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NORDIC DEVELOPMENT FUND Annual Report 2010


I N D E X Report by the Board of Directors 2010

3

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 Innovation

22

Grant Portfolio

27

Credit Portfolio

28

Board of Directors

33

Control Committee

33

Management and Staff

34


REPORT BY THE BOARD OF DIRECTORS 2010

Summary of 2010 Pursuant to a decision by the Nordic Cooperation Ministers in 2009 the bylaws of NDF were amended. According to its new mandate, NDF shall use its repayments on credits in the form of grant financing of climate-related interventions in low-income countries. After the amendments became 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 2010, the Board approved 14 projects under the new mandate to a total value of EUR 54.2 million. Under the previous lending mandate - credits - 17 projects were completed in the course of the year. A total of 21 projects are still under implementation at the beginning of 2011.

Disbursements of credits amounted to EUR 37.3 million in 2010 (2009: EUR 49.9 million). The disbursements of grant aid amounted to EUR 8.2 million. The net result for the year before adjustments for currency exchange fluctuations and disbursements of grant aid totalled EUR -1.9 million (EUR 6.2 million in 2009). Disbursements of grant aid are recorded as expenses in the Income Statement, affecting the net result. Contrary to the previous year, the effects of currency fluctuations showed a positive result of EUR 19.9 million in 2010 (EUR -5.8 million in 2009).

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REPORT BY THE BOARD OF DIRECTORS 2010

The new mandate

Grants

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

In 2010, the Board approved grant financing to 14 projects for a total value of

Council of Ministers, the Nordic Cooperation Ministers approved in May 2009

EUR 54.2 million:

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

- The Nordic Climate Facility, NCF, encourages innovations in areas susceptible

the negative effects of climate change.

to climate change in low-income countries. The facility is based on calls for proposals. Fourteen subprojects in nine countries received support within the

The capital of NDF shall henceforth be utilised in the form of grant aid for

framework of the first call, which was launched in late 2009. In addition to the

climate related interventions in low-income countries. This capital consists of

EUR 4 million approved by the Board in 2009, the first call received an increase

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

of EUR 2 million in 2010, followed by a Board approval of EUR 6 million for a

repayments are expected to amount to approximately one billion euro during

second call launched in October 2010. Financing can be granted to Nordic

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

organisations, authorities and companies for innovative projects which reduce emissions of harmful greenhouse gases or support the adaptation to climate

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

change in developing countries. The project is administered in cooperation

prepared by the administration outlining the future activities of NDF during the

between NDF and the Nordic Environment Finance Corporation, NEFCO.

years 2009-2011. This document constitutes the basis for NDF’s operations under the new mandate. The objectives shall be to facilitate greater investments

- The ProClimate Facility (ProCF) establishes and pilots a partial climate

in developing countries in order to address the causes and consequences of

guarantee and technical assistance facility to support small and medium-sized

climate change. The grant assistance of NDF shall be utilised for technical

investments in climate change mitigation and adaptation projects, including

assistance, goods and civil works related to infrastructure, natural resources

those eligible for Clean Development Mechanism (CDM). ProCF receives a capital

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

of EUR 10 million from NDF and the program is implemented in partnership

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

with NEFCO.

from NDF in the form of credits. Financing in the form of grants shall be provided by co-financing with other multilateral and bilateral financiers; mirror the

- In Ghana, NDF will support Studies on Landfill Gas Capture and Utilization

Nordic countries’ priorities in the areas of climate change and development

with a grant of EUR 2 million. The studies are expected to pave the way for

and as much as possible complement other available financing.

private investments in land fill gas (LFG) capture and utilisation. The main aim of the project is to mitigate climate change through a reduction of LFG emissions

During 2010, the NDF administration prepared internal guidelines for screening

equivalent to at least 120,000 CO2 tonnes per year over a period of about twenty

and identification of projects which have applied for financing from NDF.

years. The project is part of a larger environmental project financed by the

Following a Board discussion in December, a summary of these guidelines

World Bank and NDF.

were published on the NDF website.

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REPORT BY THE BOARD OF DIRECTORS 2010

NDF supports three projects in Senegal:

Two projects in Cambodia will receive grant financing:

- The Water and Sanitation Millennium Project (PEPAM) will receive grant finan-

- Adaptation Approaches for the Transport Sector are supported with a grant of

cing of EUR 4 million for development of methane gas electricity generation as

EUR 4.2 million in order to reduce the severity of climate change impacts on the

well as the extension of a water system supplying treated wastewater for irriga-

transport sector. The project is implemented in cooperation with the Asian

tion. The World Bank PEPAM project aims at increasing access to sustainable

Development Bank.

water resources and sanitation services. NDF’s contribution will strengthen the climate change aspects of the project by increasing the use of renewable energy,

- The Water Resources Management Project (WRMP) receives EUR 3 million for

decreasing the emission of greenhouse gases and supporting a more efficient

technical assistance to the Cambodian government in mainstreaming climate

use of water resources.

change concerns in water resource planning. The NDF-financed intervention is implemented with the Asian Development Bank and co-financed with the

- The Sustainable and Participatory Energy Management Project (PROGEDE II)

Australian Agency for International Development, AusAID.

Biomass, financed by the World Bank, receives grant financing of EUR 3 million in order to contribute to the reduction of greenhouse gas emissions. The overall

- Vietnam will receive grant financing of EUR 2.2 million for Support for the

objective is to increase the availability of diversified household fuels in order to

National Target Program on Climate Change. The main objective is to develop

reduce deforestation and desertification. The NDF-financed activities will, for

and put into operation detailed action plans and to strengthen the capacity of

example, help to prevent forest fires, establish forest nurseries and replant

institutions to plan and design climate change projects. The Asian Development

degraded forest lands.

Bank will act as partner agency.

- The Transport and Urban Mobility Project (STUMP) has an overall objective to

- NDF is supporting a regional GreenPyme Program - Increasing Energy

improve effective road management and maintenance as well as public urban

Efficiency in Small and Medium-sized Enterprises in Central America. The

transport in the Greater Dakar Area. The objective of the NDF grant of EUR 4

Inter-American Investment Corporation (IIC) acts as the implementing agency of

million is to contribute to climate-proofing of road infrastructure planning,

the programme. IIC is a member of the Inter-American Development Bank (IDB)

design and maintenance. The project is co-financed with the World Bank.

Group. NDF’s grant financing of EUR 2.2 million will be directed to Nicaragua, Honduras, Guatemala, El Salvador and Costa Rica.

- In Asia, NDF supports a regional program Climate Friendly Bioenergy in the

Greater Mekong Subregion. Through a EUR 3.1 million grant, NDF will support

- A project in Honduras, Indigenous Peoples Renewable Energy and Climate

the use of environmentally friendly and affordable energy to people in the

Change will receive grant financing of EUR 3.5 million to build capacity among

Greater Mekong Subregion by converting local biomass into energy. The

indigenous people in Honduras to adapt to climate change and to provide

NDF-financed intervention will be implemented with the Asian Development

renewable energy solutions to local communities. The project will link up with

Bank and the three countries concerned - Cambodia, Lao PDR and Vietnam.

an ongoing larger program financed by the Inter-American Development Bank.

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REPORT BY THE BOARD OF DIRECTORS 2010

NDF supports two projects in Nicaragua:

By the end of 2010, NDF had made allocations to the HIPC Initiative for debt

- The Disaster Management and Climate Change Program receives EUR 2.5 million

relief to nine of the Fund’s borrowing countries.

for a project which aims at reducing the vulnerability of rural populations and particularly small and medium-sized producers to climate change related disasters.

