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NORDIC DEVELOPMENT FUND Annual Report 2009


I N D E X From the Chair

3

Report by the Board of Directors 2009

4

Income Statement

10

Balance Sheet

11

Changes in Equity

12

Cash Flow Statement

12

Notes to the Financial Statements

13

Auditors’ Reports

19

NDF and Climate Change

21

Credit Portfolio: Africa, Asia, Latin America and the Carribbean

25

Board of Directors

33

Control Committee

33

Management and Staff

33


FROM THE CHAIR

The year 2009 was a milestone year in the history of the Nordic Development Fund.

the Mekong Region (Cambodia, Lao PDR and Vietnam). The approved projects

Over the past 20 years, NDF has provided concessional loans to developing

will support renewable energy solutions, access to modern energy, reforestation

countries. Starting in 2009, the Fund uses reflows from outstanding loans to

and sustainable forest management, flood protection and capacity-building in

provide grant financing solely for climate-related interventions in the poorest

these countries.

countries in the world. Under its new mandate operations, NDF will draw heavily

A particularly innovative project in the new grant portfolio is the Nordic

on its long-standing cooperation with development partners and major multilateral

Climate Facility (NCF) which is a small-grants facility that once a year launches

development banks.

a call for proposals on specific climate-related themes. The NCF allows innovative

The change of mission for NDF started out as a rather open-ended process

climate change approaches to be tested, following a screening procedure carried

several years ago. The shareholders decided to review the strategic orientation

out jointly with the Nordic Environmental Finance Corporation (NEFCO). The

of NDF and to look for opportunities for the Fund to take on a new and truly

facility will allow Nordic private sector entities, research organisations and

complementary role. The review process ended formally in May 2009, with the

NGOs to work with partners in low-income countries, exploring new ideas and

Nordic Council of Ministers agreeing on the new mandate for NDF.

modes of cooperation.

The new strategic direction is understandable, given the adamance of the

While supporting the implementation of the United Nations Framework Con-

Nordic countries in putting climate change high on the agenda in their develop-

vention on Climate Change, NDF also strives to integrate development objectives

ment assistance through both bilateral and multilateral channels. This commit-

into its climate activities. The Nordic shareholders of the Fund believe such an

ment as donors is supported by the advanced climate technologies developed in

integrated approach to be both possible and necessary, and we certainly hope

the Nordic enterprise sector as well as the early adoption of energy-efficient

that it will be proven successful under the new NDF mandate.

solutions across the Nordic societies. Under its new mandate, NDF capitalises on these achievements for the benefit of developing countries, many of which have been subjected to shocks stemming from climate change – in addition to crises related to other external factors such as the global economic downturn. During 2009 the NDF Board of Directors approved seven new grant projects on the order of EUR 18 million in total. These grants will support climate change initiatives in Benin, Uganda, Rwanda, Lao PDR and

Tomas Danestad Chair of the Board of Directors

3 5


REPORT BY THE BOARD OF DIRECTORS 2009

Summary of 2009 Pursuant to the recommendation of the NDF Board of Directors to the Nordic Council of Ministers, the Nordic Cooperation Ministers approved on May 5, 2009 amendments to NDF’s bylaws. According to these amendments, NDF’s repayments on credits shall be utilised in the form of grant financing of climate-related interventions in poor countries. After the amendments had become valid, the Board approved a Strategy Document prepared by the administration which constitutes the basis for NDF’s operations during the years 2009-2011. During 2009, the Board approved seven projects under the renewed mandate to a total value of EUR 17.9 million.

4

Under the previous lending mandate seven projects were completed in the course of the year. A total of 38 projects are still under implementation at the beginning of 2010. Disbursements of credits amounted to EUR 49.9 million in 2009 (2008: EUR 76.8 million). The disbursements of grant aid amounted to EUR 0.4 million. The net result for the year before adjustments for currency exchange fluctuations and disbursements of grant aid totalled EUR 6.2 million (EUR 8.0 million in 2008). Contrary to the previous year, the effects of currency fluctuations showed a result of EUR -5.8 million in 2009 (EUR 9.3 million in 2008).


REPORT BY THE BOARD OF DIRECTORS 2009

The new mandate

Later in 2009, the Board approved grant financing to these same seven

In December 2008 the Board of Directors agreed on a recommendation to the

projects for a total value of EUR 17.9 million:

Nordic Council of Ministers that the capital of NDF be utilised in the form of grant aid for climate related interventions in low-income countries. This capital

- Nordic Climate Facility, NCF, is a financing facility of EUR 4 million for

consists of repayments from the 190 credits granted by NDF during 1989-2005.

financing of climate-related projects in the poorest countries of the world.

These repayments are expected to amount to approximately one billion euro

Financing can be granted to Nordic institutions, organisations, authorities and

during a period of 35 years. The last repayment is due in 2045.

companies for innovative projects which reduce emissions of harmful greenhouse gases or support the adaptation to climate change in developing countries.

Pursuant to the recommendation of the NDF Board of Directors to the Nordic

The project is administered in cooperation between NDF and the Nordic

Council of Ministers, the Nordic Cooperation Ministers approved on May 5, 2009

Environment Finance Corporation, NEFCO.

amendments to NDF’s bylaws. According to these amendments, NDF is given a new mandate to support interventions aimed at adaptation to and mitigation of

- Mekong Energy and Environment Partnership (EEP) is a regional

the negative effects of climate change.

programme for energy and energy-efficient technology development in the Mekong region. NDF’s contribution of EUR 3 million will be channelled to

At a meeting in June 2009, the Board of Directors approved a strategy

projects in Cambodia, Lao PDR and Vietnam. The programme will provide

document prepared by the administration, which outlines the future activities

improved access to modern energy services in these countries as well as to

of NDF during the years 2009-2011. This document constitutes the basis for

mitigate the negative consequences of climate change. The total costs of the

NDF’s operations under the new mandate. The objectives shall be to facilitate

programme amount to EUR 7.9 million. Finland contributes EUR 4.9 million

greater investments in developing countries in order to address the causes and

to the financing.

consequences of climate change. The grant assistance of NDF shall be utilised for technical assistance, goods and civil works related to infrastructure, natural

- Benin receives grant financing of EUR 1.5 million for the purpose of

resources and capacity-building. The Fund can provide grants to 27 countries in

supporting sustainable use of forestry resources and measures to reduce

Africa, Asia and Latin America. All of these countries have previously received

deforestation. The Increased Access to Modern Energy Project - Modernizing

support from NDF in the form of credits. Financing in the form of grants shall

Biomass Energy Services, receives support also from the World Bank/IDA and

be provided by co-financing with other multilateral and bilateral financiers;

other financiers.

mirror the Nordic countries’ priorities in the areas of climate change and poverty reduction and as much as possible complement other available financing.

- NDF supports Promotion of Solar Water Heaters in Rwanda with a grant of EUR 4 million. This project aims at encouraging the market for solar water

At the June 2009 meeting, the Board approved the first seven projects under

heaters. It is co-financed with the World Bank/IDA and the Global Environment

the Fund’s new mandate for further processing by the administration.

Facility (GEF).

5


REPORT BY THE BOARD OF DIRECTORS 2009

- Uganda will receive grant financing of EUR 3 million for a project with the

The weakening of the SDR against the euro has resulted in a decrease in the

purpose of Increasing Access to Modern Energy Packages in Rural Areas. NDF

value of disbursed SDR credits and placements of EUR 5.8 million in 2009.

contributes towards installations of solar energy packages for 100 rural health centres and for four water pumping systems. The NDF intervention is part of a

NDF’s participation in the HIPC Initiative

project co-financed by the World Bank/IDA and GEF.

Since the World Bank and the International Monetary Fund (IMF) adopted the “Debt Initiative for Heavily Indebted Poor Countries” (HIPC) in 1996, NDF has

- Lao PDR will receive EUR 415,000 through the Asian Development Bank for a

participated in the initiative through the HIPC Trust Fund, which is administered

pre-feasibility study which will cover issues related to climate change in the

by IDA. By the end of 2009, NDF had made allocations to the HIPC Initiative for

town of Pakse in southern Lao. The study will also analyze the possibilities for

debt relief to nine of the Fund’s borrowing countries.

general environmental improvements. The study will subsequently lead to an investment project, Pakse Urban Environmental Improvement Project, to be

The allocations made in previous years from NDF's accumulated net income

financed by the ADB and other financiers.

before foreign exchange differences, totalling EUR 28.5 million, cover the obligations of the Fund under the enhanced HIPC Initiative. Of this amount,

- NDF has approved grant financing of EUR 2 million to Lao PDR for the

EUR 28.4 million have been paid in to the HIPC Trust Fund.

project Capacity Enhancement for Coping with Climate Change, which has been developed in close co-operation with the ADB. The purpose of this project is to

Project monitoring and evaluation

strengthen the country’s capacity to mitigate the effects of climate change. The

In 2009, two ex post evaluations of projects with NDF support were carried out,

NDF contribution will be utilised for technical assistance and pilot projects in

in Tanzania and in Ghana, respectively. An independent team of consultants was

high priority sectors such as water resources and agriculture.

engaged for this task and the results of the evaluations are valuable for the Fund’s further development of its new portfolio of climate related projects.

Credits At the end of 2009, NDF had entered into 190 agreements, the total value of

Nordic cooperation

which, including additional financing and adjusted for cancellations, amounted

NDF maintains regular contact with the Nordic Council of Ministers and the

to EUR 917.9 million (EUR 934.1 million in 2008). Of these agreements, 162

Nordic Council. NDF also maintains close contacts and cooperates with the

were credits to public sector projects (EUR 876.6 million), 25 were loans with

Nordic bilateral development agencies.

equity features or equity investments (EUR 29.2 million) and three were other loans (EUR 12.1 million).

