Annual report AFD 2013

AGENCE FRANÇAISE DE DÉVELOPPEMENT

ANNUAL REPORT

AGEN DE DÉ

AGENCE FRANÇAISE DE DÉVELOPPEMENT

RAPP

ANNUAL REPORT

Contents

7

4 Foreword by the Chairwoman of the Board

41 Intensifying relations with the European Union

5 Interview with the Chief Executive Officer

42 Working with other donors 43 Bolstering local competency

AFD in 2013 8 2013 Highlights

44 Thinking about development aid 45 Publications, videos and conferences

10 A commitment to sustainable development 14 A bilateral bank that advances

France’s priorities

47

AFD Team

16 Panorama of 2013 financing activity

48 Board of Governors

18 Targeted use of French financial resources

49 Group organigram

20 AFD financing benefits people and the planet

50 Management team

22 Giving financing priority to sub-Saharan Africa

52 Working for AFD

26 Helping the Middle East and North Africa

54 AFD’s international reach

through political and economic transitions 28 Encouraging regional and environmental

balance in Asia 30 Promoting equitable and sustainable

development in Latin America 32 Contributing to sustainable development

in France’s overseas provinces

55

Financial information

56 Financial statements

58 Financing commitments by country 60 Financed projects

34 Assisting during crises, conflicts and fragile

social or political situations 36 Steps to obtain AFD project financing 38 Supporting NGO initiatives 40 Acting with French local governments

and companies

3

Foreword

Laurence Tubiana Chairwoman of the Board of Governors The next twenty-four months will prove crucial for France’s development policy. Two major negotiations will converge in 2015: one for a new global climate treaty and another for the United Nations (UN) Sustainable Development Objectives, which will take up where the UN Millennium Development Objectives left off.

This is a historic convergence: ever since the 1972 Stockholm Conference on the Human Environment, international negotiators have prioritized economic development over environmental protection, particularly climate-change prevention.

The relationship between greater natural resource consumption and economic growth seemed inseparable; climate change became synonymous with a common burden and conflicts over resource access.

This shifting situation creates new perspectives for French development policy. Many countries now contest the single goal of precisely reproducing or “catching up” with the development model of industrialized countries.

Development aid is no longer seen as conditional on transferring — not to say imposing — norms of behavior or policy packages. Now donors discuss policies with countries determined to explore their own paths. This involves a kind of apprenticeship or comparison of experiences. Cooperation now depends on each country’s ability to understand the other’s constraints and opportunities. Many broad policy areas have become part of this exploration, such as employment, education and health, as well as policies to fight climate change. In a globalized world, such dialogue is indispensable for creating shared visions and norms, and for accommodating interdependence between countries.

This worldwide discussion on redefining development models provides a marvelous opportunity for AFD: the Agency has the political, technical and intellectual means to enrich thinking in many fields. In July 2013, France’s Interministerial Committee for International Cooperation and Development clearly defined and differentiated AFD’s mandates.

4

The Committee determined that AFD must pursue development and projects in the least-developed countries, and help other countries in collective actions to strengthen global public goods. We will find opportunities to innovate by diversifying the Agency’s financial instruments and technical tools, whether for project finance or global and sectorial budget support. In discussions between international donors, the Agency can put forth ideas and methods tailored to specific political and economic situations, drawing on a clearly defined strategic framework and appropriate sectorial tools.

AFD will be able to deploy these methods as it prepares for the 2015 United Nations Conference of the Parties on Climate Change. In Paris, the parties will work toward a mutually binding agreement. This means that they must understand the obstacles to “decarbonizing” fossil-fuel-driven economies. They also must propose solutions that show how economic growth can occur even with drastic reductions in greenhouse gas emissions; such solutions must also allow for adaptation to climate-driven changes already underway. This is a tremendous challenge for AFD, one that calls for the full mobilization of the Agency’s talents and resources!

In February 2014, the French legislature passed a draft bill to orient and plan French development and international solidarity policies. This was a watershed moment: the fact that representatives of the French people will henceforth debate, evaluate and review the bill, just as they do other major public policy proposals, gives development policy the importance that it deserves.

Interview with

Anne Paugam Chief Executive Officer AFD saw several strategic milestones in 2013.

How would you describe the mission that the Agency has received?

France’s Interministerial Committee for International Cooperation and Development and the legislature’s draft bill on development and international solidarity confirmed AFD’s role as the pivotal actor in France’s cooperation policy. They also clarified the Agency’s mission: solidarity in facing shared, worldwide challenges. This translates into partnerships tailored for each geographic region. Poverty alleviation remains our highest priority, which is why we concentrate two-thirds of our grant monies on the poorest countries, giving precedence to those in Africa. However, an effective fight against poverty requires a long-term effort. We seek to meet development’s three-fold challenge by promoting enduring and job-creating economic trajectories, fighting social inequalities, and combating climate change. For this reason, in emerging Asian and Latin American countries, our mandate centers on “green and inclusive growth.” If Brazil and China do not make real progress in fighting climate change, current and future development progress will be threatened everywhere.

In the challenging economic climate that France and Europe confront today, many French citizens express fears about globalization. How does AFD respond to these fears?

I believe that the French and Europeans are increasingly aware of the interdependence globalization brings. Economic, health and security crises that start in the developing world can affect developed countries, and vice versa. Our children’s future depends on development choices now being made everywhere in the world. In my opinion, AFD can serve France as a premiere instrument to push for better-regulated and more-balanced globalization. This is the function of our financing to bolster Niger’s healthcare system, for example; equally, it is why we fund lower-carbon urban development in Indian cities, or lend to Turkish banks so that they, in turn, can finance the efforts of small and medium-size businesses to improve their social and environmental practices.

I am sure that the solid impacts and demonstration effects of the projects that we finance help reduce globalization’s imbalances, directly and indirectly.

A new vision of Africa and of its potential seems to be spreading through economic and policy circles.

How does AFD position itself for action on relevant development issues?

Africa is experiencing robust economic and population growth, sparking renewed interest, we are happy to say.

The continent is facing its major challenges: financing its infrastructure, educating and training its youth, creating jobs, managing huge urban growth, fighting poverty, managing crises, and so forth. We help surmount these challenges, supporting African governments, businesses and localities that ask us for assistance. This is what President François Hollande requested at the Elysée Summit last December: AFD Group will use all its financial tools to provide €20 billion to Africa over the next five years. In 2013, more than half of our financing, not including funds earmarked for France’s overseas provinces, benefited sub-Saharan and North Africa.

Beyond supplying this scale of financing, you seek impacts. However, some observers doubt the effectiveness of development aid. How does AFD ensure that its funding will achieve the hoped-for results?

That is a fundamental question for the Agency, one we answer by developing ways to measure our impacts and by rigorously evaluating our projects. I will give you three real examples: To give three actual examples: works financed by AFD in 2013 will ensure drinking-water access for an additional 1.5 million people, provide support for 878,000 family farms, and abate 3.3 million tons equivalent of carbon-dioxide. These are real achievements, even without including harder-to-quantify but equally essential impacts, such as capacity-building among local actors or structuring public policies, to cite but two examples. The methodical evaluations we conduct allow us to draw lessons from our work, informing our strategies and the content of future projects.

5

Touring a professional training center in Tunisia

French savoir-faire and expertise could be useful to the developing world. How does AFD integrate this know-how in its work?

First off, I would like to note that our beneficiaries often request French expertise in the broadest sense – from French companies, engineering offices, local administrations, nongovernmental organizations (NGOs), public agencies, and so on.

I think, for example, of a partnership between India’s Bureau of Energy Efficiency and ADEME, France’s environment and energy management agency; they work as peers on energy efficiency. Another good example is the urban sector, where our companies have recognized experience. A new tool created in 2013 called FEXTE, a fund for technical expertise and experience transfers, will allow us to better deploy and exploit French know-how in middle-income countries.

AFD works in a constantly changing world where many new donors and aid providers appear every year. How does the Agency adapt to change and maintain its lead?

Innovation is our watchword. AFD must remain an adaptable, creative, thoughtful and forward-looking organization. We have to be able to foster and integrate new ideas, suggestions and ways of doing things – whether they come from internal sources or external ones. That means we must know how to take risks and share risk with others, such as when we support social entrepreneurship with partner organizations.

In this vein, AFD and PROPARCO, its private-sector arm, work to set up coalitions of aid providers that include nongovernmental organizations and companies of all sizes; together we find the best solutions to development challenges. We have done this to improve housing in Nigeria and nutrition in Madagascar, among other projects. We will continue in this vein in 2014, setting-up innovative partnerships with public and private sector aid providers.

6

2014 will also be a year of preparing for 2015 milestones, won’t it?

Within two years France will host the 2015 Paris Climate Conference. AFD is deeply committed to climate issues, and highly energized to work on them. Half our financing goes to projects that must show a “climate co-benefit,” for example by supporting lower-emission transportation infrastructure, renewables development or energy-efficient buildings. Such projects decidedly bolster France’s position during international negotiations. And along with other development banks from all quarters, we think about the crucial question of financing the fight against climate change. The other big milestone in 2015 will be to define the Sustainable Development Objectives, which can replace the Millennium Development Goals.

Here again, France and AFD are poised to contribute significantly to these historic discussions, which should result – for the first time ever – in a common agenda for the developed and the developing world.

AFD

in 2013

Highlights

2013 March

18 February Back to work in Mali AFD restarted operations in Mali. During a May 2103 donor conference on Mali development, representatives from 108 countries and international institutions pledged €3.25 billion towards Mali’s reformation.

A second opinion on sustainability Each financing proposal must now pass through a “sustainability analysis” that identifies and forecasts the project’s contribution to major development goals: economic growth, poverty alleviation, inequality reduction, climate-change prevention, and natural resource and biodiversity preservation.

May

20 years in Asia AFD celebrated its 20th anniversary of working in Asia. The Agency now tallies operations in 18 Asian countries, nine offices and — in the near future — €1 billion in commitments.

CEFEB, AFD’s business university, is 50 years old

March

French Development and International Solidarity Summit AFD participated in a Development Summit that brought together all French development organizations. Summit attendees created a permanent body for joint consultation, the National Development and International Solidarity Council.

In the autumn after the Summit, the French parliament debated an important framework law for setting priorities in French development policy.

8

Support for the private sector in the French Overseas Provinces

April New office in Bangladesh

Owing to increased activity in Bangladesh, where it has operated since 2009, AFD opened a new office in the capital, Dacca.

AFD is implementing its mandate to promote green and inclusive growth through several projects: an innovative bus rapid transit system with high service levels, and a new water purification plant to supply Dacca, among other initiatives.

3 June Anne Paugam, the new Chief Executive Former Treasury Inspector General for Tax Administration, Anne Paugam was nominated as Chief Executive Officer of AFD.

14 November 19 June CEFEB is 50 years old CEFEB, AFD’s business university, has hosted seminars and training courses for nearly 18,000 students since its creation 50 years ago.

Students come from AFD and from more than 60 developing and emerging countries, where they work in central and local governments, banks, nonprofits, and privatesector companies.

Strengthening NGO partnerships AFD’s governing board approved the Agency’s first multidisciplinary framework agreement for civil society organizations, covering 2013-2016. The Agency has committed to increasing its financial support for these organizations in recognition of their essential contributions to development.

3 July Laurence Tubiana, the new Chairwoman of the Board

5 December “100 Innovations” Forum As part of the Elysées Summit, the “Africa – 100 Innovations for Sustainable Development Forum” allowed 21 African innovators to present their projects to public and private sector donors, researchers, and NGO representatives.

Laurence Tubiana, an international sustainable development expert, was nominated as Chairwoman of the AFD Board of Governors.

2013

Putting French expertise to good use

AFD celebrated its 20th anniversary in Asia

27 June Representing Bpifrance in France’s overseas provinces AFD continued to represent Oseo in the French Overseas Provinces under that organization’s new brand, Bpifrance, making all French financing products available to local entrepreneurs and promoting business investment and growth.

AFD restarts activity in Mali with a hospital in Sévaré

AFD set up a new fund, FEXTE, to finance knowledge transfers to middle-income countries, particularly fast-growing emerging nations.

The fund aims to meet recipient-country requests for French expertise and experience while contributing to their sustainable development.

The fund also helps to spread French economic influence, and furthers French diplomacy on public policy and ecological matters.

31 July The CICID meeting France’s Interministerial Committee for International Cooperation and Development (CICID) met for the first time in four years. It decided that France would concentrate its grant monies in 16 priority poor countries and in countries in crisis. At least 85% of the aid monies allocated to AFD will go to Africa. The CICID also reconfirmed the Agency’s mandate to promote green and inclusive growth in Asia and Latin America.

9

AFD

2013 ACTION

A commitment to sustainable development AFD finances and helps to implement development projects, responding to the needs of the developing world. The Agency’s actions aim to promote economically, socially and environmentally sustainable development.

AFD, France’s bilateral development bank, has worked for more than 70 years to alleviate poverty, preserve the environment, and promote economic growth in the developing world and in the French Overseas Provinces.

AFD operates in more than 90 countries through 71 field offices and bureaus. The Agency’s top priorities include improving drinking water supply along with maternal and infant health, encouraging schooling and professional training, fighting climate change, and aiding farmers and small businesspeople.

AFD fulfills its mission with help from its private-sector arm, PROPARCO. The private sector is an essential link in the development chain because it creates jobs and invigorates economies. AFD and PROPARCO do not replace traditional banks; rather, they provide complementary or supplementary funding when traditional bank financing proves insufficient.

They also pay special attention to the environmental and social dimensions of the projects they fund.

In addition, AFD manages the French Global Environment Facility, financing innovative environmental projects that preserve biodiversity, fight climate change, and prevent land and forest degradation, among other vital actions.

10 Water purification plant in Egypt

Reforestation in Mayotte

Combining economic development with social and environmental concerns Globalization has lifted millions of people out of extreme poverty. It has also aggravated economic, social and environmental disparities. AFD is France’s preferred tool for addressing these imbalances. The Agency fights poverty in the poorest countries and climate change in emerging powers, while curbing the environmental impacts of both. In this way, AFD pursues solidarity in the face of shared, planet-wide challenges.

In 2013, AFD set up a sustainable-development second-opinion function to help the Agency achieve this mission. Independently of the department in charge of financing a given project, the second-opinion advisor aims to assess the contribution each project will make to important sustainable development goals.

In addition, AFD has increased its efforts to fight climate change through reducing greenhouse gas emissions, mitigating climate-change effects, and guiding public policy design.

In 2013, the Agency committed €2.4 billion to finance 77 “climate projects” in developing and emerging countries and in the French Overseas Provinces. These climate projects benefit both economic development and the fight against climate change. More generally, 47% of AFD’s foreign aid funding had climate-related benefits.

AFD’s complete development toolkit

1 Sustainable development also concerns social issues: AFD takes care to promote gender parity and presses for social responsibility in governance, human resources, and financing activities.

AFD must innovate to meet and adapt to these 21st century challenges. It constantly seeks out the most suitable financial tools – ones tailored to the needs of developing and emerging countries. The Agency also takes up new subjects and practices, such as social and inclusive economics, social protections, micro- and meso-finance, agro-ecology, and biodiversity.

5

In a multi-actor world, AFD’s effectiveness depends on its ability to work through networks and in partnership with all development actors – other donors, the European Union, companies, local and central governments, nongovernmental organizations, and other stakeholders.

1

Financing

Expertise and technical assistance

3

5

2

Professional training

Public policy design assistance

4

Knowledge creation and international discussions

AFD’s principle financing beneficiaries In the developing world and the French Overseas Provinces, AFD finances:

1

When called on to finance very large projects that no single entity can fund alone, AFD sets up cofinancing agreements with the European Union, other bilateral aid agencies and development banks, emerging donors, and/or foundations. The Agency also supports French and other NGOs, regional governments, and companies in their development work.

AFD’s collaboration with these development practitioners, as well as with public institutions and academic researchers, bolsters the practical relevance of its expertise and financing. AFD can support public policies and facilitate contacts within emerging and developing countries; this both meets the demand for French expertise and allows beneficiaries to work with their French counterparts – on decentralized cooperation, twin-city partnerships, NGO optimization, and related efforts.

3

4

Complete assistance and a multi-actor approach For AFD, working for sustainable development also means placing beneficiary countries at the heart of its approach, intervening in response to their development needs, strategies and projects.

For this reason, AFD proposes a variety of financial instruments and very wide-ranging expertise.

In particular, knowledge creation about development constitutes an indispensable activity and complement to project finance.

2

2

3 4

5 6

1

Central governments

4

Developing-country banks and financial intermediaries

2

Local governments

5

Public institutions

3

French and other NGOs

6

Public and private enterprises

11

AFD

2013 ACTION

AFD committed €7.8 billion in financing in 2013 (€7.5 billion net of delegated funds from other donors), an 8% increase over 2012.

