Annual Report - Agence Française de Développement

AGENCE FRANÇAISEDE DÉVELOPPEMENTANNUALREPORT2012

How does AFD’s corporate responsibility policy affectinternal workplace policies?AFD’s overall corporate responsibility policy translatesinto solid progress in work-related matters. The organizationis fully committed to gender parity; in 2012, womenoutnumbered men for the first time. Ten years ago, only18% of managers were women, compared to one in fourtoday. Female employees have also gained substantialground in the field offices, from less than 10% in 2002 tonearly 25% today. And we will soon have seven womendirecting field offices and eight women serving as deputydirectors.At the end of 2012, we also signed an agreement with allour workplace representatives to integrate the disabled.The agreement was approved by France’s regional officeof work and employment, and has already resulted in thecreation of a mission statement and in job-training for thedisabled.AFD has also signed a partnership agreement with anonprofit, “One Internship and After;” this program helpsmiddle-school students from underprivileged neighborhoodsfind and prepare for pre-secondary-schoolinternships. AFD will help at least five students per year.Finally, AFD bolstered its efforts in continuing employeeeducation, dedicating a larger share of payroll to training:4.4% at the end of 2012.AFD acts responsibly in the serviceof international solidarity.What has been done for your priority region – Africa?Sub-Saharan Africa remains the primary beneficiary ofour funding. In 2012, 34% of our aid (not including theportion earmarked for France’s overseas provinces) targetedthe African continent. Even more significantly, Africareceived two-thirds of our grants and interest-rate subsidies.Our work provides support for Africa’s overall andurban populations – which will double and triple respectivelybetween now and 2050. We should bolster agriculturalpolicies to feed those two billion Africans; and weneed to build up infrastructure to improve access to basicservices such as water and electricity. We also emphasizeeducation and healthcare, particularly for mothers.Maternal health is indispensible to better controlled birthrates and permanently improved living conditions amongthe poorest. We especially focus on these issues in Saheliancountries.What is happening in Arab countries?As we have expected, political and economic transitionstake a long time and call for our increased attention.Growth models have to be redirected toward jobcreation: just to keep unemployment at its current levelwill require creating 34 million jobs in the next 20 years.The region needs better sharing of the fruits of economicgrowth. Arab countries must also truly improve theirpopulations’ living conditions. The €1.2 billion in fundingthat we approved in 2012 for countries in the Middle Eastand North Africa aims to meet these enormous challenges.What is AFD doing in emerging countries?Over the past ten years, AFD has been authorized to workin several new countries: Brazil, China, Colombia, India,Indonesia, Mexico and Turkey, among others. However,these additions have not occurred at the expense oflong-time beneficiaries. Three principles have guided ourexpansions: (1) incurring no cost to France; (2) supportingprojects that favor green and inclusive growth; and (3)helping create economic and expert partnerships in thesecountries.In emerging countries, we have positioned ourselves toaddress global problems, particularly climate change:70% of our funding in emerging countries must have apositive effect on the climate. We are building a commonlanguage with these countries as they request Frenchexperience and expertise in sustainable development.AFD appears to have crossed a threshold in the FrenchOverseas Provinces, correct?That is true. Historically, our funding amounted to about€1 billion; in 2012, we reached €1.5 billion through ourvery vigorous support of the private sector. AFD hasunarguably proven itself as one of the growth enginesin the overseas provinces. Our funding represents 3%of their GDP. We meet about 40% of local-governmentfinancing needs. And we supply half of all social housingthrough our equity interests in seven overseas propertycompanies.Four years after transferring the cofinancing of NGOinitiatives to AFD, what results do you see?They are very positive. AFD and the NGOs really grewcloser through shared efforts to understand each other.AFD worked hard to better accommodate the NGOs’specificities. This uniting of efforts was essential for atleast three reasons. Country-to-country cooperationis insufficient because it does not necessarily take intoaccount citizen aspirations; working with civil societybrings us closer to populations’ needs. In addition, NGOscan act in emergencies where AFD cannot. And finally,NGOs liaise on our behalf with French citizens who wantto have a better understanding of development issues.Beyond creating ties by working together on projects, wesupport NGO initiatives in the field, and their efforts toeducate the French public about development, by includingFrench civil society in all our intervention designs.This organic relationship with international nonprofits willbe bolstered further; the goal is to double the amount ofFrench aid that flows through NGOs.5

AFD2012 ANNUAL REPORTLETTER FROMPierre-André PÉRISSOLCHAIRMAN OF THE BOARD OF GOVERNORSThis year, the Agence Française de Développement(AFD or “the Agency”) continued its expansion of aidfunding while working to improve the quality of itsofferings and consolidating its corporate responsibilitysystems.AFD strengthened its good practices, supported by itsnew Strategic Orientation Plan for 2012-2016. In June2013, AFD published its first corporate responsibilityreport, rated B+ by a third-party agency. The organizationalso adopted a new professional code of ethics.In the fall of 2012, the board of governors took stepsto strengthen anti-corruption measures and to reviewAFD’s procedures for fighting money laundering,corruption and terrorism financing. For all of theseconcerns, AFD has set standards for itself that placeit among the most stringent of donors.At the same time, financing activity has increased,with funding approvals reaching €6.977 billion in2012, of which 28.9% is destined for sub-SaharanAfrica. This region – a top priority – accounted for 69%of the budget allotted to AFD by the French government.In particular, these funds finance agricultureand infrastructure via subsidized loans, and healthand education via grants. The Agency also increasedits financial commitments to North Africa in supportof the Arab Spring, and to Latin America and Asiafor fostering green and inclusive growth. In France’soverseas provinces, where AFD plays a leading rolein financing the economy, 2012 was a record year– nearly €1.5 billion of approved funding commitments,compared to historical funding levels of about€1 billion. Furthermore, AFD has extended financingactivities to three new countries: Libya, Myanmar andPeru.The year 2012 also saw stronger ties between AFDand other development actors, particularly nongovernmentalorganizations (NGOs) and French localgovernments engaged in international developmentactions. AFD provided €45 million toward French NGOinitiatives; forty-one nonprofits received an averageof €860,000 for 52 projects. AFD also pursued itsknowledge-creation activities and evaluated theimpact of its fieldwork, enriching its expertise in developmentaid.During the year, AFD shared its expertise and practicalexperience by participating in important meetings ofthe international community: the World Water Forumin Marseilles in March, the Rio+20 Conference in June,the World Urban Forum, the 6 th Africités Summit inSenegal, and the Conference of Parties to the UnitedNations Convention on Climate Change in Doha.AFD continued touring the Objectif Développementphoto exhibition, entitled “A New Look at DevelopingCountries.” The exhibit traveled to Nantes, Dijon,Montpellier and Grenoble, and went on to Dakar inDecember.Through these activities, AFD retains its central role inFrance’s international foreign-aid system, contributingto the nation’s influence. Financing provided throughthe Agency represented 46% of France’s bilateralaid in 2012. AFD’s network of field offices is especiallyextensive and recognized worldwide. In numerousways, AFD affirms its commitment to the populationsof developing countries and to the fight against poverty,as well as to debating and strategizing about developmentchallenges – all in close collaboration withthe French government.AFD accomplishes all this thanks to its employees andagents, whom I wish to acknowledge and to thank fortheir expertise and know-how, their commitment andmotivation – all of which constitute AFD’s primaryassets.6