In 2009, NDF started cooperation with the Nordic Environment Finance Corporation, NEFCO, in a new financial initiative, Nordic Climate Facility,

As at December 31, 2009, disbursements under signed agreements amounted to EUR 750.8 million; approximately 62% of this amount is denominated in SDR.

66

which is financed by NDF and implemented jointly with NEFCO.


REPORT BY THE BOARD OF DIRECTORS 2009

NDF has close cooperation with the Nordic Investment Bank (NIB) mainly

At the end of the year, accumulated disbursements amounted to EUR 750.7 million

regarding office premises, staff administration, IT services, accounting, liquidity

(2008: EUR 700.8 million). Upon request by the Board, member countries paid

management and legal assistance. Revised agreements regarding administrative

in SDR 14,990,462 and EUR 59,740,000 of Fund capital in 2009 (2008: SDR

services were signed between NIB and NDF in 2009. During the year the Board

6,690,000 and EUR 58,809,893). The paid-in fund capital has increased taking

of Directors approved that NDF applies the provisions of NIB’s Staff Rules and

into account decisions under the previous mandate on capital replenishment

Regulations to the extent they are applicable to NDF.

and the limited reflows during the first years of the renewed mandate.

Capital and accounting currency

During 2009, NDF received repayments under disbursed credits amounting to

In 2000, the Nordic Council of Ministers decided that the Fund should change its

EUR 9.1 million.

capital and accounting currency from SDR to EUR as from January 1, 2001. In the annual reports for previous years, the Board of Directors has paid attention

Board of Directors and administration

to the fact that, since NDF will have outstanding credits denominated in SDR for

The Chair of the Board for the period January 1 to April 30, 2009 was Ingrid

many years to come, fluctuations in the SDR-EUR exchange rates may lead to

Glad (Norway), with Tomas Danestad (Sweden), as Deputy Chair. As from May 1,

substantial variations in financial results, positive or negative, from one year to

Tomas Danestad took over the chair with the Danish member as Deputy Chair.

another.

The chair will pass to the Danish member on May 1, 2010 and the Finnish member will then become Deputy Chair.

Contrary to the previous year, the Fund’s financial result for 2009 shows a foreign exchange difference of EUR -5.8 million (2008: EUR 9.3 million). This

On September 4, 2009, Ole Torpegaard Hansen was appointed the new

difference is to a large extent due to the fact that the US dollar represents 44%

Danish member after Morten Lykke Lauridsen. At the same time Mads-Emil

of the SDR currency basket and the ensuing decrease of the purchasing power

Stærk was appointed deputy member. Satu Santala succeeded Pekka Hukka as

of the US dollar during 2009 against NDF’s capital and accounting currency,

the Finnish member of the Board of Directors from September 24, 2009.

the Euro.

A list of NDF Board members can be found on page 33.

Liquidity and capital

During 2009, Helge Semb’s term as Managing Director was extended. As of

The liquid assets of NDF are managed by the Nordic Investment Bank on behalf

December 31, 2009, NDF staff consisted of 11 employees (2008: 10 employees).

of NDF. The average interest rate has been approximately 1.5% (2008: 3.7%).

Furthermore, NDF has signed long-term contracts with two in-house consultants.

NDF’s deposits in SDR are relatively short-term (up to 12 months). During the

A list of the management and staff can be found on page 33.

year, disbursements amounted to EUR 50.3 million (2008: EUR 76.8 million).

7


REPORT BY THE BOARD OF DIRECTORS 2009

Control Committee

The Fund’s income during 2009, amounting to EUR 8,583,322 (2008: EUR

The Control Committee ensures that the Fund’s operations are conducted in

10,309,198), consisted of income from credits to the public sector to the amount

accordance with its Statutes and is responsible for its audit. The Committee

of EUR 5,975,937 (2008: EUR 5,896,088), interest on placements with credit

presents an annual auditors’ report to the Nordic Council of Ministers. The

institutions of EUR 1,500,888 (2008: EUR 3,116,631) and EUR 1,101,176 (2008:

Control Committee met twice in 2009. A list of the members of the Committee

EUR 1,201,543) as remuneration on equity loans and other loans. One of NDF’s

can be found on page 33.

borrowing countries (Zimbabwe) continues to be in arrears to NDF. All of its accrued, outstanding obligations towards NDF were therefore placed in

Financial results and allocation

non-accrual status.

NDF’s total assets as of December 31, 2009 amounted to EUR 820,517,460 (2008: EUR 750,522,983). This amount includes outstanding credits to public

Administrative expenses were EUR 2,541,893 (2008: EUR 2,442,056). The

sector projects, other loans, loans with equity features and equity investments to

largest single item of expenditure consists of salaries and ancillary expenses

the amount of EUR 715,818,749 (2008: EUR 681,648,344) and placements with

of EUR 1,296,538 (2008: 1,229,910).

credit institutions to the amount of EUR 100,698,588 (2008: EUR 65,260,722). A reversal of provisions against possible losses on other loans, loans with equity

The net income for the year, which after adjustments for currency exchange

features and equity investments amounting to EUR 558,067 was made in the

fluctuations of EUR -5,820,340 (2008: EUR 9,295,944) amounts to EUR 339,191

accounts of 2009. The previous year showed a reversal of EUR 120,702.

(2008: EUR 17,278,394), is carried forward to the new account.

Commitments under credits, signed but not yet disbursed, were distributed as follows:

The Income Statement, Balance Sheet, Changes in Equity, Cash Flow Statement and Notes to the Financial Statements can be found on pages 10-18.

EUR Credits Other loans Loans with equity features and equity investments Total

2009

2008

159.5

209.3

-

-

2.4

2.6

161.9

211.9

Helsinki, March 4, 2010 TOMAS DANESTAD Chair

CHRISTOFFER BERTELSEN

SATU SANTALA

As of December 31, 2009, NDF’s capital consisted of SDR 490 million and EUR 226.9 million in paid-in fund capital (2008: SDR 476.5 million and EUR 172.5 million) and EUR -70,066,157 (2008: EUR -70,405,347) in accumulated net

EGILL HEIDAR GISLASON

income after adjustments for currency exchange fluctuations and a provision for the HIPC Initiative of EUR 48,836 (2008: EUR 337,103).

8

HELGE SEMB Managing Director

INGRID GLAD


9


I N C O M E S T AT E M E N T (amounts in EUR)

Jan.1-Dec. 31,2009

Jan.1-Dec.31,2008

Income Service charges from credits Income from loans with equity features Fee and commission income Interest income from placements with credit institutions Interest income from cash and balances with banks Total income

5,144,139.95 1,101,176.03 831,796.98 1,500,887.92 5,321.06 8,583,321.94

4,684,996.63 1,201,542.83 1,211,091.66 3,116,631.04 94,936.23 10,309,198.39

Expenses Grant financing for climate projects Fee and commission expenses General administrative expenses (Note 8) Interest expenses Depreciations (Note 6) Loan losses, write-down of loans and reversals (Note 5) Total expenses

415,000.00 4,554.87 2,541,892.81 18,338.05 2,071.87 -558,066.72 2,423,790.88

4,753.40 2,442,055.76 641.30 -120,702.03 2,326,748.43

Net result for the year before foreign exchange differences

6,159,531.06

7,982,449.96

-5,820,340.44

9,295,943.95

339,190.62

17,278,393.91

Foreign exchange differences Net result for the year

10


BALANCE SHEET

(amounts in EUR)

Dec. 31, 2009

Dec. 31. 2008

58,813,065.93 41,885,521.81 100,698,587.74

65,260,722.32

2,207,908.96 1,779,528.45 699,706,399.84 9,097,111.34

2,312,767.91 1,297,270.31 663,125,148.98 9,833,756.94

7,015,237.70 3,342.10 9,343.91 820,517,460.04

8,689,437.66 3,608.90 269.78 750,522,982.80

287,362.40

410,407.69

890,247,417.94

820,180,819.15

-70,066,156.62 48,836.32

-70,405,347.24 337,103.21

Total equity

820,230,097.64

750,112,575.12

Total liabilities and equity

820,517,460.04

750,522,982.80

ASSETS Cash and cash equivalents (Note 1) Other long-term financial placements (Note 1)

Other assets Accrued income Credits with government guarantee outstanding (Note 2) Other loans outstanding (Note 3) Loans with equity features and equity investments outstanding (Note 4) Intangible assets (Note 6) Tangible assets (Note 6) Total assets

LIABILITIES AND EQUITY Liabilities Other liabilities

Equity (Note 7) Fund capital SDR 515,000,000 Fund capital EUR 330,000,000 Paid-in fund capital Accumulated net result Appropriation to HIPC Initiative

65,260,722.32


C H A N G E S I N E Q U I T Y (amounts in EUR 1,000) Equity as of January 1, 2008 Transfers between equity items Paid-in fund capital Paid to HIPC Initiative Result for the year Equity as of December 31, 2008 Transfers between equity items Paid-in fund capital Paid to HIPC Initiative Result for the year Equity as of December 31, 2009