Various types of financing provided (AFD Group, € million)

78 2007

1,372

455

375

486

139 405

267

TOTAL

3,654

78 9

115 2012

1,993

2,730

571

972

312

90

186 116 (1.5%)

2013

1,852 (25%)

3,079 (41%)

897 (12%)

6,977

174 (2%) TOTAL

986 (13%) 73 (1%)

In foreign countries

TOTAL

In the French Overseas Provinces

Subsidized loans (below-market interest)

Non-subsidized loans

Exceptional operations (bridge loans)

Loans and grants

Private equity

Grants and subsidies (project grants, debt reduction-development contracts, budget support, NGO grants)

Guarantees

Private equity

Guarantees

SME financing

Includes PROPARCO’s financing but excludes delegated funds from other donors, such as the European Union, DFID, or others.

ɣɣ Loans: AFD offers (1) “sovereign” loans to central governments and to public entities with a government guarantee; and (2) “non-sovereign” loans to private-sector companies and public- or private-sector entities without government backing. ɣɣ Grants and subsidies: AFD provides grants and subsidies for high-impact projects that create indirect profit and do not qualify for loans, such as projects in healthcare, education and small-scale agriculture. Grants primarily fund the poorest African countries and NGO-led projects.

12

7,523

346 (4.5%) (100%)

ɣɣ Guarantees: AFD uses credit guarantees to motivate commercial banks to lend (especially to small and mediumsize businesses) for capital investment, job creation and environmentally-friendly projects. By guaranteeing loan repayment, AFD broadens access to lending and guarantees growth. ɣɣ Private Equity: PROPARCO manages equity stakes, providing funding that companies and financial institutions require for long-term growth.

Widely varied sectors of activity €€724mm (10%)

€479mm (6,5%)

29

64

€771mm (10%)

48 41

€338mm (4,5%)

85

€303mm (4%)

2013 Number of financing commitments per sector*

2013 Financing totals by sector* (€ million)

€€3,299mm (44%) €917mm (12%)

€1,609mm (21%)

Infrastructure and urban development of which Energy

Business, industry and trade (microloans, SME support, banking-sector development)

Other (budget support, debt relief)

158

30

251 Health and education

Water and sanitation

Environment and natural resources

Agriculture and food security

*Not including delegated funds from other donors mm = million

ɣɣ AFD allocated €121 million to sub-Saharan Africa for agriculture: food security and agricultural development are major concerns for the international community, which works to reduce malnutrition, especially in the Sahel. ɣɣ AFD also committed about €90 million to biodiversity and natural resource conservation, particularly to projects reducing deforestation and forest degradation through the REDD+ mechanism. ɣɣ In the education sector, AFD champions the idea of a continuum that starts with primary school and follows through to job market entry. The Agency works to upgrade basic education for all — and now includes secondary schooling — so that literacy may take root and endure.

AFD also supports professional training, retraining, and higher education. ɣɣ One of AFD’s priorities for the poorest countries is maternal and infant health. In middle-income countries, where the middle class seeks access to quality healthcare and education, the Agency helps create social protection systems.

In the French Overseas Provinces, it serves as the main bank for medical facilities and social services, financing construction and upgrades to hospitals and other medical or educational infrastructure. ɣɣ Through its water and sanitation projects, AFD Group supports sustainable water management efforts — optimizing use, depolluting urban and industrial wastewater, and extending distribution systems in poor, often peripheral urban districts and settlements. AFD also works to manage flood risk in urban areas and finances several stormwater drainage projects in Brazzaville, N’Djamena and Yaoundé.

ɣɣ AFD steadily increased financing for transportation infrastructure in 2013. Beneficiary countries show strong demand for transportation aid, viewing it as a precursor to economic growth and regional and global trade integration. Roads, railways and transit systems also decrease rural isolation and reduce spatial disparities. The Agency emphasizes urban mass transit and rail. ɣɣ AFD also finances sustainable urban development projects to help cities meet challenges to future growth. This entails strengthening local governance, increasing funding, curbing urban sprawl, regulating land use, controlling secondary-city growth, rehabilitating slums, promoting basic services access, and invigorating urban economies.

AFD serves as the benchmark donor for municipalities because of its ability to deploy French urban development expertise and its variety of financing tools. ɣɣ Furthermore, AFD develops the financial services sector — banks, intermediaries and stock exchanges — to finance economic growth. It promotes financial inclusion through its support for microfinance and small-business lending.

Through bank intermediation projects, the Agency helps commercial banks create innovative lending products, such as “green loans” targeting companies involved in renewable energy and energy efficiency, in waste management and depollution, and in other pro-environment industries. AFD can shoulder commercial lender risk through its credit guarantees; it also offers businessexpansion projects for small and medium-sized enterprises, such as programmes to strengthen commercial capacity.

ɣɣ AFD has three priorities for energy: renewables and efficiency, energy security, and rural and suburban electrification.

13

AFD

2013 ACTION

A bilateral bank that advances France’s priorities AFD is the principal development agency for French bilateral aid. It is also an important actor in developing France’s overseas provinces.

Under French law, AFD is classified as a public industrial and commercial entity having a general-interest mission. Consequently, the French government, through three supervisory ministries – Foreign Affairs, Economy and French Overseas Provinces – sets out the guidelines that direct the Agency’s actions.

AFD works at the heart of France’s international cooperation system Three committees define the general orientation of France’s international cooperation, including that of AFD. ɣɣ The Interministerial Council for Cooperation and Development (or CICID) defines the principles and priorities of France’s international solidarity policy. AFD’s supervisory ministries (Foreign Affairs, Economy and Finance, Overseas Provinces) act as the council’s secretariat. The CICID met for the first time in four years on 31 July 2013 and clarified the Agency’s mandate for sustainable development. ɣɣ The Interministerial Council for the Overseas Provinces, chaired by the French president, sets policy guidelines for operations in France’s overseas provinces. ɣɣ The Strategic Orientation Board reinforces the articulation between the government’s policy guidelines and AFD’s operations. Members of the strategic orientation board include ministerial representatives who also sit on AFD’s governing board. The strategic orientation board coordinates preparation of the “means and objectives” contract binding AFD to the French government and then oversees its implementation.

14

Improvements to the urban environment in Vietnam

In addition, AFD actively participated in summit meetings on development and international solidarity launched by the French government in late 2012. From November 2012 to March 2013, the summits provided a forum for discussion and debate about France’s cooperation policy. The meetings were attended by French lawmakers as well as representatives from central and local governments, NGOs, unions, companies, foundations, researchers, and other interested parties from developed and developing countries.

At the end of the summit meetings, attendees agreed to set up a common consultative body, the National Council for Development and International Solidarity. The meetings also produced recommendations fora new legal framework, along with a plan of response to attendee calls for transparency, consistent pro-development policies, and strategic aid stewardship.

Pupil studying in the Democratic Republic of Congo

AFD’s governance The governing board and audit committee oversee Agency governance, ensuring transparency and good management in its international solidarity operations. ɣɣ The Board of Governors comprises 18 members, including representatives from supervisory ministries, parliament, the AFD workforce, and external advisors. Members deliberate on the Agency’s strategic direction, project financing, and the Board’s own financial activities. The governing board may delegate part of its authority to AFD’s chief executive, who must in turn answer to the board. Or it may delegate authority – within pre-set funding limits – to one of three special committees: the Committee for Operations in the French Overseas Provinces, the Committee for Operations in Foreign Countries, and the Committee to Support Nongovernmental Organizations’ Initiatives. ɣɣ The Audit Committee performs the task of verifying the quality of information, assessing the appropriateness of accounting procedures, and evaluating the robustness of internal controls for the entire AFD Group. The audit committee is comprised of one member of the governing board and four external advisors.

CICID deliberations Creating differentiated partnerships At a 31 July 2013 meeting called by the French prime minister, the Interministerial Committee for International Cooperation and Development (or CICID) redefined the main priorities of French development and international solidarity policy, which in turn defines AFD’s mission. Committee members decided to design different partnerships for different countries and regions, featuring: ɣɣ solidarity with the poorest African countries, where France will concentrate its grant monies; ɣɣ priority to Africa and the Middle East, where France will allocate 85% of its foreign aid; ɣɣ attention to countries in or emerging from crises, where France will primarily deploy grants;

Power installation in Tahiti

Firm accountability to French lawmakers In recent years, the relationship between AFD and the French parliament has strengthened through the new constitutional provisions enacted in July 2010.

In 2013 and 2014, preparations for the “Development and International Solidarity Framework Law and Plan” have also provided opportunities for important discussions and debates.

Lawmakers acquired important information about AFD’s work during the design of strategic documents for AFD, particularly its “means and objectives” contract, which was submitted to the Senate and National Assembly for approval. Finance bills also served to inform legislators about the Agency during budget question-and-answer sessions. In 2013, jointly-organized National Assembly hearings further bolstered relations. Topics included French urban expertise in foreign countries, Franco-Chinese relations, and a landmark series of reports on Africa’s future development.

ɣɣ joint pursuit of solutions for challenges common to emerging or middle-income countries in Asia, Latin America and the Caribbean, where French cooperation with emerging powers does not require public funding.

15

Panorama of 2013 financing activity AFD Group commi ed €7.5 billion to finance 676 new development projects

11% of financing activity €796mm committed 57 projects

Guarantees €€1mm (0.5%)

PROPARCO €83mm € (10%) Sovereign loans €€381mm (48%)

Grants and subsidies €€51mm (6.5%)

Non-sovereign loans €€280mm (35%)

In the Middle East and North Africa, AFD works to further regional economic integration with Europe. Efforts focus on job creation and urban and rural development.

Loans serve as the primary financing instrument.

15% of financing activity €1.169bn committed 45 projects

PROPARCO €269mm (22.9%) Guarantees €1mm (0.1%)

Sovereign loans €695mm (59%)

37%

of financing activity €2.778bn committed 369 projects

Grants and subsidies €6mm (1%) Non-sovereign loans €198mm (17%)

PROPARCO and FISEA 2 €449mm (16%)

Sovereign loans €1.023,5bn (37%)

Guarantees €110mm (4%)

Budget support and debt relief 1 €600mm (21%) 1% of financing activity covers multiple disciplines and regions These totals combine financing from AFD and its subsidiary, PROPARCO, which represent 99% of AFD Group net banking income. Totals exclude delegated funds from other donors, such as the European Union. mm = million bn = billion

16

1. Debt relief comprises Debt ReductionDevelopment Contracts (C2D) 2. A fund investing in African companies

Grants and subsidies €190.5mm (7%)

Non-sovereign loans €405mm (15%)

BRUSSELS European institutions liaison office

In Asia and in Latin America and the Caribbean, particularly in middle-income and emerging countries, AFD works to promote green and inclusive growth.

Efforts focus on economic partnerships.

Loans serve as the nearly sole financing instrument.

16%

of financing activity €1.194bn committed 48 projects

PARIS Headquarters MARSEILLES CEFEB, AFD Business University

Guarantees €€4mm (0.5%)

PROPARCO €€74.5mm (6%)

Grants and subsidies € €23.5mm (2%)

Non-sovereign loans €€405mm (34%) Sovereign loans € €687mm (57.5%)

FRENCH OVERSEAS PROVINCES

20% of financing activity €1.506bn committed, of which €985 in loans and bank refinancing 128 loan and refinancing projects

In sub-Saharan Africa, AFD efforts focus on infrastructure, urban development, agriculture, food security and access to healthcare, education and drinking water. Grants, budget support, private equity, and subsidized and unsubsidized loans serve as financing instruments.

Private sector financing (Bpifrance) €346mm (23%) Grants and subsidies (French Foreign Affairs Ministry) €2mm (0.1%)

In the French Overseas Provinces, AFD works to promote economic growth. Efforts focus on local governments, private sector companies, housing, urban development and regional economic integration.

PROPARCO €25mm (1.7%) Public sector loans €642.5mm (42.7%)

Private sector guarantees €174mm (11.5%) Private sector loans and bank refinancing €316.5mm (21%)

17

AFD

2013 ACTION

Targeted use of French financial resources AFD primarily derives funding from financial markets, and carefully optimizes public funds.

Where does AFD funding come from?

Funding is mostly raised on international financial markets AFD regularly issues bonds to raise funds from financial markets, and sold debt worth €4.8 billion in 2013. The Agency’s good bond credit rating in turn allows it to offer lowerinterest loans to its aid beneficiaries.

Financial support from the French government The French government does not subsidize AFD’s internal operations; it does provide public funds to finance development projects in foreign countries and the French Overseas Provinces.

The French Ministry of Foreign Affairs provides funding that the Agency deploys as grants for projects and NGO-led initiatives. The Ministry of the Economy and Finance provides funding that serves specific operations, such as budget support or debt relief in the form of debt reductiondevelopment contracts (C2D). Their funding also serves to subsidize loans by paying for interest rate points, reducing the borrower’s cost. In this way, AFD transforms one euro of public funds into thirteen euros of lending.

In addition, the Ministry of Overseas Provinces funds certain types of projects in those territories.

Because AFD can raise funding at favorable rates on international markets and designs innovative cofinancing arrangements, its loan recipients benefit from leverage effects — increasing the rate of return on their capital investments to one higher than their debt cost.

18

Support for family farms in Cameroon

International financial markets Bond issuance: €4.837 billion in 2013 and Capital

Public funds

€1.209 billion in 2013 Grants to foreign countries

€897 million Project grants: €209mm (23%) Debt reduction-development contracts: €511mm (57%) Budget support: €89mm (10%) NGO grants: €49mm (5.5%) Miscellaneous grants: €39mm (4.5%) Subsidies to foreign countries (to lower loan interest rates)

€285 million Grants and subsidies to the French Overseas Provinces

€27 million

How public funds were used in 2013 Geographic distribution of France’s state-allocated aid funding in 2013

Asia

(Primarily Afghanistan, Cambodia, Myanmar, Vietnam)

7.5% Sub-Saharan Africa

81%

of France’s state-allocated aid funding

€90 million

French Overseas Provinces

2%

Middle East and North Africa

of France’s state-allocated aid funding

7%

€976 million

of France’s state-allocated aid funding

€84 million

Multi-country of France’s state-allocated aid funding

2%

of France’s state-allocated aid funding

€27 million Latin America and the Caribbean (Primarily the Dominican Republic and Haiti)

0.5%

of France’s state-allocated aid funding

€7 million

Fragile and Post-conflict States Scope: Grants and subsidies include debt reduction-development contracts and budget support, but exclude European Union delegated funds.

(Afghanistan, Haiti, Iraq, Myanmar, Palestinian Territories, Sudan and Yemen)

3%

of France’s state-allocated aid funding

€33 million

AFD primarily uses France’s state-allocated funding to finance development projects in sub-Saharan Africa. The poorest countries receive grants, which include project grants, debt reduction-development contracts, budget support, and NGO grants.

Middle-income countries receive subsidized loans. Larger, emerging countries receive no state-allocated funding, except for technical assistance grants; these aim to promote innovative and joint development approaches, knowledge transfers, and dialogue about public policies fostering a more-sustainable development model.

Grants dedicated to poor countries in sub-Saharan Africa AFD concentrates its project grants – valued at €209 million in 2013 – in the poorest countries, financing projects in sectors that create indirect profits, such as health, education and small-scale agriculture.

The Agency allocates these grants to 17 priority poor subSahara African countries: Benin, Burkina Faso, Burundi, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Ghana, Guinea, Madagascar, Mali, Mauritania, Niger, Rwanda, Senegal and Togo.1

In 2013, AFD dedicated 57% of all project grants to 17 priority poor sub-Sahara African countries Fragile and post-conflict states (Afghanistan, Haiti, Iraq, Myanmar, Palestinian Territories and Sudan) received 13% of project-grant financing.

(1)

In accordance with the July 2013 session of the Interministerial Committee for International Cooperation and Development, this list will be reduced to 16 priority poor countries in 2014.

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AFD

2 0 1 3 action

AFD financing benefits people and the planet AFD-funded projects that were underway in 2013 had the following impacts:

Transportation

Slum districts

110,000

1

PASSENGERS

MILLION now live in better PEOPLE and safer homes

rode on new or modernized public transit every day

Education and employment

450,000

SCHOOLCHILDREN attended primary and elementary schools

100,000

YOUTH

411,000

PEOPLE

enrolled in vocational training programs

Water and sanitation

1.5

MILLION got access to drinking PEOPLE water

got access to improved sanitation services

Microfinance and local economies

Agriculture

73,000

878,000

SMALL BUSINESSES received financial support or credit lines

FAMILY FARMS

received direct aid

Biodiversity

30

MILLION HECTARES

are protected by biodiversity conservation and sustainable resource-management programs

New projects financed in 2013 will help fight climate change by abating a huge amount of greenhouse gas emissions:

20

AFD supports the creation and expansion of protected nature reserves and the sustainable management of forest and marine areas to renew and protect the diversity of living things.

3.3

million tons of CO2 equivalent per year

Uluroa Market in French Polynesia

Evaluating development projects AFD conducts a post-project performance evaluation for most of the projects it finances; the Agency also makes broader or more targeted project assessments. AFD evaluations follow standards defined by the Development Assistance Committee of the Organisation for Economic Cooperation and Development (OECD). The evaluations aim to improve future projects and programs by deriving lessons from experience, and to find ways to make aid more effective. They also meet the Agency’s public accountability obligations.