AN INSTITUTIONCOMMITTED TODEVELOPMENTFrance’s bilateral aid efforts find theirprimary outlet in the Agence Françaisede Développement (French DevelopmentAgency). It promotes international solidarityand is an important contributor to thedevelopment of France’s overseas provinces.Sustainable development serves as a common threadrunning through all of AFD’s aid activities, in alignmentwith policy directions from the French government,set by the French president and the prime minister.AFD’s international actions are based on France’s developmentand cooperation framework; the findings ofthe Interministerial Committee for Operations in theFrench Overseas Provinces guide its operations innon-mainland French territories. In 2011, a “means andobjectives” contract drawn up between AFD and theFrench government formalized these strategic orientations,as did AFD’s Third Strategic Orientation Plan,which was approved in October 2012.AFD is a public industrial and commercial entitycombined with a specialized financial institution. TheAgency provides funding and technical assistance fordevelopment projects and programmes that enhancemore sustainable and shared economic growth – effortsthat improve living conditions for the poorest, preservethe environment, and stabilize countries in fragile situations.AFD employees work closely with public- andprivate-sector local, regional and national partners,through AFD’s headquarters in Paris, its business universityin Marseilles, and 70 other offices and bureaus inforeign countries and in France’s overseas provinces.This geographic reach allows AFD employees to offerfinancing, risk analysis and hedging tools, and to tailorprofessional-training and capacity-building assistanceto specific localities. In 2012, AFD Group (AFD andPROPARCO) approved funding rose to € 6.977 billion.complements traditional bank financing, filling a gap inthe market. It also strives to promote the highest environmentaland social standards among its fund recipients.PROPARCO backs its financing with a €3.1 billioninvestment portfolio and €740 million worth of fundingagreements signed in 2012, combining strong financialperformance with high-impact on development issues.AFD partners with other aid agencies, emerging donors,development finance institutions and charitable foundations.In France, AFD supports the foreign aid activitiesof international solidarity organizations; it also supportsFrench local governments and businesses involved indevelopment work. In addition, the Agency maintains anongoing dialogue with public and private organizationsinterested in development policy; it works with them toraise the French public’s awareness about developmentissues.Since 2007, AFD has been committed to taking stepstoward social, environmental and governance responsibility.It constantly seeks out best practices for financedprojects and for internal operations, using a system ofcontrols to prevent corruption and money laundering.It also follows good social and environmental practices,implementing aid-effectiveness principles and monitoringand evaluating impacts.An AFD subsidiary, PROPARCO, helps the privatesector in emerging and developing countries with acomplete range of long-term, non-concessional financialinstruments. PROPARCO’s goal is to encourage sustainableand inclusive growth in the developing world. ItUganda – Bujugali Dam7

AFD2012 ANNUAL REPORTDEVELOPMENT:ONE MISSION,MANY TOOLSAFD offers a varied palette of tools to itsbeneficiaries and partners, tailored to theirneeds and projects.AFD is a public nonprofit institution that combinesfunding resources to meet three imperatives: adaptingto beneficiary capacities, respecting its assigned strategicdirectives, and carefully optimizing public fundsreceived from the French government.AFD’s financial instrumentsThe Agency’s main financial products include:• Loans: AFD makes (1) “sovereign” loans to centralgovernments and public entities that enjoy agovernment guarantee; and (2) “non-sovereign” loansto private-sector companies and public- or privatesectorentities without government backing. All loansmay be “concessional” (interest rates or other termsmay be subsidized via a grant component) or “nonconcessional”(interest rates or other terms follow themarket).• Grants and Subsidies: AFD provides grantsand subsidies for high-impact projects that do notgenerate sufficient profit over the short term to allowfor loan repayment, such as projects in healthcare,education and small-scale agriculture. Grants andsubsidies primarily fund the poorest African countriesand NGO-led projects.• Guarantees: AFD uses credit guarantees to motivatecommercial banks to make loans, especially to smalland medium-size businesses, for capital investment,job creation and environmentally-friendly projects.• Private Equity: A specialized investment capitalteam at PROPARCO manages equity stakes,providing funding required by companies and financialinstitutions for long-term growth.India – Bangalore Metro construction siteDIVERSIFIED FINANCIAL INSTRUMENTSAFD allocates highly concessional funding – grants,subsidies, subsidized loans – to the poorest countries,particularly for projects in sectors that create indirectprofits, such as health, education and small-scale agriculture.In 2012, the Agency concentrated 69% of itsgovernment-provided resources on sub-Saharan countries.Conversely, in intermediate-income countries and,a fortiori, in the larger emerging countries, AFD’s fundingis only slightly subsidized. Often, the aim is to promoteinnovative development approaches; in such cases, AFDlimits grant-giving to project-related technical assistance,thereby encouraging knowledge transfer, discussionsabout the best sectoral policies, or even joint innovation.AFD increasingly cofinances projects with other donors,especially its European peers. Cofinancing funds largescaleprojects that no single entity could finance alone.It also creates opportunities to discuss developmentfinance modalities, particularly within the InternationalDevelopment Finance Club. 181. The International Development Finance Club provides a meeting ground for bilateral and regional development banks and agencies; AFD joined its steeringcommittee in 2012.