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

The project is co-financed with the Inter-American Development Bank.

before foreign exchange differences were increased in 2010 from EUR 28.5 million to EUR 29.6 million to cover the obligations of the Fund under the

- The NDF grant of EUR 4.5 million to the Sustainable Electrification and

enhanced HIPC Initiative. This amount has been paid in to the HIPC Trust

Renewable Energy Program in Nicaragua is part of a larger program which

Fund. The refunds to NDF are paid from the HIPC Trust Fund instead of the

aims at reducing poverty by increasing access to efficient and sustainable

respective borrowing countries.

energy services as well as at mitigating climate change. The Inter-American Development Bank is implementing agency of the programme.

Project monitoring and evaluation In 2010, ex post evaluations of two credit projects with NDF support were carried

Credits

out, in Honduras and in Senegal, respectively. Solar energy systems were in

At the end of 2010, NDF had entered into 188 agreements, the total value of

focus and the evaluations showed that the impact of this new form of energy in

which, including additional financing and adjusted for cancellations and calcu-

the communities was generally positive. An independent team of consultants

lating the EUR/SDR currency exchange rate as at December 31, 2010, amounted

was engaged for this task and the results of the evaluations are valuable for the

to EUR 927.7 million (EUR 917.9 million in 2009). Of these agreements, 160

Fund’s further development of its new portfolio of climate related projects.

were credits to public sector projects (EUR 886.2 million), 25 were loans with equity features or equity investments (EUR 29.3 million) and three were other

Nordic cooperation

loans (EUR 12.1 million).

NDF maintains regular contact with the Nordic Council of Ministers and the Nordic Council. NDF also maintains close contacts and cooperates with the

As at December 31, 2010, disbursements under signed agreements amounted to

Nordic bilateral development agencies. In 2010, NDF continued its cooperation

EUR 788.2 million; approximately 60.3% of this amount is denominated in SDR.

with the Nordic Environment Finance Corporation, NEFCO, in the Nordic

As a result of the strengthening of the SDR against the euro, the value of

Climate Facility (launched in 2009) and started cooperation in the ProClimate

disbursed SDR credits and placements increased by EUR 19.9 million in 2010.

Facility (ProCF). Both programmes are financed by NDF and implemented jointly with NEFCO. NDF has close cooperation with the Nordic Investment

NDF’s participation in the HIPC Initiative

Bank (NIB) mainly regarding office premises, staff administration, IT services,

Since the World Bank and the International Monetary Fund (IMF) adopted the

accounting, liquidity management and legal assistance.

“Debt Initiative for Heavily Indebted Poor Countries” (HIPC), NDF has participated in the initiative through the HIPC Trust Fund, which is administered by IDA.

66


REPORT BY THE BOARD OF DIRECTORS 2010

Capital and accounting currency

million of Fund capital in 2010 (2009: SDR 13.5 million and EUR 54.4 million).

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

During 2010, NDF received repayments under disbursed credits amounting to

capital and accounting currency from SDR to EUR as from January 1, 2001. In

EUR 10.7 million.

the annual reports for previous years, the Board of Directors has paid attention to the fact that, since NDF will have outstanding credits denominated in SDR for

Board of Directors and administration

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

The Chair of the Board for the period January 1 to April 30, 2010 was Tomas

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

Danestad (Sweden), with Christoffer Bertelsen (Denmark) as Deputy Chair. As

another.

from May 1, Christoffer Bertelsen took over the chair with the Finnish member Satu Santala as Deputy Chair. The chair will pass to the Finnish member on May 1,

Contrary to the previous year, the Fund’s financial result for 2010 shows a

2011 and the Icelandic member will then become Deputy Chair. On February 12,

positive foreign exchange difference of EUR 19.9 million (2009: EUR -5.8

2010, Christoffer Bertelsen was appointed the new Danish member of the Board

million). This difference is to a large extent due to the fact that the US dollar

of Directors after Ole Torpegaard Hansen. Lena Kövamees succeeded Lars

represents 44% of the SDR currency basket and the ensuing increase of the

Liljeson as the Swedish deputy member of the Board from June 1, 2010.

purchasing power of the US dollar during 2010 against NDF’s capital and accounting currency, the euro.

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

Liquidity and capital

Helge Semb is Managing Director of NDF. As of December 31, 2010, NDF staff

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

consisted of 12 employees (2009: 11 employees). Furthermore, NDF has signed

of NDF. The average interest rate has been approximately 0.5% (2009: 1.5%).

long-term contracts with two in-house consultants. A list of the management

NDF’s deposits are relatively short-term (up to 12 months). The Board has

and staff can be found on page 34.

authorised the administration in cooperation with the Nordic Investment Bank to hedge NDF’s SDR-denominated loan portfolio against currency

Control Committee

exchange risk before the end of 2011. The chosen hedging methods should

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

be commonly accepted on the financial market.

cordance with its Statutes and is responsible for its audit. The Committee presents an annual auditors’ report to the Nordic Council of Ministers. The Control

During the year, disbursements amounted to EUR 45.5 million (2009: EUR 50.3

Committee met twice in 2010. A list of the members of the Committee can be

million), EUR 37.3 million on credits and EUR 8.2 million on grants. At the end

found on page 33.

of the year, accumulated disbursements on credits amounted to EUR 788.2 million (2009: EUR 750.8 million) and EUR 8.6 million (2009: EUR 0.4 million) on grants. Upon request by the Board, member countries paid in EUR 10.9

7


REPORT BY THE BOARD OF DIRECTORS 2010

Financial results and allocation

Administrative expenses were EUR 2,874,410 (2009: EUR 2,541,893). The

NDF’s total assets as of December 31, 2010 amounted to EUR 848,357,001 (2009:

largest single item of expenditure consists of salaries and ancillary expenses

EUR 820,517,460). This amount includes outstanding credits to public sector

of EUR 1,492,810 (2009: 1,296,538).

projects, other loans, loans with equity features and equity investments to the amount of EUR 759,449,255 (2009: EUR 715,818,749) and placements with

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

credit institutions to the amount of EUR 83,740,423 (2009: EUR 100,698,588).

fluctuations of EUR 19,881,181 (2009: EUR -5,820,340) amounts to EUR

A reversal of provisions against possible losses on other loans, loans with equity

17,973,759 (2009: EUR 339,191), is carried forward to the new account.

features and equity investments amounting to EUR 1,841,353 was made in the The Income Statement, Balance Sheet, Changes in Equity, Cash Flow Statement

accounts of 2010. The previous year showed a reversal of EUR 558,067.

and Notes to the Financial Statements can be found on pages 10-18. Commitments under credits, signed but not yet disbursed, were distributed as follows:

MEUR

2010

2009

Credits

76.7

159.5

-

2.4

76.7

161.9

Loans with equity features and equity investments Total

Helsinki, March 2, 2011 As of December 31, 2010, NDF’s capital consisted of SDR 490 million and EUR CHRISTOFFER BERTELSEN

237.8 million in paid-in fund capital (2009: SDR 490 million and EUR 226.9

Chair

million) and EUR -53,098,721 (2009: EUR -70,066,157) in accumulated net income after adjustments for currency exchange fluctuations. SATU SANTALA

EGILL HEIÐAR GISLASON

The Fund’s income during 2010, amounting to EUR 7,344,28 (2009: EUR 8,583,322), consisted of income from credits to the public sector to the amount

INGRID GLAD

TOMAS DANESTAD

of EUR 5,959,469 (2009: EUR 5,975,937), interest on placements with credit institutions of EUR 399,921 (2009: EUR 1,500,888) and EUR 985,537 (2009: EUR 1,101,176) as remuneration on equity loans and other loans. One of NDF’s borrowing countries (Zimbabwe) continues to be in arrears to NDF. All of its accrued, outstanding obligations towards NDF were therefore placed in non-accrual status.