The evaluations attentively examine project viability and economic, social and environmental impacts. AFD field offices lead the evaluations, calling on independent consultancies to perform the assessments, and presenting the results to local stakeholders. AFD commissions its evaluations from local experts in the beneficiary country, in order to take advantage of their knowledge of project context and to help build local

capacities. AFD shares the results of each evaluation with the financing beneficiaries who promoted and led the projects: central and local governments, companies, NGOs, and so on.

In 2013, AFD commissioned 26 project evaluations, along with nine conducted jointly with other donors or that covered several projects in a single sector. For example, one report evaluated 15 years of AFD efforts to promote pastoralism in Chad; another assessed health-related NGO projects that AFD had funded. The Agency also pursued its scientific impact-assessment program, notably for water-related projects, and evaluated its healthcare and social services work in France’s overseas provinces.

See the 2013 Evaluation Findings Report on http://evaluation.afd.fr

French aid transparency in Mali An internet site dedicated to transparency of Mali aid was launched in September 2013. It aims to show French taxpayers and Malian citizens where aid given by France and AFD to Mali goes, providing a detailed explanation and geographic location for each project. In an effort to improve aid effectiveness, the site also features a “citizen oversight” messaging page where internet users – particularly Malian and French citizens – can send in confidential reports on project progress, delays, or problems, and also request more information. France plans to expand this initiative in 2014 to 15 other priority poor sub-Sahara African countries.

See http://transparence.ambafrance-ml.org

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AFD

2013 ACTION

Giving financing priority to sub-Saharan Africa Africa south of the Sahara remains AFD’s priority region for aid operations, receiving the largest-ever financing commitment: a record €2.8 billion in 2013, or 46% of all foreign aid funding.

Aiding sub-Sarahan Africa first and foremost The population of sub-Saharan Africa will double by 2050.

Growth will only prove sustainable and inclusive if African youth are sufficiently prepared. Beginning in 2030, this young population will live primarily in secondary cities and major urban centers. Urban youth are already driving the emergence of an educated, informed, demanding and populous middle class. These consumers propel the growth of internal markets, linking urban economies to rural ones, and will power future growth in Africa.

In partnership with other development actors in Africa, AFD financing helps transform these opportunities into realities; it also helps manage the risks. The Agency uses a tailored approach that depends on the country’s development level and its linguistic and cultural proximity to France. Of all the foreign aid monies that the French government allocated to AFD in 2013, 81% (€976 million) went to sub-Saharan Africa.

In 2013, AFD concentrated its financing and actions on strengthening Africa’s human capital, building sustainable cities, managing and conserving natural resources, and opening access for isolated territories, economies, and peoples. The Agency also bolstered rural development and food security, and invested in the dynamism of the private sector – the source of jobs and the engine of sustainable and redistributive growth.

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Water adduction system in Comoros

Strengthening human capital Sustainable, inclusive and competitive growth requires bolstering human capital and supporting basic and secondary education, professional training, social protections, and universal health insurance. In 2013, AFD focused most of its grant monies on improving maternal and infant health and supporting primary and secondary education and professional training.

The Agency funded projects and programmes to improve primary-schooling access in the Democratic Republic of Congo, Niger, and Senegal. It also funded reforms for junior high schools in Togo. Professional-training projects helped improve courses at training centers in Benin, found solutions for public works, animal husbandry and light manufacturing in Chad and, in conjunction with local companies, reformed professional degrees and vocational courses in Djibouti.

AFD funding also helped the disadvantaged access healthcare, as in Niger, where the Agency supported the creation of a social investment fund for health. The fund will reinforce and make permanent a mechanism exempting children from paying for healthcare, from birth to age five. In Côte d’Ivoire, as part of a debt reduction--development contract, AFD allocated €62 million to expanding paramedical assistance, improving maternal and infant care quality and accessibility, increasing the availability of medicines, and bolstering the institutional capacity of the Ivoirian Health Ministry.

The rise of sustainable cities As a barely visible demographic transition takes place, the management of current and future growth in large metropolitan areas and secondary cities presents a crucial challenge.

AFD concentrates its financing on local initiatives that promote and support more accessible, economically productive, and locally- and globally-tenable urban development.

For example, in Burkina Faso, AFD committed €40 million to the city of Ouagadougou through a loan dedicated to financing urban infrastructure. In that sprawling city of more than two million inhabitants, the funding will help increase urban mobility and resident access to drinking water and sanitation services.

Côte d’Ivoire A debt-relief contract launched The year 2013 saw the operational launch of the first debt reduction-development contract between France and Côte d’Ivoire. The three-year contract was signed on 1 December 2012, covering €630 million out of a total debt of €2.89 billion. Through this contract, an adjunct to the Heavily Indebted Poor Countries Initiative (HIPC), France will take the installment payments that Côte d’Ivoire makes on its previous French loans and return the funds to the country in the form of grants. This debt-relief contract – the largest ever – reflects an ambitious partnership between France and Côte d’Ivoire. It aligns with the latter’s national development plan and will finance policy implementations in key poverty-fighting sectors: basic education, professional training, employment, healthcare, agriculture, roadway infrastructure, water and sanitation. The first projects will help make medicines available to the most vulnerable, and will support drinking water access for those living in the Abidjan and Montagnes districts.

In addition, the debt-relief contract will finance higher education, sustainable natural resource management, and the justice system. It will also prompt a constructive dialogue about public policies, drawing on civil society participation in both countries.

Support for primary teaching in the Democratic Republic of Congo

Nigeria Housing access made easier In Nigeria, a challenging demography and rapid urban growth shade the core of public policies in the southwestern federated states. Ogun State, bordering Lagos, faces a lack of decent housing for residents of its major and secondary cities.

The Affordable Housing Project unites the French building materials company Lafarge with AFD and LAPO Microfinance Bank, Nigeria’s largest, to create the country’s first housing microloan program.

AFD will loan €5 million to LAPO; in turn, LAPO will use these funds to make loans to 2,700 targeted households. The loans will be made in Nigerian nairas and range from €450 to €4,500, renewable four times.

Lafarge will provide technical assistance to the borrowing homeowners, who will receive help in producing building plans for each type of project, e.g., family home, rentals, etc., and for evaluating construction costs and directing construction work.

This pilot project is designed for replication in other parts of the country. The project will achieve three important goals: financing a local bank’s expanded product offerings, engaging a leading private-sector French company’s technical expertise, and easing access to affordable, housing and home ownership for middle- and low-income residents.

23

AFD

2013 ACTION

Opening access for territories, economies and peoples Isolation – whether of territories, economies or peoples — is one of the principal barriers to economic growth. For this reason, AFD concentrates activity in two critical sectors: regional and international transportation, and energy — notably financing regional and renewable energy projects, including hydroelectric, biomass and photovoltaic power.

In 2013, AFD financing helped expand airfreight facilities in Mozambique. In Ethiopia, a €50 million loan will pay for construction of an Ethiopian Airlines freight terminal at the Addis Ababa Bole International Airport. The new facility will significantly increase freight storage and management capacity; it will also improve parking for the airline’s cargo planes. In Cameroon, AFD contributed to the early stages of a planned industrial park and port complex in Kribi. The Agency provided a loan to fund feasibility and other pre-project studies.

In the renewable energy sector, AFD financed the design and construction of a 30-megawatt photovoltaic power station in Burkina Faso. The Agency also bolstered electricity supply in Nigeria’s capital, Abuja, and contributed to a grid interconnection project that covers more than 1,000 kilometers between Ethiopia and Kenya.

Promoting family farms African farmers must increase the productivity of their farms to meet the continent’s need for food. Agriculture employs 65% of African workers. Family farms offer work to both men and women, and have the potential to absorb job-seeking youth. AFD’s main challenge lies in supporting the entire chain of agricultural productivity while preserving — or even restoring — fragile natural capital.

In Côte d’Ivoire, a project financed through a €62 million debt reduction-development contract will provide stimulus to several domestic foodstuff and export-crop growers and processors. This will improve the country’s food security, its trade balance, and farmers’ incomes all at the same time. The project will also help the process of securing land ownership and tenancy rights, meeting the Ivorian government’s desire to set up a pacified environment conducive to farming.

24

Filling jerry cans with drinking water at public taps in the Democratic Republic of Congo

In northern Cameroon, AFD will again use the debtrelief mechanism to to finance technical innovation; this will support the intensification of farm and ranch food-production systems. In Senegal, AFD proposed an intervention in a project to improve food security and economic development in the rural areas of Podor Province, along the Senegal River Valley in the north. The innovative financing package will combine loan and grant monies to fund rural infrastructure construction and rehabilitation; it will also pay for creating a natural resource and land governance system.

Expanding job-creating enterprises AFD and its subsidiary, PROPARCO, continue efforts they have made for many years to bolster job-creating economic growth in Africa. They do this by supporting private businesses of all sizes with a varied range of financial instruments, and by developing innovative risk-management and protection solutions that are likely to encourage and facilitate long-term productive investments.

In 2013, AFD Group committed €716 million to the private sector in the form of loans, grants, subsidies, ARIZ guarantees, and equity stakes taken by PROPARCO and FISEA. This financing primarily targeted banks and the financial services sector, along with agricultural industries, tourism, professional training, and transportation. Commercial capacity-strengthening also drew funding.

The new Sominé Dolo Hospital in Sévaré, Mali

Niger Strengthened access to electricity in rural and suburban areas Niger is one of the world’s poorest countries, with a particularly low rate of electricity access. Providing electricity to its citizens is a national priority, with a target of connecting 100 new localities to the grid each year. AFD and the European Union, acting through the EU-Africa Infrastructure Trust Fund, committed €30 million in loans and €11 million in grants as complementary resources to bolster the Nigerian [Niger] electricity company, NIGELEC, in its rural and suburban electrification effort. The AFD loan will finance electricity distribution to 14 districts on the outskirts of Niamey and a master plan for the city’s electrical grid. Loan funds will also finance connections to NIGELEC’s Central grid for the cities of Goure and Quallam, and to the Fleuve grid for the city of Tchintabarden. In addition, the loan will provide support for Niger authorities to develop a photovoltaic power plant project.

The European Union grant monies will pay for low-profit rural electricity works, connecting 31 village administrative centers and providing subsidies for connecting branches in rural areas.

The project should permit home electricity access for about 60,000 households, representing about 360,000 individuals.

Mali A part-emergency, part-development initiative Mali’s violent political rebellion and humanitarian crisis of 2012 weakened its already-fragile healthcare system. The situation caused a worrisome drop in health indicators, already among the lowest in the world. The security crisis in three northern Malian provinces, Timbuktu, Gao, and Kidal, prompted healthcare workers to flee the area and left unsecured clinics and hospitals open to pillage and destruction.

The major task now at hand is to restore the healthcare system in the three provinces while ensuring the transition from an emergency situation, managed by nongovernmental organizations, to a more stable one managed by the Malian government.

Mali’s Health Ministry and AFD decided to create a NGO funding facility for northern Mali, targeting Timbuktu and Gao Provinces. Following a request for proposals, a consortium of NGOs associated with Handicap International was selected for Timbuktu.

For Gao, the chosen consortium brought in Medecins du Monde (MDM) Belgium and the French and Malian Red Cross. These two projects target maternal and infant health, healthcare worker training, healthcare access, services demand, and healthcare system performance. This innovative effort will help reinstate the Malian government and healthcare officials in the north.

25

AFD

2013 ACTION

Helping the Middle East and North Africa through political and economic transitions On the southern and eastern sides of the Mediterranean Sea, AFD emphasizes human welfare.

In 2013, the engines driving renewed economic growth in the Middle East and North Africa seized up once again, hampering the return to pre-political-crisis levels of activity. Since 2013, Tunisia and Egypt have seen their steps toward political renewal falter, while Syria tumbled even deeper into a long-lasting civil war affecting all its bordering countries.

This led to a slight increase in AFD financing allocated to the region; the total has reached €796 million.

Financing commitments by country (AFD Group, 2013) Algeria

€3 million (0.5%)

Egypt

€80 million (10%)

Lebanon

€67 million (8%)

Morocco

€254 million (32%)

Palestinian Territories

€17 million (2%)

Syria

€7 million (1%)

Tunisia

€6 million (1%)

Turkey

€348 million (44%)

Multi-country programmes

€13 million (1.5%)

The Arab Spring revolutions continue to modify the equilibrium between donors. Given the increase in public-sector investment and budget support from the Gulf States, AFD stepped up strategic discussions with the European Union and European donors – the European Investment Bank, European Bank for Reconstruction and Development and KfW – concerning use of Europe’s Neighbourhood Investment Facility (NIF).

26

Cairo, Egypt

Reducing regional inequalities and improving social cohesion AFD has three goals for its interventions in the Middle East and North Africa during the 2012-2014 period: ɣɣ strengthening social cohesion through job creation and professional training, among other efforts; ɣɣ building up regions by supporting rural development policies and urban sustainable development; ɣɣ promoting better quality of life by helping secure energy supply in the countries most dependent on fossil fuels, while jointly managing natural resource scarcity.

To achieve these goals, the Marseilles Center for Middle East and North Africa Integration (Centre de Marseille pour l’intégration en Méditerranée) has lent to support to three programmes run by AFD: one for employment and social protections, one for urban mobility, and one for water demand management. Additionally, AFD pursues strategies in Egypt to increase women’s autonomy through higher workforce participation.

Turkey

Lebanon and Jordan

SME food processors upgraded

Help for Syrian refugees and their hosts

AFD provided a €100 million credit line to the Turkish bank, Ziraat Bankasi, to help it finance capital investments in small and medium-sized food-processing companies; this will allow such firms to upgrade their facilities to meet European environmental regulations and human and plant health standards. A technical assistance program will help the bank learn about these subjects and keep current with them. It will also facilitate the bank’s own social and environmental governance process, and assist companies in preparing loan applications.

In November 2013, AFD committed €4 million to a grant facility for NGOs working in Lebanon and Jordan to help them assist about 1.6 million Syrian refugees and local host populations. The NGOs aim to restore and expand basic services in support of local government actions, without discriminating between refugees and citizens. The aid projects should begin by spring 2014.

Morocco Social housing funded AFD committed €50 million in loan financing and €500,000 in grant funding to Holding Al Ommrane, a public-sector social housing and property development company, for its 2013-2016 capital investment programme. The financing will help pay for construction of subsidized housing, tailored to the needs of poor and low-income families in rural and urban areas. The programme should renovate or replace substandard housing and eradicate slums, using a comprehensive and sustainable approach to Morocco’s territorial development.

Egypt Jobs and better living conditions created A project to strengthen social stability and reduce poverty in Egypt received a €80 million sovereign loan commitment from AFD and €15 million grant from the European Union through its Neighbourhood Investment Facility; it aims to create jobs and improve living conditions for low-income citizens. The funds will be used to finance micro- and small businesses, which are under-served by traditional banks.

The project will upgrade and renovate public facilities in urban areas through highly labor-intensive works.

It will focus on several informal settlements in the greater Cairo area, specifically in the governorates of Cairo and Giza.

Syrian refugee family in the Bekaa Valley region of Lebanon

Algeria Aid for childhood and young people Following the first phase of Algeria’s multi-actor plan for 2010-2012 (launched in 2007), a second €3.3 million phase for 2013-2015 has begun. It aims to solidify actions taken to date and to give member associations incentives to work together and with French partners. AFD has committed €2.5 million to help finance the second phase.

About 100 Algerian nonprofits should benefit from the Joussour (“gateway” in Arabic) programme. It will provide funding for projects that help marginalized children and youths, all victims of social exclusion who need protection and/or who are physically, mentally or socially disabled. The programme will have both social and institutional impacts: it will improve the care of children and youths while strengthening the capacities of Algerian civil society.

27

AFD

2013 ACTION

Encouraging regional and environmental balance in Asia AFD seeks to lessen the pressure that rapid growth exerts on the environment in Asia, particularly in emerging countries. In less-developed countries, the Agency promotes regional synergy and growth industries.

During 2013, AFD designed a new Asia strategy for 20132016. It covers the 18 South, Central, and East Asian countries where AFD operates, and focuses on urban and climate change-related issues. The strategy includes countries where AFD has newly received authorization to work: Myanmar, Central Asia and the Caucasus nations. The overarching goal is to promote green and inclusive growth. As requested by the participant Asian countries, AFD’s strategy emphasizes the Agency’s role in harnessing French expertise and products for the region’s benefit.

The year 2013 saw the start of lending to Caucasus countries, with the first loan going to Armenia for social housing. The past year also saw AFD increase financing for South Asia: India, Bangladesh and Sri Lanka received more than 40% of the year’s Asian commitments.

Reducing the environmental footprint of cities and countries AFD financing activity in 2013 illustrated the Agency’s willingness to take on climate and urban issues as central concerns.

AFD helped integrate climate issues in public policy by financing Vietnam’s “Climate Plan” for the fourth consecutive year.