Public and private financial resourcesFunding from international marketsAFD finances itself with its own funds, publicly-issuedbonds, and private equity. The AA+ credit rating on itsbonds allows the Agency to offer below-market loans.Financial support from the French governmentFunds provided by the French Ministry of Foreign Affairsallow AFD to finance projects with grants, includingsome co-development projects. Funds provided by theMinistry of the Economy and Finance essentially serve asloan subsidies. Funds from the Ministry of the OverseasProvinces support projects in those regions.In 2012, the French government allocated a total of€871 million to AFD-led development actions; thisincluded €571 million for grants and subsidies.AFD’s ability to raise low-cost funds from financialmarkets and to design innovative cofinancing arrangementsallows borrowers to benefit from leverage effects;this makes the economic profitability of their capitalinvestments higher than their debt service costs.China – Rebuilding SzechuanTunisia – Tunis tramwayIn the same vein, countercyclical loans help profitableenterprises in highly cyclical markets. Such loans featurevariable grace periods that are determined by marketindicators, adjusting loan repayments to match theborrower’s receipts.Increasingly, AFD Group lends directly to local governmentsin the developing world despite their lack of acentral-government guarantee. AFD also loans directlyto local and national financial services companies; theirbranch networks make them essential relays for localdevelopment, capable of providing long-lasting, largescaleservices to individuals and small businesses locally.AID THAT GOES BEYOND FUNDINGAFD also offers technical assistance to its funding beneficiaries,ensuring better functioning in funded projects.Such assistance includes knowledge sharing, localcapacity-building, help with institutional project-fundingarrangements, and support for organizational performanceimprovement, expert consultancy services, andso forth. AFD also implements a large share of France’scommercial capacity building programme, in the samespirit of assistance.A growing part of AFD’s services assists funding beneficiariesin managing risk. The Agency helps risky butsolvent borrowers gain access to financial markets byguaranteeing their loans or accepting secondary-creditorstatus, vouching for their independence and growthpotential.Besides offering various funding instruments, AFD puts itsbeneficiaries at the center of the development process,granting free access to its highly diversified expertise.The Agency offers technical engineering and support forpublic policy design by collaborating with a network ofinstitutions and leading academics, among other means.This large partner network also allows AFD to connectspecialist organizations from beneficiary countries withtheir French peers – for example, by pairing them withequivalent organizations, through decentralized cooperationagreements, or by collaborating with nonprofits.In addition, AFD manages the French Global EnvironmentFacility (FGEF), which cofinances projects, takinginto account global climate and biodiversity preservationissues. AFD also manages the secretariat for theFrench Alliance for Cities and Territorial Development(or PFVT), which brings French experts together aroundthe topic of sustainable cities.9

AFD2012 ANNUAL REPORT2012HIGHLIGHTS3 new foreign-aidcountriesAFD is authorized tointervene in Libya,Myanmar and Peru.1,48 billionEuros for the FrenchOverseas ProvincesAFD affirms its status as theleading financier of France’soverseas provinces witha record level of fundingin 2012 to support localeconomies.45 millionEuros in grants to41 French NGOs for52 project initiatives12-17 marCHA Thirsty WorldDuring the World WaterForum in Marseilles, AFDdiscussed solutions foruniversal access to water andsanitation. A movie financedby AFD, La Soif du Monde(A Thirsty World) by YannArthus-Bertrand, premieredat the conference.15-22 juNERio +20AFD attended the Rio+20Summit, reaffirming itscommitment to sustainabledevelopment, which it sees asa dynamic balance betweenthe economic, social andenvironmental dimensions.JUNECorporateResponsibility1 st CorporateResponsibility Report,rated B+ by a thirdpartyIn addition to publishing asocial, environmental andgovernance responsibilityreport (SER) and a newprofessional code of ethics,AFD bolstered its anticorruptionmeasures andreviewed its proceduresto fight money laundering,corruption and terrorismfinancing.27 SEPTEMBERPartnershipwith the Associationdes Régions de France(ARF)An agreement with ARFcounts as the 24 th signed byAFD with a decentralizedcooperation partner.The partnership aims tobetter integrate economicdevelopment in the regions’foreign aid actions, offer jointvocational-training services,assist in the French OverseasProvinces’ cooperationefforts, and take advantage ofregional networks.15 OCTOBERStrategyThe board ofgovernors approvesAFD’s 2012-2016Strategic OrientationPlanThe plan foreseesintervention modalitiesdifferentiated accordingto the situation in eachbeneficiary country; it aimsfor sustainable developmentas a key feature of all AFDactions, strengthened fundingactivities, and exemplarybehavior by all employeesand agents.OctoberEnergyAFD adoptedan interventionframework for 2012-2016 that will guide itsactions in the energy sector.During the period, AFDwill allocate €6 billion,concentrating on renewablesand energy efficiency.5 novembErTheLaunchof Hearings onDevelopment andInternational SolidarityAFD actively participatedin a vast governmentinitiateddiscussion aboutthe priorities, modalitiesand accountability ofFrance’s foreign aidpolicy. All contributors toFrance’s developmentaidefforts participated:parliamentarians, NGOs,migrant worker organizations,trade unions, businesses,foundations, localgovernments, and researchcenters.2-11 dEcembErExhibitionObjectifDéveloppementin AfricaAfter touring France, theObjectif Développementexhibition travelled to threeAfrican cities, starting withDakar during the 6 th AfricitésSummit.10

CORPORATERESPONSIBILITY11

AFDCORPORATE RESPONSIBILITYPROMOTING SUSTAINABLEDEVELOPMENT FORBALANCED ECONOMICGROWTHAFD made sustainable development its“identity marker” in its 2012-2016 StrategicOrientation Plan. This involves reconcilingsocial and economic progress withenvironmental preservation.ATTENDING TO LONG-TERMCHALLENGESAFD’s emphasis on sustainability derives from an awarenessof development’s complex and interlocking challengesin a time of changing foreign aid practices. Althougheconomic growth remains the main engine of socialprogress, increased inequality, intensified global competition,and recent systemic crises show that growth mustbe regulated to have an effective impact on developmentand well-being. Efforts to alleviate poverty havegradually evolved toward defense of a universal rightto basic goods and services: providing basic servicesaccess to a billion of the planet’s poorest looms as amajor development-policy challenge.At the same time, the last few decades have underscoredhow current development modes, when combined withrapid population growth, create unsustainable tensions;these arise from the need to meet an exponential demandfor energy and raw materials, manage externalities affectingthe environment and living conditions, and controlheightened competition for land and natural resources.This kind of development has reached the limit of whatthe planet can support, affecting major environmentalbalances. A collective management of such balances,which nation-states cannot carry out alone, henceforthrequires global regulatory and financing processes, onesthat target natural resource conservation, biodiversitypreservation, and climate-change effects mitigation.Biodiversity in IndonesiaA new sustainable-development aid policy must thereforeinclude an approach that preserves global naturalbalances; it must also support work that will benefit thepoorest countries. Consequently, such an approachmust inspire and support new and transformationaldevelopment policies in all countries – policies thatattend to social and environmental impacts alongsidefinancial ones.In its aid interventions, AFD targets those who mainlyfocus on innovation and these long-term challenges. Itsexperience confirms that there is no universal recipefor sustainable development; anyone can make contributionsto it. Sustainable development must be seen aspart of a continuous improvement process, supportedin turn by social, political and institutional processes.Improvements are made by disseminating information,supplying financial tools, and transferring the expertiseneeded to change production and consumption conditions.This emphasis on sustainable development – as a dynamicbalance among the economic, social and environmentaldimensions of development – also matches themain directions set during the Rio+20 Summit in June2012; the international community plans to define sustainabledevelopment goals by 2015.12

