Health, Reproduction and Infant Survival, and in the Louga Medical Region. In Madagascar, AFD supports a social enterprise that combats child malnutrition. In the education sector, AFD seeks to increase access – without discrimination – to high-quality basic schooling, which now includes middle schools; it does so by bolstering workplace integration and the articulation with professional training. In 2012, AFD dedicated €149 million to basic education (from primary through secondary school) in several countries, such as Burkina Faso, Burundi and Cameroon. AFD supported professional training with €25.5 million, creating training centers as requested by African authorities. These centers primarily focus on business, industry and trade – the engines of national economies – in close collaboration with private-sector companies. AFD financing for drinking water supply bolsters institutional frameworks and sustainable water management efforts, thus improving urban and rural access to reliable water services. Sanitation projects target primary and secondary cities as priorities. In 2012, AFD approved €239 million of financing for water and sanitation in sub-Saharan Africa.

Senegal FOOD SECURITY FOR POPULATIONS LIVING IN THE SENEGAL RIVER VALLEY For thirty years, AFD has funded the Senegalese authorities’ development priorities for the Senegal River Valley: productive land creation and development of irrigated agriculture. In 2012, Senegal called upon AFD to finance a new programme, known as ASAMM, to improve food security and commercialization in Matam Region. A very concessional €22 million loan will finance productive investments, primarily agricultural and hydraulic infrastructure, that should improve farm yields. The loan will also capitalize an investment fund for collective infrastructure, including pastoral land development, storage and packaging facilities, and farm-product commercialization. Furthermore, a grant for €500,000 will complement these initial actions, giving technical and institutional support to various regional stakeholders involved in the development, management and promotion of these capital investments. These steps should improve food security and resilience for this region’s population, one of the most vulnerable in Senegal.

Tanzania SANITATION AND DRINKABLE WATER FOR TOWNS ADJACENT TO LAKE VICTORIA Since fewer than 20% of Tanzania’s citizens have sewage hook-ups, the government has launched a massive wastewater management and drinking-water supply programme, targeting three cities on the banks of Lake Victoria: Mwanza, Bukoba and Musoma. With a total project cost of €1.145 billion, AFD and the European Investment Bank (EIB) will contribute €45 million each. The Tanzanian government is investing €14.5 million and the European Union €10 million. This project joins a national and regional effort to preserve Lake Victoria’s water quality and optimize its management in the face of growing urbanization. The programme will benefit 450,000 residents and improve living conditions for the one million Tanzanians who live near the lake.

Schoolchildren in Mauritania

Mauritania A PIONEERING HYBRID POWER PLANT IN KIFFA The Mauritanian government has made access to electricity one of its development policy priorities. In Kiffa, the second largest city, located 600 kilometers southeast of Nouakchott, the Mauritanian Electric Company (or SOMELEC) has begun building a pioneering hybrid solar-photovoltaic and thermal power plant. This power plant, with its 1.3 megawatt-cubed capacity, should eventually produce reliable electricity at a competitive cost – enough to power 5,300 urban households. The project aims to foster an alternative, non-fossil-fuel energy industry, setting an example to replicate elsewhere in the country and the region. AFD is financing this project through a €19 million loan to Mauritania to construct a power plant and transmission lines from Kiffa to Guerou. A €4.8 million grant from the European Union Energy Facility completes the funding; the grant will pay for grid construction and residential connections.

Water tower under construction in Senegal

Madagascar NUTRI’ZAZA: A COMPANY THAT COMBATS INFANT MALNUTRION Child nutrition in Madagascar is very unstable and structurally weak: 50% of children younger than five show delayed growth; 42% suffer from wasting, and 13% from acute malnutrition. The urban section of the Nutrimad project, led by the Technological Research and Exchange Group (or GRET), creates centers for counseling, nutrition education and baby food distribution. These “hotelin-jazakely,” or baby restaurants, distribute a food supplement, Koba Aina, to the most disadvantaged families. The Nutri’Zaza company has a mandate to expand the baby-restaurant network to all Malagasy towns and to market the food supplement through local grocery chains, NGOs, and charities. In an entrepreneurial spirit, Nutri’Zaza seeks to keep the product as affordable as possible for the poorest families while making a profit to ensure the company’s longevity. AFD has given the company a €900,000 grant, covering losses attributable to start-up costs incurred during the company’s first four years. The funding will also finance the technical assistance needed to get the project off the ground.

AFD

2012 ACTIONS

BOLSTERING TRANSITIONS IN

THE MIDDLE EAST AND NORTH AFRICA

In the Middle East and North Africa (MENA), AFD focuses on fostering job-creating economic growth, strengthening social and regional cohesion, and improving the quality of life. The year 2012 saw complex debates about new constitutions in Tunisia and Egypt, the halting consolidation of institutions in Libya, the beginnings of a political transition in Yemen, and an increasingly serious civil war in Syria. Countries south and east of the Mediterranean have yet to see a return to economic growth rates equivalent to those preceding the political crisis. The Arab Spring cleared the way for the appearance of new regional financiers. The Gulf States provide everlarger sums for public capital investments (Saudi Arabia in Jordan) and for budget aid (Qatar in Egypt). Similarly, the arrival of the European Bank for Reconstruction and Development (ERBD) in North Africa opens new financing possibilities for the region’s private sector. In this connection, AFD has pursued and reinforced relations with the European Union, using the Neighbourhood Investment Facility (NIF) for eight projects. In addition, the European Commission has entrusted AFD with two €55 million delegated-funds management agreements.

A RENEWED STRATEGY In February 2012, AFD approved a new strategy for MENA, one which will help AFD respond to social and economic changes in the region from 2012 through 2014. The strategy aims to bolster job-creating economic growth by developing industry and labor-intensive services. It also aims to strengthen social and regional cohesion by supporting land-use policies and fighting social exclusion, among other matters. It equally aims to improve the quality of life – for example, by working toward energy security in the countries most dependent on fossil fuels.

Turkey – The City of Izmir

IMPROVING LIVING CONDITIONS AFD funding approvals for MENA totaled €1.217 billion in 2012. This high amount reflects the needs of large-scale infrastructure projects, such as the Cairo metro system and sectoral budget aid in Jordan, among others. Disbursements reached €877 million. This financing makes possible neighborhood-scale projects that improve living conditions: solid waste management services in Gaza, sanitation in Upper Egypt, slum redevelopment in Tunisia, a tramway in Casablanca, a more efficient water supply in Morocco, and an education programme in Lebanon.

Turkey URBAN TRANSPORTATION IN IZMIR The Izmir municipality in Turkey defined an ambitious urban programme as part of its 2010-2030 Transportation Plan, one that integrates various means of mass transit – boats, articulated buses, suburban trains, and metros. AFD, EBRD and the World Bank’s Investment Finance Corporation (IFC) will provide €159 million to cover the investment in maritime transportation, including 17 ferries, new and renovated docks, and a maintenance site. AFD approved €45 million to replace the current fleet of ferries with higher-performance and more fuel-efficient ones. By offering fast, high-quality public transportation, this project aims to reduce urban pollution and decrease exclusive use of private vehicles.

NUMBER OF FUNDING APPROVALS FOR THE MIDDLE EAST AND NORTH AFRICA (AFD Group, 2012)

AFD GROUP 2012 FUNDING APPROVALS FOR THE MIDDLE EAST AND NORTH AFRICA (€ million) 939.0

163.5

Sovereign Loans

Agriculture and Food Security

TOTAL :

1,217.7

Non-sovereign Loans

30.4 Grants and Subsidies

PROPARCO 81.2 Guarantees 3.5

Infrastructure and Urban Development

Water and Sanitation

Education, Health and Anti-HIV/AIDS

5 Business, Industry and Trade

Multi-sector and Other

DISTRIBUTION OF FUNDING APPROVALS FOR THE MIDDLE EAST AND NORTH AFRICA BY COUNTRY (AFD Group, 2012) Turkey

Schoolchildren in Lebanon

12.5%

Multi-country Programmes

0.5%

Tunisia

Egypt

5.0%

Palestinian Territories

1.5%

SOLID WASTE MANAGEMENT IN THE GAZA STRIP A multi-donor €30 million trash removal programme in the Gaza Strip, funded by the World Bank, the Islamic Development Bank and local sources, receives AFD cofinancing of €10 million, augmented by €5 million of delegated funds from the European Union. It is a priority for the Palestinian Authority because it protects water and directly aids Gaza’s residents, solving an environmental and health emergency. The goal is to improve living conditions by collecting solid waste and transferring it to landfills, built and operated according to international standards.

32.0%

Palestinian Territories and Libya

Morocco

Jordan

31.0% Lebanon

5.0%

The numbers on this page do not include approvals for delegated funds that AFD deploys on behalf of third-party donors, such as the European Union.

Jordan

Lebanon

AN ENERGY AID PROGRAMME

IMPROVING TEACHING AND FACILITIES IN SCHOOLS

Jordan faces an energy crisis that affects the country’s public finances and economy. AFD supplied a €150 million budget-support loan in June 2012. In compliance with an IMF energy programme, AFD will help the Jordanian government with implementation. This joint effort will cover all the needs of the energy industry: public electricity utilities, energy supply, electricity rate-setting, gas subsidies, renewables, and energy efficiency.

12.5%

This project is part of Lebanon’s National Strategic Education Plan, supported by the World Bank, the European Union and USAID. AFD has provided €46.5 million via a grant and a subsidized loan. The project comprises a school-building and equipment programme and capacity-building for adult-education teachers; it will also include technical assistance for the Ministry of Higher Education and Teaching, to guide its supervision of project work sites. This project aims to improve apprenticeship conditions in schools, primarily in the disadvantaged areas of North Lebanon, Bekaa and Mount Lebanon. It will also strengthen the quality of teaching, especially in French language courses.

AFD

2012 ACTIONS

PRESERVING THE ENVIRONMENT AND REGIONAL BALANCES

IN AsiA

AFD helps integrate environmental issues into the public policies of Asian governments, especially the emerging ones. In fragile and post-conflict states, AFD seeks to attenuate the factors that cause conflict. In 2012, AFD was authorized to intervene in Myanmar, its 18th Asian beneficiary, where it financed three projects at the end of the year. Additionally, AFD identified projects in five Central Asian and Caucasus countries where it has been authorized to operate since 2011: Armenia, Azerbaijan, Georgia, Kazakhstan and Uzbekistan. This preliminary work should allow AFD to deploy the first project funds as early as 2013, notably to foster the transition to low-carbon economies. AFD strengthened its relationship with the Asian Development Bank and Japan’s aid agency, JICA. It also deployed the first European Commission investment facility for Asia, and started promising discussions with its South Korean and Australian peers.

“GREENING” THE GROWTH OF ASIAN COUNTRIES AFD assists Asian governments – particularly in emerging nations – to better integrate environmental issues into public policy. For the second consecutive year, in 2012, AFD, with JICA, contributed to Vietnam’s “Climate Plan.” The plan aims to abate the country’s greenhouse gas emissions and reduce its vulnerability to climate change effects. In the face of unprecedented Asian urbanization, AFD has also financed several low-carbon urban mobility projects; these include the Bangalore Metro, dedicated mass transit lanes in Bandung and Dacca, and a multimodal transportation hub in Wuhan. Other urban energy efficiency projects include electricity grids in Jakarta, public lighting in Phnom Penh, and water supply in Jodhpur and Phnom Penh. Energy efficiency and renewables are central priorities for AFD in Asia, since the region accounts for 50% of the world’s fossil fuel consumption. Thus, in 2012, the Agency extended

Vietnam – Support for the agricultural industry

and funded two credit lines to India and to Indonesia for renewable energy initiatives. Finally, AFD also supported a sustainable forest management project in the Chinese province of Hunan.

ASSISTING IN REGIONAL REBALANCING In the fragile states of Afghanistan, Myanmar and Pakistan, AFD seeks to attenuate the roots of conflicts while encouraging social cohesion. To do this, the Agency in 2012 financed basic services – water, electricity, healthcare, microfinance – and agriculture to improve living conditions, especially those of women. These projects also renew ties between governments and their citizens. AFD also supports projects that create economic growth, in an effort to achieve balance in the region and redress development gaps between countries. In Cambodia, AFD provided funds to the agricultural sector to finance irrigation and rice and peanut commercialization. In Vietnam, AFD has reinforced professional training capacities and helped expand public-private partnerships.

AFD GROUP 2012 FUNDING APPROVALS FOR ASIA

SECTORS FINANCED IN ASIA (AFD Group, 2012)

(€ million)

543.4

277.2

Sovereign Loans

148.3 PROPARCO

Non-sovereign Loans

TOTAL :

1,010.1

Guarantees 0.2 Grants and Subsidies 41.0

NUMBER OF FUNDING APPROVALS Agriculture and Food Security

Environment and Natural Resources

Infrastructure and Urban Development

Water and Sanitation

4 Business, Industry and Trade

Education, Health and Anti-HIV/AIDS

Multi-sector and Other

DISTRIBUTION OF FUNDING APPROVALS Agriculture and Food Security

Cambodia – Irrigation canal on the urban periphery Environment and Natural Resources

28%

Promoting French savoir-faire AFD’s Asian aid beneficiaries recognize and expect to profit from French know-how and expertise, particularly for green economies and sustainable cities. In light of this, AFD promotes both the visibility of French skills and Franco-Asian synergies to its target partners, including local authorities, specialized public agencies, NGOs, research centers, and other institutions. In 2012, AFD made good use of innovative French solutions and skills in its Asian sustainable cities projects. These included producing a workshop on water issues in Beijing, with the involvement of French experts and enterprises; refurbishing Luan Prabang in Laos with the help of Chinon, a French city; financing urban transportation and lighting, using the expertise of French companies; and partnering with PlaNet Finance for microfinance services in Myanmar.

India IMPROVING URBAN MOBILITY Bangalore, India’s third-largest city, will count 10 million inhabitants in 2020 compared to 8.5 million today. The urban bus network can no longer meet the city’s mobility challenges. This causes very slow traffic – the average speed is 12 km per hour – and high levels of air pollution. To remedy this situation, AFD loaned €110 million to build a metropolitan rail system, complementing financing from the Asian Development Bank and Japanese and South Korean aid agencies. By 2017, two million riders will use the system daily, which will eliminate seven million tons of carbon emissions over 30 years. Following open requests for tenders, several French companies were selected for expert consultancy services, trafficsignal equipment, and technical studies for the project.