The Agency also financed Indonesia’s capital investment program for transportation infrastructure, and the Philippines programme in support of local governments. In addition to these policy-support loans, AFD supported cleaner energy projects that targeted highly-emissive economic models reliant on carbon consumption. AFD set up two credit lines dedicated to renewables in India and Indonesia, and financed pilot projects for biomass and biofuels in China. The Agency also focused its attention on Asian cities, where nearly two billion people live. Aid projects centered on urban mobility

28

Water management project in Vietnam’s Red River Valley

(a metro in Kochi), basic services provision (water and sanitation systems in Dacca and Colombo and social housing in Armenia), and energy efficiency (electricity in Jakarta; a green-compliant addition to Karachi’s main hospital). AFD also promoted environmentally-friendly local development in general, through support for the capital investment funds of three Vietnamese cities.

AFD also worked to preserve biodiversity by financing a wetlands restoration project in the Chinese province of Lioaning.

Fostering regional convergence AFD intervenes in the less-developed Asian countries, supporting their growth as regional economies move toward integration with the planned Association of South East Asian Nations (ASEAN) Common Market in 2015. The Agency also helps to bolster the competitiveness of these smaller economies vis-à-vis their bigger emerging-country neighbors. AFD financing increases productivity in promising industries (such as agriculture and tourism) by building irrigation infrastructure in Vietnam and Myanmar and by providing hospitality-industry training in Cambodia. AFD also improves living conditions, particularly for women, by expanding basic utility services — for example, funding small-scale water operators and private-sector electricity companies in Cambodia and in the mountainous areas of Laos PDR.

The European Union AFD’s partner in Asia Since 2012, AFD has used European Union grant monies, channeled through European Commission funding facilities, to bolster the effectiveness of Asian projects supported by its own loans. The grant money brings a European foreign-aid dimension to AFD’s bilateral actions and allows the Agency to conduct pilot projects and strengthen local capacities. In 2013, the European Commission authorized AFD to deploy €12 million from its Asia Facility and Neighbourhood Investment Facility to supplement financing for projects in Cambodia, Pakistan, Bangladesh and Vietnam.

Opening of AFD office in Dacca, Bangladesh

Bangladesh Water supply made sustainable

Indonesia AFD and JICA jointly evaluated Climate Loans AFD and the Japan International Cooperation Agency (JICA) made a joint assessment of Indonesia’s Climate Change Programme Loan, cofinanced by these agencies for nearly €600 million and $800 million respectively. This pilot evaluation demonstrated the program’s considerable influence — particularly its technical assistance — on the quality of projects designed to combat climate change.

The city of Dacca, with a population of 15 million, overuses its groundwater aquifer to meet a demand that may double by 2030. To address this problem, AFD committed a €73 million sovereign loan to Bangladesh, financing a project that aims to conserve the city’s subterranean water. The work will diversify drinking-water sources to include rivers, improve water supply services, and reduce leakage in the system.

This project, cofinanced with the Asian Development Bank and the European Investment Bank, will help Dacca adapt to the effects of climate change. Besides broadly benefiting women, the project’s action plan foresees specific steps to aid them directly

China World’s largest cattail marsh restored The Shuangtai Estuary, in the Chinese province of Liaoning, boasts a nearly 300,000-hectare cattail marsh, rich in biodiversity and a refuge for many birds.

Agricultural expansion, oil drilling and large-scale dry-outs have significantly degraded the estuary.

AFD’s €35 million loan to China’s Finance Ministry will fund the rehabilitation of hydraulic infrastructure and the depollution of petroleum extraction sites.

The project also plans to develop ecotourism and to diversify the artisanal and industrial uses for cattails.

Improving living conditions for the poorest in Laos

29

AFD

2013 ACTION

Promoting equitable and sustainable development in Latin America In Latin America and the Caribbean, AFD helps public-sector enterprises and local and central governments pursue green and inclusive growth.

France’s Interministerial Committee for International Cooperation and Development confirmed AFD’s mission to foster green and inclusive growth in Latin America and the Caribbean. The Agency helps central and local governments and public-sector enterprises meet three major challenges: ɣɣ urban development in the world’s most urbanized region; ɣɣ environmental preservation and climate change prevention, finding shared solutions to these global problems; ɣɣ reducing social disparities in a region characterized by strong inequalities.

Furthermore, the Committee called on AFD to enlarge the scope of its activities to include all developing countries on the continent — particularly in Haiti, where the Agency is still working on post-earthquake reconstruction.

In 2013, the AFD Group authorized €1.169 billion in financing for the region. These funds will advance AFD’s strategy while strengthening partnerships between France and Latin American and Caribbean countries.

Developing cities AFD bolstered its support for urban mobility by committing €300 million for a loan to the State of Sao Paulo, Brazil. The funds will be used to finance the metropolitan train company (Companhia Paulista de Trens Metropolitanos) in extending the Number 13 line. A technical cooperation programme will accompany the loan; France’s Île de France Region and its transportation union, the STIF (Syndicat des Transports d’Île de France) will share their expertise to foster good governance in the city’s transport system.

In Colombia, AFD will provide a €52 million loan to the city of Barranquilla for implementing a plan to boost economic competitiveness and reduce social inequalities.

30

Nature conservation in the Dominican Republic

Fighting climate change In Mexico, AFD promotes agricultural practices adapted to climate change through a €37 million loan to a public finance institution, FIRAl. In addition, the Minas Gerais Development Bank in Brazil received a €50 million loan commitment for municipal sustainable development projects.

Increasing social equality As Colombia tackles a major reform in its mode of funding health and social protections, AFD will assist with a €295 million loan. In the Dominican Republic, the Agency approved a €7 million loan to FONDESA, the republic’s leading microfinance institution for agricultural loans. The financing supports loan access for young Dominicans who want to study agronomy; funding will also support capital investment in rural areas.

Making real progress The year 2013 also saw significant progress in project implementation.

Construction worker building the Ayacucho Tramway in Colombia

Caribbean Island resiliency strengthened After AFD endorsed its Latin America strategy in 2012, the Agency developed a Caribbean Action Plan in 2013. The plan addresses the specific challenges faced by small, developing island nations, and has two goals: ɣɣ supporting viable and sustainable growth to strengthen the resilience of Caribbean nations, including improvements to infrastructure and the energy mix, conservation of natural environments and lands, and reinforcement of human capital; ɣɣ promoting regional integration that benefits from the role and position of the French Overseas Provinces in the Americas.

Following an international request for tenders, a proposal to rebuild the Hospital of the State University of Haiti was approved in August. The winning firm conducted detailed studies immediately thereafter to prepare for a start date in early 2014.

At the same time, several measures have been taken, such as moving or reconditioning existing services, to ensure optimum continuity of care during the expected three-year reconstruction.

The $83 million project has received financing through a €20 million grant from the French government and through funding from USAID and the Haitian government.

Mexico’s federal electricity commission, the Comisión Federal de Electricidad, used a 2012 AFD loan for €250 million to add natural gas capacity to the coalburning Manzanillo power plant. The power station, with almost three gigawatts of installed capacity, was the country’s largest in 2013. Its conversion has allowed very significant greenhouse gas emission reductions, now approaching two million tons of carbon dioxide.

Colombia Healthcare access equalized The long-awaited, AFD-supported reform of Colombia’s healthcare and social protections aims to improve healthcare quality, reduce geographic and financial disparities in healthcare access, and control rising costs to ensure the system’s financial sustainability.

AFD’s financing will underwrite health insurance coverage, a cause that France champions in international policy discussions.

AFD is helping Colombia move from an Americanstyle healthcare model to one inspired by the French system. This transition draws strongly upon French expertise, particularly that of employees working for France’s national health insurance organization.

AFD also consults French companies specializing in managing health and social insurance information systems, for example manufacturers of smart cards, among other firms.

Reconstruction of the Hospital of the State University of Haiti

RECONSTRUCTION ET EQUIPEMENTS DE LʼHÔPITAL LʼUNIV. DʼÉTATVUE DʼHAÏTI ACCÈS GENERAL - VUES EN PER

31

AFD

2013 ACTION

Contributing to sustainable development in France’s overseas provinces AFD assists local governments in the French Overseas Provinces with financing and advisory services to support their capital investments. It also provides resources and credit guarantees to local businesses, and supports projects involving other regional countries and companies.

In 2013, AFD strengthened its intervention capacity to compensate for financing difficulties experienced by investors in the French Overseas Provinces. The Agency’s commitments reached €1.5 billion; 60% of this financing went to private-sector companies and 40% to the public sector.

In addition to funding, AFD helps define local public policy through its office network and through consultations with provincial partners.

Closing the gap on social disparities Even more than on the French mainland, the public sector in the French Overseas Provinces drives economic activity, both through its purchases and the direct and indirect employment it generates. AFD’s social cohesion priorities manifest primarily in projects benefitting health and urban development.

In 2013, AFD increased commitments to the public sector by 50%, to €642 million; two-thirds of that amount came from state-subsidized loans for local government capital investments. This financing mostly targets small towns and villages.

AFD also holds a strong position in social housing through its equity participation in seven overseas property companies and the loans it makes to finance environmental upgrades and renovations.

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Drinking-water plant in Polynesia

Boosting economic activity AFD stimulates job-creating economic activity and directly reduces unemployment and social tensions through its financial tools for private-sector development — loans, credit guarantees, investment capital, microfinance support, and Bpifrance representation. The agency also provides indirect support by financing public investment and by providing advisory services to localities.

AFD financing commitments for the private sector reached €862 million in 2013, of which 40% will be deployed in conjunction with Bpifrance, France’s public investment bank.

Protecting and using environmental capital Protecting the fragile overseas environment is an AFD priority, anchored in nature reserves and in water, sanitation, and waste management. The French Overseas Provinces reside on the front lines of international climate and biodiversity challenges.

In these territories, AFD advises and finances public officials about water adduction, sanitation, waste treatment, and public transportation. The Agency provides financial resources to renewable energy companies, and participates in discussions about creating a European overseas biodiversity fund.

New Caledonia Urban renewal in a Noumea suburb All of the high-rise apartments in Saint Quentin, a suburb of Noumea, were built in the 1970s to meet the nickel-mining boom. Today, the district suffers from degraded housing stock, a deficit of public facilities, services, and shops, and a poor image among city residents. In 2013, AFD made a €10 million subsidized loan to one of its subsidiaries, SIC, a property company in New Caledonia. The funds will be used to finance a district-wide urban renewal project. The high-rises will be demolished and the site prepared for the construction of neighborhood facilities and 800 housing units tailored to Caledonian lifestyles.

In addition to the loan, AFD signed and funded a partnership agreement with SIC and France’s national urban renewal agency, ANRU, to bring the latter’s expertise and experience to bear on this first urban renewal project in New Caledonia.

French Guiana A new hospital in Saint Laurent du Maroni will improve patient services and accommodations, increase the amount and type of care available in the western part of French Guiana, and reduce waiting times. The new facility will also attract more healthcare professions into the area – an important factor in combating “medical deserts” in the region.

“

Gérard Barsacq

General Manger of French Guiana’s Western Hospital Center

3-D image of a new hospital in French Guiana

Reunion More crops, renewable energy, and jobs For the past several years, the island of Reunion has followed a sustainable development policy with support from AFD. In 2014, the Agency helped finance capital investments for the Bardzour Project, which means “early dawn” in Creole. The project, managed by the Akuo Energy Company, aims to build and operate a photovoltaic power plant; it will include both freestanding solar panels and others placed on greenhouse roofs in a correctional facility. The project has three development goals: energy production, from a nine-megawatt photovoltaic power plant coupled with a power-storage system; agricultural production, growing market crops in the solar greenhouses; and social integration for local residents and the inmates. The former will be employed in construction jobs during the plant building, and the latter will receive certified training in agricultural and apicultural techniques when the greenhouses are ready.

In a few years, the population of Saint Laurent du Maroni should exceed that of Cayenne, due to the city’s very high birth rate and its geographic location near the Suriname border. The need for healthcare services will increase considerably, even as our present-day infrastructure is already reaching its limits.

After studying the healthcare needs of populations living in the Maroni area, and aligning these needs with demographic projections, we saw a clear need for a new hospital.

Financing for this ambitious project required important partners such as AFD, which gave us a subsidized €30 million loan.

33

AFD

2013 ACTION

Assisting during crises, conflicts and fragile social or political situations The international development community faces a major challenge whenever fragile states and societies spiral into social or political violence. Everyone knows that there can be no security without development, and no development without at least some security.

Foreign aid has two crucial aims in this connection: to reduce the structural factors that lead to fragile states, and to manage surges of violence.

In many of the regions where AFD operates, it confronts crisis situations. The term covers many different problems, but most share at least some characteristics: ɣɣ countries experiencing armed conflict or that have recently ceased hostilities, such as the Central African Republic, Mali, Côte d’Ivoire, Iraq, Syria and Afghanistan; ɣɣ failed or failing states that struggle to meet their obligations, whether sovereign, such as providing homeland security and ensuring the rule of law, or administrative, such as delivering essential services – food security, healthcare, education – to their citizens; ɣɣ divided and unstable societies suffering from cyclical or constant crisis with no clear way out, given the persistence of various tensions, — particularly regional, ethnic or religious ones.

Replacing opium poppy cultivation with cotton in Afghanistan

In these situations and others, AFD has a mandate to create the basis for and/or to bolster economic and social development. In fragile conditions,, the Agency must adapt the way it works to the specific nature of crisis situations. For this reason, in 2013 AFD’s governing board validated a strategy for fragile states and conflict zones, clarifying three principles for intervention: (1) doing (or adding) no harm; (2) achieving dual objectives; and (3) better articulating humanitarian and development aid.

Doing no harm The first action guideline prescribes a deeper analysis of the situation; this forms the basis of the Agency’s intervention plan. The main goal of this approach is to avoid fueling the root causes of the fragility, crisis, or conflict. This means AFD must apprehend the overall situation and its economic, social and political components to better understand root causes and dynamics. This approach also allows the Agency to identify and work around potential obstacles to project implementation.

Water adduction in the Palestinian Territories

Achieving dual objectives The second action guideline calls for operations that have two objectives: (1) producing a development good, such as improved social services or economic productivity, just like any AFD-financed project, and (2) reducing some of the fragilities identified in the initial analysis. Dual-objective operations are simple, flexible and robust, allowing aid actions and financing to have positive impacts in unpredictable and changing situations.

34

Treating trauma victims with psychosocial services

Sainte Therese Hinche Chantal Hospital in Haiti

Better articulating humanitarian aid with development aid The third action guideline for conflict- or crisis-recovery situations, such as the aftermath of a natural catastrophe, consists of erasing the dichotomy between development aid and humanitarian assistance supplied by emergency-aid specialists. The usual division between the humanitarian-aid phase and the reconstruction phase is not very clear: immediate needs coexist with long-term needs in crisis situations, and decisions made during the humanitarian phase affect future development. This dichotomy creates a persistent gray area that requires coordination between humanitarian organizations and development donors.

In 2013, AFD consolidated and continued the expansion of post-conflict psychosocial care to treat psychological trauma, thus preventing societies from falling into a spiral of violence. Just as individuals require food, housing and healthcare, so does development depend on the ability to strengthen mental balance and build harmonious social relationships. The mental health of traumatized populations constitutes a prerequisite for full success in Agency projects.

Psychosocial services aim to increase the resilience of individuals, families and communities affected by conflicts or natural catastrophes. Such support takes the form of activities such as group therapy, on-call psychosocial counseling, or psycho-educational games for children, among other strategies.

In Côte d’Ivoire, for example, AFD will integrate a psychosocial component into one of its healthcaresystem projects, financing the services through a debt reduction-development contract. The program, conducted in partnership with four French NGOs and the Humanitarian Aid and Civil Protection department of the European Commission (ECHO), will promote reconciliation among communities divided by recent violence.

Setting milestones in response to 2013 crises In 2013, AFD continued to adapt its intervention strategy to crisis situations and drew closer to other donors also confronting the challenges violence poses to the development process.

By applying this approach to news-making crises, AFD managed to reach several operational milestones. On behalf of the French government, AFD contributed to a multidonor fund managed by Germany’s aid agency, KfW. The fund allowed aid organizations to respond as quickly as possible for reconstruction efforts in Syria. AFD also financed the efforts of local governments in Libya and Jordan to accommodate millions of Syrian refugees, helping to stem the spread of the crisis in the region. In Mali, AFD actively restarted cooperation efforts after the 2012-2013 crisis; the Agency also accelerated some projects, notably Sahel Heath Solidarity, a healthcare access initiative.

In 2014, AFD will work with its supervisory ministries and its main partners – NGOs, other donors and the French defense ministry – to operationalize its strategy for conflict zones, particularly in the Central African Republic. The Agency will also equip itself with a range of special techniques and financial tools to address post-conflict reconstruction challenges.

Psycho-educational games organized by the Red Cross in Côte d’Ivoire

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Steps to obtain AFD project financing Financing beneficiaries

PROJECT IDENTIFICATION

Central and local governments, NGOs, companies, project owners and developers, and others

1

FEASIBLITY ASSESSMENT

3 FEASIBILITY STUDY

PROJECT IDEA

Most often done by an external design or engineering office; it may be paid for by AFD.

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

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

It analyzes social and environmental impacts and project-related risk.