8

HELGE SEMB Managing Director


9

Photo: Jørgen Schytte


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

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

10

Jan.1-Dec.31,2010

Jan.1-Dec.31,2009

5,450,579.57 985,537.40 508,889.68 399,921.37 7,344,928.02

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

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

8,209,899.70 3,716.02 2,874,410.22 5,677.76

415,000.00 4,554.87 2,541,892.81 18,338.05 2,071.87

-1,841,353.20 9,252,350.50

-558,066.72 2,423,790.88

Net result for the year before foreign exchange differences

-1,907,422.48

6,159,531.06

Foreign exchange differences

19,881,181.28

-5,820,340.44

Net result for the year

17,973,758.80

339,190.62


BALANCE SHEET

(amounts in EUR)

Dec.31,2010

Dec.31,2009

83,740,422.72 83,740,422.72

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

3,877,226.90 1,272,792.72 744,508,872.59 7,792.609.42

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

7,147,772.50 1,499.76 15,804.58 848,357,001.20

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

308,304.53

287,362.40

901,147,417.94

890,247,417.94

-53,098,721.27 -

-70,066,156.62 48,836.32

Total equity

848,048,696.67

820,230,097.64

Total liabilities and equity

848,357,001.20

820,517,460.04

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


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, 2009 Transfers between equity items Appropriation to HIPC Initiative Paid-in fund capital Paid to HIPC Initiative Result for the year Equity as of December 31, 2009 Transfers between equity items Appropriation to HIPC Initiative Paid-in fund capital Paid to HIPC Initiative Result for the year Equity as of December 31, 2010

Paid-in fund capital 820,181

Accumulated net income -70,405 339

Appropriation to HIPC Initiative 337

70,067 -288 890,247

-70,066 17,974 -1,006

49 1,006 -1,055

901,147

-53,099

0

Dec. 31,2010

Dec. 31,2009

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

17,974 6 -19,881 507 -1,841 -3,236

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

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

-37,380 10,747 0 794 1,305 -1,055 41,886 -1,648 -10 14,637

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

Cash flow from financing activities Paid-in fund capital

10,900

70,067

Foreign exchange loss Changes in cash and cash equivalents

2,626 24,927

-1,185 -6,448

31.12.2010 8,033 75,708

31.12.2009 9,025 49,788

83,740

58,813

Total cash and cash equivalents

12

339 0 -17,974

10,900

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 maturity of less than 6 months

Result for the year 0 -339

17,974 0

Total 750,113 0 0 70,067 -288 339 820,230 0 0 10,900 -1,055 17,974 848,049


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

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

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

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

social development in the developing countries through participation in financing, on concessional terms, of projects of interest to the Nordic countries.

Foreign currency translation

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

Monetary assets and liabilities denominated in currencies other than euro are translated into

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

euro at the euro rate quoted by the European Central Bank (see Note 10). Any gain or loss

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

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

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

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

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

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

The Fund has the legal status of an international legal person, with full legal capacity.

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

A Headquarters Agreement between NDF and the Government of Finland was signed on

against changes in foreign exchange rates.

October 14, 1999. This agreement is connected to the new Agreement regarding NDF. Pursuant to the recommendation of the NDF Board of Directors to the Nordic Council of

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

Ministers, the Nordic Cooperation Ministers approved amendments to NDF’s bylaws in 2009. According to these amendments, NDF is given a new mandate to support interventions aimed

Cash and cash equivalents

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

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

The capital of NDF shall in the future be utilised in the form of grant aid for climate-related

of up to 6 months.

interventions in low-income countries. This capital, approximately one billion euros during a period of 35 years consists of repayments on the 190 credits NDF granted during 1989-2005.

Placements with credit institutions

The last repayment is due in 2045.

NDF has invested its monetary assets with the Nordic Investment Bank at current market interest rates. The placements are mainly in EUR and are initially recognised at cost (normally

Summary of significant accounting policies

nominal value) at settlement date. Placements are also recorded at cost in the Annual Report.

Basis of preparation of financial statements

Accrued interest on placements is recorded within Accrued Income in the Balance Sheet.

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

Placements with credit institutions longer than 6 months are shown as investments in the

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

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

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

placements.

of Ministers of August 24, 2000 to replace SDR with EUR. The paid-in fund capital has been converted into euro. The Fund’s Financial Statements are presented in euro. With the exceptions noted below, they are based on historical cost.

Credits with government guarantee outstanding The recipient countries for NDF credits are low-income developing countries. The credit period for credits with government guarantee is 40 years, including a 10-year grace period. The loans are interest-free.

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

The credits are initially recognised at cost at settlement date. For payments which are more than 180 days overdue, the Fund places all credits to the borrower in question in non-accrual

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

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

Intangible assets

revenue as income on the Income Statement. All accrued but unpaid income in respect of the

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

borrower in question that had been recorded as income is then deducted from the Income

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

Statement. As of December 31, 2010, one of the Fund’s borrowing countries (Zimbabwe) was

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

more than 180 days overdue with payments.

straight-line basis.

There is a considerable concessionality in the credits from NDF as they are interest-free and have very long maturities.

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

Provision for loan losses

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

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

the individual item, usually 3 to 5 years.

recipient countries. In the event of debt consolidation, it is assumed that credits from NDF will be treated in the same manner as loans from other multilateral institutions. Credits outstanding are recognised in the Balance Sheet at their recoverable amount. Loans with government guarantee outstanding are recorded net of provisions for possible loan losses

Write-downs and impairment of intangible and tangible assets The Fund's assets are reviewed annually for impairment. If there is any objective evidence of impairment, the impairment loss is determined based on the recoverable amount of the assets.

and actual loan losses. Provision for possible loan losses is established based on the assessment of the nature and maturity structure of the credit portfolio.

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

Other loans outstanding

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

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

amounted to SDR 515 million and EUR 330 million. As of December 31, 2010, SDR 490 million,

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

the equivalent of EUR 663 million, and EUR 238 million, totalling EUR 901 million has been

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

paid in by the owners. Payment of the remainder of the subscribed capital will take place upon

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

request by the Fund’s Board of Directors.

of the loan portfolio.

Since the World Bank and the International Monetary Fund (IMF) initiated the “Debt Initiative for Heavily Indebted Poor Countries (HIPC) in 1996, NDF has participated in this debt relief

14

Loans with equity features and equity investments

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

During a trial period, the Nordic Development Fund has operated a facility which enables it to

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

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

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

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

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

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

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

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

multilateral organisations participate.

Loans with equity features and equity investments are recognised in the Balance Sheet at cost

For 2010, the Board has decided to make an appropriation of EUR 1.0 million (2009: EUR 0)

after write-down. The value of outstanding loans with equity features and equity investments are

of its accumulated net income before foreign exchange differences for its participation in the HIPC

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

Initiative. The allocated funds were increased from a total of EUR 28.5 million in 2009 to EUR

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

29.6 million in 2010. These funds have been paid in to the HIPC Trust Fund during 12 years.


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

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

Notes to the Income Statement and the Balance Sheet

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

(Note 1) Placements with credit institutions

annum is collected on any undisbursed balance one year after the loan agreement has been signed. Income from other loans is presented within Service charges from credits in the Income

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

Statement. Income from loans with equity features is normally related to the return received by

to maturity is as follows:

the shareholders of the company. Income from service charges on lending and income from loans with equity features and

(EUR 1,000)

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

Up to 3 months

charges are presented within Fee and commission income.