1 st Corporate Responsibility ReportIn 2012, AFD published its inaugural report on corporate responsibility and received a B+ rating according tostandards set by the Global Reporting Initiative. Taking steps toward corporate responsibility gives vital expressionto AFD’s concern for accountability, both in the projects it finances and in its internal operations. The Agency’s2007-2011 social, environmental and governance policies also underwent evaluation by a third party.Tunisia – Windfarm in El HaouariaAN APPROACH INTEGRATED INTO ALLSECTORS OF ACTIVITYAwareness of sustainable development must translateinto action across all of AFD’s procedures and interventions,as may be seen in the care taken to complywith proper working conditions and workers’ rights. It isalso seen in AFD’s efforts to rehouse displaced people,preserve biodiversity, and protect cultural heritage.AFD has set out written action goals for each of itsoperating regions and sectors: education, health, ruraldevelopment, water, energy, and so on. AFD is currentlyrevisiting its strategic sectoral frameworks, in order tointegrate a sustainable development angle into each one.AFD is also preparing a sustainable development“second-opinion” process, following decisions made in2012 in its Third Strategic Orientation Plan. Responsibilityfor formulating this “second-opinion” will not rest withthe chief operating officer, who examines project financeproposals. Rather, it will be the remit of an independentoffice, who will verify that AFD financing conforms tothe Agency’s sustainable development principles andobjectives.Combatting climate changeIn 2012, AFD Group approved funding commitmentsof €2.4 billion to fund 54 so-called “climate” projectsin developing countries and in France’s overseasprovinces. “Climate” projects deliver both developmentand anti-climate-change benefits. This €2.4 billion – a22% increase over 2011 – raises the Group’s approvedfunding commitments for climate projects to a total of€12 billion since 2005.This financing primarily affects development projectsand programmes that abate or eliminate greenhouse gasemissions. In particular, AFD supports renewable energy,energy efficiency, and urban mass transit. In 2012, forexample, AFD provided €100 million to fund a 100 MWsolar power plant in South Africa.The Group also finances assistance for central and localgovernment policies that simultaneously expand economicgrowth and combat climate change. For example,AFD committed to €20 million to fund a climate changeresponse programme in Vietnam.AFD also supports countries and populations in theirefforts to adapt to climate change – focusing on Africabut also on global water conservation. In 2012, AFD allocated€30 million to Morocco to reduce leaks in watersupply systems in 30 cities. This funding will also increaseMorocco’s water storage capacity, alleviating its highwater stress.13

AFDCORPORATE RESPONSIBILITYGOOD GOVERNANCE,TRANSPARENCY ANDACCOUNTABILTYAFD has committed to many best practices,with the aim of setting a good example. Threecentral concerns shape these practices:the fight against corruption, responsiblecorporate governance, and professionalethics. Transparency and accountability alsoplay essential roles in these practices.A GOVERNANCE ALIGNED WITH APUBLIC-INTEREST MISSIONInasmuch as AFD is a public institution fulfilling apublic-interest mission, it determines its chief directionsin tandem with the French government, working withthree key ministries: the Ministry of Foreign Affairs, theMinistry of the Economy and Finance, and the Ministryof the Overseas Provinces. AFD’s governance dependson four councils and committees that ensure good managementin the service of international solidarity:The Interministerial Council for Cooperationand Development defines France’s foreign aidpolicy. AFD’s supervisory ministries (Foreign Affairs,Economy and Finance, Overseas Provinces) act as thecouncil’s secretariat.The Interministerial Council for OverseasProvinces, chaired by the French president, setspolicy guidelines for operations in France’s overseasprovinces.The Strategic Orientation Board, presided overby the deputy minister of development, reinforcesthe articulation between the government’s policyguidelines and AFD’s operational implementations.Members of the strategic orientation board includerepresentatives from AFD’s key ministries and boardof governors.The Board of Governors, chaired by Pierre-AndréPérissol since June 2010, comprises 18 members: sixrepresentatives from the supervisory ministries; twoAFD employee representatives; four parliamentarians,and five experts. They deliberate on the Agency’sstrategic directions, project funding, and financialactivities, and approve a “means and objectives”contract negotiated with the French government.A government commissioner also sits on this board.The Board of Governors may delegate part of itsauthority to AFD’s chief executive, who must in turnanswer to the board. Or the governing board maydelegate – within pre-set funding limits – to one of threespecial committees: the Committee for Operations inthe French Overseas Provinces, the Committee forOperations in Foreign Countries, and the Committeeto Support Nongovernmental Organizations’ Initiatives.Greater accountabilityto parliamentariansIn recent years, relations between AFD and Frenchparliamentarians have grown closer, following changes tothe constitution and a July 2010 law governing France’sactions abroad. By deepening its engagement with AFD,the French parliament affirms its strong interest in theeffective execution of France’s foreign aid policy. Themain exchanges between lawmakers and the Agencyoccur during the design phase of AFD’s strategy, particularlyits “means and objectives” contract, and duringthe draft phase of budget bills, especially when AFDanswers budgetary questions. In 2012, ties between theAgency and the parliament also took form in eight parliamentaryreports that examine France’s developmentpolicy. Other interactions included testimony by AFD’schief executive at 29 Senate and National Assemblyhearings to inform the work of various commissions.14

AFDCORPORATE RESPONSIBILITYCAPITALIZING ONHUMAN RESOURCESAND CURBINGENVIRONMENTAL IMPACTSIn 2012, AFD took new steps toward greatersocial and environmental responsibility,improving workplace cohesion and careervariety for its 1,742 employees and agents.It also reduced its environmental impact.AFD strengthened its worldwide office network byhiring new recruits locally, particularly highly-qualifiedmanagers. It primarily seeks out talent for technical andfinancial engineering, knowledge creation, and healthand education expertise, as well as for managementfunctions such as risk analysis, internal controls, projectmanagement, and auditing.EMPLOYEE GEOGRAPHIC DISTRIBUTIONas of 31 December 2012(outside of mainland France)French Overseas Provinces17%Latin America,Caribbeanand the Pacific7%Asia15%Sub-Saharan Africa,Indian Ocean49%Middle Eastand North Africa12%AFD Group employee headcount 2011 2012France (mainland) 955 1,005Field offices and bureaus 151 148Technical assistants 6 5Transferees 22 21Total mainland France employees 1,134 1,179French Overseas Provinces 108 110Foreign countries 439 453Total local and foreign employees 547 563Total AFD Group employees 1,681 1,742Reserve bank employees* 367 362International volunteers(AFD Group and reserve banks)78 92* The reserve banks act in the name of the Banque de France,under its authority and upon its behalf. They operate as centralbanks in France’s overseas provinces. However, their employeescome under the economic and social unit, AFD/Reserve Banks.CONTINUING EDUCATIONContinuing education forms a vital pillar in AFD’s humanresources policy. The Agency spent a substantial 4.15%of its gross payroll on training in 2012, and extended it tomore collaborators: 90% of its agents attended at leastone training session during the year. In addition, AFDmade a special effort to reach out to locally recruitedagents in the field offices, organizing training sessions forthem at headquarters and producing various regionalseminars.Training covers all financial, technical, economic andlinguistic topics. In 2012, AFD emphasized sectorspecifictechnical courses to disseminate skills internally,providing as much help as possible to those responsiblefor internal and external operations.16