Paid-in fund capital 747,153

Accumulated net income -87,684 17,278

Appropriation to HIPC Initiative 4,450

73,028 -4,113 820,181

-70,405 339

337

-288 890,247

-70,066

49

Dec. 31,2009

Dec. 31,2008

339 2 5,820 -482 -558 5,121

17,278 1 -9,296 -50 -121 7,812

-49,766 8,549 -139 2,371 737 -288 -41,886 -18 -11 -80,451

-72,214 9,886 -514 996 737 -4,113 0 -663 -5 -65,890

Cash flow from financing activities Paid-in fund capital

70,067

73,028

Foreign exchange loss Changes in cash and cash equivalents

-1,185 -6,448

1,168 16,118

31.12.2009 9,025 49,788

31.12.2008 3,465 61,796

58,813

65,261

Cash flow from operating activities: Net result for the year Depreciations Foreign exchange profit/loss Changes in accrued income Changes in provision for loan losses and write-down of loans Net cash from operating activities Cash flow from investing activities: Credits disbursed Amortizations of credits Disbursed other loans, equity loans and equity investments Repayments of other loans, equity loans and equity investments Amortizations of other loans and equity loans Paid to HIPC Initiative Changes in placements with a maturity longer than 6 months Changes in other assets and liabilities Changes in tangible and intangible assets Net cash used in investing activities

Total cash and cash equivalents

12

17,278 0 -339

70,067

C A S H F L O W S T AT E M E N T (amounts in EUR 1,000)

Cash and cash equivalents consist of: Cash and balances with banks Placements with a maurity of less than 6 months

Result for the year 0 -17,278

339 0

Total 663,919 0 73,028 -4,113 17,278 750,113 0 70,067 -288 339 820,230


N O T E S T O T H E F I N A N C I A L S TAT E M E N T S

General operating policies

Financial Statements are presented in euro in accordance with the decision of the Nordic Council

The purpose of the Nordic Development Fund, NDF, “the Fund”, is to promote economic and

of Ministers of August 24, 2000 to replace SDR with EUR. The paid-in fund capital has been

social development in the developing countries through participation in financing, on

converted into euro. The Fund’s Financial Statements are presented in euro. With the exceptions

concessional terms, of projects of interest to the Nordic countries.

noted below, they are based on historical cost.

The headquarters of the Fund are in Helsinki, Finland, at the premises of the Nordic Investment Bank.

On November 9, 1998, a new Agreement regarding NDF was signed by its member countries.

Assessments in preparation of financial statements

The new Agreement, which replaced the earlier Agreement of November 3, 1988, entered into

The preparation of financial statements requires management to make assessments and estimates

force on September 18, 1999. The new Agreement contains provisions concerning the Fund’s im-

that affect the result, financial position and additional disclosures. Such assessments and estimates

munity and the exemption of the Fund’s assets and income from all taxation.

are based on available information. Actual results may differ materially from the assessments made.

The Fund has the legal status of an international legal person, with full legal capacity. A Headquarters Agreement between NDF and the Government of Finland was signed on October 14, 1999. This agreement is connected to the new Agreement regarding NDF. At their meeting in the autumn of 2005, the Nordic ministers of development cooperation

Foreign currency translation Monetary assets and liabilities denominated in currencies other than euro are translated into euro at the euro rate quoted by the European Central Bank (see Note 10). Any gain or loss

decided to cancel the negotiations of the fifth capital replenishment of NDF, which was planned

arising from the valuation appears in the Income Statement as “Foreign exchange differences”

to finance the Fund's activities over the period 2006-2010. The conclusion was reached after one of

and are mainly related to the SDR rate. As NDF will for many years to come have outstanding

the five member countries of the Fund announced that it would not participate in the replenishment.

credits denominated in SDR, changes in the SDR-euro rate may lead to the Income Statement

Furthermore, the ministers concluded that NDF should now focus on winding up the Fund's

showing substantial foreign exchange differences since these currency positions are not hedged

operations. The objectives should be to ensure that the funds allocated to NDF are utilised in

against changes in foreign exchange rates.

accordance with the standards adopted by the Fund and that NDF maintains the quality of its operations and is fully committed to fulfilling its obligations.

Non-monetary assets are recorded in euro at the euro rate prevailing on the date of their acquisition.

In December 2008 the Board of Directors agreed on a recommendation to the Nordic Council of Ministers that the capital of NDF be utilised in the form of grant aid for climate-related inter-

Cash and cash equivalents

ventions in low-income countries. This capital, approximately one billion euros consists of repay-

Cash and Cash Equivalents consist of monetary assets and placements with an original maturity

ments on the 190 credits NDF granted during 1989-2005.

of up to 6 months.

Pursuant to the recommendation of the NDF Board of Directors to the Nordic Council of Ministers, the Nordic Cooperation Ministers approved on May 5, 2009 amendments to NDF’s

Placements with credit institutions

bylaws. According to these amendments, NDF is given a new mandate to support interventions

NDF has invested its monetary assets with the Nordic Investment Bank at current market

aimed at adaptation to and mitigation of the negative effects of climate change.

interest rates. The placements are mainly in euro and are initially recognised at cost (normally nominal value) at settlement date. Placements are recorded at cost in the Annual Report, too.

Summary of significant accounting policies

Basis of preparation of financial statements

Accrued interest on placements is recorded within Accrued Income in the Balance Sheet. Placements with credit institutions longer than 6 months are shown as investments in the

The Financial Statements have been prepared in accordance with methods of valuation and

Cash Flow Statement. The amount is included in the Balance Sheet as Other long-term financial

recognition of income and expenses as described below. As from January 1, 2001 the Fund’s

placements.

13


N O T E S T O T H E F I N A N C I A L S TAT E M E N T S

Credits with government guarantee outstanding

to provide financing to private sector activities in developing countries without government

The recipient countries for NDF credits are poor developing countries. The credit period for credits

guarantee.

with government guarantee is 40 years, including a 10-year grace period. The loans are interest-free. The credits are initially recognised at cost at settlement date. For payments which are more

Loans with equity features and equity investments are recognised in the Balance Sheet at cost after write-down. The value of outstanding loans with equity features and equity investments are

than 180 days overdue, the Fund places all credits to the borrower in question in non-accrual

continuously revalued by the Fund. If the book value exceeds the valuation made, a corresponding

status, whereupon the Fund stops recording accrued service charges and fee and commission

write-down is made. Write-downs are presented separately in the Income Statement.

revenue as income on the Income Statement. All accrued but unpaid income in respect of the borrower in question that had been recorded as income is then deducted from the Income

Intangible assets

Statement. As of December 31, 2009 one of the Fund’s borrowing countries (Zimbabwe) was

Intangible assets mainly consist of investments in software and software licenses for IT-systems.

more than 180 days overdue with payments.

The investments are carried at historical cost and are amortised over the assessed useful life of

There is a considerable concessionality in the credits from NDF as they are interest-free and

the assets, which is estimated to be between 3 and 5 years. The amortisations are made on a

have very long maturities.

straight-line basis.

Provision for loan losses

Tangible assets

NDF’s lending conditions allow for a long-term view to be taken of the repayment capacity of

Tangible assets are recognised at historical cost, less any accumulated depreciation based on

recipient countries. In the event of debt consolidation, it is assumed that credits from NDF will

their assessed useful life. The depreciation period for tangible assets is determined by assessing

be treated in the same manner as loans from other multilateral institutions.

the individual item, and it is usually 3 to 5 years.

Credits outstanding are recognised in the Balance Sheet at their recoverable amount. Loans with government guarantee outstanding are recorded net of provisions for possible loan losses

Write-downs and impairment of intangible and tangible assets

and actual loan losses. Provision for possible loan losses is established based on the assessment

The Fund's assets are reviewed annually for impairment. If there is any objective evidence of

of the nature and maturity structure of the credit portfolio.

impairment, the impairment loss is determined based on the recoverable amount of the assets.

Other loans outstanding

Equity

Other loans outstanding consist of loans with financial liability features to the private sector.

In August 2000 the Nordic Council of Ministers passed a resolution to increase the capital of

The loans are initially recognised at cost at settlement day. In the Balance Sheet other loans

NDF by EUR 330 million. After this replenishment the capital of the Nordic Development Fund

outstanding are recorded net of provisions for actual and possible loan losses. A provision for

amounted to SDR 515 million and EUR 330 million. As of December 31, 2009, SDR 490 million,

possible loan losses is established based on the assessment of the nature and maturity structure

the equivalent of EUR 663 million, and EUR 227 million, totalling EUR 890 million has been

of the loan portfolio.

paid in by the owners. Payment of the remainder of the subscribed capital will take place upon request by the Fund’s Board of Directors.

Loans with equity features and equity investments

14

Since the World Bank and the International Monetary Fund (IMF) initiated the “Debt Initiative

The Nordic Development Fund has during a trial period operated a facility which enables it to

for Heavily Indebted Poor Countries (HIPC) in 1996, NDF has participated in this debt relief

provide loans with equity features to private sector projects in developing countries. In September

initiative through the HIPC Trust Fund which is administered by IDA. The enhancement of the

2001 the Nordic Council of Ministers approved a proposal from the Board of Directors to amend

initiative carried out in 1999 has called for further financial commitments by NDF. To this end,

the statutes of NDF enabling the Fund, as an integrated and permanent part of its operations,

the Nordic Council of Ministers in 2000 approved the amendment of NDF’s statutes in order to


N O T E S T O T H E F I N A N C I A L S TAT E M E N T S

provide a general authorisation for the Fund to provide its part of shared contributions under

Under the Finnish pension system at present, the usual age of retirement is 63-68. NDF has

debt relief initiatives in the framework of internationally co-ordinated initiatives in which other

also introduced an additional pension system for its permanent employees. The additional pension

multilateral organisations participate. For 2009 the Board has decided to make an allocation of

insurance is a group pension insurance plan that is based on a defined contribution plan.