Infrastructure and Urban Development

Water and Sanitation

49%

6% Education, Health and Anti-HIV/AIDS

4% Multi-sector and Other

Business, Industry and Trade

The numbers on this page do not include approvals for delegated funds that AFD deploys on behalf of third-party donors, such as the European Union.

Cambodia

EXEMPLARY WATER MANAGEMENT Phnom Penh concentrates 10% of Cambodia’s population and most of its industrial activity. Eighty-five percent of its residents have drinking water services. This rate – remarkable in the region – comes from the good governance and efficiency of the Phnom Penh Water Supply Authority. The city now faces a stronger demand for water, due to a rural exodus and the city’s accelerated development. The water authority used a €30 million loan from AFD to finance investments that will double the capacity of the main drinking water production plant. The project will increase residential access to drinking water, boost the city’s economic development, and reduce social inequality by supplying water to previously unconnected areas on the city’s periphery.

AFD

2012 ACTIONS

MEETING URBAN AND ENVIRONMENTAL CHALLENGES

IN LATIN AMERICA

In Latin America, AFD promotes green and inclusive growth among central and local governments and public enterprises. In the Caribbean region, the Agency supports poverty alleviation and regional cooperation. In 2012, AFD Group approved €1.214 billion of funding for the Latin America and Caribbean region. In addition to its financing, AFD puts its experience to work in technical cooperation programmes, and promoted public and private French expertise that may prove relevant to regional problem-solving. Furthermore, AFD actively participates in debates about the economic and social development challenges that the region faces, thus strengthening relations between France and Latin American countries. Bolstered by its practical field experience, AFD has set new goals for its Latin American aid activities for 20122014. The Agency intends to reconcile its interlocutors’ expectations with its mandate for green and inclusive growth and with other donor interventions. AFD’s work in the region focuses on two major challenges: finding sustainable and inclusive solutions to problems posed by rapid urbanization, and helping develop public policies that protect the environment and fight climate change.

IMPROVING LIFE IN THE CITY Latin America has the world’s highest urbanization rate. This rapid and massive phenomenon creates a genuine lag in infrastructure and services which, in turn, contributes to social exclusion and economic inefficiency. That is why AFD strengthened its collaboration with Latin American national and local authorities in 2012, as they worked on formulating inclusive urban policies. In Colombia, AFD loaned €150 million to Findeter, Colombia’s municipal finance bank, to bolster the bank’s balance sheet and to fund green and inclusive urban policies.

Brazil – Protecting urban biodiversity

PROTECTING THE ENVIRONMENT In 2012, AFD continued its support for policy development that combines environmental protections with natural resource valorization. After providing support for the Special Anti-Climate-Change Programme, AFD renewed its commitment to work with Mexico on preserving biodiversity, approving a loan to the federal government for €60 million in 2011. This loan supports Mexico’s sustainable biodiversity management policy with new land-use planning instruments, inspired by France’s regional natural park experience.

STRENGTHENING HUMAN CAPITAL Access to and quality in education and healthcare services constitute major challenges and central government policy concerns for Caribbean countries. AFDsupported projects in Haiti and the Dominican Republic will improve access to healthcare, higher education and professional training among the most disadvantaged, increasing their future opportunities.

AFD GROUP 2012 FUNDING APPROVALS FOR LATIN AMERICA AND THE CARIBBEAN

SECTORS FINANCED IN LATIN AMERICA AND THE CARIBBEAN (AFD Group, 2012)

(€ million)

781.9

149.9

Sovereign Loans

260.7 PROPARCO

TOTAL :

NUMBER OF FUNDING APPROVALS

1,214.1

Guarantees 2.5 Non-sovereign Loans

Agriculture and Food Security

Budget aid and HIPC Initiative 8.0 Grants and Subsidies 11.1

Environment and Natural Resources

Infrastructure and Urban Development

Education, Health and Anti-HIV/AIDS

Multi-sector and Other

Business, Industry and Trade

DISTRIBUTION OF FUNDING APPROVALS Environment and Natural Resources

Colombia – The capital city, Bogotá

Agriculture and Food Security

Education, Health and Anti-HIV/AIDS

2% Multi-sector and Other

International summit meeting « Cities and Climate Change » AFD co-produced the “Cities and Climate Change Summit” with the municipality of Bogotá in November 2012, bringing together politicians, public officials, experts and civil society activists. Participants shared best-practice strategies for sustainable urban management, and set up a network of cities firmly engaged with these issues. The guest of honor, Mexico City, presented the principal outcomes of the “Mexico City Pact” or Global Cities Covenant on Climate. So far, the covenant has been ratified by about 270 cities worldwide. Participating cities commit to taking concrete steps toward climate change mitigation and adaptation. At the summit meeting, cities showed their willingness to innovate in order to maintain a balance between ecological responsibility and social inclusion.

2012: The Year of Brazil! Following a 2011 strategic redefinition of its Brazilian intervention mandate, AFD greatly expanded its operations in that country. Four projects received funding approvals in 2012, for a total of €771 million. These new market-rate loans will provide €300 million to support the urban mobility policy of Rio de Janeiro State; another €300 million for a multiyear action plan to broaden basic services access in Minas Gerais State; and €45 million for electricity production and €66 million for power grids in Rio Grande do Sul State.

Business, Industry and Trade

8% Infrastructure and Urban Development

83% The numbers on this page do not include approvals for delegated funds that AFD deploys on behalf of third-party donors, such as the European Union.

Geothermal power in the Lesser Antilles A SUCESSFUL EXPLORATORY PHASE The Caribbean Islands face major energy challenges. As their need for power grows, their energy mix, predominately based on imported hydrocarbons, leads to high production costs and exposes countries to international price volatility. The development of renewables would reduce electricity costs and support the region’s competitiveness while preserving its environment. Since 2008, AFD, the FGEF and the European Union have supported the development of geothermal power in Dominica. Studies and drilling tests have confirmed a production capacity of 120 MW, six times more than the country’s domestic demand. Excess electricity could be exported to the neighboring islands of Martinique and Guadeloupe, supplying them with clean energy. In 2012, AFD provided additional aid for this project, with a €6.5 million loan to finance the first drilling site.

AFD

2012 ACTIONS

PROMOTING

THE FRENCH OVERSEAS PROVINCES’ DYNAMISM In France’s overseas provinces, AFD serves as a partner to the public sector, providing consulting services and financing. It also serves as a public bank for private-sector enterprises, as a shareholder in social housing companies, as an engine for regional economic integration, and as a creator of knowledge. ASSISTING LOCAL POLICYMAKERS In the French Overseas Provinces, AFD offers financial tools and consultancy services to those working to define and implement local public policies. In 2012, publicsector financing commitments reached €467 million; three-quarters of these funds were state-subsidized loans. Several small towns on the Marquise Islands in French Polynesia have asked AFD to finance their annual budgets for sustainable capital investments. AFD also supported multiyear investment programmes in larger towns, such as those in Reunion; nearly all cities received subsidized loans in 2012. In addition, AFD advises on public investment policies.

A PUBLIC BANK FOR THE PRIVATE SECTOR Strengthening local companies is a crucial development issue in France’s overseas provinces. More than in mainland France, provincial businesses struggle because of their constant under-capitalization. AFD works closely with local banks and complements their efforts, responding to the weak business climate in the French Overseas Provinces with financing made directly available to private-sector companies or via OSEO, France’s small-business support agency. The value of such funding almost doubled in 2012, reaching the record amount of €1 billion.

HOUSING AND URBAN DEVELOPMENT Social housing, urban renewal, green residences – AFD meets strong demand for housing and urban development with a variety of capital investments. Alongside local governments, AFD invests in seven property companies on behalf of the French government and on its own account. These major social housing providers

Martinique – A bus from the Fort-de-France Légende metropolitan area urban transportation network

manage 74,000 units between them, including 3,300 built in 2012. This represents 50% to 75% of subsidized housing in each province, and generates considerable benefits for local economies.

PROMOTING INTER-REGIONAL TRADE AND SOLIDARITY AFD assists public and private organizations in the French Overseas Provinces as they pursue projects with neighboring countries. Such assistance takes the form of financial tools for businesses wishing to expand internationally. AFD also provides regional project finance and technical assistance for healthcare, biodiversity preservation, and solid waste management, among other needs. In 2012, the Agency took steps to systematize its approach, defining a regional cooperation strategy for five French Overseas Provinces.

ENRICHING KNOWLEDGE ABOUT OVERSEAS ISSUES AFD-conducted studies of the French Overseas Provinces analyze the implications of their social and economic changes, and consider each region’s particularities. AFD published several studies on human development and business in 2012. The Agency is also conducting economic analyses as part of its partnership with an umbrella organization, CEROM, comprised of local reserve banks; the French statistical agency, INSEE; and Pacific-region statistical agencies.

AFD GROUP 2012 FUNDING APPROVALS FOR THE FRENCH OVERSEAS PROVINCES (€ million) 427.1

543.0

311.8 PROPARCO et FISEA

Prêts souverains Public Sector Loans

Public Sector Guarantees

40.0

Private Sector Loans and Bank Refinancing

Private Sector Guarantees

146.2

SECTORS FINANCED IN THE FRENCH OVERSEAS PROVINCES (AFD Group, 2012) Excluding private sector guarantees and loans deployed as part of OSEO’s management mandate.

TOTAL :

1,478.4 PROPARCO

Private Sector Loans (OSEO)

8.5

NUMBER OF FUNDING APPROVALS

Grants (Foreign Affairs Ministry)

1.8

Urban Development, Facilities and Energy

Environment

French Guiana – Student transportation on the Maroni River

Social Cohesion

Business, Industry and Trade

Other

Includes only loans. Does not include 39 small-scale funding approvals.

DISTRIBUTION OF FUNDING APPROVALS Environment

12%

Reunion FINANCING A DEVELOPER’S CAPITAL INVESTMENTS As a complement to local banks, AFD provides multiyear financing to the largest private property company on Reunion Island, CBo Territoria, via a direct loan for €35 million. This loan completes an investment by PROPARCO in the company’s convertible bonds. The combined support of AFD and PROPARCO will help expand the range of housing available on Reunion. Furthermore, capital investments made by CBo Territoria will create or maintain about 2,300 jobs during the design and construction phases.

Urban Development, Facilities and Energy

22%

Social Cohesion

14% Other

Business, Industry and Trade

48%

The numbers on this page do not include approvals for delegated funds that AFD deploys on behalf of third-party donors, such as the European Union.

Martinique

French Guiana

ADVISING ON CAPITAL INVESTMENTS IN TRANSPORTATION, BIODIVERSITY AND ENERGY

RELIEVING THE ISOLATION OF THE DISABLED

The Martinique Region’s multiyear 2012-2014 investment programme in major infrastructure and natural resource valorization should spark a new economic dynamism. Officials solicited a €35 million AFD loan, along with technical expertise, to fund three essential aspects of the programme: transportation, biodiversity preservation, and energy supply.

In French Guiana, there are few services available to help disabled adults return to work, or the infirm to receive healthcare or assistance at home. A company dedicated to providing transportation for the disabled and others needing assistance was created in 2011. It sought to purchase new vehicles to meet increasing demand; AFD therefore provided a DOM Fund credit guarantee to cover the company’s bank loan. In this way, AFD supports a business that may hire people as it expands services to the community – services that facilitate school and work attendance and that alleviate isolation.

AFD

2012 ACTIONS

ADDRESSING THE STRUCTURAL CAUSES OF CRISES

IN FRAGILE STATES

In fragile and post-conflict states, AFD supports projects that take aim at the structural causes of crises, developing alternatives to war economies, strengthening local skills, and proposing psychosocial assistance for the victims of conflict. In 2012, AFD financed a dozen projects in countries struggling with crisis situations, such as ongoing or just-ending conflicts, failing states, and major natural catastrophes. AFD funds flowed to Afghanistan, Haiti, Sudan, the Palestinian Territories, and other countries. The Agency also enlarged the scope of its interventions to include Myanmar, where it has already financed agricultural projects and the development of rural enterprises. AFD has prepared a cross-disciplinary intervention framework to prevent crises and help countries emerge from them; it targets six priority countries for grant funding. However, given the many other countries experiencing fragile situations, AFD may intervene elsewhere according to the framework’s action principles. AFD does not intervene in humanitarian emergencies. Instead, it employs primarily grant monies for projects to prevent and alleviate the causes of fragility, reinforcing the resilience of societies and helping them re-establish development processes. In 2012, grants, subsidies, budget aid, and NGO support accounted for €62 million in funding approvals, out of a €66 million total.

mies, criminals, contraband and Mafia-like corruption proliferate. Often such activities represent the only means of survival for populations whose herds and flocks have been decimated, and where commercial areas and communications networks have been destroyed. In Afghanistan, opium poppy cultivation has expanded with the wars; today, opiates generate 20% to 30% of the county’s GDP. To increase farmers’ incomes and reduce poppy growing – the source of destabilizing forces and Mafia-like networks – AFD helped restore cottonseed cultivation in northern Afghanistan in 2005. Although much remains to be done, this operation has produced very good results. Cottonseed production has increased to 80,000 tons in Mazar-e Sharif and in Kunduz Province, versus 9,000 tons in 2005. Similarly, in the Sahel, where population growth is high, the inability of the economy to provide jobs to young people constitutes a potentially destabilizing factor. Youth are fleeing from rural areas to cities without any prospects or way to ensure subsistence. They become ideal recruits for criminal activities and political militia. In northern Mali, they expand the ranks of jihadists. Creating jobs for youth is therefore the first priority: AFD addresses the need for youth job creation by funding microfinance and professional training projects.

REINFORCING PUBLIC INSTITUTIONS

PROPOSING ALTERNATIVES TO WAR ECONOMIES AND CRIMINAL NETWORKS

AFD works to build skills in public administrations and the state apparatus. For example, by financing a farm hydraulics project in Chad under the Ministry of Hydraulics, AFD helps improve the ministry’s technical supervision.

Although not all AFD-supported projects aim to eradicate the roots of conflict, in certain cases AFD’s development interventions do act upon deep social and economic divisions. When the apparatus of the state crumbles, war econo-

The Agency also supports governments in their efforts to expand basic services, such as education and healthcare. Beyond improving living conditions, such projects strengthen national cohesion and bolster institutional legitimacy, both often tarnished by years of conflict.