FINANCING DECISION

5 6

PROJECT IMPLEMENTATION PROJECT COMPLETION

10

PHYSICAL PROJECT EXECUTION

Agreement on project parameters and financing terms and conditions

SIGNING OF THE LOAN, GRANT OR SUBSIDY FINANCING AGREEMENT

Choice of suppliers according to local laws and AFD’s procurement principles, notably competitive bidding.

REPAYMENT OF LOAN TO AFD (IF CREDIT FINANCED)

11 36

NEGOTIATION OF FINANCING TERMS AND CONDITIONS

FINANCING APPLICATION MADE TO AFD

8 9

Proposal submitted to AFD for financing consideration

Monitoring of the work (if necessary, with technical assistance that may be financed by AFD) and payment of suppliers.

At the project owner’s request, AFD may pay suppliers directly.

Outstanding loans totaled €20.6 billion at the end of December 2013

POST-PROJECT EVALUATION

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

AFD provides project financing

2 4

FEASIBILITY STUDY AND FINANCING APPLICATION ANALYSIS

7

PROPOSAL ANALYSIS

Examination of the project’s goals and its relevance to AFD’s priorities in the beneficiary country.

AFD examines in particular: The feasibility study’s hypotheses, conclusions, and financing plan; Project compliance with aid effectiveness principles: local project ownership, coordination with other donors, integration in local policy; Project's match with AFD and French development aid strategy; Economic, social and environmental effects for the beneficiary country or region;

AFD DECISION TO APPROVE FINANCING APPLICATION

Risk: technical, institutional, economic, financial (project profitability, borrower’s solvency, country macroeconomics), environmental, social, and project owner/shareholder risk of money laundering, terrorism financing and corruption.

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

In 2013, 676 new financing commitments were made, totaling €7.5 billion

In 2013, 677 financing contracts were signed, totaling €5.2 billion

9 FUNDS DISBURSEMENT

Oversight for compliance with financing contract clauses (preconditions for funds transfers, no-objection notices for the selection modalities, choice of supplier and contracts, pre-authorization for any changes to the project, and so forth).

Funds transfer as the project progresses and expenditure receipts are received.

Vigilance over money laundering, terrorism financing and corruption risks. Ability to suspend fund transfers or require reimbursement.

Technical and financial supervision of the project.

In 2013, AFD disbursed €4.1 billion of funding

In 2013, 26 completed projects were evaluated

37

AFD

2013 ACTION

Supporting NGO initiatives In 2013, AFD consolidated its ties with NGOs through increased funding and the adoption of its first strategic intervention framework for civil society.

Over the past year, in accordance with a promise from the French government, AFD continued to increase funding for civil society organizations. The Agency granted €48.7 million to 56 French NGOs, for an average of €667,000 each, to finance 73 projects. Eighty percent of the organizations receiving funds were small- to medium-sized, having total revenues of less than €15 million.

Three-quarters of this funding (€36.5 million) went to in-country projects. These included multi-organization programs in Algeria, Guinea, and the Republic of Congo, where funding aimed to strengthen civil-society capacity and its participation in public policy design.

One-quarter of the grant funding was dedicated to public education on development issues, creating nonprofit organizations, and structuring the local nonprofit ecosystem. For example, AFD provided funds to Engineers Without Borders for a project to increase awareness of international solidarity issues. AFD also provided resources to the Agriculture and Food Commission of Coordination Sud to strengthen French NGOs during the 2014 International Year of Family Farming.

7%

8%

Water and sanitation

Business, industry and trade

4%

Environment and natural resources

3%

Education

15%

16%

Agriculture and food security

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The NGO Innovation Funding Facility Since 2007, AFD has used a special funding instrument known as Fisong to finance groundbreaking projects conducted by international solidarity organizations. The funding facility calls on NGO capacity to create real-world innovations in AFD’s priority sectors. The instrument also serves to catalyze discussions about shared interests and synergy between the Agency and NGOs. Each year, AFD makes two calls for proposals on subjects jointly defined by the Agency and the NGOs. In the past year, the proposal topics were “Training through apprenticeships for social and professional integration,” and “Adapting farming practices to climate change.” After a joint review, AFD allocated €5 million to eight NGOs. The year 2013 also saw the launch of three geographic funding facilities that took the form of NGO project solicitations: the €8 million Mali Facility and the €4 million Madagascar Facility, targeting family planning and maternal and infant health. The €4 million Lebanon-Jordan Facility focuses on improved living conditions for refugees and their host communities.

3%

Infrastructure and urban development

Health and anti-HIV/AIDS

NGO funding by sector

Microfinance program in Comoros

44%

Human rights, governance, development education and nonprofit support structures

Hospital in Sevaré, Mali

Breakdown of NGO financing by region

27 % Middle East and North Africa

Asie

6%

Asia

10 % 57 %

Latin America and the Caribbean

Sub-Saharan Africa Sub-Saharan Africa

Increasing dialogue with civil society The year 2013 saw a step change in dialogue between AFD and civil society, as the Agency’s governing board adopted its first multidisciplinary civil-society intervention framework, the result of discussions between the Agency and several NGOs. The past year also saw AFD engage with civil society organizations in periodic discussions about NGO financial hardships, their quality-assurance systems and strategies, and the impact of development education projects, among other topics. The Agency completed several post-project performance evaluations that covered Coordination Sud projects, health projects financed in several countries, projects for the Palestinian Territories, a cartography of development-education projects, and other initiatives.

AFD also sponsored several seminars about international solidarity issues, including civil society dialogue with public officials, homeless street children, decent work, and micro-projects in developing countries. The seminar series also addressed the use of development education to promote other educational projects in developing countries.

Directions for 2013-2016 AFD Intervention Framework for Civil Society Organization Initiatives AFD has shown its willingness to create further synergy with civil society organizations through its strategic NGO intervention framework. All development practitioners recognize NGO knowledge of local conditions, as well as their expertise, innovative approaches, and influence in important international debates. In the coming years, AFD will orient its efforts in three major directions: supporting civil society in developing countries to alleviate poverty and achieve the Millennium Development Objectives; helping NGOs promote good governance, gender equality, and fundamental human rights; and reinforcing the effectiveness of French NGOs working in foreign countries.

Between

€3 million to €15 million

Less than

Between

€500,000 Between

€1 million to €3 million

Between

€500,000 to €1 million

23%

12%

€15 million to €40 million

18%

27%

11%

More than

€40 million

9%

Financed NGOs by revenue size 39

AFD

2013 ACTION

Acting with French local governments and companies AFD forms operational and intellectual partnerships with French local governments and private-sector companies – themselves major actors in development work. All these parties work alongside civil society stakeholders in developing countries.

Support for Minas Gervais State in Brazil, with the help of France’s Nord Pas de Calais Region

Partnering with French local governments

Working in tandem with companies

One of France’s foreign aid strengths lies in the international cooperation efforts of French regional and local governments. Consequently, French local governments have become important partners for AFD. This cooperation, written into the Agency’s strategic orientation plans since 2007, covers all regions and sectors. AFD has signed about 30 partnership agreements with French local governments that have expressed strong interest in international aid. The Agency has begun about 60 joint projects, while another dozen have been funded through trilateral agreements (each co-signed

by AFD, a local government in France, and a partner municipality in a developing country).

AFD has several types of relationships with French companies. First, the Agency regularly communicates with French business associations and trade groups, as well as with French companies doing business in countries where AFD operates.

AFD participates in and financially supports many events and roundtables to give more life to these partnerships.

The Agency also conducts joint studies with various decentralized cooperation partners on a number of subjects; this work results in numerous publications on water, urban transportation, inclusive economies, regional nature reserves, and other topics.

AFD supports innovative private-sector efforts that fulfill a central role: reducing poverty and creating stable jobs.

AFD and French local governments use public funds when they aid foreign countries. This requires the continued support of French taxpayers. In 2013, AFD took its story to the public by touring a photo exhibition, Objectif Développement, through several of its partner-cities in France.

In 2013, AFD began an effort to bolster this communication and to increase the Agency’s awareness of France’s international aid opportunities for French businesses, and to increase their understanding of the range of AFD’s foreign-aid work. The goal is for AFD to help extend France’s economic influence, within the confines of the Agency’s mission and procedures.

In 2013, AFD joined with business partners and the French chapter of the international solidarity organization CARE in support of a social enterprise start-up in Ghana. This project, currently under study for economic viability, would create a retail distribution network in rural areas, allowing vulnerable and isolated women a means to sell products. CARE France and its private-sector partners have used AFD financial support to conduct market research and sociological studies, the better to test what business model will prove socially and financially viable.

In addition, AFD began the pilot phase of a direct finance system supporting the cooperation efforts of French local governments. The local authorities take the lead in identifying and implementing projects for their beneficiaries in developing countries. This pilot experiment aims to finance sustainable land development in the least-developed countries and/or those in fragile situations.

40

Business start-up program with CARE in Ghana

AFD

2013 ACTION

Intensifying relations with the European Union AFD and the European Union have consolidated their partnership and improved aid effectiveness.

They closely collaborate to cofinance projects and build European development-finance capacity.

Division of labor and increased aid effectiveness on a European scale demand strategic partnerships between European institutions – the European Commission, the European Exterior Action Service, and the European Parliament. These aims also require daily work-related communication between teams in developing countries and in Brussels.

The year 2013 saw a new era for AFD and the European Union, one funding development through collective means at the European level. This new phase draws together European development agencies, resting on shared expertise and the value added by each donor.

The better to meet the needs of developing countries, AFD and the European Union increased their use of two forms of cofinancing: investment facilities that blend grant monies with loans, and delegated cooperation that transfers responsibility for fund management and disbursement.

Seafaring know-how in Tahiti

€640 million in European grants delegated to AFD

her with get o t More than

€3 billion in loans provided

by AFD

2007

Complementary funding from other donors as well as self-funding

2013

€11 billion

In 2013, AFD actively worked on European Union facilities blending loans and grants, and participated in the European Development Days.

The loan-grant blending facility combines loans from financial institutions with grants from the European Union to finance projects in beneficiary countries. This innovative approach provides a European response to ever-greater needs in developing countries; it strengthens initial project quality while integrating European priorities. The approach has financial objectives – mobilizing funds that can meet the needs of beneficiary countries – and nonfinancial ones: improving the sustainability and longevity of projects, promoting coordination between donors, increasing impacts and sectorial dialogue, and making European aid more visible.

In 2013, AFD — already present and active in all of the regional funding facilities— lobbied to open the blending facility to sub-Saharan African countries, targeting national projects and “orphaned” sectors, such as food security, agriculture, water, sanitation, health, education, and urban development or renewal.

worth of investment in developing countries

Delegated cooperation, aims to increase aid effectiveness. It is a two-way process: AFD may transfer French bilateral aid funds to the European Commission for management, or the Commission may delegate the management of European funds to AFD. Since 2008, AFD has received nearly €283 million from the Commission for project implementation, primarily in sub-Saharan Africa. In return, AFD has transferred €38.5 million to the European Commission for a roadway project in Haiti, and €10 million for healthcare in Guinea, making AFD one of the most “virtuous” donors in terms of reciprocity.

41

AFD

2013 ACTION

Working with other donors Working with other donors maximizes means and impacts, favoring a coordinated approach.

Electricity grid in Vietnam

The financing needs for development have increased, mobilizing bilateral and multilateral banks, UN and other agencies, civil society organizations, foundations, private-sector companies, and other agents.

In this context, aid professionals increasingly work together and use cofinancing techniques to stretch their financial and technical capacities. Aware of this challenge and following the lead of other donors, AFD has enlarged the number and breadth of its partnerships to maximize the leveraging effect of money and expertise.

AFD meets two goals in partnering with bilateral donors, such as KfW and JICA, and with multilateral donors, such as the European Investment Bank, World Bank, African Development Bank, Asian Development Bank and the Inter-American Development Bank: ɣɣ Maximize leverage and scale economies when financing development projects and programmes.

AFD also works with various United Nations (UN) agencies, such as the UN Environment Programme, the UN Development Programme, and the International Fund for Agricultural Development. These collaborations entail joint finance of projects, group missions to beneficiary countries to assess project pertinence, and knowledge coproduction — funding experts and research and organizing colloquia.

AFD also works in partnership with foundations, such as the Aga Khan Development Network and the Bill and Melinda Gates Foundation.

Furthermore, AFD is an active member of various development agency clubs and organizations — notably, the International Development Finance Club (IDFC), whose membership comprises regional and national bilateral development banks.

The IDFC promotes the role of development banks in fighting climate change.

ɣɣ Exploit the comparative advantage of AFD and each partner.

In 2013, for example, AFD and the Asian Development Bank renewed a cofinancing framework agreement to increase their effectiveness in meeting beneficiary needs. These kinds of operational partnerships further the Agency’s extension of cofinancing deals to other donors. In 2013, AFD cofinanced 37 international projects, providing €1.7 billion of approximately €8 billion total project funding.

Such cofinancing mostly went to infrastructure projects that generally require such large sums that a single donor cannot cover them alone. Half of these AFD-cofinanced projects benefited sub-Saharan Africa.

In 2013, AFD’s largest cofinancing partner was the European Union (through its financial instruments and the European Investment Bank), followed by the World Bank. The Asian Development Bank, the Inter-American Development Bank and Germany’s KfW numbered among AFD’s other principal cofinanciers.

42

Electricity grid in Vietnam

AFD

2013 ACTION

Bolstering local competency Given that capacity-building is a key element of sustainable development, AFD goes beyond project finance, helping improve the performance of in-country development actors.

Combining technical expertise with project finance AFD’s capacity-building activities aim to increase individual skills in project design, institutional montage, implementation, and evaluation. The Agency also aims to improve organizational function and to help structure public policies in health, education, water, transportation, agriculture, and other sectors.

Grants usually fund support for capacity-building. These efforts target very diverse beneficiaries, from ministries, local governments and public entities to nongovernmental organizations, private-sector companies and other actors, mostly in sub-Saharan Africa. Capacity-building support comes in many forms, such as consulting and advisory services or technical assistance funding — particularly for agriculture, health and the environment — and is implemented by design or engineering offices and public-sector organizations.

CEFEB professional-training classroom

Training through CEFEB courses AFD’s business university in Marseilles, CEFEB, educates individuals from beneficiary countries as well as AFD employees and cofinanciers.

Every year, 40 development practitioners attend the Masters program for Public and Private Works Management, pursuing a degree conferred by the University of Auvergne. The students are professionals from ministries, local governments, businesses, and financial institutions in countries where AFD operates. Program coursework covers all aspects of project set-up, management, and financing, tying together several disciplines: economics, finance, management, public policy, and market regulations.

In addition to offering the Masters program, every year CEFEB organizes about 40 seminars to disseminate new information and field experiences, thus giving attendees a much-valued opportunity to network with one another. In June 2013, CEFEB also launched the “e-Dev” project: this is a new and truly innovative online learning tool that will allow CEFEB to reach geographically distant students and to offer more flexibility in scheduling and learning.

Meeting demand for French expertise in middle-income countries The FEXTE, a fund created in 2013 for technical expertise and experience transfers, is a financing instrument designed for middle-income countries, particularly emerging or rapidly-growing ones. In keeping with AFD’s geographic and sectorial mandates, this fund aims to meet demand for French expertise and experience while contributing to sustainable development. It finances technical cooperation, completing the range of tools that AFD can use in middle-income countries, and extends French influence.

43

AFD

2013 ACTION

Thinking about development aid How can we measure vulnerability or social cohesion? Which public policies effectively promote low-carbon growth? How can we improve the articulation between professional or vocational training and the job market? AFD research teams work on these and other questions, in tandem with the Agency’s financing activity.

In 2013, AFD reviewed and clarified its research strategy: knowledge creation provides a critical complement to development finance. The creation of knowledge follows the same continuum as AFD’s financing goal: the encouragement and support of economically, socially, and environmentally sustainable development. This means embracing global issues, such as the climate and biodiversity, and covering the same intervention areas in foreign countries and the French Overseas Provinces.

Knowledge creation has two objectives. First, it informs and enriches operational strategies by promoting better understanding of specific situations. Second, it bolsters AFD and French participation in international debates about development and its financing. The link between AFD operations and strategies remains essential and constant. Research serves above all to shed new light on action, joining operational questions to innovative research, publishing original findings, and clarifying each situation’s singularity. Research depends on strong multidisciplinary thinking that combines economics, management, anthropology, geography, demography, urbanism, and political economy.

Conference about the French Overseas Provinces

AFD concentrates its research efforts on specific issues, including cities, environment, natural resources, social cohesion, human capital, states in fragile situations, accountability, development measurement, aid effectiveness, development finance, innovation, and climate (particularly in preparation for the 2015 Climate Summit). Agency operations foster partnerships among research centers in beneficiary countries, French institutions of higher learning and research such as CIRAD and IRD, and internationally-renowned European, Asian and American institutions — collaborations that can pose major challenges in themselves. AFD-supported research systematically includes partners and beneficiaries in the developing world.

As a financial institution, AFD analyzes the macroeconomic situation of the countries in which it operates. This knowledge creation mainly serves internal uses and risk assessments; however, the Agency publishes some of its findings in journals and newsletters. AFD also conducts project performance evaluations according to the principles and criteria of the Organisation for Economic Co-operation and Development Donor Assistance Committee (OECD-DAC).