EUR 0 (2008: EUR 0) for payment to the HIPC Trust Fund. Thus in the course of eleven years the Fund has made allocations for its participation in the HIPC Initiative totalling EUR 28.54 million

In addition to the Finnish social security system for its employees, NDF has subscribed to a comprehensive accident insurance, life and health insurance programme.

of its accumulated net income before foreign exchange differences. As of today EUR 28.4 million has been paid out from this allocation.

Notes to the Income Statement and the Balance Sheet

Income from service and commitment charges, loans with equity features and equity investments

(Note 1) Placements with credit institutions

The Fund’s long-term lending with government guarantee is interest-free, but a service charge of 0.75% per annum is collected on outstanding amounts. A commitment charge of 0.5 % per

The maturity profile for placements with credit institutions calculated from Balance Sheet date

annum is collected on any undisbursed balance one year after the loan agreement has been signed.

to maturity is as follows:

Income from other loans is presented within Service charges from credits in the Income Statement. Income from loans with equity features is normally related to the return received by the share-

(EUR 1,000)

Dec. 31, 2009

Dec. 31, 2008

holders of the company.

Up to 3 months

28,482

61,796

3 - 6 months

21,306

-

equity investments are presented as separate items in the Income Statement. Commitment

Over 6 months

41,886

-

charges are presented within Fee and commission income.

Total placements with credit institutions

91,674

61,796

General administrative expenses

(Note 2) Credits with government guarantee outstanding

Income from service charges on lending and income from loans with equity features and

NDF receives a host country payment from the Finnish government equal to the tax levied on the salaries of the Fund’s employees. The host country payment, which the Fund received in 2009,

Credits according to lending currency:

amounted to EUR 392,118 (2008: EUR 539,722). The payment is accounted for as a reduction in Dec. 31, 2009

Dec. 31, 2008

EUR-credits

422,939

386,350

Employees’ pensions and insurance

SDR-credits

276,767

276 776

The Fund is responsible for offering pension protection to its personnel. In accordance with the

Total, outstanding credits

699,706

663,125

the Fund’s administrative expenses.

(Face value in EUR 1,000)

host country agreement between the Fund and the Finnish Government, the Fund has adopted the Finnish government employee pension plan for the Fund’s personnel. The Fund’s liability in respect of pension rights is completely covered. Contributions to the pension plan, which are paid to the State Pension Fund, are calculated as a percentage of the salaries. The Finnish Government determines the basis for the contributions, and the Republic of Finland State Treasury establishes the actual amount of the contributions.

15


N O T E S T O T H E F I N A N C I A L S TAT E M E N T S

Credits outstanding: (EUR 1,000): Dec. 31, 2009 Bangladesh 19,327 Benin 18,699 Bolivia 25,953 Botswana 5,417 Burkina Faso 7,809 Cambodia 5,663 Cape Verde 2,007 China 4,892 Colombia 1,184 Dominican Republic 7,664 Ethiopia 22,740 Ghana 36,791 Honduras 26,502 Indonesia 11,791 Jamaica 5,722 Kenya 24,499 Kyrgyz Republic 4,800 Lao PDR 52,363 Malawi 23,013 Maldives 10,023 Mauritius 3,249 Mozambique 60,178 Mongolia 25,061 Namibia 1,775 Nepal 23,210 Nicaragua 43,721 Pakistan 11,435 Philippines 14,537 Rwanda 11,543 Senegal 45,291 Sri Lanka 20,477 Tanzania 23,195 Tunisia 5,550 Uganda 42,768 Vietnam 21,829 Zambia 15,962 Zimbabwe 14,945 Credits outstanding 701,587 Credits in default (Zimbabwe) 1,880 Total, credits outstanding 699,706

Dec. 31, 2008 19,634 17,747 26,092 5,565 1,044 3,936 2,086 5,003 1,235 7,967 20,919 34,818 22,289 12,272 5,948 21,266 4,901 49,576 23,703 10,244 3,330 57,431 25,122 1,814 23,567 37,999 11,863 14,457 8,968 43,838 20,803 23,134 5,673 41,307 20,614 13,367 15,199 664,734 1,608 663,125

In addition, agreements have been signed on a further EUR 159.4 million (2008: EUR 209,3 million) in credits not yet disbursed.

16

Amortisations on credits outstanding as at December 31, 2009 show the following maturity profile:

(Note 4) Loans with equity features and equity investments outstanding

(EUR 1,000 ) 2010 2011-2015 2016-2020 2021-2025 2026-2030 2031-2035 2036-2040 2041-2045 Total, credits outstanding

Loans with equity features and equity investments are distributed as follows:

Dec.31,2009 9,909 74,283 109,652 135,121 146,292 122,942 76,878 24,630 699,706

Dec. 31,2008 16,514 72,936 105,284 129,449 137,745 114,283 68,047 18,866 663,125

(Note 3) Other loans outstanding Other loans outstanding are distributed as follows: (EUR 1,000) Dec. 31, 2009 East African Development Bank 8,549 Maputo Port Development Corporation 1,096 Total, other loans outstanding 9,645 Provision for loan losses -548 Total, other loans outstanding after provisions 9,097

Dec. 31, 2008 9,286 1,096 10,382 -548 9,834

In addition, agreements have been signed on a further EUR 0 (2008: EUR 0 million) in other loans not yet disbursed. Amortisations on other loans outstanding as at December 31, 2009 show the following maturity profile:

(EUR 1,000) Dec. 31, 2009 Benin 1,014 China 2,195 Mekong Enterprise Fund 2,142 Nepal 2,913 South Africa 0 Central American Small Enterprise Investment Fund 911 Aureos Southern Africa Fund 2,403 Aureos West Africa Fund 492 Total, loans with equity features and equity investments outstanding 12,070 Write-down -5,054 Total, loans with equity features and equity investments outstanding after write-down 7,015

Dec.31, 2008 1,014 2,195 3,302 2,913 60 911 2,453 1,515 14,362 -5,673

8,689

As at December 31, 2009, the write-down for impairment totalled EUR 5,054,490 (2008: EUR 5,672,785) based on assessment of the risk of losses which exists or may exist. The reversals for 2009 amounted to a total of EUR 558,067. Loans with equity features and equity investments amounting to a total of EUR 2.4 million (2008: EUR 2.6 million) have been signed but not yet disbursed.

(Note 5) Loan losses, write-down of loans and reversals (EUR 1,000) Dec. 31,2009 2010 1,285 2011-2015 2,620 2016-2020 1,366 2021-2025 1,366 2026-2030 1,366 2031-2035 1,093 2036-2040 0 2041-2045 0 Total, other loans outstanding 9,097

Dec. 31,2008 2,021 2,620 1,366 1,366 1,366 1,093 0 0 9,834

The total loan losses, write-down on loans and reversals during 2009 totalled EUR -558,067 (2008: EUR -120,702).


N O T E S T O T H E F I N A N C I A L S TAT E M E N T S

(Note 6) Intangible and tangible assets (Amounts in EUR)

Intangible assets

(Note 7) Equity 2009

2009

2008

Office equipment

Office equipment

2008

Computer software Computer software

Tangible assets

Acquisition value at beginning of year

4,229

-

291

-

Acquisitions during the year

1,298

4,229

Acquisitions during the year

9,581

291

Acquisition value at end of year

5,527

4,229

Acquisition value at end of year

9,872

291

620

-

Amortisation according to plan for the year

1,565

620

Accumulated depreciation at end of year

Accumulated amortisation at end of year

2,185

620

Net book value

Net book value

3,342

3,609

Accumulated depreciation at beginning of year

Accumulated amortisation at beginning of year

Acquisition value at beginning of year

Depreciation according to plan for the year

Intangible and tangible assets total

21

-

507

21

528

21

9,344

270

12,686

3,879

The total Fund capital amounts to SDR 515.0 million and EUR 330.0 million. Of this, the paid-in capital as of December 31, 2009 amounted to SDR 490.0 million, equivalent to EUR 663.4 million and EUR 226.9 million i.e. a total of EUR 890.2 million. The payments by the member countries in 2009 amounted to SDR 13.5 (equivalent to EUR 15.6) and EUR 54.4 million, i.e. a total of EUR 70.1 million.

The member countries have subscribed the following amounts of the total Fund capital: Subscribed fund capital as at December 31, 2009 (EUR 1,000) Denmark Finland Iceland Norway Sweden Subscribed fund capital

SDR 115,067 96,726 5,453 101,591 196,163 515,000

% 22 19 1 20 38 100%

EUR 82,500 58,740 3,300 74,250 111,210 330,000

% 25 18 1 23 34 100%

The member countries have paid in the following amounts of the total fund capital:

Paid-in Fund capital (EUR 1,000) Denmark Finland Iceland Norway Sweden Paid-in fund capital

Fund Capital Dec. 31,2008 in SDR 105,467 91,539 5,013 93,791 180,643 476,453

Translated into EUR 142,972 124,741 6,804 127,509 245,700 647,726

Fund Capital Dec. 31,2008 in EUR 41,785 35,066 1,671 37,607 56,326 172,455

Fund Capital Dec. 31,2008 Total 184,757 159,807 8,475 165,116 302,026 820,181

Paid-in fund capital (EUR 1,000) Denmark Finland Iceland Norway Sweden Paid-in fund capital

Paid-in during 2009 in SDR 3,600 1,037 165 2,925 5,820 13,547

Translated into EUR 4,157 1,197 191 3,377 6,720 15,642

Paid-in during 2009 in EUR 14,935 5,319 597 13,442 20,132 54,425

Paid-in total during 2009 19,092 6,516 788 16,819 26,852 70,067

Paid-in fund capital (EUR 1,000)