Afghan trout farm

EXPANDING PSYCHOSOCIAL PROGRAMMES

Strengthening the partnership between PROPARCO and Onyx

AFD takes special interest in providing psychosocial assistance to victims of conflicts, a key element of post-conflict reconstruction. After conducting detailed research on the topic, in 2012 AFD added psychosocial trauma counseling to a programme in Chad, and plans to do the same in Haiti and in the Palestinian Territories.

DEVELOPMENT THAT FIGHTS MALNUTRITION

In Chad, “psychological first aid” takes place within a preexisting system of assistance for displaced persons, one that AFD funded with a €10 million grant for various programmes. Eastern Chad has indeed seen much conflict in recent years due to the government’s support for insurgents in Darfur; conversely, Sudan has protected internal rebellions in Chad. These events have displaced 230,000 Darfurians and have driven at least 180,000 Chadians to domestic refugee and displaced person camps. In 2010, as the conflict’s intensity lessened, the displaced Chadians were able to return home. However, in leaving the camps, they lost access to free food, water, medical care, and a minimum of schooling for their children. AFD took up the baton from humanitarian organizations, easing the return of the displaced to the countryside; it financed the recovery of rural activities by funding irrigation systems for small farms, vaccinations for livestock, and new medical clinics. This soon-to-becompleted project provides a good example of the articulation between humanitarian assistance and economic recovery.

In November 2012, PROPARCO, an AFD subsidiary that finances private-sector investment in the developing world, loaned €4 million to Onyx Développement, the French holding company behind Nutriset, a nutritional products company. Jointly with the French Research Institute for Development (or IRD), Nutriset developed an innovative product range, including “Plumpy’nut.” The company has put ready-to-eat products on the market for the prevention and treatment of malnutrition. Nutriset products have become a staple of international humanitarian programmes, substituting for harder-touse milk powders. PROPARCO’s financing will increase production capacity in the network of local “PlumpyField” factories that process and market Nutriset products through franchisees, especially in India and Sudan. The funding will also aid the expansion of African food production and processing companies. By 2018, these capital investments should facilitate the care of nine million malnourished children.

In these countries, AFD addresses the causes of crises while helping populations.

AFD

2012 ACTIONS

SUPPORTING THE INITIATIVES OF NGOs Promoting family farms in Africa

NGOs are major and essential development actors. AFD has increased its engagement and collaboration with them in the past few years. For AFD, 2012 was the year of increased funding for NGOs and of more extensive sectoral discussions with civil society. AFD gave nearly €45 million in grants, with an average worth of €860,000, to 41 French NGOs to finance 52 initiatives and projects. Most of the in-country interventions that AFD supports (88% of funding granted, or €39.3 million) are projects developed in sub-Saharan Africa to achieve the UN Millennium Development Goals. A highlight of 2012 was the first grant to the Belleville Institute, a nonprofit associated with the French trade union, CFDT. The institute will use the grant to support union activities and defend proper working conditions in West Africa. AFD also signed 12 substantial programme-convention agreements with the French chapters of NGOs. These included Agronomists and Veterinarians Without Borders, for support of family farms; Handicap International for inclusive education; and Doctors of the World for reproductive and sexual health.

In 2012, AFD increased the amount of grant funding for NGOs. Twelve percent of the grants to NGOs financed so-called general interest projects, for educating nonprofits about development or for structuring France’s nonprofit sector. For instance, AFD gave funds to the International Migrant-Solidarity Organizations Forum (or Forim); it also gave funds to The Partnership for a project promoting youth and instructor understanding of development issues. In 2012, AFD also supported the Fund for Feasibility Studies, Multidisciplinary Research and Evaluations; its research helps French NGOs and local governments measure the impact and quality of their work.

In 2012, AFD enriched its strategic discussions with NGOs. It updated two NGO funding guides, working closely with Coordination Sud, a nonprofit platform. It also organized many seminars that summarized, exploited and shared knowledge, and it conducted a dozen geographic, sectoral and thematic studies. The latter included an evaluation of multi-participant programmes, with the aim of building civil society capacity, particularly in local public policy design. The Strategic Orientation Plan that AFD adopted in 2012 reaffirmed the organization’s appreciation of NGO partnerships – crucial allies in fighting poverty, bolstering civil society, and campaigning for human rights and development education. As part of this affirmation, the French government made AFD responsible for fulfilling the president’s commitment: a doubling, by 2017, of the public development aid that flows to NGOs.

The Sectoral Innovation Facility for NGOs (or FISONG) Since 2007, AFD has used a financial facility, FISONG, dedicated to funding innovative projects headed by international solidarity organizations. The facility assists NGOs in finding innovative and practical solutions for AFD’s priority intervention sectors. It also prompts dialogue and synergies among AFD and NGOs for shared concerns. Every year, AFD makes two calls for proposals, using objectives jointly defined with NGOs. In 2012, the topics were “Sanitation, waste, hygiene: durable mechanisms and local competencies,” and “Environment, biodiversity and development: sharing profits from biodiversity to benefit village communities.” After reviewing the proposals, AFD granted €5 million to eight NGOs.

PROJECT FINANCE

THE HEART OF AFD’s ROLE AND MISSION The AFD project cycle

AFD Provides project funding and technical assistance if needed

Project idea

Proposal analysis

Feasibility study

Analysis of the feasibility study and the financing application

Submission to AFD for consideration.

Most often done by a third-party provider; it may be financed by AFD.

The report describes the project, cost estimates and proposed financing.

FUNDING DECISION

It analyzes social and environmental impacts and project risk.

5 6

PROJECT IMPLEMENTATION

AFD gets a “second opinion” about any financing from a department independent of the one examining the project proposal. Since 2013, this “second opinion” includes an analysis of the project’s contribution to sustainable development.

Negotiation of financing terms

Request for funding sent to AFD (Project content, financing conditions)

Examination of the project’s goals and its relevance to AFD’s geographic priorities.

AFD examines in particular: - The feasibility study’s hypotheses, conclusions, and financing plan; - Project compliance with aid effectiveness principles: local project ownership, coordination with other donors, integration in local policy; - Match with AFD and French development aid strategy; - Economic, social and environmental effects for the country or region; and - Risk: technical, institutional, economic, financial (project profitability, borrower’s solvency, country macroeconomics), environmental, social, and project owner/shareholder risk of money laundering, terrorism financing and corruption.

The study details project aims, expected results, technical and institutional feasibility, economic and financial viability (borrower’s repayment capacity, operating costs, etc.).

FEASIBILITY ASSESSMENT

PROJECT IDENTIFICATION

Funding beneficiaries States, central and local governments, businesses, NGOs, developers and project owners

Submission of the funding request to the proper decision-makers

Signing of the loan, grant or subsidy contract

Physical building of the project

Choice of suppliers according to local laws and AFD’s procurement principles (competition, social and environmental responsibility, etc.). Monitoring of the work (if necessary, with technical assistance that may be financed by AFD) and payment of suppliers. At the project owner’s request, AFD may pay suppliers directly.

Funds disbursement

Oversight for compliance with contract clauses (preconditions for funds transfers, no-objection notices for the selection modalities, choice of supplier and contracts, pre-authorization for any changes to the project, and so forth). Funds transfer as the project progresses and expenditure receipts are received. Vigilance over money laundering, terrorism financing and corruption risks. Ability to suspend fund transfers or require reimbursement.

PROJECT COMPLETION

Technical and financial supervision of the project.

10 Loan repayment to AFD (if credit financed)

Project evaluation

Examination of built works, their viability and economic, social and environmental impacts.

AFD

2012 ACTIONS

EVALUATING FUNDED PROJECTS AFD systematically conducts a post-project performance evaluation for each of its standard projects. It also conducts more targeted project assessments for certain topics or sectors of activity. AFD evaluations follow standards defined by the Development Assistance Committee of the Organisation for Economic Cooperation and Development (OECD). The evaluations have two objectives: • Improving future development policies, programs and projects by deriving lessons from experience. • Responding to stakeholder demands for accountability, including those of the French public.

SECTOR, THEMATIC AND PROJECT EVALUATIONS Six principles guide standard project evaluations: • Systematization: All projects must be assessed within 12 months after their completion. • Decentralization: AFD field offices lead the effort and present the results to local stakeholders. • Externalization: Consultancies or technical offices outside AFD perform the evaluation. • Use of national experts: AFD calls on local experts from the beneficiary country in order to take advantage of their knowledge of project context and to help build local capacities. • Standardization: Evaluations must meet international criteria and standards. • Partnership: AFD shares the results of each evaluation with project stakeholders. In 2012, AFD commissioned 27 evaluations according to this decentralized procedure. Each year, AFD summarizes the results and presents them to AFD’s board of governors and the public. AFD also uses the evaluations to write summary reports that may teach others how to do similar projects. In addition, AFD conducts so-called strategic evaluations covering sectors, topics or instruments. In 2012, the main

reports included an assessment of the ten-year plan to develop the education sector in Benin, and one on the use of credit lines by a regional development bank. AFD publishes all these sectoral and thematic evaluations on its website as part of its transparency policy. The Agency also marked 2012 by expanding its evaluations to cover its operations in the French Overseas Provinces.

AN EXTERNAL VIEW OF AFD’S EVALUATION ACTIVITIES To better meet AFD’s accountability requirements, a dedicated committee examines the annual evaluations program. The committee judges the evaluations system and the quality and relevance of the work accomplished. An outside director chairs the committee, which comprises four subject-matter experts and four representatives from AFD’s supervisory ministries. The evaluations committee also reports on its work to the AFD board of governors. In 2012, the committee examined six strategic assessments.

Benin

Assessing the 2006-2015 Education Development Plan

A ten-year plan serves as the main management tool for the education sector in Benin. During the second phase (2009-2011) of the plan’s implementation, the government and its partners agreed to conduct a midway assessment, involving local authorities and two of the three donors: Denmark’s Danida cooperation agency and AFD. The evaluation found that the plan’s focus on primary schooling had opened basic education access to nearly every child and had almost eliminated the gap between boys and girls. However, the assessment proved less positive about the quality of teaching. The evaluation report identified some ways to make progress and to improve the plan’s performance during the next, third phase.

PROCESS

ARTNERS

A MULTI-ACTOR

AFD

A M U LT I - AC TO R P R O C E S S

THINKING ABOUT

DEVELOPMENT AID MODALITIES

AFD views new thinking about development aid modalities, along with participation in strategic international debates, as indispensible complements to its role and mission. As a vital tool for aid and development, knowledge creation has two goals: improving donor-funded programmes and suggesting ways to fight poverty and promote sustainability. AFD sees knowledge creation as a means to achieve these aims: • Learning from experience via project evaluations and knowledge capitalization. • Enhancing French positions and discussions about developmental policies and aid.

AFD also regularly organizes workshops and conferences in Paris and in aid beneficiary countries. These events assist in disseminating the results of AFD’s work and contribute to debates; the same is true for the many books, journals and articles AFD makes freely available on the Internet. Notably, AFD co-organized (with GRET, CIRAD, and support from the Agriculture Academy) an October 2012 colloquium on changes in the international job market and the impact of joblessness on rural workers. This event took place at the Economic, Social and Environmental Council; it presented findings from studies forecasting population and labor market growth by 2050. More than 3.3 billion new jobs must be created by then to reach full employment. Creating jobs in new industries remains a priority, but curbing job losses in the agriculture sector is also crucial. The colloquium examined the causes of the rural unemployment crisis and policies that might contain it.

• Anticipating global change and proposing innovative adaptations. Knowledge creation draws on AFD’s sustainable development experience, allowing the Agency to offer public-policy solutions and proposals in addition to project finance. Knowledge creation sifts the numerous questions posed by globalization, addressing poverty and inequality alleviation as well as sustainable development – issues that regularly appear on the international agenda. AFD’s knowledge creation mobilizes the Agency’s internal expertise; it also draws on a network of French and international research institutions that have long served as the Agency’s partners. AFD has forged scientific partnerships with the Development Research Institute (IRD), the Paris School of Economics, the International Environment and Development Research Center (CIRED), the London School of Oriental and African Studies, and Maastricht University, among others.

ID4D conference on energy efficiency

Conference on migrant remittances and their impact on development

A research program on the energy transition The global energy situation, currently undergoing radical changes, poses a major development challenge. These changes reflect the combined effects of “peak oil,” climate change, and increasing demand from emerging countries, whose economies require energy support. This changing situation forces AFD’s aid beneficiary countries to retool their energy use models towards sustainability; massive use of fossil fuels exhausts oil and gas resources, while greenhouse gas emissions damage climatic equilibrium. Cost increases, price volatility, and oil scarcity undermine the reliability of energy supplies in countries overly dependent on oil. To be sustainable, energy strategies must diversify the types of energy consumed, and improve the fit between the energy mix and the specificities of developing countries – countries that typically see large parts of their population without energy access. For these reasons, energy projects take up nearly two-thirds of AFD’s financing, which centers on three primary actions: 1. Increasing the capacity and security of energy systems in developing and emerging countries, thereby unleashing economic potential otherwise constrained by deficient production capacity and unreliable fuel supplies. 2. Reducing the carbon intensity of energy production and improving consumption efficiency. A mix of hydroelectricity and more renewables mitigates greenhouse gas emissions, exploits local energy sources, and reduces fossil-fuel dependence. 3. Expanding access to electricity in rural and suburban areas, so as many as possible can enjoy the benefits of power services.

AFD has developed a research programme to help turn these three action points into actual operations. The research aims to bolster public policy and institutional interlocutors’ capabilities. The research programme uses economic analysis tools to meet two objectives: 1. Allowing AFD, as a development bank, to take its rightful place at the table during international discussions about the green-energy transition; in this way, AFD can ensure that debates take development policy into account. AFD’s extensive international experience allows it to propose more innovative approaches than those that currently dominate “green growth” discussions. These latter approaches, whatever their merits, tend to fall short in considering the heterogeneity of institutional, economic and social contexts. 2. Producing comprehensive diagnostic tools that measure the socioeconomic impacts of “green” development policies, programmes, and projects in developing countries. These tools are used to model energy transition options in different geographic regions, such as China, Mexico, South Africa and Turkey. This will make it possible to assess the tools’ diagnostic range and how they may integrate sectoral and local expertise. AFD would thus acquire the expertise to strengthen its dialogue with local public and private decisionmakers from countries requesting assistance. As AFD discusses budget loans and other subjects with local authorities, it can help design sectoral policies that encourage sustainable energy efforts or that assist national climate-change strategies. AFD also works with energy-sector actors in implementing these policies and in developing professional training curricula, in particular for electricity company employees.