3 - 6 months

Dec. 31, 2010

Dec. 31, 2009

70,189

28,482

5,519

21,306

-

41,886

75,708

91,674

Over 6 months

General administrative expenses

Total placements with credit institutions

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 2010, amounted to EUR 354,083 (2009: EUR 392,118). The payment is accounted for as a

(Note 2) Credits with government guarantee outstanding

reduction in the Fund’s administrative expenses. Credits according to lending currency:

Employees’ pensions and insurance The Fund is responsible for offering pension protection to its personnel. In accordance with the

(Face value in EUR 1,000)

Dec. 31, 2010

Dec. 31, 2009

host country agreement between the Fund and the Finnish Government, the Fund has adopted

EUR-credits

447,777

422,939

the Finnish government employee pension plan for the Fund’s personnel. The Fund’s liability in

SDR-credits

296,732

276,767

respect of pension rights is completely covered. Contributions to the pension plan, which are

Total, outstanding credits

744,509

699,706

paid to the State Pension Fund, are calculated as a percentage of the salaries. The Finnish Government determines the basis for the contributions, and the Republic of Finland State Treasury establishes the actual amount of the contributions. Under the Finnish pension system at present, the usual age of retirement is 63-68. NDF has also introduced an additional pension system for its permanent employees. The additional pension insurance is a group pension insurance plan that is based on a defined contribution plan. In addition to the Finnish social security system for its employees, NDF has subscribed to a comprehensive accident insurance, life and health insurance programme.

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:

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

(EUR 1,000): Dec. 31, 2010 Bangladesh 23,224 Benin 18,912 Bolivia 27,892 Botswana 5,269 Burkina Faso 10,219 Cambodia 8,267 Cape Verde 2,091 China 4,781 Colombia 1,229 Dominican Republic 7,987 Ethiopia 25,170 Ghana 42,713 Honduras 27,786 Indonesia 12,181 Jamaica 5,962 Kenya 25,969 Kyrgyz Republic 4,699 Lao PDR 53,734 Malawi 23,179 Maldives 9,802 Mauritius 3,086 Mozambique 62,302 Mongolia 26,216 Namibia 1,735 Nepal 22,852 Nicaragua 47,037 Pakistan 11,007 Philippines 15,038 Rwanda 12,500 Senegal 48,807 Sri Lanka 21,102 Tanzania 23,393 Tunisia 5,427 Uganda 48,115 Vietnam 23,413 Zambia 17,910 Zimbabwe 15,926 Credits outstanding 746,932 Credits in default (Zimbabwe) 2,424 Total, credits outstanding 744,509

Dec. 31, 2009 19,327 18,699 25,953 5,417 7,809 5,663 2,007 4,892 1,184 7,664 22,740 36,791 26,502 11,791 5,722 24,499 4,800 52,363 23,013 10,023 3,249 60,178 25,061 1,775 23,210 43,721 11,435 14,537 11,543 45,291 20,477 23,195 5,550 42,768 21,829 15,962 14,945 701,587 1,880 699,706

In addition, agreements have been signed on a further EUR 76.6 million (2009: EUR 159.4 million) in credits not yet disbursed.

16

Amortisations on credits outstanding as at December 31, 2010 show the following maturity profile: (EUR 1,000)

Loans with equity features and equity investments are

Dec.31,2010

Dec. 31,2009

78,184

74,283

2010

distributed as follows:

9,909

2011-2015 2016-2020

116,462

(EUR 1,000)

Dec. 31, 2010

Dec.31, 2009

109,652

Benin

0

1,014

2,195

2,195

2021-2025

144,429

135,121

China

2026-2030

157,516

146,292

Mekong Enterprise Fund

2,142

2,142

2031-2035

133,758

122,942

Nepal

2,913

2,913

2036-2040

85,638

76,878

Central American Small

28,522

24,630

Enterprise Investment Fund

744,509

699,706

2041-2045 Total, credits outstanding

911

911

1,760

2,403

341

492

investments outstanding

10,262

12,070

Write-down

-3,114

-5,054

7,148

7,015

Aureos Southern Africa Fund Aureos West Africa Fund

(Note 3) Other loans outstanding

Total, loans with equity features and equity

Other loans outstanding are distributed as follows: (EUR 1,000)

Dec. 31, 2010

Dec. 31, 2009

Total, loans with equity

East African Development Bank

7,245

8,549

Maputo Port Development Corporation

1,096

1,096

features and equity investments

Total, other loans outstanding

8,341

9,645

outstanding after write-down

-548

-548

7,793

9,097

Provision for loan losses

As at December 31, 2010, the write-down for impairment

Total, other loans outstanding after provisions

totaled EUR 3,114,288 (2009: EUR 5,054,490) based on assessment of the risk of losses which exists or may exist.

Amortisations on other loans outstanding as at December

The reversals for 2010 amounted to a total of EUR

31, 2010 show the following maturity profile:

1,940,202. Loans with equity features and equity investments amounting to a total of EUR 0 (2009:

(EUR 1,000)

Dec. 31,2010

2010

Dec. 31,2009 1,285

EUR 2.4 million) have been signed but not yet disbursed.

2011-2015

2,600

2,620

2016-2020

1,366

1,366

2021-2025

1,366

1,366

2026-2030

1,366

1,366

The total loan losses, write-down on loans and reversals

2031-2035

1,093

1,093

during 2010 totalled EUR -1,841,353 (2009: EUR -558,067).

2036-2040

0

0

Provisions for loan losses and reversals amounted to

2041-2045

0

0

EUR -1,940,202 in 2010 and realised loan losses amounted

7,793

9,097

Total, other loans outstanding

(Note 5) Loan losses, write-down of loans and reversals

to EUR +98,849 (2009: EUR 0).


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)

(Note 7) Equity

2010

2009

Computer software

Computer software

5,527

4,229

0

1,298

Acquisition value at end of year

5,527

5,527

Accumulated amortisation at beginning of year

2,185

620

Amortisation according to plan for the year

1,842

1,565

Accumulated amortisation at end of year

4,027

2,185

Net book value

1,500

3,342

Intangible assets Acquisition value at beginning of year Acquisitions during the year

2010

2009

Office equipment

Office equipment

9,872 Acquisitions during the year 10,296 Acquisition value at end of year 20,168 Accumulated depreciation at beginning of year 528 Depreciation according to plan for the year 3,835 Accumulated depreciation at end of year 4,364 Net book value 15,805 Intangible and tangible assets total 17,304

291 9,581 9,872 21 507 528 9,344 12,686

Tangible assets Acquisition value at beginning of year

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, 2010 amounted to SDR 490.0 million,* equivalent to EUR 663.4 million and EUR 237.8 million i.e. a total of EUR 901.1 million. The payments by the member countries in 2010 amounted to SDR 0 (equivalent to EUR 0) and EUR 10.9 million, i.e. a total of EUR 10.9 million. * The EUR value of SDR is based on the historic EUR/SDR currency rate on the date of payment

The member countries have subscribed the following amounts of the total Fund capital: Subscribed fund capital as at December 31, 2010 (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, 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

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

Paid-in during 2010 in SDR 0 0 0 0 0 0

Translated into EUR 0 0 0 0 0 0

Paid-in during 2010 in EUR 2,725 1,940 109 2,453 3,673 10,900

Paid-in total during 2010 2,725 1,940 109 2,453 3,673 10,900

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

Fund capital Dec. 31, 2010 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, 2010 in EUR 59,445 42,325 2,377 53,502 80,131 237,780

Fund capital Dec. 31, 2010 Total 206,574 168,263 9,371 184,388 332,551 901,147

% 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

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

Directors, the Control Committee and the Managing Director

the Managing Director appears from the table below:

General administrative expenses

2010

Personnel costs

(amounts in EUR) 1,308

1,142

254

227

26

24

145

141

1,212

1,120

Pension premiums in accordance with the Finnish state pension system Other pension premiums Office premises costs Other general administrative expenses Cost coverage, NIB Total

2010 Compensation/ emolument

2009

(EUR 1,000)

284

280 2,934

2009 Compensation/ emolument

Pension premiums

Chairman of the Board of Directors

3,228

Pension premiums

Other members of the Board

5,326

5,326

18,848

18,850

Managing Director

329,797

Control Committee

1,333

109,347

317,778

103,674

1,427

(Note 9) Transactions between closely related partners NDF receives services and enters into transactions with NIB. The outstanding claims and debts between NDF and NIB as well as interest charged during the year are presented in the table

Host country reimbursement according to agreement with the Finnish Government Net

below. The interest charged corresponds to the normal market rate (EUR 1,000): -354

-392

2,874

2,542

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

2010

Interest collected 400

4

75,762

2009

1,501

31

92,253

EUR rate on Dec. 31, 2010

EUR rate on Dec. 31, 2009

7.4535

7.4418

153.1

178.87

7.8

8.3

of Ministers. Compensation for the Fund’s Managing Director is set by the Board of Directors and is paid in the form of a fixed annual salary and usual salary-based benefits.