Fund capital Dec. 31, 2009 in SDR 109,067 92,576 5,178 96,716 186,463 490,000

Translated into EUR 147,129 125,938 6,994 130,886 252,420 663,367

Fund capital Dec. 31, 2009 in EUR 56,720 40,385 2,268 51,049 76,458 226,880

Fund capital Dec. 31, 2009 Total 203,849 166,323 9,262 181,935 328,878 890,247

Denmark Finland Iceland Norway Sweden Paid-in fund capital

% 23 % 19 % 1% 20 % 37 % 100 %

% 23 % 19 % 1% 20 % 37 % 100 %

17


N O T E S T O T H E F I N A N C I A L S TAT E M E N T S

(Note 8) General administrative expenses including compensation for the Board of Directors,

Compensation for the Chairman of the Board of Directors, the Board, the Control Committee and

the Control Committee and the Managing Director

the Managing Director appears from the table below:

General administrative expenses

2009

Personnel costs

(amounts in EUR) 1,142

Other pension premiums Office premises costs Other general administrative expenses Cost coverage, NIB Total

2008

Compensation/

Pension

Compensation

Pension

emolument

premiums

emolument

premiums

1,074 Chairman of the

Pension premiums in accordance with the Finnish state pension system

2009

2008

(EUR 1,000)

227

217

24

20

Board of Directors

5,326

5,324

Other members of the Board

18,850

141

139

1,120

1,263

Managing Director

317,778

280

269

Control Committee

1,427

2,934

2,982

19,708 103,674

307,454

102,248

1,824

(Note 9) Transactions between closely related partners NDF receives services and enters into transactions with NIB. The outstanding claims and debts

Host country reimbursement according to agreement with the Finnish Government Net

-392

-540

2,542

2,442

between NDF and NIB as well as interest charged during the year are presented in the table below. The interest charged corresponds to the normal market rate (EUR 1,000):

Interest collected

Compensation for the Board of Directors and the Control Committee is set by the Nordic Council

NDF's outstanding debt to NIB

NDF's outstanding claim on NIB

of Ministers. Compensation for the Fund’s Managing Director is set by the Board of Directors

2009

1,501

31

92,253

and is paid in the form of a fixed annual salary and usual salary-based benefits.

2008

3,117

41

61,905

The Managing Director is permitted to borrow from the Nordic Investment Bank at interest rates

(Note 10) Currency exchange rates

EUR rate on Dec. 31, 2009

EUR rate on Dec. 31, 2008

that are the same for all of the Fund’s employees. The rates are set with reference to the so-called base rate determined from time to time by Finland’s Ministry of Finance. The pension benefits for the Managing Director are based on the Finnish State pension system, with certain additions.

DKK

Danish krone

7.4418

7.4506

ISK

Icelandic króna

178.87

290

NOK

Norwegian krone

SEK

Swedish krona

USD

US dollar

SDR

Special Drawing Rights

8.3

9.75

10.252

10.87

1.4406

1.3917

0.91893*

0.90354*

* The exchange rate is calculated in such a way that the market rate for USD/relevant currency provides the EUR/relevant currency rate. The exchange quotation USD/relevant currency is per December 31, 2009.

18


AUDITORS’ REPORTS

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to In our capacity as auditors appointed by the Control Committee of the Nordic Development Fund

fraud or error. In making those risk assessments, the auditor considers internal control relevant

we have audited the accompanying financial statements of the Fund, which comprise the balance

to the entity’s preparation and fair presentation of the financial statements in order to design

sheet as at 31 December 2009, and the income statement, statement of changes in equity and

audit procedures that are appropriate in the circumstances, but not for the purpose of expres-

cash flow statement for the year then ended, and a summary of significant accounting policies

sing an opinion on the effectiveness of the entity’s internal control. An audit also includes eva-

and other explanatory notes.

luating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial

The Board of Directors’ and the Managing Director’s responsibility for the financial statements

statements.

The Board of Directors and the Managing Director are responsible for the preparation and fair

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

presentation of these financial statements in accordance with the accounting principles described

basis for our audit opinion.

in the notes to the financial statements. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial

Opinion

statements that are free from material misstatement, whether due to fraud or error; selecting

In our opinion, the financial statements give a true and fair view of the financial position of the

and applying appropriate accounting policies; and making accounting estimates that are

Nordic Development Fund as of 31 December 2009, and of its financial performance and its cash

reasonable in the circumstances.

flows for the year then ended in accordance with the accounting principles described in the notes to the financial statements.

Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We

Report on the other requirements

conducted our audit in accordance with International Standards on Auditing. Those standards

In accordance with the Terms of Engagement our audit also included a review of whether the

require that we comply with ethical requirements and plan and perform the audit to obtain

Board of Directors’ and the Managing Director’s administration have complied with the Statutes

reasonable assurance whether the financial statements are free from material misstatement.

of the Fund. It is our opinion that the administration of the Board of Directors and the Managing Director complied with the Statutes of the Fund.

Helsinki, March 4, 2010 SIXTEN NYMAN Authorised Public Accountant

PER GUNSLEV State Authorised Public Accountant

KPMG Oy Ab Mannerheimintie 20 B 00100 Helsinki Finland

KPMG, Statsautoriseret Revisionspartnerselskab Borups Allé 177 2000 Frederiksberg Denmark

19


AUDITORS’ REPORTS

STATEMENT BY THE CONTROL COMMITTEE OF THE NORDIC DEVELOPMENT FUND ON

Following our audit, we note that:

THE AUDIT OF THE ADMINISTRATION AND ACCOUNTS OF THE FUND

the Fund's operations during the financial year have been conducted in accordance with the Statutes, and that

To the Nordic Council of Ministers the Financial Statements give a true and fair view of the financial position of the Fund In accordance with § 9 of the Statutes of the Nordic Development Fund, we have been appointed

as at December 31, 2009 and of its results and financing in 2009. The Financial State

to ensure that the activities of the Fund conform with the Statutes and to be responsible for the

ments show a surplus of EUR 339,190.62, which will be carried forward to new account.

auditing of the Fund's accounts. After having completed our assignment for the year 2009, we We recommend to the Nordic Council of Ministers that:

hereby submit the following report:

the Income Statement and Balance Sheet be adopted, and that The Control Committee met during the financial year as well as after the Fund's financial statements had been prepared. Control and examination measures considered necessary were then

the Board of Directors and the President be discharged from liability for the

performed. The Annual Report of the Fund was examined at a meeting in Helsinki on March 4,

administration of the Fund's operations during the accounting period examined by us.

2010, at which time we also received the Auditor's Report, submitted on March 4, 2010, by the authorised public accountants appointed by the Control Committee.

Helsinki, March 4, 2010 BILL FRANSSON KARI LISE HOLMBERG TUULA PELTONEN

20

PER KAALUND

JOHAN LINANDER RAGNHEIÐUR RIKHARDSDÓTTIR


N D F A N D C L I M AT E C H A N G E

There is broad scientific consensus that climate change is already happening and that it is

In the transport sector, mitigation activities could focus on mode-shifting solutions such

a serious challenge affecting economic development prospects throughout the world. The

as rapid mass transit bus systems that will achieve dramatic improvements in urban mobi-

Intergovernmental Panel on Climate Change (IPCC) concluded in its latest assessment report

lity and emission reductions. Infrastructure related to waste management and sewage tre-

in 2007 that on a global scale average surface temperature increased about 0.74°C between

atment can mitigate climate change through emission reductions while water supply, flood

1905-2006. The increase in temperature is expected to continue and a 1.8° to 4°C warming

protection and drainage management infrastructure will help build resilience to the im-

is predicted for the current century. While no one can predict the consequences of climate

pacts of climate change.

change with complete certainty, we know by now enough to understand the risks. Climate change threatens the basic elements of life for people around the world such as access to

Strategic Area 2: Natural resources management

water, food production, health, and use of land and other natural resources.

Forestry, land use and land-use change account for 17 percent of greenhouse gas emissions

The impacts of climate change are not evenly distributed and it is expected that the poorest

each year, three quarters of which come from tropical deforestation. About 14 percent of

and most vulnerable countries will be both the first and the most affected. These countries

global greenhouse gas emissions come from agriculture, including nitrous oxide from

are often hardest hit by weather catastrophes, desertification, and rising sea levels, while

fertilizers; methane from livestock, wet rice production and manure storage; and CO2 from

they have contributed the least to the problem of global warming. The adaptation efforts

burning biomass.

of the poorest countries to climate change will require significant resources in addition to existing international development cooperation commitments.

Deforestation continues at an alarming rate. It results in release of green-house gases originally stored in trees and in other organic matter. Reducing and preventing deforestation is the mitigation option with the largest and most immediate carbon stock impact. Most forest

Focusing our Efforts

clearing occurs in developing countries. NDF support could include focus on sustainable

New ground was broken this past year as NDF embarked on the implementation of a new

forest management and implementation of the Reducing Emissions from Deforestation and

mandate on climate change. The new focus for NDF operations is the provision of grant

Forest Degradation (REDD) schemes.

financing for climate mitigation and adaptation projects in low-income countries. As a first

Climate change will affect the intensity of rainfall, and in many places increase the fre-

step, the NDF team has developed a strategic framework to guide its work and operations

quency and lengths of dry periods. This may lead to flooding in some places and water

in the period 2009-2011. The strategy outlines three strategic areas of intervention:

scarcity and drought in other areas, with adverse effects on agricultural production and food security. The options for NDF could include introduction of integrated water resource

Strategic Area 1: Infrastructure and energy

management as well as specific measures for adaptation within the agricultural sector.