AFD

A M U LT I - AC TO R P R O C E S S

WORKING WITH

OTHER DONORS

AFD works alongside other donors by pooling skills, broadening the financial and technical capacities brought to certain projects, and formulating common positions within international bodies. AFD’s development aid policy mobilizes multiple bilateral and multilateral donors; it also assumes new forms, such as cofinancing or loans combined with grants, to meet growing financing needs. These needs increasingly require donors to work in tandem, multiplying the number of cofinanced projects to extend their financial and technical capacities. Recognizing this challenge, some donors have followed the example of the Asian Development Bank (ADB) by developing a cofinancing and partnership strategy. For the first time, AFD has begun formalizing goals and objectives for its partnerships, a process it will complete in 2013.

A VARIETY OF PARTNERSHIPS By partnering with bilateral donors (such as KfW, JICA, AusAID) and multilateral lenders (such as EIB, EBRD, the World Bank, Asian Development Bank [ADB], South Africa Development Bank, and the Inter-America Development Bank [IDB]), AFD meets three objectives: • Maximizing leverage and economies of scale by finding new sources of funds to compensate for the constraints in grants and subsidies. • Targeting partnerships according to AFD strategies and the comparative advantages to the prospective partners – for example, by working with ADB or IDB to extend operations into Asia or Latin America, respectively. • Formulating common positions within international bodies, for example by promoting strong green growth through the International Development Finance Club (IDFC).

Brussels – Launch of mutual recognition procedures between AFD, EIB and KfW.

In 2012, out of 115 projects receiving loan, projectgrant, budget-support or debt-relief development financing, AFD cofinanced 48 (or 42%) with other donors. Some of AFD’s financing lay beyond the scope of cofinancing measurements, which do not cover all Group activity; nonetheless, AFD counted €2.1 billion in contributions to a multi-donor budget of approximately €10 billion. AFD primarily cofinanced infrastructure projects because large-scale ventures generally require funds exceeding what any single donor can cover. More than half the projects that AFD cofinanced are in sub-Saharan Africa. In 2012 as in preceding years, the European Union (EU) was AFD’s leading co-financier, utilizing its own financial instruments and the EIB; the World Bank was the second largest, followed by ADB and KfW. AFD also collaborates with various United Nations (UN) agencies, such as the UN Development Programme (UNDP) and the International Fund for Agricultural Development (IFAD). In 2012, AFD signed a partnership agreement with both agencies to formalize a preexisting relationship. Their jointly financed actions take different forms: projects in the field, trips to aid beneficiary countries to assess project suitability, knowledgecreation through studies or expert consultations, and sponsorship of colloquia.

AFD in Brussels AFD has long been aware of the strategic and financial importance of the European Commission’s (EC) public development assistance; nearly 20% of France’s foreign aid flows through the EC. AFD therefore opened an office in Brussels in 2002, where it works in coordination with France’s permanent representatives to the European Union. Indeed, the European Commission is the world’s largest donor and a key development actor; its aid actions cover all sectors and regions. In addition, the EC plays roles in political advocacy, standard-setting and coordination. AFD’s Brussels office has a simple objective: articulating the Agency’s actions with those of the EC. AFD and its partners, especially KfW and EIB, have thus helped create a truly European financing product, one that combines loans with grants. AFD’s ten-year presence in Brussels has made it a recognized actor among its peers. The latter appreciate how the Agency shares its strategic expertise, organizes conferences, and advocates for development-related causes to lawmakers. They also recognize its operational know-how: AFD has deployed more than €500 million on behalf of the EC, as delegated funds or through investment facilities. In 2012, the Brussels office intensified its collaboration with the EC by helping to launch the “Sustainable Energy for All” (SE4ALL) initiative. The Brussels office also increased its presence in discussions on the European development financing platform, and on backing for new financing instruments, such as the Caribbean and Pacific Investment Facility.

Brussels – From left to right: signatory representatives from KfW, EIB and AFD.

AFD’s TIES WITH THE EUROPEAN UNION Following some initial difficulties (the first attempts at managing delegated funds proved complicated), substantial progress has been made, establishing cofinancing procedures with European aid agencies and the European Commission.

In 2012, AFD contributed €2.1 billion to cofinanced projects. The donor group took two major steps to create a joint-recognition of procedures process. On the one hand, it simplified European aid instruments, creating new financing modalities that blended grant monies with loans. On the other hand, it audited each bilateral aid agency. Donors could be accredited once they successfully passed the audit, and could then use their own procedures to deploy the European funds. These reforms allowed the European Union to deploy larger amounts of public foreign aid, modernize aid instruments, and create European aid solutions. The reforms also helped bring European donors closer to each other.

These practices gradually changed the scale and expenditure of AFD-financed projects. Such working relationships and knowledge transfers with other European donors illustrate the Agency’s contribution to this European dynamic, as do the day-to-day exchanges between EU delegations and AFD’s in-country teams. One should stress that European aid comes under a “concurrent jurisdiction;” the 27 EU members’ financing instruments and aid programmes coexist alongside those of the European Commission. The challenge therefore lies in determining the right mix of geography, sector, and instrument – in other words, in using these European-community and bilateral-agency tools to add value for aid beneficiaries and partners, more value than AFD (or any single donor) could create on its own. This requires coordinating all donor efforts, so that joint aid may have higher impacts, lower costs, and more certainty of effect. This also means that the European Commission must not duplicate the work of bilateral aid agencies or restrain them; rather, it must collaborate with memberstates, constantly working to combine skills and remain responsive.

AFD

A M U LT I - AC TO R P R O C E S S

CONSOLIDATING PARTNERSHIPS WITH NONGOVERNMENTAL

ENTITIES

AFD works with civil society alongside local-government and private-sector development organizations, and in tandem with developing-world civil society, engaging in partnerships and exchanging expertise. ASSISTING FRENCH LOCAL GOVERNMENTS’ FOREIGN AID ACTIONS French local governments have expanded their international aid actions so much in the past 20 years that they now constitute an arm of France’s foreign aid apparatus. More recently, they have become important partners of AFD. Having started with twin-city initiatives, French localities now encompass a variety of cooperative partnerships with their foreign counterparts, especially with urban governments and local authorities in developing countries. As decentralization progresses in many developing countries, French local governments play an increasingly relevant role, helping their counterparts assume responsibilities, bolstering their abilities. In this way, the partners can underpin their political legitimacy with concrete experience. Shared interests also drive French cooperative partnerships with the developing world. Such relationships allow regional representatives, elected officials and civil society activists to learn from one another, while opening up local opportunities of mutual interest. By organizing exchanges and acts of solidarity, French territorial governments build bridges between localities that otherwise might understand little of each other. In France, urban and regional governments make three-quarters of civil public investments. In foreign countries, local governments are often the owners of AFD-financed programmes and projects. Hence, it was natural for AFD to approach French local governments that had developed extensive international aid.

Laos – Redevelopment project in Luang Prabang, supported by the French city of Chinon

AFD, like its French local-government partners, mobilizes public funds to improve living conditions “elsewhere.” These international interventions can also contribute to the vigor of the French regions. AFD’s marked its 70th anniversary celebration with a photo exhibition that toured through regional capitals – AFD’s partner-cities – and thus provided the Agency an opportunity to meet the French public. As a consequence of these efforts, AFD’s partnerships with French decentralized aid providers have come to rest on two strategic aims: • Exploiting the expertise of French cities, regions, and local authorities – public water utilities, urban planning agencies, regional park administrations, among others – in a way that complements AFD’s interventions, notably through direct loans to developing localities. • Anchoring AFD actions in each locality by strategizing with French local governments, capitalizing on their international contacts and soliciting their support for official development assistance efforts.

AFD and NGOs AFD has expanded dialogue with NGOs in recent years, aiming to share practical experience and develop innovative interventions. For instance, the Agency has supported development education initiatives in France that helped NGOs advocate for development issues and deepen public awareness and understanding of them. These initiatives have also allowed AFD to share practices with other international solidarity workers and thereby bolster their skills. The “AlimenTERRE” campaign, coordinated by the French Committee for International Solidarity and financed by AFD, proposes tools for raising awareness, such as a film festival and an online resource center. The campaign also carries a strong advocacy component targeted at political decision-makers, especially European legislators. This effort also included the “Let’s Make Sense in Fighting Hunger” conference, which brought together more than 200 attendees to discuss pro-development public policies. Pascal Canfin, the French development minister, and Stéphane Hessel keynoted the conference; the program emphasized the need for harmonized European policies, and recommended joint action towards more lasting and rights-friendly policies.

Lagos, Nigeria – AFD partners with nongovernmental organizations to fight poverty

NEW PRIVATE SECTOR PARTNERS The private sector plays a crucial role in reducing poverty, especially by supporting economic growth, creating sustainable jobs, and increasing incomes. AFD partners with private enterprises to boost economic growth in the developing world. At the end of 2012, AFD and Lafarge, a French building materials company, signed a partnership agreement supporting a microfinance for affordable housing programme in sub-Saharan and North Africa. Launched in June 2012, the programme will help low-income families finance home construction or renovations. AFD will provide financing and financial technical assistance to microfinance institutions selected by the Agency and Lafarge. AFD plans to assist two or three institutions during the partnership. Lafarge will help borrowers with their construction projects, providing a personalized service through counselors who are supervised and trained (by meeting with architects, designing plans, and so forth). The partners’ first collaborative effort took place in Nigeria.

The United Nations Global Compact gives private sector companies reference points for socially and environmentally responsible commitments. Companies signing the Global Compact promise to follow ten principles underpinning environmental protections, labor conditions, anti-corruption measures and human rights. More than 7,400 companies in 135 countries have signed it AFD and the French Global Compact network, which comprises 800 companies, have agreed on a partnership to promote the ten principles in both the developing and developed worlds. In France, the partners will help two regions, Brittany and Nord-Pas-de-Calais, so that regional companies – especially committed to international trade – can adopt responsible practices. In the sub-Saharan countries of Côte d’Ivoire and Ghana, the partnership will support local Global Compact networks wishing to expand and recruit more companies.

AFD

A M U LT I - AC TO R P R O C E S S

STRENGTHENING

LOCAL CAPABILITIES In the developing world, one of AFD’s goals is to improve the performance of development professionals, essential contributors to sustainable growth. TECHNICAL ASSISTANCE THAT ALIGNS WITH PROJECT FINANCE AFD’s capacity-building efforts bolster individual skills, especially in project design, institutional project structuring, implementation, and evaluation. They also aim to improve operations at the organizational level, and to structure public policies, for example in education and health. This AFD assistance targets a diverse set of recipients – ministries, local governments, public institutions, nongovernmental organizations, and private sector companies, among others – and focuses mainly on sub-Saharan Africa. AFD generally uses grants to fund technical assistance. Such assistance may take several forms: consulting services from engineering offices or public entities, or funding for technical assistants working primarily in agricultural, environmental and health fields.

In 2012, CEFEB educated 1,470 students through about 40 seminars and eight Masters programmes. Among its capacity-building actions, AFD finances training for employees of Senegal’s national electricity utility, Senelec. This training complements AFD’s investment in Senegal’s electricity production and distribution infrastructure and its work to turn around the Senegalese power sector. In China, where growth in energy demand is among the highest in the world, energy efficiency is an important issue. AFD therefore organizes seminars to raise

CEFEB lecture for Masters-degree students

awareness among banks receiving the Agency’s “green credit lines;” these aim to finance small-business energyefficiency projects. At the fifth such seminar in November 2012, an expert from Schneider Electric, a French company, presented new energy-efficiency technologies and solutions to an audience of 240 bankers. AFD also supports the emergence and strengthening of trans-boundary water governance. The Agency notably supports professional networking among water-use managers in developing countries, as well as partnerships between watershed organizations in the developed and developing worlds.

TRAINING THROUGH CEFEB The Center for Financial, Economic and Banking Studies (or CEFEB), AFD’s business university in Marseilles, offers courses for AFD’s aid beneficiaries in developing countries, as well as to its employees and co-financiers. The Master of Public and Private Works, a degree programme offered in conjunction with the University of Auvergne, accepts 40 development practitioners each year. These professionals work in ministries, local government administrations, enterprises, and financial institutions in AFD beneficiary countries. The coursework teaches students how to set up and manage projects, combining several disciplines: economics, finance, management, public policy, market regulation. CEFEB also produces about 40 seminars each year. By facilitating shared knowledge and experiences, these seminars help development professionals network with one another. Thus, when the Jerusalem AFD office identified a need – training its Palestinian aid beneficiaries to prepare, plan, steer and evaluate development programmes – CEFEB organized a seminar in Ramallah on these subjects at the end of 2012.