The key lessons of these evaluations serve first to improve policies, programmes, and future aid projects. They then help build knowledge about development and provide fodder for public discussions. They also help AFD meet its accountability requirements In 2013, AFD commissioned about one hundred research studies and published 45 journals and other works, adding to a catalogue of approximately 500 titles. Knowledge dissemination also takes place through workshops, seminars and international conferences. AFD produced a conference on 22 November 2013 concerning France’s overseas provinces and international competition, and another on 11 December in conjunction with the European Research Development Network and BMZ, Germany’s economic cooperation and development ministry.

44

Publications, videos and conferences This is a partial list. You can download all English or French AFD publications from www.afd.fr

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

Brochures highlighting AFD’s operations and activities in various regions and sectors. 2013 titles include: ɣɣ ɣɣ ɣɣ ɣɣ

AFD and Cambodia AFD in East Africa AFD and Kenya AFD and marine protected areas

Creation: Planet 7 – October 2013

Madagascar Maroantsetra © AFD – Nicolas Hertkorn

AFD AND MARINE PROTECTED AREAS

ɣɣ AFD and the commercial capacitybuilding programme Action Plan This collection summarizes AFD’s strategies and commitments, and presents its capabilities and expertise in specific domains and countries.

JOINT PUBLICATIONS In partnership with the World Bank The African Development Forum Series focuses on sub-Saharan Africa’s principal social and economic development challenges. Each volume addresses one issue, enriching thought about local, regional, and global policies.

Enterprising Women: Expanding Opportunities in Africa Mary Hallward-Driemeier Washington, DC, World Bank Publishing, 2013 This book analyzes four key areas for expanding women’s economic empowerment in Africa: strengthening women’s property rights and their ability to control assets; improving women’s access to finance; building human capital in business skills and networks; and strengthening women’s voices through business environment reform.

The author analyses the latest data from surveys in 41 sub-Saharan African countries and provides practical steps for policy makers and practitioners on how to close gender gaps and enable more women to shift to more profitable activities.

ɣɣ Reconciling Development and the Fight Against Climate Change

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

N° 12 | Street Children: from individual care to the introduction of social policies (written with Samusocial International) This issue will help the reader understand the situation of homeless “street children,” following them in the street and through their young lives. It discusses aid mobilization to provide lasting and multidisciplinary care for their needs, overcoming real challenges.

VIDEOS Includes recent filmed interviews with experts, aid beneficiaries and decision-makers, and recordings from several conference proceedings: ɣɣ “Building Tunisia.” For the past 15 years, AFD has financed urban redevelopment projects in Tunisian slums and in settlements on the outskirts of cities.

The Agency recently arranged financing for further redevelopment efforts; it includes funding for an ambitious institutional support program. ɣɣ “Green Morocco.” In 2008, the Kingdom of Morocco adopted the “Green Morocco Plan” to stimulate the country’s agricultural sector. The plan rests on several pillars; the second one, backed by AFD financing, supports fragile farm workers and organizations while fighting rural poverty.

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

Savoirs Communs A discussion series based on AFD’s practical experiences and those of other development aid professionals and participants. The series capitalizes on shared knowledge and good practices to foster mutual learning and enrichment.

A Planet for Life 2013, in partnership with IDDRI and TERI Reducing Inequalities: A Sustainable Development Challenge, Rémi Genevey, Rajendra Kumar Pachauri, and Laurence Tubiana (eds). 2013 The 2013 edition of A Planet for Life features case studies and a great deal of expertise to understand how each country and region can develop solutions to the problem of inequality.

ɣɣ “Enlightened Women.” Community-level women leaders promote change and development by taking on management of village savings associations. ɣɣ “20 Years in Cambodia.” Since 1993, AFD’s work in Cambodia has evolved, diversified, and helped establish excellent relations between the Agency and Cambodian aid beneficiaries.

45

CONFERENCES AFD produced 17 conferences in conjunction with its international blog, “Ideas for Development” (or ID4D). About 100 people attended each event, which featured a wide variety of topics: “Sino-African Relations,” “The Right to Water,” “Decentralized Cooperation,” Food Price Instability,” “Youth Employment in Africa,” and “Decent Work,” among others.

SCIENTIFIC JOURNALS Afrique contemporaine A quarterly journal of research articles analyzing major trends in African politics, economics and society. In French only.

Published by de Boeck. À Savoir A series featuring reviews of books and papers that frame current understanding of operational issues.

AFD published 8 numbers in 2013, including: N° 17 | Managing food price instability in developing countries This book identifies and analyzes four “pure” strategies that can be used to manage food price instability. It clearly underscores the limitations of conventional solutions that rely on combining risk management with crisis management.

It explains the need for considerable government involvement, in order to stimulate the modernization of agricultural production and markets and recapitalize vulnerable households. Public intervention is necessary to prevent prices from reaching extreme levels. Such interventions must rest on a combination of instruments that match the specificities of each nation or region. The international community has a key role to play in the success of these policies.

an increasing number of countries have initiated exemption policies to improve healthcare access, particularly for vulnerable groups. This paper presents results from a 2009-2012 research program that documents the emergence, formulation implementation, and effects of these new payment-exemption policies in Burkina Faso, Mali and Niger. This rarely-seen multidisciplinary analysis of policies in West Africa makes an original contribution to the subject of free healthcare in francophone countries, combining quantitative, qualitative, sociological and anthropological approaches.

Conferences and Seminars A series summarizing presentations and conclusions, drawn from development practitioner conferences and seminars.

N° 8 | Water and its Many Issues Methods and Cross-cutting Analysis This issue contains proceedings from the “Water and Its Many Issues” conference (July 13-21, 2012, in Hanoi and in the Tam Đåo Hill station) on oceans, risks and governance; urban growth, social needs, and water and sanitation-service access; field-survey training for social and economic water management; and a practical approach to agent-based modeling.

Working Papers A series of varied works on development policy, including in-depth articles, academic works, and discussion papers.

AFD published 6 numbers in 2013, including: N° 133 | Energy Efficiency Policies in China, India, Indonesia, Thailand and Vietnam This study describes the current situation and recent trends in final energy demand in China, India, Indonesia, Thailand and Vietnam, analyzing their policies and the steps they have taken to increase end-use energy efficiency.

May 2013

ng user fees for patients in West Africa: or public policy

University of Montréal ontreal.ca VIER de SARDAN

desardan@lasdel.net

ET e de Développement r ETTI e de Développement r

20

lessons for public policy Abolishing user fees for patients in West Africa: lessons for public policy / May 2013

of the spread of direct payment by health service users in Africa, more and more ngaging in exemption policies to improve access to health care, with particular rds vulnerable groups relative to the Millennium Development Goals (pregnant n). While many research studies have focused on the positive effects of this free terms of visits to health centers, rare are the works which study these public policies yzing notably their implementation, their contradictions, their inconsistencies as rceptions by the actors concerned. Consequently, this file presents some results program (2009 – 2012) which aims to document the emergence, the formulation, ation and the effects of these new policies of exemption from payment in Burkina Niger. This is an original contribution in francophone countries, associating chniques and a qualitative socio-anthropological approach in a West African these policies have only barely been analyzed from this interdisciplinary angle.

Abolishing user fees for patients in West Africa:

Valéry RIDDE CRCHUM and University of Montréal

Jean-Pierre OLIVIER de SARDAN LASDEL

20

N° 20 | Abolishing user fees for patients in West Africa: lessons for public policy After 30 years’ expansion of direct service payments by African healthcare patients,

46

N° 134 | South-South cooperation and new agricultural development aid actors in western and southern Africa.

China and Brazil - Case studies This study improves understanding of the scope and methods of Chinese, Brazilian and Argentinian agricultural cooperation in western and southern Africa, specifically Benin, Ghana, Mozambique, and Senegal.

Focales A series presenting accounts of field experiences in developing and emerging countries, focusing on AFD and its partners – experts, researchers, consultants and practitioners.

N° 10 | Access to Water and Militant Uses of the Law. A Case Study in Soweto In 1994, at the end of apartheid in South Africa, actualizing the right to water, as recognized in the new Constitution, became a priority. Johannesburg had launched in 1993 the Gcin’Amanzi project in its largest township, Soweto. From the outset, the project caused much controversy and in 2006 led to a trial known as the “Mazibuko Affair” when five Soweto residents contested two aspects of the project: the installation of prepaid water meters and the policy of free water, judged of insufficient quantity. This study retraces the history of Mazibuko Affair.

Researchers interested by issues concerning militant use of the law and practitioners working in the water sector, particularly those in developing countries, will find a useful illustration to help predict the potential effects of water access rights. It will also help them judge the effectiveness of adjudicating the right to water, or social rights in general.

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

AFD published 6 titles in 2013.

Macrodev A series providing macroeconomic analyses of development processes, by country, region or topic. 2013 numbers include: N° 11 | Emerging countries and financial globalization: Break or continuity?

N° 8 | Growth and Employment in South and East Mediterranean Countries: Do Labour Productivity Gains Play a Role in Job Creation?

N° 7 | Euro-Med Growth and Trade Integration: Can we talk of a cost of the non-Mediterranean?

Development Questions A new publication from the AFD Research Department aimed at inspiring new actions, thought and strategies, through summaries of studies, evaluations, and research initiated or supported by AFD. N° 4 | Public stocks of foodstuffs in Africa N° 3 | Private education in sub-Saharan Africa Nº 1 | Sustainable forest management Research A series featuring AFD-initiated and directed research studies.

AFD

Team

Board of Governors Members as of 30 April 2014

Laurence TUBIANA CHAIRWOMAN

MINISTRY OF THE ECONOMY AND FINANCE Anthony REQUIN

Arnaud BUISSÉ

Division Head for Multilateral and Development Affairs Treasury Directorate

Vice Director for Multilateral Financial and Development Affairs Treasury Directorate

Alexandre KOUTCHOUK

Armelle DAAM

7 th Vice Director of National Budget Office

Office Head of Foreign Affairs and Development Aid Budget Directorate

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

Omar KABBAJ

Jean-Louis MATTÉI

Advisor to His Majesty The King of Morocco

Chairman of the Supervisory Board for Société Genérale's Moroccan subsidiary

Sylviane JEANNENEYGUILLAUMONT

Guy DUPONT

Professor Emeritus at the University of Auvergne and CERDI Researcher

MINISTRY OF FOREIGN AFFAIRS

Jean-Louis VIELAJUS

Honorary Chairman of the Federation of Overseas Enterprises

—

Chairman of Coordination SUD

Anne-Marie DESCÔTES

Jean-Marc CHÂTAIGNER

General Director Globalization, Development & Partnerships

Deputy Director Globalization, Development & Partnerships

Véronique VOULAND-ANEINI

Marc BARETY

Deputy Director Africa and the Indian Ocean

Deputy Director Middle East and North Africa

MINISTRY OF THE OVERSEAS PROVINCES Thomas DEGOS

Marc DEL GRANDE

Director, General Delegate and Prefect for the French Overseas Provinces

Vice Director for the Public Policy Office Overseas Provinces Directorate

MINISTRY OF THE INTERIOR Luc DEREPAS

Francis HURTUT

General Director of Foreigners in France

Division Head for International Affairs and Cohesive Development

Government Commissioner: Claude WARNET

Appointed by the Ministry of the Ecology, Sustainable Development and Energy

Pierre RADANNE

Marc-Antoine MARTIN

Chairman of the Dossiers and Debates for Sustainable Development nonprofit organization

Honorary General Engineer of Bridge, Water and Forest Works

PARLIAMENTARIANS Representatives appointed by the National Assembly Chairman

Michel DESTOT

Stéphane DEMILLY

Isère Representative

Somme Representative

Noël MAMÈRE

Yves NICOLIN

Gironde Representative

Loire Representative

Senators appointed by the Senate Chairman

Yvon COLLIN

Fabienne KELLER

Tarn and Garonne Senator

Bas Rhin Senator

Jean-Claude PEYRONNET

Christian CAMBON

Haute Vienne Senator

Val de Marne Senator

ELECTED AFD EMPLOYEE REPRESENTATIVES

INCUMBENT

48

ALTERNATE

Jérémie DAUSSIN CHARPENTIER

Anne-Laure ULLMANN

Hatem CHAKROUN

François PACQUEMENT

AFD Group organigram See detailed organization chart on www.afd.fr

PROPARCO Subsidiary for private-sector project finance

Board of Governors Ethics Advisor

Internal Audit —

Compliance, risk-management, anti-corruption and effectiveness auditing

Executive Office

Board Secretary —

Preparation and follow-up of work done by the governing board and committees

Operations

Strategy

External Affairs and Partnerships

Administration

Human Resources

Risk

Financing proposal analysis and execution oversight for development projects

Strategic planning, developmentrelated knowledge creation and international debate participation

Communications and relations with national and international partners, such as NGOs, companies, and local authorities

Financial, organizational, budget, IT and logistics management and administration

Employee recruitment, career management and professional training

Risk prevention and mitigation for the Group’s financing activity

SUB-SAHARAN AFRICA

HUMAN DEVELOPMENT

MIDDLE EAST AND NORTH AFRICA

Education and Professional Training Health and Social Protections

FRENCH OVERSEAS PROVINCES ASIA LATIN AMERICA AND THE CARIBBEAN AFD NETWORK

AFD field offices and bureaus

SUSTAINABLE DEVELOPMENT

Water and Sanitation Transportation and Sustainable Energy Agriculture, Rural Development and Biodiversity

RESEARCH

Economic and Social Research Knowledge Management Assistance Evaluation and Capitalization Macroeconomic and Country-Risk Analysis STRATEGIC PLANNING AND FORECASTING

BANKS, PRIVATE SECTOR AND LOCAL AUTHORITIES

Strategic Planning Organization and Forecasting

Local Authorities and Urban Development Financial Institutions and Private-Sector Support Structured Finance Guarantees

Crisis and Conflicts unit

Non-sovereign Credits Monitoring MULTIDISCIPLINARY ASSISTANCE

Assistance for projects involving multiple sectors or geographic areas Climate Change Social and Environmental Assistance Capacity Building Assistance

CEFEB

Business University (Marseilles) Administration and Communication Training FRENCH GLOBAL ENVIRONMENT FACILITY SECRETARIAT

External Affairs Communication NGO Partnerships European Institutions Liaison Office (Brussels)

FINANCE AND ACCOUNTING

Career Management and Recruitment

Financial Planning and Strategy Financial Accounting Back Office Funding and Market Operations

Workforce Development and Training

Financial Communications BUDGET COMPTROLLER

Business Efficiency Unit Procurement Office IT, BUILDINGS AND LOGISTICS

Business Support Assistance for Business-Owners’ Changes Software Lifecycle Management Cross-functional Business Management Buildings and Logistics Management Urbanization, Architecture and Techniques

Employee Benefits Administration Payroll and Benefits Comptroller Labor Relations

LEGAL

Assistance for Operations in Foreign Countries Support for Operations in French Overseas Provinces and other Legal Affairs INTERNAL AUDIT AND COMPLIANCE

Disbursements Verification GROUP RISK MANAGEMENT

Risk Monitoring Credit Risk Analysis Second Opinion Advice from an expert outside the Project Risk Assessment department

Security and Business Continuity

State-funded financing facility for climate preservation and biodiversity conservation projects

Procurement Assistance

49

Management team As of 30 April 2014

EXECUTIVE OFFICE Anne PAUGAM*

Jacques MOINEVILLE*

Chief Executive Officer

Deputy Chief Executive

PROPARCO Claude PÉRIOU*

Didier MERCIER

Chief Executive Officer

Chief Inspector General

François KERHUEL Chief Ethics and Compliance Officer

Marie-Hélène LOISON

Ghislain DE VALON

Chief Operating Officer

Chief Administrative Officer (interim)

DIVISIONS Administration

Human Resources

Risk

Colette GROSSET*

Christine HARNÉ*

Éric BAULARD*

Chief External Affairs and Partnerships Officer

Chief Human Resources Officer

Chief Risk Officer

Emmanuel DEBROISE

Laurence LAJOINIEGNANSIA

Operations

Strategy

External Affairs and Partnerships

Jean-Marc GRAVELLINI*

Jean-Yves GROSCLAUDE*

Catherine GARRETA*

Chief Strategy Officer

Chief Operating Officer

Jean-Claude BREDELOUX Vice President of Operations

Chief Administrative Officer

Vice President of External Affairs and Partnerships

Valérie ALEXIS Vice President of Risk

Vice President of Human Resources

DEPARTMENTS - Directors Operations

Strategy

Administration

Risk

Yves BOUDOT Sub-Saharan Africa

Christian BARRIER Human Development

Alain HENRY Research

Philippe BAUDUIN Finance and Accounting

Valérie ALEXIS Legal Affairs

Marie-Pierre NICOLLET Middle East and North Africa

Maurice BERNARD Sustainable Development

Bernard ESNOUF Strategic Planning and Forecasting

Bertrand LOISEAU Budget Comptroller

Marianne SIVIGNONLECOURT Compliance and Internal Audit

Odile LAPIERRE Banks, Private Sector and Local Authorities

Roger GOUDIARD CEFEB

Pascal PACAUT French Overseas Provinces Grégory CLEMENTE Asia

Dimitri KANOUNNIKOFF Multidisciplinary Assistance

French Global Environment Facility (FGEF)

Françoise TISSEYRE IT, Buildings and Logistics

Jean-Philippe AUBERTEL Group Risk Management

François-Xavier DUPORGE Administrator

Philippe ORLIANGE Latin America and the Caribbean

50

*Executive Committee Member

51

AFD

TEAM

Working for AFD AFD has offices on four continents and finances development projects in more than 90 countries.