The world’s energy supply and transportation are major contributors to global greenhouse gas emissions by humans, with the transport sector representing the fastest growing source. While there is no easy technological fix for this situation, there are a number of alternatives that will help reduce emissions from these sectors and thus contribute to a move towards low-carbon development. Support for energy-related initiatives may encompass switching to clean energy; increasing energy efficiency; introducing renewable energy; innovative technology transfer; and access to modern energy forms to replace traditional biomass sources such as firewood and charcoal.

21


N D F A N D C L I M AT E C H A N G E

Strategic Area 3: Climate change-related capacity building

creating a market for solar water heaters. This market is to be kick-started through

Climate change is one of the most important global issues we face, and most low-income

subsidies and investment support to customers and to private firms importing,

countries struggle with insufficient capacity to tackle the many challenges that will arise

assembling, manufacturing or selling solar water heaters. Due to the intervention,

in dealing with it. Thus it will be important for NDF to support education, training and

additional fossil peak power generation capacity may not be needed until 2025 and at least

public awareness related to climate change in addition to research, monitoring, and impact

15,000 tons of CO2 emissions per year can be avoided. A successful market creation could

and vulnerability assessments. Policy development and mainstreaming of climate change

result in an even more significant reduction in the CO2 emissions in the years to come.

into existing national frameworks will also be required. At local levels, it will be essential

The NDF grant is part of the National Electricity Access Programme, with the World

to establish early warning systems and develop disaster preparedness and community-

Bank/IDA and the Global Environment Facility (GEF) as lead agencies.

based disaster management plans and institutions.

Words into Action The new NDF strategy has been supported by internal staff training, capacity building and tools development. Throughout the year, partners in a number of countries together with the NDF team have been involved in the identification of potential climate change initiatives that could be supported under the new mandate. The concrete result of these efforts has been the establishment of a project pipeline and the final approval of seven new projects.. Due in part to NDF’s pre-existing presence, the energy and transportation sectors have so far been the primary recipients of support. The new projects were as follows:

Energy and Infrastructure Uganda: Increasing Access to Modern Energy Packages in Rural Areas. This renewable energy project is designed to assist remote rural communities in Northern and Eastern Uganda. It will support a reduction in greenhouse gas emissions by installation of solar photo-voltaic systems within the health and water sectors. The aim is to provide solar energy packages for 100 health centres and for four water pumping systems. It is estimated that CO2 emissions will decrease by 100 tons per year due to the supported systems. The NDF intervention is part of the Energy for Rural Transformation Project, which is financed by the World Bank/IDA, the Global Environment Facility (GEF) and the Government of Uganda.

Rwanda: Promotion of Solar Water Heaters. Another renewable energy project is in the neighbouring country of Rwanda where NDF will provide support as part of the National Electricity Access Programme. This grant will contribute to climate change mitigation through reduced demand for peak-time electricity generated in fossil fuel plants by

22


N D F A N D C L I M AT E C H A N G E

Cambodia, Laos and Vietnam: Energy and Environment Partnership. This regional initiative for the Mekong Region will provide improved access to modern energy and energy services in the region through targeted training and capacity building in addition to a small grants facility. The programme will support access to renewable energy services and technologies in rural areas, with special emphasis on energy efficiency. NDF will finance the programme in cooperation with the Ministry for Foreign Affairs of Finland. The Asian Institute of Technology in Bangkok will host the secretariat and make calls for proposals on a regular basis.

Laos: Pakse Urban Environment Improvement Project. This pre-feasibility study for Pakse (the largest city in Southern Laos) will cover issues related to climate change adaptation and mitigation as well as general environmental improvements. The Government of Laos has chosen Pakse as a model town for the ASEAN Green Cities programme and the plan is to replicate the process, if successful, in other towns. The single most important climate change adaptation intervention will be to protect Pakse against floods. The pre-feasibility study will subsequently lead to an investment project to be financed by the Asian Development Bank and other financiers.

Benin: Increased Access to Modern Energy. This grant will contribute to climate change mitigation by supporting sustainable use of forestry resources including measures to reduce deforestation by strengthening community-based sustainable wood fuel production and market management systems. Also, the grant aims at reducing aggregate wood demand and the depletion of forest stocks by promoting inter-fuel substitution. The NDF grant forms part of a wider project the World Bank/IDA as lead agency.

Climate Change-Related Capacity Building Laos: Capacity Enhancement for Coping with Climate Change. This project will support capacity development and pilot projects. The objectives are to build institutional capacity for coordinating, budgeting and planning climate change actions and to apply a learningby-doing approach in a number of selected pilots in high priority sectors such as water resources and agriculture. The primary contribution of the project will be to improve institutional and technical capacity to adapt to climate change. The project will pilot options for climate adaptation and resilience in selected climate-sensitive sectors; develop sector-wide climate change plans; and increase awareness and capacity building. The project is financed in cooperation with the Asian Development Bank and the Government of Lao PDR.

23


N D F A N D C L I M AT E C H A N G E

The Nordic Climate Facility (NCF). This small grants facility will support innovative projects by Nordic organisations together with partners in eligible low-income countries,

Group. The evaluation reports are available for download at the NDF website. In Tanzania, the evaluation focused on the Mineral Sector Development Technical Assistance

and may encompass any of the three NDF focus areas. There will be an annual call for

Project (NDF 277) and the consultants found that NDF provided significant strategic and

proposals, which will be open for Nordic companies, NGOs, research institutions and local

very timely support to strengthen the mining sector in Tanzania, where the rapid growth

authorities. The calls will have different themes each year. In 2009, the two themes were

of the mineral sector has overstretched the institutional capacity of government institutions.

“energy efficiency” and “water resources”. NCF funding is intended as seed money for

The overall conclusion was that the selected NDF components are of crucial importance to

challenging and innovative climate change approaches in order to increase knowledge and

the Ministry of Energy and Mines and respond to the need for overall strengthening of the

know-how, identify and develop projects, test new technology and pilot projects, and scale

mineral sector in Tanzania. The evaluation also identified sustainability issues and areas

up viable solutions. The NCF is financed by NDF and will be implemented jointly with the

where NDF could improve its performance.

Nordic Environment Finance Corporation (NEFCO).

Similarly, in the evaluation of the Ghana Mining Sector Development and Environment Project (NDF-156) the external evaluation team found that NDF provided strategic and

Evaluation

timely support to strengthen critical areas in the mining sector in Ghana. However, the

NDF uses strategic evaluations to capture important lessons learned in order to improve

evaluation also pointed out that some of the components were more successful than others.

present and future operations. The evaluations are carried out by independent, external

The most successful components were the support of geophysical surveys, the mapping

consultants who are selected by NDF on the basis of their professional qualifications and

component, and the preparation of the Mining Sector Environmental Report. The evaluation

experience and selected through a procurement process following standard procedures.

team concluded that in general the NDF support had a positive impact. The evaluation

In 2009, two ex-post evaluations were carried out of NDF-supported projects in Tanzania and Ghana. These were carried out by an independent consultant team from Finnish Consulting

24

lists major lessons learned and provides recommendations for future support.


CREDIT PORTFOLIO / AFRICA

Public Sector Projects Transport Sector Investment Energy Services Delivery

Economic Infrastructure Economic Infrastructure

IDA IDA

4.7 13.8

SDR EUR

35.0 80.0

1997 2005

Power Sector Development

Economic Infrastructure

IDA

10.5

EUR

102.0

2005

Mochudi-Molepolole Groundwater Exploitation Trans-Kgalagadi Road Transmission Line Francistown-Maun

Social Infrastructure Economic Infrastructure Economic Infrastructure

NIB AfDB/NIB NIB

1.1 0.5 5.0

EUR EUR EUR

6.0 172.2 30.4

1990 1992 1993

Integrated Fisheries Development

Production

ICEIDA

2.0

SDR

4.8

1994

Addis Ababa Airport Improvement Energy II Road Sector Development Road Sector Development II

Economic Infrastructure Economic Infrastructure Economic Infrastructure Economic Infrastructure

EIB IDA IDA IDA

5.0 7.0 4.8 10.0

SDR SDR SDR EUR

83.0 90.0 538.0 219.0

1998 1998 1998 2003

Urban II National Electricity Accra Tema Water Supply Rehabilitation Urban Environment Sanitation Mining Sector Development and Environment Health Sector Support

Social Infrastructure Economic Infrastructure Social Infrastructure Social Infrastructure Production Social Infrastructure

IDA IDA AfDB IDA IDA IDA

5.2 6.1 5.2 2.6 4.0 5.0

EUR EUR EUR EUR SDR SDR

84.2 132.6 19.6 69.2 12.9 144.0

1994 1994 1994 1996 1996 1998 25


26

Urban V Health Services Rehabilitation III Land Administration Urban Water Project Urban Environment Sanitation II

Multisector and Environmental Protection Social Infrastructure Multisector and Environmental Protection Multisector and Environmental Protection Social Infrastructure

IDA AfDF IDA IDA IDA

2.1 8.3 7.0 6.0 9.0

SDR EUR EUR EUR EUR

18.0 37.0 55.1 98.2 67.6

2000 2003 2004 2004 2004

Northern Transport Corridor Improvement Energy Sector Recovery

Economic Infrastructure Economic Infrastructure

IDA IDA

16.0 10.0

EUR EUR

233.0 184.0

2004 2004

Fisheries Development National Water Development Power V Preparatory Programme to Support the Telecommunications Sector Road Maintenance and Rehabilitation (ROMARP)