THE AFD

TEAM

BOARD OF GOVERNORS Members as of 30 April 2013

Pierre-André PÉRISSOL chairman - Former Minister

MINISTRY OF THE ECONOMY AND FINANCE Delphine d’AMARZIT

Arnaud BUISSÉ

Division Head of Multilateral and Development Affairs Treasury Directorate

Vice Director for International Financial and Development Affairs Treasury Directorate

Denis CHARISSOUX

David KNECHT

Vice Director National Budget Office

Office Head of Foreign Affairs and Development Aid Budget Directorate

EXTERNAL EXPERTS Appointed by the Ministries of the Economy, Foreign Affairs, Overseas Provinces, and Interior

Omar KABBAJ

Jean-Louis MATTÉI

Advisor to His Majesty, the King of Morocco

Chairman of the Supervisory Board, Société Générale Morocco

Sylviane JEANNENEYGUILLAUMONT

Guy DUPONT

Professor Emeritus, Center for Studies and Research on International Development (CERDI)

MINISTRY OF FOREIGN AFFAIRS Jean-Baptiste MATTÉI

Jean-Marc CHÂTAIGNER

General Director Globalization, Development & Partnerships

Deputy Director Globalization, Development & Partnerships

Jean-Christophe BELLIARD

Jean-François GIRAULT

Director Africa & the Indian Ocean

Director Middle East and North Africa

MINISTRY OF THE OVERSEAS PROVINCES Thomas DEGOS

Marc DEL GRANDE

Director, General Delegate French Overseas Provinces Prefect

Vice Director, Public Policy Office

Honorary President, Federation of French Overseas Enterprises

Patrice FONLLADOSA

Pierre ARNAUD

Administrator of the French Business Movement (MEDEF)

Administrator of the French Council of Investors in Africa (CIAN)

Jean-Louis VIELAJUS

—

President, Coordination Sud

Appointed by the Ministry of Ecology, Sustainable Development and Energy

Sébastien GENEST

Claude TRUCHOT

Administrator and Honorary President France Nature Environment (FNE)

Honorary General Engineer, Rural Water & Forest Works

PARLIAMENTARIANS Representatives appointed by the National Assembly President

MINISTRY OF THE INTERIOR —

Francis HURTUT Division Head, International Affairs and Cohesive Development

Michel DESTOT

Stéphane DEMILLY

Isère Representative

Somme Representative

Noël MAMÈRE

Yves NICOLIN

Gironde Representative

Loire Representative

Senators appointed by the Senate President

Government Commissioner: Claude WARNET INCUMBENT

ALTERNATE

Yvon COLLIN

Fabienne KELLER

Tarn and Garonne Senator

Bas-Rhin Senator

Jean-Claude PEYRONNET

Christian CAMBON

Haute-Vienne Senator

Val de Marne Senator

ELECTED AFD EMPLOYEE REPRESENTATIVES

Jean-Bernard VÉRON

Denis VASSEUR

Didier SIMON

—

MANAGEMENT TEAM Members as of 30 April 2013

CORPORATE OFFICES Dov ZERAH*

Chief Executive Officer

EXECUTIVE OFFICES

Didier MERCIER*

Deputy Chief Executive

Jacques MOINEVILLE* Managing Director

Monique BARBUT* Special Advisor

Claude RAYMOND

Chief of Internal Auditing

François KERHUEL Ethics Advisor

Claude DORWLING-CARTER Director Board Secretariat

Philippe MICHAUD

Head of Office Network Committee

Philippe BASSERY*

Chief Human Resources Officer

Éric BAULARD* Chief Risk Officer

Stéphane FOUCAULT*

Chief Administrative Officer

Rémi GENEVEY*

Chief Strategy Officer

Jean-Yves GROSCLAUDE*

Christian BARRIER Human Development

Gilles BERGIN

Finance and Accounting

Maurice BERNARD

Sustainable Development

Yves BOUDOT

Sub-Saharan Africa

Grégory CLEMENTE Asia

Bernard ESNOUF

Emmanuel DEBROISE

Deputy External Affairs and Partnerships Officer

Laurence LAJOINIE-GNANSIA Deputy Human Resources Officer

FRENCH GLOBAL ENVIRONMENT FACILITY Odile LAPIERRE

Private Sector, Banks and Local Authorities

François-Xavier DUPORGE Chief Administrative Officer

Bertrand LOISEAU Budget Comptroller

Marie-Pierre NICOLLET Middle East and North Africa

Philippe ORLIANGE

PROPARCO

Latin America and the Caribbean

Pascal PACAUT

French Overseas Provinces

Yves PICARD

Second Opinion Unit

Marianne SIVIGNON-LECOURT

Catherine GARRETA

Françoise TISSEYRE

Roger GOUDIARD

Jean-Bernard VÉRON

CEFEB

Deputy Operations Officer

Chief External Affairs and Partnerships Officer

Strategic Steering and Forecasting Multidisciplinary Support

Jean-Claude BREDELOUX

Louis-Jacques VAILLANT*

Department Managers and Unit Heads

Group Risk Manager

Deputy Risk Officer Chief Legal Officer

Chief Operations Officer

DEPARTMENTS Jean-Philippe AUBERTEL

Valérie ALEXIS

Internal Auditing and Compliance

Claude PÉRIOU*

Chief Executive Officer

Colette GROSSET

Deputy Chief Executive and Administrative Officer

Marie-Hélène LOISON

Deputy Chief Operating Officer

IT, Buildings and Logistics Crisis Prevention and Post-Conflict Unit

Alain HENRY Research

* Executive Committee Member

GROUP ORGANIZATION CHART Members as of 31 March 2013

Dov ZERAH

PROPARCO chairman: Dov ZERAH vice chairman: Didier MERCIER chief executive officer: Claude PÉRIOU managing directors: Colette GROSSET and Marie-Hélène LOISON

operations

chief executive officer

Didier MERCIER

deputy chief executive

Special Advisor

Jacques MOINEVILLE managing director

Ethics Advisor

Monique BARBUT

François KERHUEL

Chief of Internal Audit

Claude RAYMOND Dep. Sylvie SYROTA

OPERATIONS

STRATEGY

Jean-Yves GROSCLAUDE

Rémi GENEVEY

Dep. Jean-Claude BREDELOUX

SUB-SAHARAN AFRICA Yves BOUDOT

HUMAN DEVELOPMENT Christian BARRIER

Dep. Philippe CHEDANNE Dep. Thierry PAULAIS Dep. Robert MOULIE

Education and Professional Training

MIDDLE EAST AND NORTH AFRICA

Jean-Christophe MAURIN Health and Social Protections

RESEARCH Alain HENRY Economic and Social Affairs Research

Véronique SAUVAT Knowledge Management Support

Philippe CABIN Evaluation and Capitalization

Board Secretary

Claude DORWLING-CARTER

EXTERNAL AFFAIRS AND PARTNERSHIPS Louis-Jacques VAILLANT Dep. Emmanuel DEBROISE

External Affairs

Emmanuel DEBROISE Communication

Benjamin NEUMANN NGO Partnerships

Catherine CHEVALLIER

Marie-Hélène LOISON

Colette GROSSET

Dep. Jérôme BERTRAND-HARDY

Dep. Ghislain DE VALON

Banks and Financial Markets

Portfolio Management

Amélie JULY

Yazid SAFIR

Business and Corporates

Risk

Stéphanie LANFRANCHI

Jean-Baptiste SABATIE

Infrastructure and Mines

Environment, Social Affairs, Impacts

Jean-Pierre BARRAL

Odile CONCHOU

Capital and Equity Participations

Administration and Finance

Laurent KLEIN

Cécile COUPRIE

ADMINISTRATION Stéphane FOUCAULT

FINANCE AND ACCOUNTING Gilles BERGIN Dep. Hélène TEMPLIER

Financial Strategy and Planning

Tanguy DENIEUL Financial Accounting

Financial Communication

Minh BUI

Strategic Planning

Business Efficiency Unit

ASIA Grégory CLEMENTE Dep. Yves GUICQUERO Dep. Laurent AMAR

LATIN AMERICA AND THE CARIBBEAN Philippe ORLIANGE Dep. Laurence ROUGET-LE CLECH

Alain RIES Agriculture, Rural Development and Biodiversity

Jean-Luc FRANÇOIS BANKS, PRIVATE SECTOR AND LOCAL AUTHORITIES

Organization and Forecasting

Stéphane MADAULE Crisis and Conflicts Unit

Odile LAPIERRE

Jean-Bernard VÉRON

Local Authorities and Urban Development

CEFEB

François TIROT

Roger GOUDIARD

Financial Institutions and Private Sector Support

Dep. Anne-Françoise DAYON

Marie-Laure GARNIER

Administration and Communication

Financial Engineering

Éric BORDES Guarantees

Marie SENNEQUIER Non-sovereign Credits Monitoring

MULTIDISCIPLINARY SUPPORT Catherine GARRETA

Jean-Louis PIQUEMAL Training

Nicolas MOUNIER

INTERNAL AUDIT AND COMPLIANCE Marianne SIVIGNONLECOURT

BUDGET COMPTROLLER Bertrand LOISEAU

Transportation and Sustainable Energy

Éric BUREAU

Foreign Operations Assistance

Payroll and Benefits Comptroller

STRATEGIC PLANNING AND FORECASTING Bernard ESNOUF

Cassilde BRENIÈRE

Work Force Development and Training

Dep. Françoise JACQUEMAIN

Bokar CHERIF

Water and Sanitation

Dep. Bertrand WILLOCQUET

Bertrand FOUCAULT

LEGAL Valérie ALEXIS

Pénélope DUTET

Macroeconomic and Country Risk Analysis

François-Xavier BELLOCQ

Career Management and Recruiting

Dep. Valérie ALEXIS

Nicolas MORA

SUSTAINABLE DEVELOPMENT Maurice BERNARD

OVERSEAS PROVINCES Pascal PACAUT

Dep. Laurence LAJOINIE-GNANSIA

RISK Éric BAULARD

Overseas Provinces Operations and other Legal Assistance

Back Office

Dep. Jean-Marc BELLOT

Jean-François ARNAL

HUMAN RESOURCES

Administration and Benefits

Sylvie BOYER

Catherine BONNAUD

Brussels Liaison Office

Legal

Catherine BAREYRE

Philippe BASSERY

Marie-Pierre NICOLLET

Laurent FONTAINE

administration

Claire SCHMIDT Funding and Market Operations

Stéphane HLUSZKO Labor Relations

Dep. Marc BENSEMHOUN

Christine SABATIER Procurement Office

Selvan PAJANIRADJA

Sophie LE MOUELLIC

Dep. Nicolas LE TARNEC

Disbursements Verification

Bruno BOCO GROUP RISK MANAGEMENT Jean-Philippe AUBERTEL Risk Monitoring

IT, BUILDINGS AND LOGISTICS Françoise TISSEYRE

Éric BEUGNOT Credit Risk Analysis

Sébastien FLEURY

Dep. Pierre GUISERIX

Business Support

Jean-Jacques GENTRIC

Second Opinion

Yves PICARD

Assistance for Business Owners Changes

Didier VIGNON Software Lifecyle Management

Olivier MOREAU

Anne-Françoise DAYON

Cross-functional Business Management

FRENCH GLOBAL ENVIRONMENT FACILITY SECRETARIAT François-Xavier DUPORGE

Building and Logistics Management

Dominique DREXLER

Sylvain PILLOUD Urbanization, Architecture and Techniques

Régis SALENBIER Security-RSSI-PCA

Renaud FALUOMI

Climate Change

Pierre FORESTIER Environmental and Social Affairs Support

Jean-Noël ROULLEAU

Capacity Building Support Procurement Support

Dep. = Deputy

APPENDICES

AFD

APPENDICES

AFD OFFICE NETWORK Operations in countries not listed here are supervised by AFD headquarters in Paris.

ETHIOPIA

Mali

Tel: (251) 11 515 80 86 afdaddisabeba@afd.fr

Tel: (223) 20 21 28 42 afdbamako@afd.fr

Gabon

MAURITANIA

Tel: (241) 74 33 74 afdlibreville@afd.fr

Tel: (222) 45 25 25 25 afdnouakchott@afd.fr

Ghana

MAURITIUS

Addis Abeba

Libreville

AFD INTERNATIONAL FIELD OFFICES AND BUREAUS Afghanistan KABUL

Tel: (93) 0 797 56 22 11 afdkaboul@afd.fr

ALGERIA Alger

Tel: (213) 21 69 43 00 afdalger@afd.fr

Angola Luanda

Tel: (244) 222 333 309 afdluanda@afd.fr

BENIN

Cotonou Tel: (229) 21 31 34 53 afdcotonou@afd.fr

BRAZIL

Brasilia Tel: (55) 61 33 22 43 20 afdbrasilia@afd.fr

Central African Republic Bangui

Responsibilities shared with AFD Cameroon office Tel: (236) 75 53 53 53 afdbangui@afd.fr

CHAD

N’Djamena Tel: (235) 252 70 71 afdndjamena@groupe-afd.org

ChinA

Beijing Tel: (86) 10 84 51 12 00 afdpekin@afd.fr

COLOMBIA Bogota

Tel: (57) 1 621 3299 afdbogota@afd.fr

COMOROS Moroni

Tel: (269) 773 29 10 afdmoroni@afd.fr

Congo

São Paulo

Brazzaville

Tel: (55) 11 25 32 47 51 afdsaopaulo@afd.fr

Tel: (242) 281 53 30 afdbrazzaville@afd.fr

Burkina Faso

Côte d’Ivoire

Ouagadougou

Abidjan

Tel: (226) 50 30 60 92 afdouagadougou@afd.fr

Tel: (225) 22 40 70 40 afdabidjan@afd.fr

Burundi

Bujumbura Responsibilities shared with AFD Kenya office Tel: (257) 22 25 59 31 afdbujumbura@afd.fr

CAMBODIA

Phnom Penh Tel: (855) 23 426 360 / 036 afdphnompenh@afd.fr

CAMEROON YaoundE

Tel: (237) 22 22 00 15 afdyaounde@afd.fr

DEMOCRATIC REPUBLIC OF CONGO Kinshasa

Tel: (243) 99 86 82 598 afdkinshasa@afd.fr

Djibouti Djibouti

Tel: (253) 35 22 97 afddjibouti@afd.fr

DOMINICAN REPUBLIC

Santo Domingo Tel: (809) 547 12 89 afdsaintdomingue@afd.fr

EGYPT CAIRO

Tel: (20) 2 2735 17 88 afdlecaire@afd.fr

Accra

Bamako

Nouakchott

Port Louis

Tel: (233) 302 77 87 55 afdaccra@afd.fr

Tel: (230) 213 64 00 afdportlouis@afd.fr

GUINEA

MEXICO

Conakry

MEXICO CITY

Tel: (224) 30 41 25 69 afdconakry@groupe-afd.org

Tel: (52) 55 52 81 17 77 afdmexico@afd.fr

HAITI

MOROCCO

Port-au-Prince Tel: (509) 22 45 40 07 afdportauprince@afd.fr

INDIA

New Delhi Tel: (91) 11 23 79 37 47 afdnewdelhi@afd.fr

INDONESIA Jakarta

Tel: (62) 21 29 92 15 00 afdjakarta@afd.fr

IRAQ

BAGHDAD Tel: 964 (0) 781 703 88 49

JORDAN Amman

Tel: (962) 6 46 04 703 afdamman@groupe-afd.fr

Kenya

Rabat

Tel: (212) 537 63 23 94 afdrabat@afd.fr Casablanca Tel: (212) 522 29 53 97 afdprocasablanca@groupe-afd.org

Mozambique Maputo

Tel: (258) 21 30 43 00 afdmaputo@afd.fr

Niger

Niamey Tel: (227) 20 72 33 93 afdniamey@afd.fr

Nigeria Abuja

Tel: (234) 703 24 94 771 afdabuja@afd.fr Lagos

Nairobi

Tel: (234) 1 271 7151 afdabuja@afd.fr

Tel: (254) 20 271 84 52 / 57 afdnairobi@afd.fr

Pakistan

Laos

Vientiane Responsibilities shared with AFD Cambodia office Tel: (856) 21 24 32 95 / 96 / 97 afdvientiane@afd.fr