(Note 10) Currency exchange rates

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

DKK

Danish krone

ISK

Icelandic króna

NOK

Norwegian krone

SEK

Swedish krona

8.9655

10.252

USD

US dollar

1.3362

1.4406

SDR

Special Drawing Rights

0.86232*)

0.91893*)

*) 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, 2010.

18


AUDITORS’ REPORTS

INDEPENDENT AUDITORS’ REPORT TO THE CONTROL COMMITTEE OF THE

judgment, including the assessment of the risks of material misstatement of the financial

NORDIC DEVELOPMENT FUND

statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial

In our capacity as auditors appointed by the Control Committee of the Nordic Development Fund

statements in order to design audit procedures that are appropriate in the circumstances, but not

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

for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An

sheet as at 31 December 2010, and the income statement, statement of changes in equity and

audit also includes evaluating the appropriateness of accounting policies used and the reasonab-

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

leness of accounting estimates made by management, as well as evaluating the overall presenta-

policies and other explanatory notes.

tion of the financial statements.

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

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

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

basis for our audit opinion.

financial statements in accordance with the accounting principles described in the notes to the financial statements and for such internal control as they determine is necessary to enable the

Opinion

preparation of financial statements that are free from material misstatement, whether due to

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

fraud or error.

Nordic Development Fund as of 31 December 2010, and of its financial performance and its cash 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 conducted our audit in accordance with International Standards on Auditing. Those standards

Report on the other requirements

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

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

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

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

An audit involves performing procedures to obtain audit evidence about the amounts and

Director complied with the Statutes of the Fund.

disclosures in the financial statements. The procedures selected depend on the auditor’s

Helsinki, 3 March, 2011 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 the audit performed, 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 In accordance with § 9 of the Statutes of the Nordic Development Fund, we have been appointed

Fund as at December 31, 2010 and of its results and financing in 2010. The Financial

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

Statements show a surplus of EUR 17,973,758.80, which will be carried forward to

auditing of the Fund's accounts. After having completed our assignment for the year 2010, we

new account.

hereby submit the following report: We recommend to the Nordic Council of Ministers that: The Control Committee met during the financial year as well as after the Fund's financial state-

• the Income Statement and Balance Sheet be adopted, and that

ments had been prepared. Control and examination measures considered necessary were then performed. The Annual Report of the Fund was examined at a meeting in Helsinki on March 3, 2011, at which time we also received the Auditor's Report, submitted on March 3, 2011, by the

• the Board of Directors and the President be discharged from liability for the administration of the Fund's operations during the accounting period examined by us.

authorised public accountants appointed by the Control Committee.

Helsinki, 3 March, 2011 BILL FRANSSON PER BISGAARD TUULA PELTONEN

20

HANS FRODE KIELLAND ASMYHR

JOHAN LINANDER RAGNHEIÐUR RIKHARDSDÓTTIR


21

Photo: Olga SaxĂŠn


N D F A N D I N N O VA T I O N

CLIMATE CHANGE AND INNOVATION

consumption of SMEs, thereby helping to make them become more competitive. In

Innovation is a key driver of economic development and a principal tool for coping with

addition, the need for additional fossil fuel-based generation capacity will decrease,

major global challenges, particularly those induced by climate change. In low-income

and thus enable the SMEs to become more sustainable and climate-friendly as CO2

countries innovation is generally not something brand new but rather something new to

emissions are reduced.

the society in question. Therefore, innovation is not only about the creation of new tech-

The Indigenous Peoples and Climate Change project in Honduras aims to increase the

nologies and practices but also about using existing technology and knowledge in a

capacity of indigenous people and afro-descendants groups to tackle climate change and

new context. For NDF, innovation means finding new solutions to the problems caused

to provide renewable energy solutions for local communities. To reduce greenhouse gas

by climate change. In 2010, NDF encouraged this innovation both through its policy

emissions, the concept of Energy Kiosks will be introduced in remote indigenous commu-

measures and its range of project financing.

nities that are not connected to the national grid. The Energy Kiosks will be based on a hybrid renewable energy system that will produce electricity from locally available resour-

Innovation in action: selected projects

ces, e.g. water resources, organic waste and other organic materials, sun and wind. New

Climate change presents various challenges for managing risk. As an example, road

community enterprises will be provided with electricity, and services such as charging

infrastructure in many developing countries has suffered extensive damage in recent

LED lamps and recharging of mobile phones will be introduced. The Kiosks will be

years due to increased prevalence of flooding and storms. Many of the perceived risk

managed by community cooperatives and the fees collected for services will be used for

issues can be readily addressed at the design stage. This involves designing roads so they

operation and maintenance.

become more resilient to heavier rains, more frequent floods and higher temperatures. Two transport sector projects were approved in 2010, Adaptation Approaches for the

The Senegal Sustainable and Participatory Energy Management Project (PROGEDE II) aims to increase the availability of diversified household fuels in a sustainable way, and to

Transport Sector in Cambodia and Transport and Urban Mobility Project (STUMP) Integrating Climate Change Adaptation to Transport in Senegal. In both cases, NDF will finance special climate adaptation components of large road infrastructure projects. NDF’s participation ensures that adaptation activities are integrated in the projects since climate change is generally not included in initial design. This involvement includes identification of areas which are most at risk of flooding and landslides, and enhancing capacity to manage that risk, plus the analysis of potential trends in climate change and

Outcomes and lessons learned from these projects will be available for dissemination to other projects, sectors and countries. The GreenPyme program will promote energy efficiency in small and medium-sized enterprises (SMEs) in Central America. The program aims to provide SMEs with knowhow, tools and technical and financial support to implement energy efficiency measures. One of the novel aspects in GreenPyme is involving and training local banks in energy efficiency, and promoting the ESCO (Energy Service Company) concept. This type of support is needed because SMEs in Central America consume a great deal of energy inefficiently and at a high cost. Increased energy efficiency will reduce the energy

22

Photo: Š World Bank / Dominic Sansoni

the implications for operation and management of road networks in the two countries.


N D F A N D I N N O VA T I O N

increase the income of participating communities while preserving forest ecosystems. NDF will help to support the production and marketing of improved stoves. Innovative and energy-saving cooking equipment has been developed by local expertise in Senegal, and will be replicated and distributed on a large scale. A financing mechanism will help make the improved stoves affordable to end-users, so the local producers will be able to increase production volumes and thus create income and jobs. The project promotes efficient cooking equipment, efficient charcoal production methods and new CO2 neutral biomass energy sources. There are significant climate benefits from the project as well as social benefits to women in particular. The time and money women spend on collecting and buying fuel wood and charcoal will decrease, and indoor air pollution will be reduced, improving women’s health.