Production Social Infrastructure Economic Infrastructure Economic Infrastructure

IDA IDA IDA Danida

2.8 5.3 5.0 5.1

EUR SDR SDR EUR

12.9 57.0 195.0 18.2

1991 1995 1997 1998

Economic Infrastructure

IDA

4.8

SDR

150.0

1999

Environmental Investment for Sustainable Development

Multisector and Environmental Protection

IBRD

4.1

EUR

66.3

1990

Urban Household Energy Cahora Bassa Interconnection Semi Industrial Fisheries National Water Development Municipal Development Mineral Resources Management Capacity Building The Roads and Bridges Management and Maintenance Agricultural Sector Public Expenditure (PROAGRI) Energy Reform and Access (ERAP)

Economic Infrastructure Economic Infrastructure Production Social Infrastructure Social Infrastructure Production Economic Infrastructure

IDA NORAD IDA IDA IDA IDA

5.6 4.6 3.6 5.2 3.4 12.6 13.4

EUR EUR SDR SDR SDR EUR EUR

94.2 158.3 9.4 86.3 33.0 25.0 800.0

1989 1994 1996 1997 2001 2001 2001

Protection

IDA

7.4

EUR

246.0

2002

Economic Infrastructure

IDA

10.1

EUR

69.7

2003

Seaflower - Whitefish Corporation

Production

NIB

2.0

EUR

15.9

1994

Urgent Electricity Rehabilitation Urban Infrastructure and City Management

Economic Infrastructure Social Infrastructure

IDA IDA

7.5 5.0

EUR EUR

24.1 39.9

2005 2005

Women's Groups Support Water Sector Integrated Health Sector Development Second Transport Sector Long Term Water Sector Project - Water Resources Management Poverty Alleviation Quality Education for All Long Term Water Sector Project- Urban Sanitation, Thiès Urban Mobility Improvement

Multisector and Environmental Protection Social Infrastructure Social Infrastructure Economic Infrastructure Social Infrastructure

AfDB IDA IDA IDA IDA

4.3 6.1 5.0 2.1 5.6

EUR EUR SDR SDR SDR

8.9 229.7 294.0 405.0 74.0

1992 1995 1997 1999 1999

Multisector and Environmental Protection Social Infrastructure Social Infrastructure Economic Infrastructure

AfDB IDA IDA IDA

7.5 5.0 11.5 5.7

SDR SDR SDR SDR

18.6 48.0 186.0 76.0

1999 2000 2000 2002

Danida / ICEIDA


Electricity IV Power VI Mineral Sector Development Technical Assistance Songwe River Stabilisation Study Central Transport Corridor Roads The Lake Tanganyika Integrated Regional Development (PRODAP)

Economic Infrastructure Economic Infrastructure Production Social Infrastructure Economic Infrastructure Production

AfDB IDA IDA IDA IDA AfDF

6.1 6.0 6.7 1.3 4.1 6.0

EUR EUR SDR EUR EUR EUR

93.5 353.1 20.9 2.4 114.0 34.2

1993 1995 1999 1999 2004 2005

Second Forestry Development Water Supply and Sewerage

Production Social Infrastructure

IBRD IBRD

4.4 1.8

EUR EUR

128.0 106.8

1994 1996

Second Power - Installation of SCADA System First Urban Third Power - Owen Falls Extension Transport Rehabilitation Northern Reconstruction - Telecommunications component Second Economic and Financial Management (EFMP2) Roads Development Program, Phase II (RDPPII) Fourth Power Sustainable Management of Mineral Resources (SMMRP) Farm income Enhancement and Forest Conservation Project

Economic Infrastructure Social Infrastructure Economic Infrastructure Economic Infrastructure Multisector and Environmental Protection Social Infrastructure Economic Infrastructure Economic Infrastructure Production Production

IDA IDA IDA IDA IDA IDA IDA IDA IDA AfDF

4.9 5.8 5.8 4.4 5.0 3.2 7.0 12.7 6.0 5.0

EUR EUR EUR EUR SDR SDR SDR EUR EUR EUR

93.5 30.8 184.6 41.8 75.0 16.8 72.0 104.0 33.5 37.9

1990 1991 1994 1994 1998 2000 2001 2002 2005 2006

Environment Support Power Rehabilitation Copperbelt Environment Road and Rehabilitation and Maintenance Project In Support of ROADSIP II (Phase I)

Multisector and Environmental Protection Economic Infrastructure Production Economic Infrastructure

IDA IDA IDA IDA

0.9 6.1 10.0 8.0

EUR EUR EUR EUR

34.1 201.5 48.9 320.1

1997 1999 2003 2004

Urban Sector and Regional Development Cahora Bassa Interconnection Pungwe Mutare Water Transfer

Social Infrastructure Economic Infrastructure Social Infrastructure

IBRD NORAD Sida

4.4 3.5 5.9

SDR SDR SDR

440.0 125.0 37.0

1990 1994 1996

Cimbenin S.A.

Production

Swedfund

0.7

SDR

11.8

1996

Paper Conversion Company Ltd. Ghana Emulsion Company Ltd. Danafco Ltd.

Production Production Production

Swedfund IFU IFU

0.5 0.4 0.2

SDR SDR SDR

2.9 3.0 2.0

1995 1996 1998

Maputo Port Privatisation and Rehabilitation

Economic Infrastructure

Swedfund

0.9

SDR

45.1

2003

Seaflower Whitefish Corporation Ltd.

Production

NBVF

0.7

SDR

7.0

1999

Private Sector Projects / Loans with equity features

27


Nielsen Tap (Pty) Ltd. Princeton Computing Training Solutions (Pty) Ltd. New Africa Signs and Graphics (Pty) Ltd. Danforge Engineering (Pty) Ltd.

Production Social Infrastructure Production Production

IFU IFU IFU IFU

0.1 0.0 0.0 0.0

SDR SDR SDR SDR

0.2 0.3 0.5 0.3

1995 1996 1997 1998

Sao Hill Timber Ltd.

Production

NORAD

0.3

SDR

2.1

1997

MTN (Uganda) Ltd.

Economic Infrastructure

Swedfund

1.5

SDR

52.0

1999

Imperial Derby Refrigeration Ltd. Oscars Fine Foods Frese (Zimbabwe) (Pvt) Ltd. Powervision (Pvt) Ltd.

Production Production Production Production

IFU IFU IFU IFU

1.0 0.1 0.3 0.1

SDR SDR SDR SDR

7.0 0.7 2.0 0.4

1995 1995 1996 1997

African Infrastructure Fund Aureos Southern Africa Fund (ASAF) Aureos West Africa Fund

Multisector and Environmental Protection Economic Infrastructure Economic Infrastructure

Swedfund Norfund Norfund

1.5 3.4 3.0

SDR EUR EUR

375.0 51.0 40.0

1999 2003 2004

Economic Infrastructure

AfDB

6.8

EUR

36.6

1995

Economic Infrastructure

n/a LA

4.2

EUR

7.0

2003

Credit Lines Fifth Line of Credit and Technical Assistance to the East African Development Bank Second NDF Credit Line to the East African Develpment Bank (EADB) *) The total project costs at the time of NDF's credit decision

28


CREDIT PORTFOLIO / ASIA

Public Sector Projects KAFCO Jamuna Bridge Access Roads Urban Primary Health Care Southwest Road Network Development West Zone Power System Development Dhaka Clean Fuel Project Power Sector Development

Production Economic Infrastructure Social Infrastructure Economic Infrastructure Economic Infrastructure Economic Infrastructure Economic Infrastructure

IFU ADB ADB ADB ADB ADB ADB

4.0 1.5 1.2 2.7 10.0 10.0 8.3

SDR SDR SDR SDR EUR EUR EUR

333.0 125.0 51.0 138.0 457.0 124.0 328.5

1993 1997 1998 2000 2002 2003 2004

Greater Mekong Subregion (GMS) Transmission

Economic Infrastructure

ADB

10.0

EUR

80.6

2004

Beishigiao Wastewater Treatment Plant, Xi'an City Hedong Wastewater Treatment Plant, Urumqi City Tanggu Geothermal Plant

Social Infrastructure Social Infrastructure Economic Infrastructure

NIB NIB NIB

1.6 3.1 0.8

EUR EUR EUR

5.6 10.7 9.8

1993 1993 1994

Central Nurseries Establishment Indonesia/Nordic Forestry Digital Marine Mapping

Production Production Multisector and Environmental Protection

NIB NIB NORAD

3.9 3.8 5.0

SDR SDR SDR

23.0 14.0 81.2

1990 1993 1995

Power and District Heating Rehabilitation

Economic Infrastructure

ADB

5.1

EUR

80.3

1997

Highways Improvement

Economic Infrastructure

IDA

4.8

EUR

44.8

1991

29


30

Airports Improvement Bridge Construction Theun Hinboun Hydropower Third Highway Improvement Power Transmission and Distribution Road Maintenance Northern Area Rural Power Distribution Roads For Rural Development

Economic Infrastructure Economic Infrastructure Economic Infrastructure Economic Infrastructure Economic Infrastructure Economic Infrastructure Economic Infrastructure Economic Infrastructure

ADB Sida ADB IDA ADB IDA ADB ADB

5.7 6.0 6.0 4.0 6.4 4.5 12.5 6.1

EUR EUR EUR SDR EUR SDR EUR EUR

38.3 46.6 220.0 40.0 55.1 64.0 51.5 32.4

1994 1994 1995 1997 1997 2001 2003 2004

Third Fisheries Male-Water and Sewerage Third Power System Development

Production Social Infrastructure Economic Infrastructure

IDA IFU ADB

4.2 2.1 4.7

EUR EUR EUR

27.0 19.0 19.2

1992 1995 1998

Telecommunications Power Rehabilitation Transport Infrastructure Development Social Security Sector Development, SSSDP Second Education Development

Economic Infrastructure Economic Infrastructure Economic Infrastructure Social Infrastructure Social Infrastructure