LEBANON

Islamabad Tel: (92) 51 201 15 17 afdislamabad@afd.fr

Palestinian Territories

East Jerusalem Tel: (972) 2 54 00 423 afdjerusalem@afd.fr

BEIRUT

Tel: (961) 1 420 192 afdbeyrouth@afd.fr

Madagascar

Antananarivo Tel: (261) 20 22 200 46 afdantananarivo@afd.fr

Philippines MANILLA

Tel: (63) 2 811 1003

SENEGAL Dakar

Tel: (221) 33 849 19 99 afddakar@afd.fr

SOUTH AFRICA

Johannesburg Tel: (27) 11 540 71 00 afdjohannesbourg@afd.fr

Sri Lanka Colombo

AFD FIELD OFFICES AND BUREAUS IN THE FRENCH OVERSEAS PROVINCES

Responsibilities shared with AFD India office Tel: (94) 11 250 23 20 afdcolombo@afd.fr

French Guiana

Suriname

FRENCH POLYNESIA

Paramaribo Responsibilities shared with the AFD French Guiana office Tel: (597) 52 12 94

TANZANIA

Dar es Salaam Responsibilities shared with AFD Kenya office Tel: (255) 22 219 88 66

THAILAND Bangkok

Tel: 66 (0) 2663 6090 afdbangkok@afd.fr

Togo Lomé

Tel: (228) 22 21 08 27 afdlome@afd.fr

TunisiA Tunis

Tel: (216) 71 861 799 afdtunis@afd.fr

TURKEY

Istanbul Tel: (90) 212 283 31 11 afdistanbul@afd.fr

Uganda

Kampala Responibilities shared with AFD Kenya office Tel: (256) 414 30 45 33

Vietnam HANOI

Tel: (844) 38 23 67 64 / 65 afdhanoi@afd.fr

Cayenne

Tel: (33) 5 94 29 90 90 afdcayenne@afd.fr

Papeete

Tel: (689) 54 46 00 afdpapeete@afd.fr

Guadeloupe

Pointe-à-Pitre Tel: (33) 5 90 89 65 65 afdpointeapitre@afd.fr

Martinique

Fort-de-France Tel: (33) 5 96 59 44 73 afdfortdefrance@afd.fr

Mayotte

Mamoudzou Tel: (33) 2 69 64 35 00 afdmamoudzou@afd.fr

OTHER BENEFICIARY COUNTRIES SUB-SAHARAN AFRICA

AFD supervisory office

Botswana

South Africa

Cape Verde

Senegal

Equatorial Guinea

Cameroon

Eritrea

Ethiopia

French Austral and Antarctic Territories

Reunion

Gambia

Senegal

Guinea Bissau

Senegal

Lesotho

South Africa

Liberia

Côte d'Ivoire

Malawi

South Africa

Namibia

South Africa

Rwanda

Kenya

Sao Tomé and Principe

Gabon

Seychelles

Mauritius

Sierra Leone

Guinea

Somalia

Ethiopia

Sudan

Ethiopia

Swaziland

Mozambique

Zambia

South Africa

Zimbabwe

South Africa

NEW CALEDONIA NOUMEA

Tel: (687) 24 26 00 afdnoumea@afd.fr

LATIN AMERICA AND THE CARIBBEAN AFD supervisory office Bahamas

Dominican Republic

Barbados

Martinique

Belize

French Guiana

Brazil (Amapá)

French Guiana

Cuba

Dominican Republic

Guyana

French Guiana

Saint-Pierre

Jamaica

Dominican Republic

Tel: (33) 5 08 41 06 00 agence@iedom-spm.fr

Lesser Antilles

Martinique

Trinidad and Tobago

Martinique

REUNION

Saint-Denis Tel: (33) 2 62 90 00 90 afdsaintdenis@afd.fr

SAINT PIERRE AND MIQUELON

WALLIS AND FUTUNA Mata-Utu

Responsibilities shared with AFD New Caledonia office Tel: (681) 72 25 05 afdmatautu@afd.fr

ASIA AND THE PACIFIC

AFD supervisory office

Bangladesh

India

HO CHI MINH CITY

Maldives

India

Tel: (848) 38 24 72 43 / 44 afdhochiminhville@afd.fr

South Pacific Island Nations

New Caledonia

Vanuatu

New Caledonia

YEMEN Sanaa

Tel: (967) 1 448 308 afdsanaa@afd.fr

European Institutions Liaison Office

BRUSSELS

Tel: (32) 2 287 73 00 afdbruxelles@afd.fr

AFD

APPENDICES

BOOKS, PERIODICALS AND VIDEOS This is a partial list. You can download all English or French AFD publications from www.afd.fr

WORKS ABOUT AFD’s ROLE AND MISSION afd and ...

Brochures highlighting AFD’s operations and activities in various regions and sectors. • • • •

AFD and Turkey AFD and Climate Change AFD, Partner to African Cities AFD in the Mediterranean and in the Middle East • AFD, Sustainable Development • AFD and Mauritius Sustainable Island

action plan

This collection summarizes AFD’s strategies and commitments, and presents its capabilities and expertise in specific domains and countries. 2012 titles include: • Reconciling Development and the Fight Against Climate Change

ANTHOLOGIES kaleidoscope

A monthly bibliography culled from international journals, listing scientific and technical articles on economic development and poverty alleviation. In French.

produitdoc

A quarterly bulletin reviewing commodities markets, organized by product and illustrated with graphs and summary tables. In French.

JOINT PUBLICATIONS in partnership with the world bank

The African Development Forum Series focuses on sub-Saharan Africa’s principal social and economic development challenges. Each volume addresses one issue, enriching thought about local, regional and global policies. Financing Africa’s Cities. Thierry Paulais (tr. Suzan Nolan and Leila Whittemore). Washington, DC: World Bank Publishing, 2012. Africa is experiencing the highest urban growth rate in the world. Sub-Saharan African cities alone will gain over 300 million people over the next twenty years. This calls for a change in the scale of urban investment funding. Based on case studies, this volume analyzes local capital 54

investments and proposes workable avenues to modernize investment-financing systems.

a planet for life 2012, in partnership with iddri and teri Towards Agricultural Change. Pierre Jacquet, Rajendra K. Pachauri, Laurence Tubiana (eds). New Dehli: TERI Press, 2012. A Planet for Life 2012 focuses on agriculture and its relation to development, food and the environment. As the 2000s come to a close, an emerging consensus calls for urgent, massive investment in the agricultural sector – once again viewed as one of the prime engines for development and food security, as well as for poverty reduction. But what issues, exactly, does this consensus encompass? A Planet for Life has called upon many highly specialized authors from different countries and perspectives, and invites the reader to discover the sector in all its complexity, upstream and downstream of agricultural production.

savoirs communs

A discussion series based on AFD’s practical experiences and those of other development aid professionals and participants. The series capitalizes on shared knowledge and good practices for mutual learning and enrichment. N° 12 | Street Children: from individual care to the introduction of social policies (written with Samusocial International) This issue will help the reader understand the situation of homeless “street children,” following them in the street and through their young lives. It discusses aid mobilization to provide lasting and multidisciplinary care for their needs, overcoming real challenges. Savoirs communs n°12

Street Children: from individual care to the introduction of social policies

Agence Française de Développement & Samusocial International

VIDEOS In 2012, AFD produced about 20 films, including 42 interviews with experts, aid beneficiaries and decision makers, and recorded many conference proceedings. Titles include: • “Paris-Ouagadougou: same combat” An urbanist takes the viewer on a tour through Paris, showing how developed and developing world cities face similar challenges. • “The Renewal of Faidherbe Bridge.” In Saint Louis, Senegal, AFD financed renovations to Pont Faidherbe bridge, an essential roadway and UNESCO world heritage site. • “The Voice of the River.” This film shows an AFD project set up in Guinea, Mali, Senegal and Mauritania to popularize and broaden waterway use among riverside residents. • “Love Jo’burg.” A portrait of a dynamic, unequal, teeming city, sketched through the eyewitness accounts of those who design and build it. • “Palestinian Municipalities: Looking for the Future.” Presents the Municipal Development Fund’s funding allocation tool, an anchor of Palestinian national policies. • “Soweto Water Project.” An audiovisual evaluation of a project in Soweto, recounting the project’s history with its ups and downs. • “Rendez-vous in South Africa: Durban and Sustainable Energy.” South Africa accounts for 50% of greenhouse gas emissions on the African continent. It has adopted a sustainable development policy in line with the Kyoto Protocol. AFD has granted a loan to Durban municipality for a methane recovery and electricity generation project. The saved greenhouse-gas emission credits are sold on the world carbon market. • “Haiti: Health Care Access.” In Haiti, AFD supports NGO and public authority efforts to provide healthcare, combating HIV/AIDS and maternal and perinatal mortality. Since 2004, AFD has assisted Zanmi la Santé, a Haitian NGO that has taken up the challenge of introducing anti-retroviral drugs in rural areas.

SCIENTIFIC JOURNALS afrique contemporaine

A quarterly journal of research articles analyzing major trends in African politics, economics and society. In French only. Published by de Boeck.

À Savoir

A series featuring reviews of books and papers that frame current understanding of operational issues. AFD published 11 numbers in 2012, including: N° 15 | The Governance of Climate Change in Developing Countries N° 14 | Creating Access to Agricultural Finance. Based on a horizontal study of Cambodia, Mali, Senegal, Tanzania, Thailand and Tunisia N° 13 | Methods for the Economic Valuation of Urban Heritage: A Sustainability-based Approach Development professionals now see urban heritage as a territorial resource, one whose economic value calls for assessment. Such an evaluation is a delicate exercise given the complex reality of this heritage, one consisting of four interdependent economic, cultural, social and environmental dimensions. This paper presents a five-step methodology: identification of urban heritage, evaluation of services provided, comparison of investment flows with degradation costs, introduction of threshold effects, and estimation of nonsustainability risk. N° 12 | Contract Farming in Developing Countries. A Review This review analyzes academic, institutional and technical literature along with case studies to answer the most frequently raised questions about contract farming practices: Are smallholders excluded from contract farming? Do contract participants display significantly higher incomes than nonparticipants? Does this practice work with some crops better than others, and if so, which ones? What roles do farm cooperatives and nongovernmental organizations play in success or failure? February 2012

Contract Farming in Developing Countries - A Review

conferences & seminars

A series of presentations and conclusions drawn from seminars and conferences organized by AFD’s research department. N° 5 | Evaluation and its Discontents: Do We Learn from Experience in Development? A conference on 26 March 2012, which assembled over 1,000 participants from more than thirty countries, posed a crucial question: do we learn from development experience? If so, how can evaluations help us learn, and why are we unable to put these lessons into practice?

Evaluation and Capitalization series N° 43 | Practical Case of Resident Technical Assistance, Lessons Learned from Support to the Education Sector in Mauritania

A series of varied works including in-depth articles, academic works and discussion papers on development policy. AFD published 13 numbers in 2012, including:

Impact Analysis series N° 11 | Going Beyond Adverse Selection: Take-up of a Health Insurance Program in rural Cambodia Standard health insurance theory holds that households expecting high healthcare costs are the most willing to purchase health insurance. However, other considerations – budgetary ones in particular – may influence the decision. This study, conducted in rural Cambodia during the expansion of the SKY Health microinsurance programme, shows the importance of insurance and healthcare costs.

N° 128 | China’s Coal Methane: Actors, Structures, Strategies and their Global Impacts

Summary Notes series N° 10 | The Forest Sector in Countries of the Congo Basin: 20 years of AFD Intervention

N° 126 | In Pursuit of Energy Efficiency in India’s Agriculture: Fighting ‘Free Power’ or Working with it?

Joint Evaluations series Current editions available in French only.

N° 123 | Assessing Credit Guarantee Schemes for SME Finance in Africa Evidence from Ghana, Kenya, South Africa and Tanzania

A series providing macroeconomic analyses of development processes, by country, region or topic. 2012 numbers include:

working papers

N° 120 | Fostering Low-Carbon Growth Initiatives in Thailand

focales

A series presenting accounts of field experiences in developing and emerging countries, focusing on AFD and its partners – experts, researchers, consultants and practitioners. 2012 editions include: N° 9 | The Environmental Challenges Faced by a Chinese Oil Company in Chad The surge in Chinese investments in Africa has generated concern about their ecological impacts. However, Chinese business principles and environmental management capabilities remain largely unknown. This work, born of a unique partnership between European, Chadian and Chinese researchers, attempts to provide some insight on this subject by examining a case study: a Chadian project begun in 2009, initiated by CNPC, China’s largest oil company. N° 8 | Energy Efficiency Retrofitting of Buildings. Challenges and Methods N° 7 | Decentralisation in Turkey

Martin PROWSE Institute of Development Policy and Management, University of Antwerp

Ex post

AFD published 8 titles in 2012, including:

A collection that evaluates work by AFD and its partners in search of key lessons, organized according to five themes: Evaluation and Capitalization, Executive Summary, Methodology Notes, Impact Analyses and Joint Evaluations.

macrodev

N° 3 | Export Diversification in the Franc Zone: its Extent, Sophistication and Dynamics December 2012 /

No 3

Macroeconomics and Development

Introduction It is now a widely recognised fact in the economic literature that the level of per capita income and the degree of sectoral concentration of economic activity evolve together over the long term. The empirical research of Imbs and Wacziarg (2003) has notably shown that production diversification and wealth go hand in hand in countries with a low per capita income. More recently, various studies have found that export diversification is similarly linked to per capita income (Klinger and Lederman, 2006; Hesse, 2009; Cadot et al. , 2011): export diversification increases as per capita income rises, at least up to a certain level of income. [ 1] This type of approach, however, does not exhaust the analysis of the phenomenon of export diversification. More specifically, it does not allow an investigation of how export structures evolve over the short and medium term. Yet, these time scales can in fact prove useful to more clearly identify the factors that impede diversification. It is thus on this aspect of export diversification that the present study will focus.