GENDER PARITYAt the end of 2012, women accounted for 51.7% of allemployees working for AFD Group and the reservebanks. The average age for female employees is 42.7years, compared to 45.4 for male employees. AFD madeprogress toward employment parity between womenand men, as stipulated in a new June 2011 labor agreement.It sets targets for greater parity at all levels of theorganization and covers those employed under Frenchlaw; these number 1,179 employees in AFD Group and102 transferees working for the reserve banks in France’soverseas provinces. In 2012, 45.2% of managers werewomen; the target for the end of 2013 is 50%. Womenheld 24.6% of senior management positions; the 2013target is 33%. In the field offices, women comprise 24.2%of the personnel; the 2013 target is 28%.The AFD Chad teamEMPLOYMENT AND WORKFORCEINTEGRATION FOR THE DISABLEDOnce AFD’s senior managers and trade union representativesnoted the organization’s low employment rate forthe disabled (1.7%), they instituted a new “Handicap”labor agreement in December 2012. It covers employeesworking under French law and actively focuses on hiringand integrating the disabled, and on maintaining employmentfor AFD employees who become disabled duringtheir career.AFD has also committed to bringing in participants froma French jobs programme, “Occupational Preparationfor Collective Employment;” they begin with internships,followed by work-training contracts. The French jobsagency Pôle Emploi, Opcalia Île-de-France, and theNational Center for Professional Training have set upthis programme. It aims to make it easier to hire disabledworkers by providing personalized training for specificjob openings in partner enterprises.Promoting workplaceintegration for young peopleIn October 2012, AFD signed a partnership agreementwith a nonprofit, “One Internship and After.” The organizationassists middle-school students from disadvantagedneighborhoods, using pre-secondary-schoolinternships to help them consider career paths. Thegoal is to allow each student, no matter his or her backgroundor scholastic aptitude, to discover various typesof work and to obtain an internship that will be useful fortheir future. AFD has committed to taking in at least fivemiddle-school students each year. Two were welcomedin December 2012; they spent five days learning aboutvarious professions. The Agency also expanded itswork-study program, increasing the number of studentworkers from six in 2011-2012 to eleven for 2012-2013.The AFD Reunion teamEmployee safety abroadAFD actively and constantly watches over the safety ofemployees working abroad, monitoring threats such asterrorist activity, earthquakes, or health risks, especiallyin troubled regions. When an event threatens employeesafety, a crisis unit mobilizes and assesses the situationon a daily basis, assisting local and expatriate employeesin whatever way is necessary.A responsible procurement andwaste management policyAFD has created a procurement department that hassystematized responsible practices by including socialand environmental clauses in its contracts. For example,headquarters buys paper that is guaranteed as recyclableand approved by an environmental watchdogand the Forest Stewardship Council; such paper represented76% of AFD’s total consumption in 2012.In addition, AFD requires subcontractors to reducewrapping materials and deliver only unpackagedproducts. In 2011-2012, AFD audited waste managementat its headquarters; the findings will enable theorganization to improve the coordination of existingpractices and define others worth implementing.Energy consumption and carbonemissionsOne hundred percent of the electricity purchased forAFD headquarters comes from renewables. In 2012,energy use decreased by 2% and electricity use by 8%,due to high-environmental-quality, low-consumptioninstallations and retrofits at headquarters and in someforeign offices. Employee travel accounted for morethan 50% of the Group’s total carbon emissions, sincein-country missions are crucial for monitoring projects.Nonetheless, AFD’s efforts to curb its carbon footprintlowered emissions from employee travel by 3% in 2012.17

AFDCORPORATE RESPONSIBILITYMITIGATINGRISKS TO ensureLONG-TERM OPERATIONSWhile taking risks is inherent in developmentfinancing, risk-taking should not imperil AFD’slongevity. That is why AFD has monitoringprocedures to ensure risk mitigation.COMPLYING WITH BANKINGREGULATIONSAs a specialized financial institution, AFD is subject tobank regulation and must comply with rules governingcredit institutions, such as maintaining adequate solvencyratios. AFD pays particular attention to fights againstmoney laundering, terrorism financing, and corruption.This entails complying with banking laws and helpingin the international effort to reduce such diversions offunds. In 2012, AFD bolstered already stringent use-offundsoversight procedures as part of its new anticorruptionmeasures. It will review these procedures toimprove coordination between all of the means used tocombat these forms of illicit funds diversion.MAINTAINING SOLVENCYTo ensure its own solvency, AFD carefully analyzescredit risks. It assesses borrowers’ ability to repay longtermdebts, using credit scoring methods that havebeen adapted for each intervention sector and eachborrower’s specific characteristics. It reviews the qualityof its entire loan portfolio every three months.The risk division reviews every loan that AFD plans tomake. It identifies possible project risks, looking at thetype of borrower, the country (especially its bankingsystem and sociopolitical risks), the international situation,and other factors. It also maps the risks, presentinga comprehensive view that helps predict the likelihoodof a risk occurring. AFD has also implemented a systemto record operational incidents; it helps monitor correctiveactions that will prevent reoccurrences.Alongside this continuous monitoring, AFD’s InternalAuditing Department audits each other department andforeign office to ascertain a posteriori proper financingprocesses, actual risk levels, and compliance with procedures.The audit periodically examines the effectivenessand suitability of audit and control measures.Frequent reports on these monitoring activities aresubmitted to the Internal Control Committee.The Audit Committee assessesthe quality of internal controlsThe Audit Committee works for the Board of Governors,with the task of verifying information and assessingthe relevance of accounting procedures for the entireAFD Group. The committee also evaluates the quality ofinternal controls. The Audit Committee is comprised ofone member of the governing board and four externaladvisors.INTERNAL CONTROLS ENSURE GOODPRACTICESAFD Group deploys an internal control system thatmonitors proper financing conduct, financial reportingreliability, and legal and regulatory compliance.18

2012ACTIONS19

AFD2012 ACTIONSAFD SERVES INTERNATIONALSOLIDARITYIn 2012, AFD Group approved 648 new fundingsfor a total of €6.977 billionBRUSSELS / EUROPEANINSITUTIONS LIAISONMARSEILLES / CEFEB,AFD BUSINESS UNIVERSITY17.4%of all financing commitments€1,214.1 millionin funding approvals7 offices and bureausPARIS / HEADQUARTERS17.4%of all financing commitments€1,217.7 millionin funding approvals11 offices and bureausMultidisciplinary fundingrepresents 0.6% of commitmentsand cannot be allocated to asingle geographic region28.9%of all financing commitments€2,013.5 millionin funding approvals30 offices and bureaus2012 AFD GROUP FUNDING APPROVALS(€ million)In developing and emerging countriesIn the French Overseas ProvincesLOANSGRANTS(Grants, subsidies, debt reliefand development contracts,budget aid, support for NGOs)GUARANTEESEQUITYPARTICIPATIONSLOANS, GRANTS AND SUBSIDIESSME GUARANTEES AND FINANCING2006201120121,26283214061475370TOTAL3,1404,841 6314,723 57111516790138671 436980 498TOTAL6,884TOTAL6,97720The numbers on these two pages do not include approvals for delegated funds that AFD deploys on behalf of third-party donors,such as the European Union, DIFD, or others.Funding approval values based on commitments made by AFD and its subsidiary, PROPARCO. Together these represent 99% of AFD Group net banking income.