The Nordic Climate Facility (NCF) NCF facilitates the exchange of technology, know-how and innovative ideas between the Nordic countries and low-income countries in the area of climate change. The facility encourages and promotes innovation in areas susceptible to climate change such as: energy, transport, water and sanitation, health, agriculture and forestry as well as other areas related to natural resource management. The purpose is to increase the ability of low-income countries to mitigate and adapt to climate change. Once a year, NCF calls for innovative proposals comprising specific themes related to climate change. The two themes for the first call for proposals were “energy efficiency” and “water resources”. When the applications for the first call for proposals were received at the beginning of 2010, the interest was greater than expected. A total of 138 proposals were received and 33 of these were invited to present detailed project proposals; 14 cont-

Photo: © World Bank / Sebastian Szyd

racts were eventually signed. The experience of the process of the first call has been positive. The co-operation between Nordic and local partners seems promising and project implementation is expected to be successful because of the involvement of strong local stakeholders. Furthermore, the projects are likely to create potential for replication and scaling up as innovative solutions and knowledge transfer are well incorporated in the projects’ design. The second call for proposals was launched at the end of 2010 with the themes “renewable energy” and “urban adaptation to climate change”.

23


N D F A N D I N N O VA T I O N

NCF: stimulating innovation

because methane gas is emitted. NCF supports a project that pioneers the installation of

Since innovation is a key element of NCF, applicants have to describe the innovativeness

modern, energy efficient, and methane-free charcoal kilns that are capable of producing

of the proposed project in their proposals. Amongst the 14 awarded contracts, there were

7,500 tonnes of sustainable charcoal a year, enough to supply 9,000 households. With

several notable proposals for addressing climate-related problems.

the kilns, the project intends to more than double the efficiency of traditional charcoal

One of the NCF projects, situated in the drought-prone Isiolo District in Kenya, aims

production. These will be the first plants in East Africa where methane emissions from

to increase communities’ access to safe water and thus help them adapt to the changing

charcoal production are recycled in this manner. It is expected that the project’s innovative

climate. To achieve this, the project will introduce a water system called LIFELINK in the

gas capture technology will set a precedent for future charcoal production in the region.

project area. The heart of the LIFELINK system is a well-proven submersible pump driven by solar panels. The technology includes a satellite link to a computer-based system with an integrated communication and surveillance module, which enables the water system to be remotely monitored for breakdowns. The communities will pay for their water via mobile telephones, which are already widely used throughout the country, and the user fees will be used to cover operation and maintenance costs. Another NCF project will introduce sustainable and energy efficient electric and electronic scrap (e-scrap) recycling methods in Ghana. E-scrap is an important source of secondary raw materials as it contains valuable concentrations of metals. The extraction of metals from e-scrap requires much less energy than the extraction from virgin ores, e.g. the extraction of the same amounts of metal from secondary raw materials requires, depending on the different metals, between 50% and 90% less energy than the extraction from primary raw materials. The project is innovative since it probably is the first time a project related to e-scrap in a developing country focuses on e-scrap as a valuable resource. In addition, it is also most likely the first time in a developing country where the climate aspect of extracting metals from e-scarp is acknowledged in a project through the energy savings potential. NCF also supports a project that will systematically collect end-use data from different types of customers all over Ethiopia, and use the database to indentify, evaluate and propose demand side management (DSM) measures for the power sector. The project aims to change the electricity use behaviour of various consumer groups, thereby encouraging end-use efficiency and reducing energy consumption and costs, with consequent benefits

Charcoal is an important energy source in Africa, vital for the daily household activities of the poorest people. The high demand for firewood and charcoal is the main source of deforestation in Uganda. Current charcoal production methods are highly inefficient, usually illegal since indigenous forests are being used as raw material, and polluting

24

Photo: Jakob Dall

in terms of climate change mitigation and adaptation.


N D F A N D I N N O VA T I O N

The Energy and Environment Partnership (EEP) with Mekong countries

The ProClimate Facility (ProCF)

Financed by the Ministry for Foreign Affairs of Finland and NDF, the Mekong EEP Program

The ProCF was launched in December, 2010 with the objective of supporting small and

provides seed money for a variety of renewable energy, clean technology and energy effici-

medium scale climate-friendly and innovative investment projects that often would not

ency activities in the Mekong region. Eligible countries for EEP grants include Cambodia,

otherwise be realised due to lack of financing, perceived risk and/or size. ProCF can

Lao PDR, Thailand and Vietnam. The objective is to combat climate change while providing

extend partial loan guarantees, technical and operational guarantees, and provide technical

sustainable energy services to those in need. The Program is designed to facilitate the

assistance in combination with a guarantee to selected projects. By providing these types

development of innovative ideas, approaches and concepts into sustainable and bankable

of guarantees ProCF will supplement already available financing and thus help to close

investment projects that will bring substantial benefits to the partner countries. Projects

remaining financing gaps. The Facility is financed by NDF and will be implemented jointly

are identified through calls for proposals. In 2010, the result of the first call for proposals

with the Nordic Environment Finance Corporation (NEFCO).

was revealed and the outcome was extremely positive. 162 proposals were received and 13 Identification and screening of climate projects

projects include one that will refurbish obsolete small hydropower stations in Lao PDR

In 2010, the NDF developed internal guidelines for project identification and climate

with Permanent Magnetic generators, which is a completely new technology now being

screening. The guidelines consist of quantitative screening criteria for both mitigation

introduced in the country. Another project will construct a wind turbine in Vietnam and

and adaptation projects. The criteria, for mitigation activities, set minimum requirements

use wind power for ice production to conserve fish caught by local fishermen. During the

regarding greenhouse gas reductions. More specifically, the total value of greenhouse gas

second call for proposals, a total of 105 proposals were received and 81 were found eligible.

reductions, from emissions or carbon sequestration, should be at least 10% of the project’s

At the EEP Mekong Fourth Steering Committee Meeting in December 2010, 14 projects

investment costs. With regard to adaptation activities, NDF has chosen to adopt a criterion

were pre-selected for the second call.

that sets minimum requirements regarding the projects’ budgets. At least 50% of the

Photo: © World Bank / Masaru Goto

were pre-selected for further elaboration. In the end seven contracts were signed. The

25


N D F A N D I N N O VA T I O N

projects’ total investment costs should be for adaptation-related activities. The guidelines

in the communities in Honduras and Senegal were found to be generally positive. In the

are to be used during the preparatory phase to ensure that all projects financed by NDF

case of Honduras, the arrival of solar energy means that many schools now benefit from

are in compliance with the new mandate. During the development of the guidelines, NDF

other national programs as they have computers and televisions available in classrooms.

consulted with several major partners, including the World Bank, the Asian Development

The evaluation reports are available on the NDF website.

Bank and the Inter-American Development Bank, who have all reacted positively to NDF’s initiative. A summary of the screening guidelines is available on the NDF website.

Evaluation NDF has provided financing to the energy sector in more than 25 countries during the past two decades. While much of this support went to traditional energy solutions, NDF credits have also financed a number of renewable energy solutions such as solar energy. Two external evaluations were launched in May 2010 to assess results and capture lessons learned from solar energy projects. The evaluation focused on: • NDF 286 Senegal: Poverty Alleviation project 1999-2009 (Installation of 62 solar energy systems to provide electricity to water pumps in rural areas of Senegal in the period 2004-05). • NDF 350 Honduras: National Education Reform 2001-2009 (Installation of 151 solar energy systems in the period 2005-06, and installation of 102 additional solar energy systems in 2008 to provide electricity to rural schools in Honduras) The evaluation was carried out by two external consultants who undertook the project visits and fieldwork between May and July 2010. In Honduras, 25 villages were visited while the consultant in Senegal visited 15 villages. The site visits allowed for an inspection of individual solar energy installations, interviews with users and focus group discussions. Further interviews were conducted with national and local authorities and the service

The main findings revealed that the provision of solar energy systems was highly relevant to the communities since they are outside of the national electrical grid and expect to remain so. In Honduras, the solar energy systems were exclusively used for electricity in schools while those in Senegal were used for electrical water pumps. However, the delivery of the solar energy systems experienced delays both in Honduras and Senegal. The training of recipients seems not to have been optimal, which in some cases led to problems with operation and maintenance. A main lesson learned is that future solar energy projects need to place more emphasis on local ownership and long-term sustainability. The impacts of the solar energy systems

26

Photo: © World Bank / Dominic Sansoni

providers.