Export diversification in the franc zone: its extent, sophistication and dynamics Christophe Cottet (cottetc@afd.fr) Nicole Madariaga (madariagan@afd.fr) Macroeconomic Analysis and Country Risk Unit Research Department, AFD

Nicolas Jégou Administrator at INSEE

Much of the research on this aspect of export diversification has above all addressed industrialised or emerging countries (Rodrik, 2006; Besedes and Prusa, 2011), which is all the more regrettable given that high degrees of export concentration heighten the vulnerability of the poorest countries. This paper therefore examines a group of countries

[1] Above a certain level of income, this relationship is reversed. However, the level of per capita income above which this turning point occurs is high (from USD 20,000 to 22,000 per capita according to Cadot et al., 2011); at low per capita income levels, the relationship is thus positive. The United Nations Economic Commission for Africa (UNECA, 2007) confirms that export diversification trends upwards with the income of African countries.

recherches

A series featuring AFD-initiated and directed research studies. N° 2 | Water Services and the Private Sector in Developing Countries. Comparative Perceptions and Discussion Dynamics This book, which summarizes five years of AFD research on public-private partnerships, questions the suitability of delegation models. It also describes changes in how development stakeholders — donors, researchers, experts — perceive the private-sector role in drinking water and sanitation service in developing countries. 55

AFD

APPENDICES

FINANCIAL STATEMENTS A view of the AFD Group’s (AFD and PROPARCO) financial standing as of 31 December 2012. The complete 2012 AFD Group financial report is available in the Registration Document, which can be downloaded from www.afd.fr Rounding may cause totals to vary slightly from item-by-item addition.

BALANCE SHEET ASSETS (€ million)

2011

2012

Loans (net outstanding)

15,629

18,617

Loans (gross outstanding)

15,960

18,941

2011

2012

11,316

14,271

-420

-422

2,496

2,548

252

223

2,085

1,860

Managed funds and advances from French government

568

646

Accruals and other liabilities

481

992

Provisions

724

781

2,182

2,200

20,178

23,610

2010

2011

2012

Net banking income (€ million)

383

361

363

Net income (€ million)

104

Dividends paid to French treasury (€ million)

220

65.5 %

71.6 %

73.8 %

(-) Allowances for capital and interest impairments (+) Accrued interest

LIABILITIES AND CAPITAL (€ million) Bonds and borrowings from markets

Borrowings from French Treasury Financial liabilities (excluding own debt)

IMF-PRGF operations*

2,086

1,861

Investment portfolio

687

692

Cash and short-term instruments

625

1,228

Equity participations

421

436

IMF-PRGF operations*

Property, plant, equipment and intangible assets

184

203

Capital and Retained Earnings

Accruals and other assets

547

573

Net income

20,178

23,610

TOTAL

*PRGF: Poverty Reduction and Growth Facility. IMF: International Monetary Fund

KEY RATIOS AND INDICATORS

1 2

Return on equity

Overhead expenses1 / Net banking income

Return on capital employed

Earnings before interest and tax / Capital employed2

6.1 %

4.3 %

Return on assets

Net income / Total assets

0.6 %

0.4 %

Overhead includes depreciation and amortization expenses; 2010 ratios have been recalculated to reflect this change. Average debt liabilities and average shareholder’s equity net of provisions for general banking risk (€460 million).

INCOME STATEMENT EXPENSES (€ million)

2011

2012

INCOME (€ million)

2011

2012

Borrowings expense

Income earned on loans and guarantees

757.5

952.4

Interest expense

847.3

1,027.9

398.2

Interest income and commissions on loans and guarantees

317.1

Swaps expense

443.7

528.2

549.9

Swaps income

439.3

432.0

539.7

Net allowances for unpaid interest

-2.1

-7.1

Interest income losses

-0.8

0.0

-37.4

-42.1

11.9

9.2

183.0

184.6

42.7

54.5

4.5

3.5

Commissions on operations

36.8

36.6

Net allowances for sovereign credits impairments Net foreign exchange loss (- gain)

1.0

4.3

Recoveries on subsidy account for SAL* and mixed loans-grants

Income earned on interest rate subsidies Investment income Income from equity participations

Miscellaneous financial expenses

30.7

30.2

Miscellaneous commissions

33.8

37.4

Expenses for IMF-PRGF operations

37.0

37.1

Income from IMF-PRGF operations

37.9

38.0

Total Banking Expenses

825.2

1,019.7

Total Banking Income

1,186.0

1,382.6

Net of IMF-PRGF Operations Expenses

788.2

982.6

Net of IMF-PRGF Operations Income

1,148.1

1,344.5

NET BANKING INCOME

360.8

362.9

General and administrative expenses

245.8

254.1

• Employee compensation and benefits

166.4

170.3

164.0

166.9

2.4

3.4

Employee compensation net of overseas reserve bank reimbursements Allowances for retirement benefits

3.8

4.7

75.6

79.1

0.0

12.6

13.7

Total operating expenses

258.5

267.8

GROSS OPERATING INCOME

102.4

95.1

-33.8

-8.8

0.8

5.2

-33.8

-12.1

Capital losses on bad debt and loan losses

-0.7

-2.0

Gross income from operations

68.6

86.3

• Taxes and regulatory fees • Other general and administrative expenses • Net other allowances

Net allowances for depreciation of property, plant and equipment and amortization of intangibles

Cost of risk and other credit risk provisions Net allowances for loan impairments Provisions for contingencies and charges

5.2

1.9

Net profit before tax and exceptional items

73.8

88.1

Net income (- loss) from exceptional operations

-0.3

0.0

73.5

87.9

Gains or losses on fixed assets

Income tax expense

Net Income

*SAL: Structural Adjustment Loan

APPENDICES

AFD

AFD GROUP 2012 FUNDING APPROVALS (€ million)

GRANTS and SUBSIDIES

LOANS

GUARANTEES

2011 2012

EQUITY

BUDGET SUPPORT AND HIPC INITIATIVE

Total

DELEGATED COOPERATION FUNDS

2011 2012

SUB-SAHARAN AFRICA 10.0

0.3

Burkina Faso

8.3

23.6

Burundi

1.2

5.2

Cameroon

2.4

0.5

Benin

329.0

83.2

1.4

1.7

7.9

5.7

1.0

0.3

24.7

14.1

211.8

Central African Republic

5.7

6.6

Chad

6.4

11.4

5.2

15.0

15.5

0.5

Comoros Congo (Republic of the)

0.3

Côte d'Ivoire

1.5

2.2

5.6

33.5

567.9

131.3

1.6

0.6

Guinea

10.7

9.0

Guinea Bissau

0.1

Kenya

3.9

6.6 3.0

8.0 358.0

76.3

2.4

0.7

0.5

66.3

30.4

231.6

0.1 125.6

6.5

6.7

1.2

2.0

1.5 4.0

12.0

5.4

3.1

5.7

12.6

8.9

18.0

5.2

18.0

16.2

11.3

31.3 144.7

4.3 15.0

Gabon

5.0

235.9

128.9

22.0

16.6

Mali

8.5

0.8

44.3

Mauritania

4.1

6.5

45.0

41.3

117.5

82.6

40.0

50.0

2.7

11.4

40.0

Nigeria

0.4

6.7

76.8

Rwanda

0.3

Mauritius 3.2

8.7

0.4

7.2

11.6

4.1

1.6

252.7

4.3

6.0

70.6

0.1

23.0

18.7

238.3

133.7

13.8

14.0

248.6

7.1

Senegal

30.2

5.0

2.2

0.2

1.7

13.0 3.9 0.9

2.4 60.9

121.4

86.8

44.1

50.0

10.0

38.8

52.7

6.9

77.2

152.0

11.0

104.6

193.3

234.3

145.2

234.3

152.3

43.6

56.5

3.7

55.4

58.2

3.8

Togo

6.5

Uganda

0.9

4.8

5.0

26.1

0.1

20.4 3.0

3.1

10.0 7.1

1.4 0.8

8.1

40.0

5.2

3.8

0.5

16.1

18.8

0.7

0.2

10.4

59.1

0.5

Zambia

3.4

4.1 2.0

53.6

11.8

16.8

19.5

10.9

59.1

159.3

322.0

1.4

25.0

2,723.3

2,013.5

55.7

161.3

1.3

20.8

32.1

0.8

Zimbabwe

5.2 4.0

4.2

11.1

1.4 0.5

19.9

28.2

51.1

10.0

Sudan

4.2

6.8 10.0 0.2

86.5

129.3

56.8

2.0 1.8 0.1

Seychelles South Africa Tanzania

3.8

3.9 34.1

2.0

4.8

Namibia 15.7

5.7

12.9

425.9

3.9

Mozambique

1.3

0.1 0.0

Liberia

Total

2.8

6.0 2.6

70.0

Ghana

MULTI-COUNTRY PROGRAMMES

2.0

48.8

31.0 1.2

0.6

Ethiopia

Niger

12.0

34.6

27.2

6.0

Djibouti

Madagascar

11.4 19.5

27.2

Cape Verde

Congo (Democratic Rep. of the)

10.0 18.4

39.9 14.0

0.8 6.7

0.8

56.5

46.0

4.0

256.8

197.5

195.1

1,984.9

1,425.8

163.8

7.2

58.8

11.9

40.0

109.2

75.8

32.7

301.3

250.7

MIDDLE EAST AND NORTH AFRICA Egypt

1.0

Jordan

1.6

Lebanon

1.4

2.7

3.2

0.7

22.6

16.4

Tunisia

0.6

3.4

Turkey

0.4

Palestinian Territories

MULTI-COUNTRY PROGRAMMES Total

15.4

387.0

150.0

387.0

3.9

1.6

151.0

70.0

56.5

71.4

59.2

540.0

380.0

543.2

380.7

185.0

50.0

231.0

151.9

1,036.5

1,175.3

0.3

Libya Morocco

10.5 1.0

8.9

5.9

39.6

30.4

0.3 2.3

1.5 2.0

8.5

26.5 2.3

3.5

30.4

8.5

24.9

17.9

185.6

63.9

7.8

4.9

231.4

151.9

20.0

35.4

5.9

0.1

0.2

1,108.9

1,217.7

29.1

58.0

GRANTS and SUBSIDIES

LOANS

GUARANTEES

2011 2012

EQUITY

BUDGET SUPPORT AND HIPC INITIATIVE

Total

DELEGATED COOPERATION FUNDS

2011 2012

ASIA AND THE PACIFIC Afghanistan

25.9

26.3

25.9 57.3

Bangladesh Cambodia

5.5

6.8

China

8.2

69.7

176.8

130.6

248.6

280.4

156.6

140.5

0.1

Indonesia

0.3

Laos

2.0

13.8

76.4

180.8

130.6

264.3

307.4

156.8

140.5

15.6 0.2

15.6

26.9

2.0 1.9 61.0

Pakistan Philippines 0.4

Sri Lanka

61.0

60.0

24.0

24.4

20.0

Thailand

20.0

0.3

Vanuatu 1.5

1.6

35.2

MULTI-COUNTRY PROGRAMMES Total

4.0

1.9

Myanmar

26.3 57.5

15.6

Georgia India

Vietnam

0.2

0.3 129.0

103.0

41.0

739.1

942.0

14.8

15.1

2.0

56.4

756.4

351.8 5.2

0.02

130.5

104.6 3.6

0.1

26.9

794.1

1,010.1

0.1

14.8

15.1

10.0

56.4

768.4

1.5

149.9

353.7

149.9

9.5

7.7

5.2

7.7

3.6 0.2

0.2

19.6

LATIN AMERICA AND THE CARIBBEAN Argentina Brazil Colombia

1.9

Costa Rica Dominica 0.1

Dominican Republic Ecuador Guatemala Haiti

10.0

6.5

159.7

59.6

7.6

16.2

0.6

1.5 21.9

10.0

6.5

2.0

160.3

59.7

10.0

7.6

16.2

1.5 7.5

2.5

18.0

8.0

39.9

16.0

Honduras 1.5

Mexico

385.0

60.0

Panama

24.5

Peru

15.3

0.1

385.1

4.7

61.5

2.0

7.0

20.3 6.8

36.9

24.5

6.8

15.3

36.9

31.1

Uruguay

19.6

16.0

20.3

Nicaragua

18.0

31.1

MULTI-COUNTRY PROGRAMMES

3.5

Total

25.3

11.0

1,030.3

1,175.7

0.7

2.5

NON-COUNTRY-SPECIFIC PROGRAMS

13.7

34.4

49.8

4.0

TOTAL DEVELOPING AND EMERGING COUNTRIES

311.3

312.1

4,840.6

4,722.8

167.0

50.5

77.3

12.8

6.9

0.4

35.1

170.7

3.6

67.3

Guadeloupe

127.2

190.6

33.9

Martinique

206.2

175.6

85.6

46.5

275.6

115.4

16.8

12.1

5.0

137.9

89.8

18.0

319.3

8.0

258.7

1,074.3

1,214.1

25.1

75.5

43.4

3.1

5,776.1

5,498.7

113.3

34.6

254.0

FRENCH OVERSEAS PROVINCES French Guiana French Polynesia

Mayotte 0.3

New Caledonia Reunion Saint Pierre and Miquelon Wallis and Futuna

0.1

Shared by several local governments

0.6

63.3

84.2

39.1

238.4

33.5

161.1

224.1

20.1

23.1

226.3

198.7

3.0

6.7

88.6

53.2

241.9

10.7

10.9

286.3

253.1

163.3

337.8

72.5

67.5

235.8

413.8

5.0

4.8

0.6

0.3

8.5

5.6

1.5

1.8

1.5

5.0

5.1 2.4

0.4

5.0

Shared by several local governments and provinces

0.4

TOTAL

1.8

948.5

1,250.2

158.7

217.9

0.3

8.5

313.9

5,789.1

5,973.0

325.7

333.3

138.2

98.3

311.3

2.8 0.2

0.1

Shared by several provinces

TOTAL ALL

0.3

0.4

319.3

258.7

1,107.5

1,478.4*

0.9

2.8

6,883.5

6,977.2

114.1

256.8

* Includes a larger scope than in 2011, for â&#x201A;Ź80 million

AFD

APPENDICES

AFD 2012 PROJECT APPROVALS This is a partial list of AFD-approved projects by sector. TOTAL COMMITMENT (â&#x201A;Ź million)

SECTOR

COUNTRY

PROJECT

BENEFICIARY

AGRICULTURE AND FOOD SECURITY

AFGHANISTAN

Capacity building for the Ministry of Agriculture, Irrigation and Livestock Farming

Central Government

1.50

CAMBODIA

Support for hydro-agricultural sector policy makers

Central Government

24.00

CAMEROON

Support programme for project owners in rural administrations

Central Government

7.80

EGYPT

Programme to improve credit access for agricultural producers and processors; commitment includes delegated EU funds