14.5%of all financing commitments€1,010.1 millionin funding approvals12 offices and bureausFrench OverseasProvinces21.2%of all financing commitments€1,478.4 millionin funding approvals9 offices and bureausIN 2012AFD APPROVED FUNDINGTHAT WILL HELP:DEVELOPINGAND EMERGINGCOUNTRIESImprove drinking water accessand supply for 1.79 millionpeopleProvide sanitation systemsfor the equivalent of 360,000inhabitantsBuild and refurbish masstransit systems used by3.23 million riders annuallyImprove trash collection andremoval services for 4.7 millioncitizens annuallyEnsure primary schoolingfor 10 million children andsecondary schooling for3 millionProvide professional trainingfor 207,000 adultsAbate 3.6 million metric tonsof CO2 equivalent emissionsper yearTHE FRENCHOVERSEASPROVINCESSupport five healthcarefacilities used by 1.3 millionpatientsBuild 3,300 social housingunits financed by propertycompanies in which AFD holdsequityBolster 1,100 companies viacredit guarantees that resultedin bank loans worth €227 millionand created 1,770 jobsMethodology: These indicators reflectthe expected outcomes of projects andactivities that AFD approved fundingfor in 2012. They are based on AFD’sex-ante analyses (conducted prior tofunding approval) that are updatedduring funding proposal reviews foreach project. The updates estimate theoutcomes that should be achieved oncea project is completed. These indicatorstake into account the impact of AFD’sdirect as well as leveraged contributionsto these development efforts.SECTORS FINANCED BY AFD GROUP IN 2012Distribution of funding approvals Number of funding approvals * Business, IndustryEducation, Health,Anti-HIV/AIDSEnvironment andNatural ResourcesWater andSanitationMulti-sectorand OtherAgriculture andFood Security6%6.5%8.5%6% 5% 16%21%Business, Industryand TradeInfrastructureand Urban Developmentof which Energy47%Dans les pays d’intervention et dans les Outre-mer, hors garanties dans les Outre-meret financement dans le cadre du mandat de gestion Oséo.Agriculture andFood SecurityEnvironment and(8%)Natural Resources(5%)Water andSanitation 3352 34(6%) 39Education, Health,Anti-HIV/AIDS(10%)64Multi-sectorand Other(22%)142112Infrastructureand Urban Development(17%)of which Energy (5%)206* Does not include credit guarantees in the FrenchOverseas Provinces and delegated funding from OSEO.and Trade(32%)21

AFD2012 ACTIONSSUB-SAHARAN AFRICATAKES PRIORITYAFD finances infrastructure access,agriculture and food security in closepartnership with all developmentstakeholders in sub-Saharan Africa.The Agency works toward reducinginequalities and building up the privatesector, a robust source of job creation.A dynamic population, rising cities, strong and resilienteconomic growth, a wealth of resources, and a middleclass driving the emergence of more trustworthy governmentsand larger internal markets – all these trendscreate great hopes for the region. They also frequentlymask strong – sometimes extreme – disparities betweencountries, regions and peoples. The intensity and rapidityof these transformations collide with state weaknesses.Because of structural deficiencies, sub-Saharan economiesfail to create enough jobs or to reduce poverty andinequalities, preventing the sustainable management ofnatural resources. Furthermore, the fragile situation ofmany Sahelian countries was further aggravated in 2012.AFD Group’s funding approvalsfor sub-Saharan Africa reached€2 billion in 2012.In light of this situation, AFD Group’s funding approvalsfor sub-Saharan Africa reached €2 billion in 2012. Africancountries south of the Sahara remain AFD’s priorityfor aid interventions, representing 29% of the Group’stotal funding approvals by value and 47% by number offunding approvals. The region also received 69% of theofficial development assistance that France allocates toAFD, a total of €603 million. These financial resourcesinclude loan subsidies, project grants, general budgetaid, and debt relief. The 17 poorest priority countries forFrench foreign aid received 78% of the grant monies.Medical clinic in the Central African RepublicSTRENGTHENING AGRICULTUREAND PRESERVING ECOSYSTEMSAfrican farmers must increase yields to meet the continent’sdemographic and food challenges. The agriculturalsector employs 65% of sub-Saharan workers andconstitutes the principal entryway to the job market foryoung people. AFD supports agriculture and the entirefood-processing industry with project financing, whilepreserving – or even restoring – Africa’s fragile and oftenthreatened natural capital.In 2012, AFD Group mobilized €266 million and usedits entire range of financial instruments to help supportsmall-holder farmers, bolster agricultural and foodprocessingindustries, set up farm cooperatives,commercialize farm products, and sustainably manageecosystems.This support especially reinforced the institutional capacitiesof rural development sectors in Cameroon; it alsoimproved food security and the economic developmentof rural areas in Matam Region, Senegal. In Nigeria, acountry with nearly 80 million rural residents, joint AFDand World Bank financing will refurbish rural roads andfacilitate access to isolated populations in four federalstates, making it easier to bring village food productionto market. PROPARCO completes AFD’s aid approachwith direct loans to private-sector agricultural andfood-processing companies.AFD also financed biodiversity preservation for ecosystemsin Mozambique and the development of sustainablelogging models in Cameroon and the CentralAfrican Republic.22