Regional Distribution of Approved Financing

Distribution of Adaptation and Mitigation Projects

G R A N T P O R T F O L I O / L AT I N A M E R I C A

GRANT PORTFOLIO / GLOBAL Country/ Project

Lead Agency

Nordic Climate Facility 1 Nordic Climate Facility 2 Pro Climate Facility

n/a n/a n/a

Investment million, NDF 6,0 EUR 6,0 EUR 10,0 EUR

Year of Signing

Country/ Project

Lead Agency

Investment million, NDF

Year of Signing

2010 2011 2011 *)

Indigenous Peoples and Climate Change

IDB

3,5 EUR

2011 *)

IDB

4,5 EUR

2011 *)

IDB

2,5 EUR

2011 *)

IIC

2,2 EUR

2010

Sustainable Electrification and Renewable Energy Program Programme for Disaster Management and Climate Change

GRANT PORTFOLIO / AFRICA Country/ Project

Lead Agency

Investment million, NDF

Year of Signing GreenPYME: Energy Efficiency for Small and Medium-sized Enterprises

Increased Access to Modern Energy Project Modernizing Biomass Energy Services

IDA

1,5 EUR

2010

Studies on Landfill Gas Capture and Utilization

IDA

2,0 EUR

2011 *)

Promotion of Solar Water Heaters

Transport and Urban Mobility Project Environmental Activities Water and Sanitation Millennium Project Cambérène Climate Change Senegal Biomass

Increasing Access to Modern Energy Packages in Rural Areas

IDA

4,0 EUR

2011 *)

IDA

4,0 EUR

2011 *)

IDA IDA

4,0 EUR 3,0 EUR

2011 *) 2011 *)

IDA

3,0 EUR

GRANT PORTFOLIO / ASIA Country/ Project

Lead Agency

Investment million, NDF

Year of Signing

Adaptation Approaches for the Transport Sector Water Resources Management

ADB ADB

4,2 EUR 3,0 EUR

2011 *) 2011

ADB

0,4 EUR

2009

ADB

2,0 EUR

2010

Support for the National Target Program on Climate Change

ADB

2,21 EUR

2011

Mekong Energy and Environment Partnership (EEP) GMS Bioenergy

ADB

Pakse Urban Environmental Improvement Project Capacity Enhancement for Coping with Climate Change

2010

UM Finland 3,0 EUR

3,1 EUR

2010 2011 *)

*) tentative

27


CREDIT PORTFOLIO / AFRICA Country/ Project

Lead Agency

Investment million, NDF

Year of Signing

Public Sector Projects Transport Sector Investment Energy Services Delivery

IDA IDA

4,7 SDR 13,8 EUR

1997 2005

Power Sector Development

IDA

10,2 EUR

2005

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

NIB AfDB/NIB NIB

1,1 EUR 0,5 EUR 5,0 EUR

1990 1992 1993

Integrated Fisheries Development

ICEIDA

2,0 SDR

1994

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

EIB IDA IDA IDA

5,0 SDR 7,0 SDR 4,8 SDR 10,0 EUR

1998 1998 1998 2003

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

28

IDA IDA AfDB IDA IDA IDA IDA AfDF

5,2 EUR 6,1 EUR 5,2 EUR 2,6 EUR 4,0 SDR 5,0 SDR 2,1 SDR 8,3 EUR

1994 1994 1994 1996 1996 1998 2000 2003

Country/ Project

Lead Agency

Investment million, NDF

Year of Signing

Land Administration Urban Water Project Urban Environment Sanitation II

IDA IDA IDA

7,0 EUR 6,0 EUR 9,0 EUR

2004 2004 2004

Northern Transport Corridor Improvement Energy Sector Recovery

IDA IDA

16,0 EUR 10,0 EUR

2004 2004

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

IDA IDA IDA

2,8 EUR 5,3 SDR 5,0 SDR

1991 1995 1997

Danida IDA

5,1 EUR 4,8 SDR

1998 1999

Environmental Investment for Sustainable Development

IBRD

4,1 EUR

1990

5,6 EUR 4,6 EUR Danida/ICEI 3,6 SDR IDA 5,2 SDR IDA 3,4 SDR IDA 12,6 EUR

1989 1994 1996 1997 2001 2001

IDA IDA IDA

2001 2002 2003

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)

IDA NORAD

11,7 EUR 7,4 EUR 10,1 EUR


Country/ Project

Lead Agency

Investment million, NDF

Year of Signing

Country/ Project

Lead Agency

Investment million, NDF

Year of Signing

9,6 EUR

2003

NIB

2,0 EUR

1994

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

IDA

Seaflower -Whitefish Corporation

IDA

8,0 EUR

2004

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

IBRD NORAD Sida

4,4 SDR 3,5 SDR 5,9 SDR

1990 1994 1996

Urgent Electricity Rehabilitation Urban Infrastructure and City Management

IDA IDA

7,5 EUR 5,0 EUR

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

AfDB IDA IDA IDA

4,3 EUR 6,1 EUR 5,0 SDR 2,1 SDR

1992 1995 1997 1999

IDA AfDB IDA

5,6 SDR 7,5 SDR 5,0 SDR

1999 1999 2000

11,5 SDR 5,7 SDR

2000 2002

IDA IDA

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

AfDB IDA IDA IDA IDA

6,1 EUR 6,0 EUR 6,7 SDR 1,3 EUR 4,1 EUR

1993 1995 1999 1999 2004

AfDF

6,0 EUR

2005

Second Forestry Development Water Supply and Sewerage

IBRD IBRD

4,4 EUR 1,8 EUR

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

IDA IDA IDA IDA

4,9 EUR 5,8 EUR 5,8 EUR 4,4 EUR

1990 1991 1994 1994

IDA

5,0 SDR

1998

IDA IDA IDA

3,2 SDR 7,0 SDR 12,7 EUR

2000 2001 2002

IDA

6,0 EUR

2005

AfDF

5,0 EUR

2006

IDA IDA

0,9 EUR 6,1 EUR

1997 1999

Environment Support Power Rehabilitation

Private Sector Projects. Loans with equity features Cimbenin S.A.

Swedfund

0,7 SDR

1996

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

Swedfund IFU IFU

0,5 SDR 0,4 SDR 0,2 SDR

1995 1996 1998

Maputo Port Privatisation and Rehabilitation

Swedfund

0,9 SDR

2003

Seaflower Whitefish Corporation Ltd.

NBVF

0,7 SDR

1999

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

IFU IFU IFU IFU

0,1 SDR 0,0 SDR 0,0 SDR 0,0 SDR

1995 1996 1997 1998

Sao Hill Timber Ltd.

NORAD

0,3 SDR

1997

MTN (Uganda) Ltd.