The Agency maintains a worldwide network of 71 field offices and bureaus, including nine in the French Overseas Provinces and one in Brussels.

Of the AFD Group’s 1,744 employees, 41% work in the field office network.

Working on a transmission tower in French Polynesia

2013

AFD Group employee headcount

1,183

Employees working in mainland France

561

Employees working in foreign countries and the French Overseas Provinces

1,744

Total employees Employees of Reserve Banks*

362

International volunteers (AFD Group and Reserve Banks)

103

* The Reserve Banks act in the name of and on behalf of the Banque de France, under its authority. They operate as central banks in the French Overseas Provinces.

However, their employees come under the economic and social unit, AFD/Reserve Banks.

12%

16%

31%

11 Offices

Asia and the Pacific

5%

Management and administration

Middle East and North Africa

13 Offices

Fiduciary banking

7% 15%

Latin America and the Caribbean

Breakdown by speciality

Knowledge creation and partnerships

37%

(Employees working in France, not including management)

Project finance

AFD employees in foreign countries in 2013

7 Offices 17%

48%

Sub-Saharan Africa

French Overseas Provinces

30 Offices

9 Offices

12%

Risk management

Some key numbers for 2013 Male-female ratio

52.3%

women

Average age

45 52

Youth employment

17% 103 96 22

Recruitment

under 30 years old

136

international volunteers

(65 new hires in mainland France and 71 new hires in foreign countries or French Overseas Provinces)

new employees

interns work-study and on-the-job training contracts

Training budget

3.78%

of gross salaries

Internal mobility

196

employees

of which

41%

transferred between headquarrters and a field office

Employees exercise many generalist and specialist professions within AFD Group, at headquarters and in the field offices.

Virginie Leroy Saudubray Deputy Director AFD office in Kinshasa, Democratic Republic of Congo In the Democratic Republic of Congo, we work very closely with our beneficiaries, sharing and applying our expertise. The fields I work in – the environment and climate, education and health – have changed greatly over the past four years. Our work arises from the expansion of AFD’s financing activity and the implementation of a debt reduction-development contract.

Abdelilah Chach

Project Assistant AFD office in Rabat, Morocco Since 2013, I have been providing operational support to visiting project leaders, standardizing files, sorting the Rabat office directories, digitizing archives and managing the local IT network.

Christophe Cottet Economist, Strategy Division AFD headquarters in Paris, France Economists working in the Research Department conduct macroeconomic analyses of AFD’s principal operating regions, evaluating risks to AFD financing operations. We providing a reading and ranking of country risk levels. Our work as economists is vital for project managers and others in the field; we help the AFD Group anticipate changes in beneficiary country status and their future needs.

Aurélie Chevrillon

Project Manager for Sustainable Agricultural Development AFD headquarters in Paris, France Project managers do all kinds of work…They talk with beneficiary-country project partners, aid recipients, and suppliers. They work with local offices to identify needs, find partners, and analyze projects prior to implementation. They also monitor projects, provide onsite expertise, and oversee the country’s environmental, regulatory, and institutional policies, among other services.

Demba Tandia Trader, Finance and Accounting Department AFD headquarters in Paris, France Traders ascertain interest rates, manage market risks, and structure AFD’s loans.

We are also responsible for funding AFD through capital markets, and we work in close collaboration with the Agency’s counterparties.

53

AFD’s international reach AFD maintains a worldwide network of 71 field offices and bureaus

Field office or bureau Beneficiary country

IN FOREIGN COUNTRIES

EGYPT

Nigeria

ETHIOPIA

Pakistan

Afghanistan

Also oversees: Eritrea, Somalia, South Sudan, Sudan

PALESTINIAN TERRITORIES

ALGERIA

Gabon

Philippines

Angola

Ghana

SEnEgal

FRENCH GUIANA Also oversees: Brazil (Amapá), Guyana, Suriname

Also oversees: Cape Verde, The Gambia, Guinea Bissau

FRENCH POLYNESIA

Also oversees: Sierra Leone

SOUTH AFRICA

Guadeloupe

HaIti

Also oversees: Botswana, Lesotho, Malawi, Namibia, Zambia, Zimbabwe

Martinique

IndIA

Sri Lanka

Burkina Faso

Also oversees: the Maldives

Also overseen by India office

Burundi

INDONESIA

Suriname

Bangladesh Also overseen by India field office

BEnin BrAZil

Also overseen by the Kenya office

CAMBODIA CAMEROON Also oversees: Equatorial Guinea

CENTRAL AFRICAN REPUBLIC Also overseen by the Cameroon office

CHAD ChinA ColombiA COMOROS Congo (DEMOCRATIC REP.)

GUINEA

Also overseen by French Guiana office

IraQ

Mayotte NEW CALEDONIA Also oversees: South Pacific Island Nations, Vanuatu

Also overseen by Kenya office

REUNION

Kenya

THAILAND

Also oversees: French Southern and Antarctic Territories

Also oversees: Rwanda

LAOS PDR

Togo

Also overseen by the Cambodia office

TUNISIA

LEBANON

TURKEY

Madagascar

UGANDA

WALLIS AND FUTUNA Also overseen by New Caledonia office

SAINT PIERRE AND MIQUELON

Also overseen by Kenya office

Mali MauritaniA MAURITIUS Also oversees: Seychelles

Côte d’Ivoire

MexiCO

Djibouti

TANZANIA

Also oversees: Barbados, Lesser Antilles, Trinidad and Tobago

Jordan

Congo Also oversees: Liberia

54

Also oversees: Sao Tomé and Principe

IN THE FRENCH OVERSEAS PROVINCES

Vietnam YEMEN Also overseen by Djibouti office

CLOSE TO EUROPEAN INSTITUTIONS BRUSSELS

MOROCCO Mozambique

DOMINICAN REPUBLIC

Also oversees: Swaziland

Also oversees: the Bahamas, Cuba, Jamaica

Niger

Contact details and information about the operations of each office and bureau may be found on www.afd.fr A neighboring AFD office or AFD headquarters in Paris oversees operations in countries without a field office or bureau.

Financial

information

AFD

F inancial information

Financial statements A view of the AFD Group’s (AFD and PROPARCO) financial standing as of 31 December 2013.

The complete 2013 AFD Group financial report is available in the Registration Document, which can be downloaded from www.afd.fr Rounding may cause totals to vary slightly from an item-by-item addition.

Balance Sheet Assets (€ million)

2012

2013

Loans (net outstanding)

18,617

20,553

Loans (gross outstanding)

18,941

20,848

-422

-408

98

113

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

IMF-PRGF operations*

1,861

1,859

Investment portfolio

692

689

Cash and short-term instruments

1,228

2,356

Equity participations

436

478

Liabilities and Capital (€ million)

2012

2013

Bonds and borrowings from the market

14,271

17,109

Borrowings from French Treasury

2,548

2,630

Financial liabilities (excluding own debt)

223

201

IMF-PRGF operations*

1,860

1,858

Managed funds and advances from French government

646

640

Accruals and other liabilities

992

1,214

Provisions

781

911

2,200

2,225

88

93

23,610

26,880

Property, plant, equipment and intangible assets

203

213

Capital and Retained earnings

Accruals and other assets

573

732

Net income

23,610

26,880

TOTAL

TOTAL

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

Key ratios and indicators 2011

2012

2013

361

363

441

46.1%

46.9%

41.8%

Net income (€ million)

73

88

93

Dividends paid to French Treasury (€ million)

71

55

63

Net banking income (€ million) Salary costs / Net banking income

(1) (2)

56

Return on equity

Overhead expenses(1) / Net banking income

71.6%

73.8%

63.6%

Return on capital employed

Earnings before interest and tax / Capital employed(2)

4.3%

5.0%

5.3%

Return on assets

Net income / Total assets

0.4%

0.4%

0.3%

Overhead includes depreciation and amortization expenses.

Average debt liabilities and average shareholder’s equity net of provisions for general banking risk (€460 million).

Income Statement Expenses (€ million)

2012

2013

Borrowings expense

952.4

942.0

Interest expense

398.2

401.3

Swaps expense

549.9

535.1

4.3

Net foreign exchange loss (- gain)

5.7

Income (€ million)

2012

2013

1,027.9

1,074.4

Interest income and commissions on loans and guarantees

528.2

569.3

Swaps income

539.7

548.4

Net allowances for unpaid interest

-7.1

-5.1

Interest income losses

0.0

-0.2

Net allowances for sovereign credits impairments

-42.1

-47.0

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

9.2

9.0

Income earned on interest rate subsidies

184.6

190.0

Investment income

54.5

51.9

3.5

13.4

Commissions on operations

36.6

43.2

Income earned on loans and guarantees

Income from equity participations

Miscellaneous financial expenses

30.2

29.8

Miscellaneous commissions

37.4

38.6

Expenses for IMF-PRGF operations

37.1

14.9

Income from IMF-PRGF operations

38.0

15.9

Total Banking Expenses

1,019.7

986.7

Total Banking Income

1,382.5

1,427.4

Net of IMF-PRGF Operations Expenses

982.6

971.9

Net of IMF-PRGF Operations Income

1,344.5

1,411.5

*SAL: Structural Adjustment Loan

Net Banking Income

362.9

440.7

General and administrative expenses

254.1

265.6

• Employee compensation and benefits

170.3

184.3

4.7

5.0

79.1

76.3

13.7

14.8

267.8

280.4

Gross operating income

95.1

160.2

Cost of risk and other credit risk provisions

-8.8

-60.4

5.2

19.4

Provisions for contingencies and charges

-12.1

-80.6

Capital losses on bad debt and loan losses

-2.0

0.9

Gross income from operations

86.3

99.9

1.9

2.2

88.1

102.1

• Taxes and regulatory fees • Other general and administrative expenses

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

Net allowances for loan impairments

Gains or losses on fixed assets

Net profit before tax and exceptional items Net income (- loss) from exceptional operations

-0.3

-9.2

Net Income

87.9

92.9

57

AFD

F inancial information

AFD Group 2013 financing commitments by country (€ million) GRANTS AND SUBSIDIES

2012 2013

LOANS

GUARANTEES

PRIVATE EQUITY

BUDGET SUPPORT and DEBT REDUCTIONDEVELOPMENT CONTRACTS

2012 2013

2012 2013

2012 2013

2012 2013

TOTAL

DELEGATED FUNDs

2012 2013

2012 2013

SUB-SAHARAN AFRICA Benin Burkina Faso

0.3

6.2

23.6

3.2

Burundi

5.2

3.5

Cameroon

0.5

0.6

Central African Republic

6.6

0.4

Chad

11.4

8.3

Comoros

15.0

0.5

Congo (Democratic Rep. of the)