AFD GROUP 2012 FUNDING APPROVALSFOR SUB-SAHARAN AFRICA (€ million)750.1 274.7 250.7 440.6Sovereign LoansNon-sovereign Loans195.1 Grants and SubsidiesPROPARCOand FISEAGuarantees 102.2TOTAL :2,013.5Budget Aid and HIPC InitiativeSECTORS FINANCED IN SUB-SAHARAN AFRICA(AFD Group, 2012)NUMBER OF FUNDING APPROVALSAgricultureand Food SecurityEnvironment and 31Natural Resources21Water and Sanitation18Infrastructureand Urban Development25Education, Healthand Anti-HIV/AIDS37Multi-sector and Other20Business, Industryand Trade154DISTRIBUTION OF FUNDING APPROVALSSupport for the Forest and Environment Sector Programme in CameroonPROMOTING SUSTAINABLEINFRASTRUCTUREAFD promotes African infrastructure upgrades whiletaking care to reduce environmental and climate changeimpacts. In line with decisions made by the G20 inCannes, AFD Group interventions primarily target energy,transportation, and urban development, reaching€673 million in 2012.AFD financing chiefly expands access to renewable energy(€515 million in 2012) and has helped exploit largelyunderdeveloped hydroelectric opportunities. In Cameroon,for example, AFD supported a hydroelectric damproject that will better exploit the energy-productionpotential of the Sanaga River Basin, providing electricityto populations in the region.AFD also promotes the development of alternatives tofossil fuels. In Mauritania, for example, AFD financed theconstruction of a pioneering hybrid solar-thermal powerplant. The regional dimension of energy issues alsorequires strengthening organizations dedicated to theproblem. In 2012, AFD helped the West African DevelopmentBank (or BOAD) implement regional policies forpower production, transmission, and distribution in WestAfrica.Environment andNatural Resources2.5%Water and Sanitation11.9%Education, Healthand Anti-HIV/AIDS12.3%Multi-sector and Other13.4%Agricultureand Food Security10.4%Transport infrastructure is also needed to open upisolated areas and integrate African economies intoregional and international trade. In 2012, AFD Groupdedicated €88.6 million to international transportinfrastructure, financing capacity expansion for an oceanport in Mauritius, an airport in Abidjan, and an air trafficcontrol agency serving Africa and Madagascar, the Agencyfor Air Navigation Safety (or ASECNA).Finally, improved basic services capacity in African citiestook up €69 million of AFD funding in 2012. Worksincluded urban waste management in Djibouti, drainageinfrastructure and roads in Koumasi (Ghana), anda storm-water treatment project and lagoon repairs inLomé, in a cofinanced partnership with the EuropeanUnion.Infrastructureand UrbanDevelopment33.4%Business, Industryand Trade16.1%The numbers on this page do not include approvals for delegated funds thatAFD deploys on behalf of third-party donors, such as the European Union.23

AFD2012 ACTIONS - SUB-SAHARAN AFRICAEXPANDING ACCESS TO HEALTHCARE,EDUCATION AND DRINKING WATERAmong its priority social concerns, AFD first concentratesaid on maternal and infant health, making grantsworth €46.3 million to the poorest countries in 2012.These grants, part of France’s Muskoka commitment in2010, bolster healthcare systems with equipment andskills; grant monies also fund affordable treatments. InSenegal, for example, funds for a reproductive healthand newborn programme will also strengthen capacitiesat the Ministry of Health’s Department of Health, Reproductionand Infant Survival, and in the Louga MedicalRegion. In Madagascar, AFD supports a social enterprisethat combats child malnutrition.In the education sector, AFD seeks to increase access– without discrimination – to high-quality basic schooling,which now includes middle schools; it does so bybolstering workplace integration and the articulationwith professional training. In 2012, AFD dedicated€149 million to basic education (from primary throughsecondary school) in several countries, such as BurkinaFaso, Burundi and Cameroon. AFD supportedprofessional training with €25.5 million, creating trainingcenters as requested by African authorities. Thesecenters primarily focus on business, industry and trade– the engines of national economies – in close collaborationwith private-sector companies.AFD financing for drinking water supply bolsters institutionalframeworks and sustainable water managementefforts, thus improving urban and rural access to reliablewater services. Sanitation projects target primary andsecondary cities as priorities. In 2012, AFD approved€239 million of financing for water and sanitation insub-Saharan Africa.SenegalFOOD SECURITY FOR POPULATIONS LIVINGIN THE SENEGAL RIVER VALLEYFor thirty years, AFD has funded the Senegalese authorities’development priorities for the Senegal River Valley:productive land creation and development of irrigatedagriculture. In 2012, Senegal called upon AFD to financea new programme, known as ASAMM, to improve foodsecurity and commercialization in Matam Region. Avery concessional €22 million loan will finance productiveinvestments, primarily agricultural and hydraulicinfrastructure, that should improve farm yields. Theloan will also capitalize an investment fund for collectiveinfrastructure, including pastoral land development,storage and packaging facilities, and farm-productcommercialization. Furthermore, a grant for €500,000will complement these initial actions, giving technical andinstitutional support to various regional stakeholdersinvolved in the development, management and promotionof these capital investments. These steps shouldimprove food security and resilience for this region’spopulation, one of the most vulnerable in Senegal.TanzaniaSANITATION AND DRINKABLE WATER FORTOWNS ADJACENT TO LAKE VICTORIASince fewer than 20% of Tanzania’s citizens have sewagehook-ups, the government has launched a massivewastewater management and drinking-water supplyprogramme, targeting three cities on the banks of LakeVictoria: Mwanza, Bukoba and Musoma. With a totalproject cost of €1.145 billion, AFD and the EuropeanInvestment Bank (EIB) will contribute €45 million each.The Tanzanian government is investing €14.5 million andthe European Union €10 million.This project joins a national and regional effort topreserve Lake Victoria’s water quality and optimize itsmanagement in the face of growing urbanization. Theprogramme will benefit 450,000 residents and improveliving conditions for the one million Tanzanians who livenear the lake.24

Schoolchildren in MauritaniaMauritaniaA PIONEERING HYBRID POWER PLANT IN KIFFAThe Mauritanian government has made access to electricityone of its development policy priorities. In Kiffa,the second largest city, located 600 kilometers southeastof Nouakchott, the Mauritanian Electric Company(or SOMELEC) has begun building a pioneering hybridsolar-photovoltaic and thermal power plant. This powerplant, with its 1.3 megawatt-cubed capacity, shouldeventually produce reliable electricity at a competitivecost – enough to power 5,300 urban households. Theproject aims to foster an alternative, non-fossil-fuel energyindustry, setting an example to replicate elsewhere inthe country and the region. AFD is financing this projectthrough a €19 million loan to Mauritania to construct apower plant and transmission lines from Kiffa to Guerou.A €4.8 million grant from the European Union EnergyFacility completes the funding; the grant will pay for gridconstruction and residential connections.Water tower under construction in SenegalMadagascarNUTRI’ZAZA: A COMPANY THAT COMBATSINFANT MALNUTRIONChild nutrition in Madagascar is very unstable and structurallyweak: 50% of children younger than five showdelayed growth; 42% suffer from wasting, and 13% fromacute malnutrition. The urban section of the Nutrimadproject, led by the Technological Research and ExchangeGroup (or GRET), creates centers for counseling, nutritioneducation and baby food distribution. These “hotelin-jazakely,”or baby restaurants, distribute a foodsupplement, Koba Aina, to the most disadvantaged families.The Nutri’Zaza company has a mandate to expandthe baby-restaurant network to all Malagasy towns andto market the food supplement through local grocerychains, NGOs, and charities. In an entrepreneurial spirit,Nutri’Zaza seeks to keep the product as affordable aspossible for the poorest families while making a profitto ensure the company’s longevity. AFD has given thecompany a €900,000 grant, covering losses attributableto start-up costs incurred during the company’s first fouryears. The funding will also finance the technical assistanceneeded to get the project off the ground.25