Swedfund

1,5 SDR

1999

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

IFU IFU IFU IFU

1,0 SDR 0,1 SDR 0,3 SDR 0,1 SDR

1995 1995 1996 1997

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

Swedfund Norfund Norfund

1,5 SDR 3,4 EUR 3,0 EUR

1999 2003 2004

Credit Lines Fifth Line of Credit and Technical Assistance to the East African Development Bank Second NDF Credit Line to the East African Development Bank (EADB)

AfDB

6,8 EUR

1995

n/a LA

4,2 EUR

2003 29


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 Country/ Project Public Sector Projects

Lead Agency

Investment million, NDF

Year of Signing

Energy Generation, Transmission and Distribution Environment, Industry & Mining National Land Administration Ventilla - Tarapaya Highway Institutional Reform Project (IRP) Bolivian Epidemiological Shield and Support for Health-Sector Reform Program Road Rehabilitation and Maintenance Environmental and Social Protection in the Santa Cruz-Puerto Suàrez Corridor

IDB IDA IDA IDB IDA

4,8 EUR 5,0 SDR 5,0 SDR 2,6 SDR 1,3 SDR

1991 1995 1996 1999 2000

IDB IDA

5,0 SDR 4,8 EUR

2000 2002

IDB

3,5 EUR

2002

IDB

1,4 SDR

1997

Pacific Coast Sustainable Development

30

Energy Control Center / SCADA System Health Sector Modernization and Restructuring

IDB IDB

5,1 SDR 2,7 SDR

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

IDA IDB IDB

7,8 SDR 1,5 SDR 7,0 EUR

2000 2000 2001

IDB IDA

3,4 EUR 6,0 EUR

2002 2005

IDB

5,6 EUR

2005

Country/ Project

Lead Agency

Investment million, NDF

Year of Signing

Primary Education Improvement Multisectoral Pre-investment Airport Reform and Improvement

IDB IDB IDB

2,0 SDR 1,8 SDR 2,0 SDR

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 Yalagüína-Las Manos, Rehabilitation and Improvement Socioenvironmental and Forestry Development Program II - (POSAF II) Land Administration Transport Program for Improved Competition

IDB

2,7 SDR

1992

IDB IDB IDB IDB IDA IDA

4,8 SDR 4,0 SDR 3,2 SDR 6,9 SDR 2,3 SDR 2,5 SDR

1992 1993 1996 1997 1997 1999

Sida

3,0 SDR

2000

IDB IDA IDB

2,5 EUR 5,5 EUR 9,5 EUR

2002 2003 2004

Owens Corning Andercol Tuberías S.A.

NORAD

1,4 SDR

1996

Central American Small Enterprise Investment Fund (CASEIF)

Norfund

3,1 EUR

2003

Private Sector Projects Loans with equity features


CREDIT PORTFOLIO / ASIA Country/ Project Public Sector Projects

Lead Agency

Investment million, NDF

Year of Signing

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

IFU ADB ADB ADB ADB ADB ADB

4,0 SDR 1,5 SDR 1,2 SDR 2,7 SDR 10,0 EUR 10,0 EUR 8,3 EUR

1993 1997 1998 2000 2002 2003 2004

Greater Mekong Subregion (GMS) Transmission

ADB

10,0 EUR

2004

Country/ Project

Lead Agency

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

ADB IDA ADB IDA ADB ADB

6,0 EUR 4,0 SDR 6,4 EUR 4,5 SDR 12,3 EUR 6,1 EUR

1995 1997 1997 2001 2003 2004

Third Fisheries Male-Water and Sewerage Third Power System Development

IDA IFU ADB

4,2 EUR 2,1 EUR 4,7 EUR

1992 1995 1998

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

ADB ADB IDA ADB ADB

4,9 SDR 3,9 SDR 3,8 SDR 4,4 EUR 8,5 EUR

1994 1995 2001 2001 2002

IDA IDA Finland Finland ADB

5,1 EUR 5,8 EUR 5,4 EUR 1,7 EUR 7,4 EUR

1992 1993 1996 1997 2001

NIB ADB ADB

3,3 EUR 7,0 EUR 4,3 EUR

1993 1993 1994

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

1,6 EUR 3,1 EUR 0,8 EUR

1993 1993 1994

Central Nurseries Establishment Indonesia/Nordic Forestry Digital Marine Mapping

NIB NIB NORAD

3,9 SDR 3,8 SDR 5,0 SDR

1990 1993 1995

Power and District Heating Rehabilitation

ADB

5,1 EUR

1997

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

Highways Improvement Airports Improvement Bridge Construction

IDA ADB Sida

4,8 EUR 5,7 EUR 6,0 EUR

1991 1994 1994

NLC -Radio Link WAPDA Twelfth Power Sector Provincial Highway

Investment million, NDF

Year of Signing

31


Country/ Project

Lead Agency

Investment million, NDF

Year of Signing

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

IBRD IBRD

2,8 EUR 4,2 EUR

1992 1995

IBRD ADB ADB

0,6 SDR 4,3 SDR 5,0 SDR

1998 2000 2000

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

IDA ADB ADB ADB

5,4 EUR 3,7 SDR 6,3 SDR 4,5 SDR

1996 1999 1999 2000

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

Sida ADB Sida ADB

7,4 EUR 4,3 SDR 5,9 EUR 11,6 EUR

1996 1999 2001 2005

Private Sector Projects Loans with equity features

32

Scancement International

Norfund

1,4 SDR

2000

Scana Leshan Machinery Company Limited

IFC

1,6 SDR

1999

Khimti Hydropower

ADB / IFC

2,1 SDR

1996

Thailand Research Test Center (TRTC)

Norfund

0,3 SDR

1998

Mekong Enterprise Fund Ltd. (MEF)

ADB

3,4 EUR

2002


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 *)

DENMARK Christoffer Bertelsen, Senior Adviser, Ministry of Foreign Affairs, Chair of the Board Deputy: Mads-Emil Stærk, Embassy Secretary, Ministry of Foreign Affairs

CHAIRMAN Bill Fransson, Managing Director

FINLAND Satu Santala, Director, Ministry for Foreign Affairs, Deputy Chair of the Board Deputy: Pertti Anttinen, Director, Ministry for Foreign Affairs ICELAND Egill Heiðar Gislason, Advisor Deputy: Anna Karlsdóttir, Assistant Professor, University of Iceland 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 Deputy: Lena Kövamees, Senior Programme Manager, Sida Observer: Johan Ljungberg, Senior Director, Nordic Investment Bank

DENMARK Per Bisgaard, Member of Parliament FINLAND Tuula Peltonen, Member of Parliament ICELAND Ragnheiður Ríkharðsdóttir, Member of Parliament NORWAY Hans Frode Kielland Asmyhr, Member of Parliament SWEDEN Johan Linander, Member of Parliament AUDITORS APPOINTED BY THE CONTROL COMMITTEE Sixten Nyman, Authorised Public Accountant, KPMG, Finland Per Gunslev, State Authorised Public Accountant, KPMG, Denmark Secretary to the Control Committee Birgitta Immerthal, KPMG, Finland *) As at December 31, 2010

The picture was taken at the NDF Board of Directors' meeting in Helsinki in March 2011. From left to right: Helge Semb, Tomas Danestad, Christoffer Bertelsen, Satu Santala, Egill Heiðar Gislason.

33


M A N A G E M E N T A N D S TA F F Helge Semb, Managing Director Leena Klossner, Deputy Director

Juhani Annanpalo, Country Program Manager Hannu Eerola, Country Program Manager Martina Jägerhorn, Country Program Manager Aage Jørgensen, Country Program Manager Linda Lundqvist, Country Program Manager and Legal Counsel Emeli Möller, Program Officer

Mats Slotte, Manager, Financial Administration Jessica Suominen, Financial Administrator (on leave of absence) Henna Vuorinen, Financial Administrator

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

441 014 Printed matter

Nordic Development Fund • Annual Report 2010 • Lay-out: Kubik advertising • Photos: Getty Images, Jørgen Schytte, Olga Saxén, Dominic Sansoni, Sebastian Szyd, Jakob Dall, Masaru Goto, Johannes Mansner, • Printed by Libris, Finland

34


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's Annual Report 2010