ADB ADB IDA ADB ADB

4.9 3.9 3.8 4.8 8.5

SDR SDR SDR EUR EUR

43.0 39.0 37.0 20.0 75.3

1994 1995 2001 2001 2002

Power Sector Efficiency Fifth Telecommunication Biratnagar II Multifuel Power Plant Extension Khimti Power Transmission Melamchi Water Supply

Economic Infrastructure Economic Infrastructure Economic Infrastructure Economic Infrastructure Social Infrastructure

IDA IDA Finland Finland ADB

5.1 5.8 5.4 1.7 7.4

EUR EUR EUR EUR EUR

23.5 145.7 11.8 18.8 373.1

1992 1993 1996 1997 2001

NLC - Radio Link WAPDA Twelfth Power Sector Provincial Highway

Economic Infrastructure Economic Infrastructure Economic Infrastructure

NIB ADB ADB

3.3 7.0 4.3

EUR EUR EUR

41.8 487.9 121.8

1993 1993 1994

Industrial Restructuring Leyte-Cebu Geothermal Local Government Units (LGU), Urban Water and Sanitation Mindanao Basic Urban Services Sector Technical Education and Skills Development

Production Economic Infrastructure Social Infrastructure

IBRD IBRD IBRD

2.8 4.2 0.6

EUR EUR SDR

470.0 373.2 147.0

1992 1995 1998

Social Infrastructure Social Infrastructure

ADB ADB

4.3 5.0

SDR SDR

75.0 64.0

2000 2000

Second Power Distribution and Transmission Southern Transport Development Skills Development Secondary Education Modernization

Economic Infrastructure Economic Infrastructure Social Infrastructure Social Infrastructure

IDA ADB ADB ADB

5.4 3.7 6.3 4.5

EUR SDR SDR SDR

67.0 220.0 30.0 52.0

1996 1999 1999 2000

Song-Hinh Hydropower Vocational and Technical Education Bai Bang Paper Mill Central Region Transport Network

Economic Infrastructure Social Infrastructure Production Economic Infrastructure

Sida ADB Sida ADB

7.4 4.3 6.0 11.6

EUR SDR EUR EUR

154.1 91.0 41.6 85.5

1996 1999 2001 2005


Private Sector Projects / Loans with equity features Scancement International

Production

Norfund

1.4

SDR

24.0

2000

Scana Leshan Machinery Company Limited

Production

IFC

1.6

SDR

21.4

1999

Khimti Hydropower

Economic Infrastructure

ADB / IFC

2.1

SDR

93.5

1996

Thailand Research Test Center (TRTC)

Multisector and Environmental Protection

Norfund

0.3

SDR

3.0

1998

Mekong Enterprise Fund Ltd. (MEF)

Economic Infrastructure

ADB

3.4

EUR

23.5

2002

4.8 5.0 5.0 5.0 3.5

EUR SDR SDR SDR SDR

153.0 41.0 20.0 46.4 54.0

1991 1995 1996 1999 2000

*) The total project costs at the time of NDF's credit decision

C R E D I T P O R T F O L I O / L AT I N A M E R I C A A N D T H E C A R I B B E A N

Public Sector Projects Energy Generation, Transmission and Distribution Environment, Industry & Mining National Land Administration Ventilla - Tarapaya Highway Institutional Reform Project (IRP)

Economic Infrastructure Multisector and Environmental Protection Social Infrastructure Economic Infrastructure Social Infrastructure

IDB IDA IDA IDB IDA

31


Bolivian Epidemiological Shield and Support for Health-Sector Reform Program Road Rehabilitation and Maintenance Environmental and Social Protection in the Santa Cruz-Puerto Suárez Corridor

Social Infrastructure

IDB

5.0

SDR

39.0

2000

Economic Infrastructure Economic Infrastructure

IDA IDB

7.0 3.5

EUR EUR

312.5 29.3

2002 2002

Pacific Coast Sustainable Development

Social Infrastructure

IDB

1.4

SDR

51.0

1997

Energy Control Center / SCADA System Health Sector Modernization and Restructuring

Economic Infrastructure Social Infrastructure

IDB IDB

5.1 2.7

SDR SDR

105.0 54.5

1993 1998

Road Reconstruction and Improvement Potable Water and Sanitation Investment National Education Reform Three National Sustainable Development Program for Upper Lempa River Basin Land Administration Support for Rural Electrification and the Energy Sector

Economic Infrastructure Social Infrastructure Social Infrastructure Multisector and Environmental Protection

IDA IDB IDB IDB

7.8 1.5 7.0 3.5

SDR SDR EUR EUR

65.0 43.5 23.0 29.5

2000 2000 2001 2002

Multisector and Environmental Protection Economic Infrastructure

IDA IDB

6.0 5.6

EUR EUR

32.4 36.0

2005 2005

Primary Education Improvement Multisectoral Pre-investment Airport Reform and Improvement

Social Infrastructure Multisector and Environmental Protection Economic Infrastructure

IDB IDB IDB

2.0 1.8 2.0

SDR SDR SDR

22.0 11.2 31.2

1993 1994 1997

Electric Power System Rehabilitation Rehabilitation of the Water Supply & Sewerage Systems Rural Road Rehabilitation and Upgrading Forestry Resource Management and Conservation Management of Lake Managua Atlantic Biological Corridor Health Sector Modernization II Road Yalag¸Ìna-Las Manos, Rehabilitation and Improvement Socioenvironmental and Forestry Development Program II (POSAF II) Land Administration Transport Program for Improved Competition

Economic Infrastructure Social Infrastructure Economic Infrastructure Production Social Infrastructure Multisector and Environmental Protection Social Infrastructure Economic Infrastructure Multisector and Environmental Protection

IDB IDB IDB IDB IDB IDA IDA Sida IDB

2.7 4.8 4.0 3.2 6.9 2.3 2.5 3.0 2.5

SDR SDR SDR SDR SDR SDR SDR SDR EUR

25.0 41.0 27.0 21.0 37.0 36.0 26.0 23.0 44.5

1992 1992 1993 1996 1997 1997 1999 2000 2002

Multisector and Environmental Protection Economic Infrastructure

IDA IDB

5.5 12.0

EUR EUR

51.0 160.0

2003 2004

Owens Corning Andercol TuberÌas S.A.

Production

NORAD

1.4

SDR

8.0

1996

Central American Small Enterprise Investment Fund (CASEIF)

Economic Infrastructure

Norfund

3.1

EUR

26.0

2003

Private Sector Projects / Loans with equity features

*) The total project costs at the time of NDF's credit decision

32


B O A R D O F D I R E C T O R S *)

C O N T R O L C O M M I T T E E *)

M A N A G E M E N T A N D S TA F F

DENMARK Christoffer Bertelsen, Senior Adviser, Ministry of Foreign Affairs, from February 12, 2010, Deputy Chair of the Board

CHAIRMAN Bill Fransson, Managing Director

Helge Semb, Managing Director

Ole Torpegaard Hansen, Head of Section, Ministry of Foreign Affairs, until February 11, 2010 Deputy: Mads-Emil Stærk, Head of Section, Ministry of Foreign Affairs FINLAND Satu Santala, Director, Ministry for Foreign Affairs Deputy: Pertti Anttinen, Director, Ministry for Foreign Affairs

Leena Klossner, Deputy Director DENMARK Per Kaalund, Former Member of Parliament Juhani Annanpalo, Country Program Manager FINLAND Tuula Peltonen, Member of Parliament ICELAND Ragnheiður Ríkharðsdóttir, Member of Parliament

NORWAY Ingrid Glad, Assistant Director General, the Royal Ministry of Foreign Affairs Deputy: Harald Tollan, Senior Adviser, the Royal Ministry of Foreign Affairs SWEDEN Tomas Danestad, Director, Ministry for Foreign Affairs, Chair of the Board

Anna-Karin Jansson, Country Program Manager Martina Jägerhorn, Country Program Manager

NORWAY Kari Lise Holmberg, Member of Parliament SWEDEN Johan Linander, Member of Parliament

ICELAND Egill Heiðar Gislason, Advisor Deputy: Anna Karlsdóttir, Assistant Professor, University of Iceland

Hannu Eerola, Country Program Manager

Aage Jørgensen, Country Program Manager Björn Möller, Country Program Manager

Mats Slotte, Manager, Financial Administration AUDITORS APPOINTED BY THE CONTROL COMMITTEE

Jessica Allen, Financial Administrator

Sixten Nyman, Authorised Public Accountant, KPMG, Finland

Christina Nymark, Financial Administrator, Secretary

Per Gunslev, State Authorised Public Accountant, KPMG, Denmark

Stella Eckert, Manager, Administration and Corporate Affairs Ann-Christin Lundin, Secretary

Secretary to the Control Committee Birgitta Immerthal, KPMG, Finland

Deputy: Lars Liljeson, Team Director, Sida

Observer: Lars-Åke Olsson, Senior Director, Nordic Investment Bank, until January 31, 2010 Johan Ljungberg, Senior Director, Nordic Investment Bank, from February 1, 2010

*) As at December 31, 2009

33


Nordic Development Fund • Annual Report 2009: Lay-out, Kubik advertising • Photos: Jørgen Schytte (DANIDA), Anna-Karin Jansson, Mats Slotte (NDF), Johannes Mansner, Dreamstime • Printed by Libris, Finland

441 014 Printed matter


Nordic Development Fund (NDF) P.O. Box 185 FIN-00171 Helsinki, Finland Offices: Fabianinkatu 34 Telephone +358 10 618 002 Telefax +358 9 622 1491 E-mail: info.ndf@ndf.fi Internet: http://www.ndf.fi


NDF Annual Report 2009