0.5

6.7

Djibouti

1.7 92.5

5.7

1.4

19.5

14.1

21.3

33.5

6.6

6.8

0.3 83.2

179.7

3.0 8.0

2.4

2.0

0.5

1.2

2.5

6.0

6.3

76.3

Gabon Ghana

0.6

0.5

Guinea

9.0

12.4

Kenya

0.03

0.5

Madagascar

16.6

13.8

Mali

0.8

15.2

Mauritania

6.5

2.2

125.6

60.0

30.4

50.0

0.1

18.1

165.0

6.7

5.8

61.6

2.0

2.7

0.1

128.9

267.9

0.4

4.0

11.6

12.1

1.6

3.5

0.9

1.0

82.6

60.0

1.5

50.0

82.8

26.0

40.0

30.0

76.8

197.7

152.0

183.0

4.8

Nigeria

0.4

Rwanda

0.3

Senegal

30.2

0.2

0.9

12.6

0.4

18.0

15.1

1.0

18.0

1.5

46.0

11.3

54.7

388.7

12.0

5.0

14.0

15.0 3.9

1.6 2.0

2.0 0.8

0.1 8.7

6.5 211.6

13.0

Mozambique

2.7

5.6 131.3

3.9

41.3

Mauritius

Niger

3.0

12.3

5.2 5.0

144.7

12.0 5.4

3.9

Liberia

Namibia

11.1

10.0

10.0

3.8

0.3

South Africa

145.2

3.8 9.5 4.2 2.4 5.1

469.4

19.9

6.0

6.3

5.2

0.1

51.5

18.7

182.8

133.7

77.0

14.0

31.2

129.3

272.5

5.0 1.7 26.1

3.9

5.2

28.2

25.8

2.4

38.7

60.9

2.2

20.4

86.8

61.9

3.0

50.0

85.9

6.8

2.0

52.7

66.7

77.2

197.7

30.0

17.1

11.0

207.6

10.0 100.0

7.1

152.3

100.3

1.4

Tanzania

0.9

0.7

Togo

8.1

10.3

Uganda

0.5

Zambia

56.5

107.6

18.8

27.5

59.1

50.0

0.8

Zimbabwe

252.7

9.0 59.8

41.0

193.3

1.4

Sudan

1.3

4.2

16.0

10.0

Seychelles

6.2 97.0

40.0

1.5

Ethiopia

12.0 48.8 10.0

6.0

1.0

Congo (Republic of the) Côte d'Ivoire

10.0

0.8

0.2

58.2

3.8

6.0

11.8

16.3

39.9

19.5

27.5

0.8

59.1

50.9

6.7

0.8

14.7

60.0

322.0

240.9

25.0

78.5

599.7

2,013.5

2,777.7

161.3

224.0

387.0

80.0

20.8

15.0

0.2 0.9

14.7

MULTI-COUNTRY PROGRAMMES

46.0

56.6

256.8

101.3

7.2

TOTAL

195.1

190.4

1,425.8

1,841.4

109.2

387.0

80.0

109.8

11.9

23.1

32.7

36.3

250.7

108.5

MIDDLE EAST AND NORTH AFRICA 3.0

Algeria Egypt

1.0

Jordan Lebanon

2.7

Libya

0.3

3.0 150.0

1.2

56.5

151.0 65.6

59.2

0.7

Macedonia Morocco

0.7

4.3

Palestinian Territories

16.4

15.4

0.7 380.0

250.0 1.5

1.2

380.7

254.3

17.9

16.6

7.0

Syria

3.4

Tunisia

6.2

TOTAL

58

5.9

13.4

30.4

51.2

4.9

7.0 50.0 151.9

Turkey MULTI-COUNTRY PROGRAMMES

66.7

0.3

1,175.3

2.0

8.5

348.5

744.1

3.5

1.2

8.5

63.9

6.2

151.9

348.5

32.1

5.9

13.4

0.2

5.0

1,217.7

796.5

58.0

41.7

21.7

GRANTS AND SUBSIDIES

2012 2013

LOANS

GUARANTEES

PRIVATE EQUITY

BUDGET SUPPORT and DEBT REDUCTIONDEVELOPMENT CONTRACTS

2012 2013

2012 2013

2012 2013

2012 2013

TOTAL

DELEGATED FUNDs

2012 2013

2012 2013

ASIA AND THE PACIFIC Afghanistan

26.3

10.0

26.3

0.5

Armenia

21.1

Bangladesh Cambodia

6.8

2.1

China

57.3

73.2

69.7

18.6

130.6

115.0

0.1

0.4

Indonesia

0.3 3.7

3.8

57.5

73.5

2.9

76.4

28.1

0.7

130.6

115.0

15.6

280.4

330.0

140.5

211.6

0.1

26.9

8.5

307.4

339.0

140.5

211.6

4.0

Laos PDR

11.4 1.9

0.1

Philippines

11.4

4.0

Pakistan Sri Lanka

0.4

Vanuatu

0.3

0.1

Vietnam

1.6

1.6

MULTI-COUNTRY PROGRAMMES

3.6

0.7

TOTAL

41.0

23.5

3.0

4.0

Mongolia Myanmar

11.5 0.2

15.6

Georgia India

21.6

11.5

Azerbaijan

10.0

1.9

4.0

61.0

11.9

61.0

11.9

60.0

109.8

60.0

109.9

24.0

75.1

24.4

75.1

103.0

143.8

942.0

1,144.1

11.1 0.2

4.1

0.3

0.1

104.6

145.4

9.6

3.6

21.4

26.9

21.9

1,010.1

1,193.6

10.0

7.7

768.4

2.5

6.0

15.1

LATIN AMERICA AND THE CARIBBEAN 15.1

Argentina Brazil

2.0

756.4

18.5

Chile Colombia Costa Rica

0.1

0.9

Ecuador

402.7

149.9

404.1

149.9

404.1

7.7

15.6

7.7

15.6

59.6

14.8

59.7

15.7

16.2

17.5

16.2

17.5

6.5

1.1

1.1

Guatemala

0.2

0.2

7.5

3.6

Honduras Mexico

1.5

Nicaragua

3.0

18.0

7.2

16.0

15.5

147.0

61.5

147.0

14.6

20.3

14.6

6.8

37.0

36.9

44.6

16.0

15.5

60.0 20.3

Panama

37.0

Paraguay

7.8 36.9

Peru

2.5

0.7

8.0

6.8

0.2

0.2

Suriname

0.3

0.3 31.1

MULTI-COUNTRY PROGRAMMES TOTAL

0.1

9.5

7.7

10.0

4.7 7.0

14.7

34.6

23.9

254.0

304.6

7.8

44.6

Saint Lucia Uruguay

1.5

2.0

El Salvador Haiti

1.5

18.5

6.5

Dominica Dominican Republic

15.1 395.0

31.1 11.6

7.4 2.5

0.7

16.8

15.1

19.1

11.0

6.4

1,175.7

1,146.6

8.0

NON-COUNTRY-SPECIFIC PROGRAMMES

34.4

25.9

4.0

55.1

TOTAL FOREIGN COUNTRIES

312.1

297.4

4,722.8

4,931.3

77.3

92.4

6.9

18.1

84.2

110.5

0.4

0.5

170.7

136.5

67.3

36.5

238.4

173.6

5.0 115.4

115.7

89.8

73.3

258.7

599.7

1,214.1

1,168.8

43.4

80.9

5,498.7

6,017.5

FRENCH OVERSEAS PROVINCES French Guiana French Polynesia Guadeloupe

190.6

146.1

33.5

28.9

224.1

174.9

Martinique

175.6

349.5

23.1

26.8

198.7

376.3

Mayotte New Caledonia

0.3

0.7

Reunion Saint Pierre and Miquelon Wallis and Futuna

0.1

0.2

Shared by several local governments

0.6

0.3

TOTAL FRENCH OVERSEAS PROVINCES AFD GROUP TOTAL

48.9

6.7

3.8

53.2

52.7

202.3

10.9

9.7

253.1

212.7

337.8

324.1

67.5

75.2

413.8

399.4

4.8

1.4

0.3

0.04

1.8

8.5

3.6

5.0

Shared by several provinces Shared by several local governments and provinces

46.5 241.9

5.1

1.5

0.1

0.2

2.4

3.9

2.8

5.0

0.4

0.4

1.8

1.7

1,250.2

1,301.3

217.9

202.7

8.5

313.9

229.1

5,973.0

6,232.6

333.3

318.4

98.3

73.3

258.7

599.7

1,478.4

1,505.6

2.8

6,977.2

7,523.1

256.8

The above amounts reflect financing commitments made by AFD Group in 2013 for current and future disbursement.

59

304.6

AFD

F inancial information

AFD 2013 Project financing commitments This is a partial list of projects approved for funding by AFD.

TOTAL COMMITMENT (€ MILLION)

SECTOR

COUNTRY

ProjeCt

BENEFICIARY

AGRICULTURE AND FOOD SECURITY

AFGHANISTAN

Rural development in the Central Highlands

NGO

CAMEROON

Support for comprehensive agricultural and grazing resource management in North Cameroon

Central government

10.00

CÔTE D'IVOIRE

Support to speed the recovery of agricultural industries (Agricultural debt-relief contract)

Central government

62.55

DOMINICAN REPUBLIC

Support for rural microfinance

Private-sector bank

2.00

LAOS PDR

Development programme for mountainous regions in the north

Central government

4.00

MOROCCO

Credit line to support small and midsize farms

Private-sector bank

20.00

MYANMAR

Irrigation improvements in arid regions

Central government

3.00

NIGER

Support for comprehensive management of the Niger-Kandadji river basin

Central government

7.00

SENEGAL

Support for irrigated-crops diversification and livestock development in Podor

Central government

30.00

TURKEY

Credit line to upgrade SME health and sanitation safety levels

Public-sector bank

100.00

VIETNAM

Credit line to finance private-sector activity in rural areas

Public-sector bank

20.00

Hydraulic infrastructure for agriculture in Binh Dinh and Hung Yen Provinces

Central government

18.80

Support for an agricultural risk-management programme

Public-sector bank

2.00

Support for family farms in sub-Saharan Africa

NGO

Trade capacity-building programme for local procurement, food-processing and quality improvement in West Africa

Public-sector enterprise

2.00

Support for irrigation policy design

Non-profit organization

1.20

ARMENIA

Creation of credit instruments to encourage renovations and energy-efficiency improvements to low-income housing

Public-sector bank

BRAZIL

Municipal-finance credit line for the Minas Gerais Development Bank

Public-sector bank

50.00

Construction of the "Guarulhos Train" suburban railway line

Local government

300.00

BURKINA FASO

Sustainable development project in Ouagadougou

Central government

40.00

COLOMBIA

2012-2015 Development Plan for the Municipality of Barranquilla

Local government

51.68

Partial funding for Antioquia Province's capital investment budget

Local government

52.10

CONGO

Urban road construction (Corniche highway)

Central government

40.00

CÔTE D'IVOIRE

Intercity and rural road rehabilitation

Central government

152.60

EGYPT

Support for jobs stimulus and improved living conditions

Central government

80.00

ETHIOPIA

Freight services capacity extension for Ethiopian Airlines in Addis Ababa

Public-sector enterprise

50.00

GABON

Ndjolé-Médoumane Highway rehabilitation in Gabon

Central government

55.00

INDIA

Funding for lightrail subway in Kochi

Central government

180.00

INDONESIA

Institutional support for transport infrastructure planning and construction

Central government

74.70

KENYA

Airfreight infrastructure upgrades at Mombasa's Moi International Airport

Public-sector enterprise

48.00

MOROCCO

Urban development of the new city, Zenata

Public-sector enterprise

150.00

Support for the environmental and social plan adopted within Al Omrane's capital investment programme

Public-sector enterprise

50.00

MOZAMBIQUE

Runway rehabilitation at Maputo International Airport

Central government

32.45

NIGERIA

Pilot program for microloans to support homeowners building, expanding and renovating their homes, with technical assistance provided by Lafarge

Private-sector bank

5.00

PHILIPPINES

Local-government finances reform programme

Central government

109.79

SENEGAL

Dakar Highway extension

Central government

SOUTH AFRICA

Railway modernization programme

Public-sector enterprise

SYRIA

Contribution to the multi-donor Syria Recovery Trust Fund

Private-sector bank

VIETNAM

Support for Ho Chi Minh City's capital investment fund

Public-sector bank

30.00

Local development and capital investment fund for the cities of Lao Cai and Kahn Hoa

Central government

20.00

NGO funding facility to help countries hosting Syrian refugees

NGO

MULTI-COUNTRY

INFRASTRUCTURE AND URBAN DEVELOPMENT

MULTI-COUNTRY

60

10.00

1.67

10.00

89.00 100.00 7.00

4.00

TOTAL COMMITMENT (€ MILLION)

SECTOR

COUNTRY

ProjeCt

BENEFICIARY

WATER AND SANITATION

BANGLADESH

Sustainable development of Dacca's water supply

Central government

73.20

BURKINA FASO

Production-capacity increase at Ziga Dam and water adduction and potable-water supply expansion in Ouagadougou

Public-sector enterprise

30.00

CAMEROON

Improvements to water-supply systems in Yaoundé, Bertoua, Edéa and Ngaoundéré.

Central government

79.68

Rainwater purification in Yaoundé

Central government

80.00

EDUCATION

ENERGY

CHAD

Improvements to access and governance of water and sanitation services in N'Djamena

Central government

2.50

CÔTE D'IVOIRE

Support for drinking-water and sanitation programme

Central government

70.90

GABON

Development of the Gué Gué watershed in Libreville

Central government

110.00

MEXICO

Support for water policy

Central government

100.00

PALESTINIAN TERRITORIES

Water purification station in Hebron

Local authority

SRI LANKA

Modernization and extension of Greater Colombo's drinking-water supply

Central government

75.07

ZAMBIA

Copperbelt Province water and sanitation project

Central government

50.00

BENIN

Professional training and youth employment improvements

Central government

4.00

CAMBODIA

Support for tourism activities

Central government

1.50

CHAD

Support for professional training to improve business competitiveness

Central government

5.00

DEMOCRATIC REPUBLIC OF CONGO

Support for primary-school teaching programme (debt reduction-development contract)

Central government

40.00

DJIBOUTI

Support for education and professional training

Central government

6.00

LEBANON

Support for the modernization of Lebanon's Cnam Conservatory (Conservatoire National des Arts et Métiers) and the Beirut High Teachers College (École Normale de Beirut)

Central government

21.00

MAURITIUS

Support for professional training

Central government

1.00

NIGER

Support for an education and training programme

Central government

12.00

SENEGAL

Support for improving basic education in Casamance

Central government

10.00

TOGO

Improvments to primary and secondary teaching quality

Central government

8.00

MULTI-COUNTRY

Support for environmental and forestry-training institutions in central Africa

NGO

1.50

Support for Pôle de Dakar to improve education in Africa

NGO

5.05

Zagtouli photovoltaic power station

Central government

22.50

BURKINA FASO

National pilot program for rural and industrial biofuels development

Central government

30.00

Biomass cogeneration plant in Yichun, Heilongjiang Province

Central government

35.00

INDIA

Environmental credit line

Public-sector bank

150.00

INDONESIA

Secure electricity supply in Jakarta

Public-sector enterprise

100.00

KENYA

Kenya-Ethiopia power systems interconnection

Central government

91.00

MOZAMBIQUE

Construction of a natural gas thermal power station

Central government

38.35

NIGER

NIGELEC electricity grid extension

Central government

30.00

NIGERIA

Power line construction

Central government

126.53

PALESTINIAN TERRITORIES

Support for the implementation of the Palestinian Authority's energy-efficiency policy

Local authority

2.00

TANZANIA

Credit line for energy-efficiency and renewables projects

Private-sector bank

9.40 53.00

CHINA

ENVIRONMENT AND NATURAL RESOURCES

10.00

Renovation of transportation hubs

Central government

UGANDA

Credit line for energy-efficiency and renewables projects

Private-sector bank

23.00

MULTI-COUNTRY

Sustainable energy funding facility for West African businesses and households

Private-sector bank

35.00

Sub-Saharan Africa regional funding facility for energy-efficiency and renewables studies and technical assistance

Central governments or parapublic institutions

3.00

50.00

CHINA

Waterway and wetlands restoration in Liaoning Province

Central government

CÔTE D'IVOIRE

Restoration of forests and natural reserves for conservation purposes

Central government

16.46

GABON

Support for monitoring and managing forests

Central government

12.00

INDONESIA

Renewables credit line

Private-sector bank

36.90

LEBANON

Sovereign credit line to finance energy efficiency projects

Central government

30.00

61

AFD

F inancial information

TOTAL COMMITMENT (€ MILLION)

SECTOR

COUNTRY

ProjeCt

BENEFICIARY

ENVIRONMENT AND NATURAL RESOURCES

MADAGASCAR

Forest conservation programme

NGO

MEXICO

Support for agriculture and to fight climate change

Public-sector bank

37.00

TURKEY

Support to reduce tourism and energy-production pressure on natural resources

Private-sector bank

60.00

Support for Turkey's forestry policies, cofinanced with the European Investment Bank

Central government

150.00

VIETNAM

Support for Vinacomin's environmental investment programme

Local government

MULTI-COUNTRY

Support for the sustainable development of sub-Saharan Africa's coastal areas

NGO

1.80

Support to fight climate change

NGO

2.00

Support for the International Union for Conservation of Nature (IUCN)

NGO

2.60

HEALTH AND HUMAN WELFARE

BUSINESS, INDUSTRY AND TRADE

35.00

2.50

BURKINA FASO

Urban sanitation project

Public-sector enterprise

COLOMBIA

Sovereign loan to Colombia to support human-welfare policy reforms

Central government

295.31

CÔTE D'IVOIRE

Reinforcement of Cote d'Ivoire's healthcare system

Central government

62.20

DEMOCRATIC REPUBLIC OF CONGO

Improving drinking-water access and hygiene to combat cholera in Uvira

Central government

6.00

GUINEA

Renforcement of infant and maternal healthcare services

Central government

10.00

MADAGASCAR

Improvements to infant and maternal healthcare services

NGO

4.00

MALI

Support for an anti-malaria research and action programme

Research center

2.00

Funding facility for the NGO, Health for Mali

NGO

8.00

MOZAMBIQUE

Hospital construction in Beira and Marromeu

Central government

12.00

NIGER

Healthcare access for children under age five

Central government

6.00

PAKISTAN

Support for the Aga Khan Hospital Center in Karachi to upgrade facilities to meet environmental standards

Foundation

11.93

TANZANIA

Support for basic healthcare services

Foundation

39.88

MULTI-COUNTRY

Support for the Epidemiological Surveillance and Investigation Network for Member States of the Indian Ocean Commission

Public-sector enterprise

6.00

Strengthening laboratory services in 7 West African countries

Foundation

5.00 1.35

Anti-AIDS programme and support for stigmatized populations

NGO

BURUNDI

Support for microfinance

Central government

3.00

CAMBODIA

Water and electricity credit line

Private-sector bank

11.06

MALI

Agricultural credit line

Public-sector bank

5.00

MAURITIUS

Environmental credit line for Mauritian banks

Public- and privatesector banks

60.00

TUNISIA

Support to set up a microfinance institution

Private-sector bank

1.00

Support for young entrepreneurs

Central government

1.80

Support for microenterprises in sub-Saharan Africa

NGO

1.23

Programme to strengthen regional trade in the Indian Ocean region

Chamber of Commerce

2.40

Pilot programme to promote access to financial services through product diversification and innovation

NGO

2.00 2.50

MULTI-COUNTRY

BUDGET SUPPORT AND OTHER

2.00

ALGERIA

Civil society reinforcement programme

NGO

BURUNDI

Budget support

Central government

3.00

CÔTE D'IVOIRE

Global budget support (debt-relief contracts)

Central government

24.00

GUINEA

Global budget support (debt-relief contracts)

Central government

7.00

Strengthening programme for civil-society organizations

NGO

1.92

MALI

Global budget support

Central government

15.00

NIGER

Global budget support

Central government

10.00

SENEGAL

Budget support loan

Central government

60.00

VIETNAM

Budget support to fight climate change

Central government

20.00

MULTI-COUNTRY

Global budget support for CEMAC

International institution

20.00

Global budget support for UEMOA

International institution

40.00

Above does not include PROPARCO or French Overseas Provinces projects. Please refer to their annual reports for details about their projects.

62

Credits AFD Coordination: Marie de Jerphanion, Benjamin Neumann, Kulthum Laoufi.

Art direction and lay-out: Pepper Only. Printing and production: Déjà Link.

English translation: Suzan Nolan, BlueSky International.

Photo credits P 1: Olivier Jourdanet, based on a model globe created by Joachim Robert P 2: a: James Keogh - b: Julien Girardot - c: Laurent Weyl P 3: a: Joseph Moura - b: Isabelle Bonillo - c: François Carlet Soulages P 4: Pepper Only / P 5: Alain Goulard / P 6: Ons Abid for AFD / P 7: Laurent Weyl P 8: a: CEFEB - b: Éric Thauvin / P 9: a: Éric Beugnot - b: Mathieu Arnaudet P 10: a: Isabelle Bonillo - b: Didier Gentilhomme P 14: a: Laurent Weyl - b: Joseph Moura P 15: Thierry Trouillet / P 18: Alexander Schuecke / P 21: Julien Girardot P 22: Modali for AFD / P 23: Joseph Moura / P 24: Joseph Moura P 25: Harandane Dicko / P 26: Thierry Latreille / P 27: Daoud Bouledroua P 28: François Carlet Soulages / P 29: a: Aude Flogny - b: Olivier Gilard, AFD P 30: Franck Galbrun / P 31: a: Carlos Tobon - b: All rights reserved.

P 32: Julien Girardot P 33: a: Western Guyana Hospital Center - b: Gérard Barsacq P 34: a: Oriane Zerah / b: AFD All rights reserved.

P 35: a: Chantal Regnault - b: Stephan Richard P 38: a: Nawal Moiline for AFD - b: Harandane Dicko P 40: a: Matthias Ripp Creative Commons license - b: Fabienne Pouyadou P 41: Julien Girardot / P 42: a et b : Laurent Weyl / P 43: CEFEB P 44: a and b: LeverdeRideau for AFD / P 47: Joseph Moura / P 51: Pepper Only P 52: Thierry Trouillet P 53: a: Virginie Leroy Saudubray - b: Abdelilah Chach - c: All rights reserved. d: Éric Thauvin - e: Pascal Fellous P 63: a: François Carlet Soulages - b: Julien Girardot - c: Carlos Tobon This report was printed with vegetable- rather than petroleum-based inks. Use of the Programme for the Endorsement of Forest Certification (PEFC) logo indicates that the timber harvested for paper pulp did not contribute to deforestation or impair environmental, economic and social uses of forest areas.

ISSN : 1299-0108 Copyright © June 2014

63

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