Central Government

50.80

GHANA

Perennial crop plantations and small agro-industries

Bank

17.70

GUINEA

Second phase of a support programme for village communities

Central Government

6.00

HAITI

Food security improvement in the South Province and strenghtening of the food processing industry; commitment includes delegated EU funds

Central Government

11.67

MAURITANIA

Extension of the second phase of a support programme for local development and decentralization

Central Government

3.64

MYANMAR

Equity participation in the Livelihoods and Food Security Trust Fund (LIFT)

International Trust Fund

1.00

NIGERIA

Refurbishment of rural roadways and transportation improvements

Central Government

46.32

SENEGAL

Food security improvement project and support for bringing products to market in Matam Province

Central Government

22.50

MULTI-COUNTRY

Regional program to fight fruit fly infestations in the ECOWAS area

International Organization

1.50

BANGLADESH

Partial financing for sustainable urban transportation in Greater Dacca

Public sector cooperative

34.72

BRAZIL

Mass transit policy in Rio de Janeiro State

Central Government

299.93

Partial financing of the "Management for Citizenship" programme in Minas Gerais State

Central Government

300.00

CHINA

Multi-modal transportation hub in Wuhan Province

Central Government

100.00

COLOMBIA

Financing for local governments' capital investments; commitment includes delegated EU funds

Bank

154.93

DJIBOUTI

Solid waste management, valorization, and treatment programme in City of Djibouti

Central Government

DOMINICA

Support for geothermal power development; commitment includes delegated EU funds

Central Government

8.50

EGYPT

Third phase of Number 3 metro line in Cairo

Central Government

300.00

GHANA

Extension of roadway and drainage infrastructure in Kumasi

Central Government

37.50

INDIA

Cofinancing with JICA and SADB for the Bangalore Metro

Central Government

110.00

INDONESIA

Partial financing for an urban rail transportation project in Bandung

Central Government

46.00

MAURITIUS

Partial financing for the capital investment programme of the Port Authority of Port Louis; commitment includes delegated EU funds

Public Sector Entreprise

35.60

MEXICO

Credit line for the Federal Mortgage Company to support green social housing

Public Sector Financial Institution

MOROCCO

Partial financing for the National Port Agency for the refurbishment and expansion of regional ports

Public Sector Entreprise

50.30

Financing for capital investment in the first tramway line in Casablanca

Public Sector Entreprise

23.00

Construction of the first high-speed rail line between Tangier and Kenitra

Public Sector Entreprise

220.00

PALESTINIAN TERRITORIES

Construction of a modern landfill in the Gaza Strip; commitment includes delegated EU funds

Central Government

14.65

TUNISIA

Neighborhood redevelopment and support for integrated local development; commitment includes delegated EU funds

Central Government

62.39

TURKEY

Extention of metropolitan rail line to a multi-modal hub in Yenikapi

Local Government

45.54

Partial financing for a sustainable urban transportation project in Izmir

Local Government

45.00

Support for affordable housing in Africa

Public Sector Financial Institution

19.31

Partial financing for ASECNA's capital investment programme to strengthen air traffic safety in Africa and Madagascar

International Public Sector Entity

40.00

Contribution to the European Neighborhood Investment Trust Fund

Investment fund

INFRASTRUCTURE AND URBAN DEVELOPMENT

MULTI-COUNTRY

6.00

7.00

5.00

TOTAL COMMITMENT (€ million)

SECTOR

COUNTRY

PROJECT

BENEFICIARY

WATER AND SANITATION

AFGHANISTAN

Capacity buidling and drinking-water supply extension in Kabul

Central Government

CAMBODIA

Financing for capital investments to double the Niroth plant's water treatment capacity and to extend the water adduction and distribution network

Public Sector Entreprise

COLOMBIA

Budget support for a comprehensive water management policy

Central Government

4.50

COMOROS

Drinking-water supply project in Domoni on Anjouan Island; commitment includes delegated EU funds

Central Government

5.72

DJIBOUTI

Wastewater sewerage and treatment project in the Balbala district of Djibouti

Central Government

5.20

EGYPT

Cofinancing for a European programme to improve water and sanitation in Upper Egypt

Central Government

57.00

GHANA

Cofinancing with the EIB for rural hydraulics; commitment includes delegated EU funds

Central Government

45.00

INDIA

Second phase of a project to improve drinking water supply in Jodhpur

Central Government

23.00

KENYA

Water-supply system extension project in Nairobi

Central Government

100.00

MAURITANIA

Improve access to drinking water and sanitation for rural and semi-urban populations; commitment includes delegated EU funds

Central Government

14.63

Drinking water and sanitation access for residents of Aftout El Charghi; funding includes delegated EU loan

Central Government

27.30

MOROCCO

Cofinancing to improve drinking-water adduction and distribution

Public Sector Entreprise

30.00

PALESTINIAN TERRITORIES

Refurbishment of drinking-water supply network in Beit Sira

Central Government

EDUCATION

ENERGY

7.00 30.00

1.00

Water supply improvement project in the Tubas governorate

Central Government

4.50

SEYCHELLES

Improve water and sanitation services on three largest islands

Central Government

10.00

TANZANIA

Lake Victoria regional sanitation project

Central Government

45.00

TOGO

Improvement to school and rural sanitation conditions in the Savanes region

Central Government

6.00

Delegated EU funds to finance urban development and sanitation in Lomé

Central Government

39.91

TUNISIA

Partial financing of a rural water supply programme

Central Government

20.00

BURKINA FASO

Support programme for upgrading teaching practices and for technical and professional training

Central Government

5.00

Support for a basic education development plan

Central Government

7.00

BURUNDI

Support for an education and training development programme

Central Government

CAMEROON

Extension and modernization of the Catholic University of Central Africa

International Organization

Extension and modernization of the University of Mountains

Private Nonprofit Organization

5.00 10.00 7.72

Professional training centers

Central Government

15.00

CÔTE D'IVOIRE

Debt relief contract for education, training and workplace integration

Central Government

93.00

DOMINICAN REPUBLIC

Support for hospitality and catering industry training

Central Government

4.00

LEBANON

Support for education

Central Government

46.50

MADAGASCAR

Support for education quality improvement project

Central Government

10.00

MAURITANIA

Support for vocational and professional training, part of the National Education Development Plan II

Central Government

3.00

SENEGAL

Support for middle-school teaching

Central Government

12.00

MULTI-COUNTRY

Financing for the Conference of Education Ministers of Countries Using French as a Common Language (or CONFEMEN ) for a comparative analysis of educational systems

Public Sector Financial Institution

4.00

BRAZIL

Modernization and extension of the electricity grid in Rio Grande do Sul State; commitment includes delegated EU funds

Public Sector Entreprise

67.99

Improvements to electricity production and transmission in Rio Grande Do Sul State

Public Sector Entreprise

44.94

CAMBODIA

Modernization and extension of public lighting in Phnom Penh

Private Sector Entreprise

11.69

CAMEROON

Hydroelectric project in Lom Pangar

Central Government

60.00

INDONESIA

Strengthening the electric transportation network in metropolitan Jakarta

Central Government

15.04

JORDAN

Sectoral budget aid

Central Government

150.00

MAURITANIA

Hybrid solar photovoltaic/thermal power plant and electricity grids in the Kiffa region; commitment includes delegated EU funds

Central Government

23.80

MAURITIUS

Budget support for green energy development

Central Government

50.00

MOROCCO

Second phase of a programme to strengthen high and medium voltage electricity grid

Public Sector Entreprise

57.00

MOZAMBIQUE

Refurbishment of hydroelectric plants in Mavuzi and Chicamba

Central Government

50.00

PAKISTAN

Hyrdroelectric plant in Harpo

Central Government

50.00

First phase of a multi-use dam project in Munda

Central Government

Concentrated-solar power plant

Public Sector Cooperative

SOUTH AFRICA

11.00 100.00

AFD

APPENDICES 18.76

UGANDA

Installation of a power transmission line betweeen Nkenda and Hoima

Central Government

SECTOR

COUNTRY

PROJECT

BENEFICIARY

ENERGY

VIETNAM

500 kV electricity transmission lines between Pleiku and Ho Chi Minh City

Central Government

75.50

ZAMBIA

Construction of transmission lines from a 120 MW hydroelectric plant; commitment includes delegated EU funds

Central Government

33.35

MULTI-COUNTRY

Refinancing for projects under the Regional Initiative for Sustainable Energy (WAEMU)

International Organization

75.50

CAMEROON

Second round of support for the Forests and Environment Sector Programme (first debt relief contract)

Central Government

10.70

CENTRAL AFRICAN REPUBLIC

Southwest Regional Development Programme; commitment includes delegated EU funds

Central Government

8.75

CHINA

Sustainable forest management project in Hunan Province

Central Government

30.60

GABON

Integrated management project for nature reserves outside Libreville (Arc d'Émeraude)

Central Government

12.00

INDIA

Energy efficiency and renewables project

Public Sector Financial Institution

100.00

INDONESIA

Environmental credit line

Bank

MAURITANIA

Grant to the Banc d'Arguin and Biodiversity Trust Fund

Private Sector Financial Iinstitution

2.50

MEXICO

Budget loan for biodiversity

Central Government

60.00

PHILIPPINES

Climate change mitigation projects

Public Sector Financial Institution

60.00

VIETNAM

Third phase of a climate-change response programme

Central Government

20.00

MULTI-COUNTRY

Framework agreement with the International Union for Conservation of Nature (IUCN)

International Organization

1.00

BURKINA FASO

Support for population and health policies

Central Government

9.00

CAMEROON

Expansion of the Cameroon Baptist Convention Health Board network of healthcare services

Private Nonprofit Organization

5.49

CHAD

Urban health project

Private Sector Financial Iinstitution

8.00

COMOROS

Support for health, particularly maternal and infant health

Central Government

8.00

CÔTE D'IVOIRE

Strengthening of family planning policies

Central Government

7.62

LIBERIA

Contribution to the Common Fund for Health

Central Government

3.94

SENEGAL

Improvements to maternal and infant health in the Louga region

Central Government

14.00

MULTI-COUNTRY

Expansion of Africans' access to new treatments for malaria, sleeping-sickness and pediatric AIDS

NGO

5.00

Project to fight emerging diseases in Cambodia, Laos, Myanmar and Vietnam

NGO

2.70

Capacity building to fight tuberculosis in eight French-speaking African countries

NGO

3.50

BENIN

Support for mesofinance

Bank

1.26

CHAD

Microfinance capacity building

Central Government

2.00

ENVIRONMENT

HEALTH

BUSINESS, INDUSTRY AND TRADE

OTHER

TOTAL COMMITMENT (€ million)

75.49

Support for structuring the gum arabic industry

Central Government

1.40

MADAGASCAR

Implementation of remote-banking services in rural areas

Central Government

2.00

SENEGAL

Support for the expansion of Saint-Louis Finances

Private Sector Financial Iinstitution

1.50

SUDAN

Support for structuring the gum arabic industry

Central Government

1.40

TOGO

Support for structuring a microfinance institution

Private Sector Financial Iinstitution

2.00

TUNISIA

Support to set up a workplace integration programme for young graduates by starting-up companies in the Médenine region

Private Nonprofit Organization

1.50

VIETNAM

Contribution to a public-private partnership support programme

Central Government

8.60

MULTI-COUNTRY

Support to develop fair trading practices as a sustainable development tool in West Africa

NGO

2.90

AFGHANISTAN

Fourth economic development programme for Kapisa Province and the Surobi District (agriculture, rural electrification and health)

Central Government

15.40

BURKINA FASO

Global budget aid

Central Government

19.50

CENTRAL AFRICAN REPUBLIC

Global budget aid

Central Government

6.00

COMOROS

Global budget aid

Central Government

3.00

CÔTE D'IVOIRE

Drafting and management of a debt-relief contract

Central Government

19.10

Global budget aid

Central Government

25.00

GUINEA

Global budget aid

Central Government

5.00

HAITI

Global budget aid

Central Government

8.00

MAURITANIA

Global budget aid (health and food security)

Central Government

6.40

NIGER

Global budget aid

Central Government

10.00

Budget support loan

Central Government

40.00

Budget support loan

Central Government

130.00

SENEGAL

Refer to the AFD French Overseas Provinces annual report and the PROPARCO annual report for their respective project lists. 62

CrEdits AFD Coordination: Marie de Jerphanion, Benjamin Neumann, Laureline Felder, Claire Veyriras Art direction and lay-out: Pepper Only Printing and production: Déjà Link English translation: Suzan Nolan, BlueSky International Photo credits Front and back outside covers: Thinkstock Front and back inside covers: Didier Gentilhomme P 3: Ben Black Art Photography / Pp 4, 6, 40, 48: Dominique Fradin / P 7: Magloire Kindoki / Pp 8, 44: Xavier Hoang, AFD Pp 9a, 49: Éric Thauvin, AFD / Pp 9b, 11a, 19b, 38, 47a, 47c: G2studio / P 11b: Louise Virault / Pp 11c, 19c, 32, 33, 51b: Didier Gentilhomme P 12: Istock / P 13: Cyrille Bellier, AFD / P 15a: AFD / P 15b: Hervé Gallèpe, AFD / P 17a: Mathieu Arnaudet, AFD / P17b: AFD Reunion P 19a: SONABEL / P 22: Philippe Walfard, AFD / P 23: Pallisco / P 25a: Didier Grébert, AFD / P 25b: Thibaut Le Loc’h / P 26: Xavier Allard P 27: Nabila Haddad, AFD / P 28: José Tissier, AFD / P 29: Sideth Muong, AFD / P 30: Guillaume Chiron, AFD / P 31: Bénédicte Gazon, AFD P 35: Oriane Zerah / P 36: Pascale Dumoulin, AFD / Pp 39a and 51a: Éric Beugnot, AFD / P 39b: Éloïse Pelaud, AFD / P39c: Delphine Falchier P 41: Copyright Ministry of the Economy and Finance / Pp 42, 43: François de Ribaucourt / Pp 45a, 45b: James Keogh - Wostok Press P 46: CEFEB / P 47b: Franck Galbrun / P 49: Pepper Only / P 51c: Bertrand Ficini, AFD This report was printed with vegetable- rather than petroleum-based inks. Use of the Programme for the Endorsement of Forest Certification (PEFC) logo indicates that the timber harvested for paper pulp did not contribute to deforestation or impair the forest’s environmental, economic and social uses. Copyright: July 2013

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