AFD2012 ACTIONSBOLSTERING TRANSITIONS INTHE MIDDLE EASTAND NORTH AFRICAIn the Middle East and North Africa (MENA),AFD focuses on fostering job-creating economicgrowth, strengthening social and regionalcohesion, and improving the quality of life.The year 2012 saw complex debates about new constitutionsin Tunisia and Egypt, the halting consolidation ofinstitutions in Libya, the beginnings of a political transitionin Yemen, and an increasingly serious civil war inSyria. Countries south and east of the Mediterraneanhave yet to see a return to economic growth rates equivalentto those preceding the political crisis.The Arab Spring cleared the way for the appearance ofnew regional financiers. The Gulf States provide everlargersums for public capital investments (Saudi Arabiain Jordan) and for budget aid (Qatar in Egypt). Similarly,the arrival of the European Bank for Reconstruction andDevelopment (ERBD) in North Africa opens new financingpossibilities for the region’s private sector.In this connection, AFD has pursued and reinforced relationswith the European Union, using the NeighbourhoodInvestment Facility (NIF) for eight projects. In addition,the European Commission has entrusted AFD with two€55 million delegated-funds management agreements.A RENEWED STRATEGYIn February 2012, AFD approved a new strategy forMENA, one which will help AFD respond to social andeconomic changes in the region from 2012 through2014.The strategy aims to bolster job-creating economicgrowth by developing industry and labor-intensiveservices. It also aims to strengthen social and regionalcohesion by supporting land-use policies and fightingsocial exclusion, among other matters. It equally aimsto improve the quality of life – for example, by workingtoward energy security in the countries most dependenton fossil fuels.IMPROVING LIVING CONDITIONSTurkey – The City of IzmirAFD funding approvals for MENA totaled €1.217billion in 2012. This high amount reflects the needs oflarge-scale infrastructure projects, such as the Cairometro system and sectoral budget aid in Jordan, amongothers. Disbursements reached €877 million. This financingmakes possible neighborhood-scale projects thatimprove living conditions: solid waste managementservices in Gaza, sanitation in Upper Egypt, slum redevelopmentin Tunisia, a tramway in Casablanca, a moreefficient water supply in Morocco, and an educationprogramme in Lebanon.TurkeyURBAN TRANSPORTATION IN IZMIRThe Izmir municipality in Turkey defined an ambitiousurban programme as part of its 2010-2030 TransportationPlan, one that integrates various means of masstransit – boats, articulated buses, suburban trains, andmetros. AFD, EBRD and the World Bank’s InvestmentFinance Corporation (IFC) will provide €159 million tocover the investment in maritime transportation, including17 ferries, new and renovated docks, and a maintenancesite. AFD approved €45 million to replace thecurrent fleet of ferries with higher-performance andmore fuel-efficient ones.By offering fast, high-quality public transportation, thisproject aims to reduce urban pollution and decreaseexclusive use of private vehicles.26

AFD GROUP 2012 FUNDING APPROVALS FORTHE MIDDLE EAST AND NORTH AFRICA (€ million)939.0 163.5Sovereign LoansTOTAL :1,217.7Non-sovereign LoansPROPARCO 81.230.4 Grants and Subsidies Guarantees 3.5NUMBER OF FUNDING APPROVALSFOR THE MIDDLE EAST AND NORTH AFRICA(AFD Group, 2012)Agricultureand Food Security5Water and Sanitation5Education,Health andAnti-HIV/AIDS5Infrastructure andUrban Development14Business,Multi-sector and OtherIndustry and Trade11 12DISTRIBUTION OF FUNDING APPROVALSFOR THE MIDDLE EAST AND NORTH AFRICA BY COUNTRY(AFD Group, 2012)Palestinian TerritoriesSOLID WASTE MANAGEMENTIN THE GAZA STRIPSchoolchildren in LebanonA multi-donor €30 million trash removal programme inthe Gaza Strip, funded by the World Bank, the IslamicDevelopment Bank and local sources, receives AFD cofinancingof €10 million, augmented by €5 million of delegatedfunds from the European Union. It is a priority forthe Palestinian Authority because it protects water anddirectly aids Gaza’s residents, solving an environmentaland health emergency.The goal is to improve living conditions by collecting solidwaste and transferring it to landfills, built and operatedaccording to international standards.Turkey12.5%Tunisia5.0%Palestinian Territoriesand Libya1.5%Morocco31.0%Multi-country Programmes0.5%Lebanon5.0%Egypt32.0%Jordan12.5%The numbers on this page do not include approvals for delegated funds thatAFD deploys on behalf of third-party donors, such as the European Union.JordanAN ENERGY AID PROGRAMMEJordan faces an energy crisis that affects the country’spublic finances and economy. AFD supplied a€150 million budget-support loan in June 2012. Incompliance with an IMF energy programme, AFD willhelp the Jordanian government with implementation.This joint effort will cover all the needs of the energyindustry: public electricity utilities, energy supply, electricityrate-setting, gas subsidies, renewables, and energyefficiency.LebanonIMPROVING TEACHING AND FACILITIESIN SCHOOLSThis project is part of Lebanon’s National StrategicEducation Plan, supported by the World Bank,the European Union and USAID. AFD has provided€46.5 million via a grant and a subsidized loan.The project comprises a school-building and equipmentprogramme and capacity-building for adult-educationteachers; it will also include technical assistance for theMinistry of Higher Education and Teaching, to guide itssupervision of project work sites.This project aims to improve apprenticeship conditionsin schools, primarily in the disadvantaged areas ofNorth Lebanon, Bekaa and Mount Lebanon. It will alsostrengthen the quality of teaching, especially in Frenchlanguage courses.27

AFD2012 ACTIONSPRESERVING THE ENVIRONMENTAND REGIONAL BALANCESIN AsiAAFD helps integrate environmental issuesinto the public policies of Asian governments,especially the emerging ones. In fragile andpost-conflict states, AFD seeks to attenuatethe factors that cause conflict.In 2012, AFD was authorized to intervene in Myanmar, its18 th Asian beneficiary, where it financed three projects atthe end of the year. Additionally, AFD identified projectsin five Central Asian and Caucasus countries where ithas been authorized to operate since 2011: Armenia,Azerbaijan, Georgia, Kazakhstan and Uzbekistan. Thispreliminary work should allow AFD to deploy the firstproject funds as early as 2013, notably to foster the transitionto low-carbon economies.AFD strengthened its relationship with the Asian DevelopmentBank and Japan’s aid agency, JICA. It alsodeployed the first European Commission investmentfacility for Asia, and started promising discussions withits South Korean and Australian peers.“GREENING” THE GROWTH OF ASIANCOUNTRIESAFD assists Asian governments – particularly in emergingnations – to better integrate environmental issuesinto public policy. For the second consecutive year, in2012, AFD, with JICA, contributed to Vietnam’s “ClimatePlan.” The plan aims to abate the country’s greenhousegas emissions and reduce its vulnerability to climatechange effects.Vietnam – Support for the agricultural industryand funded two credit lines to India and to Indonesia forrenewable energy initiatives. Finally, AFD also supporteda sustainable forest management project in the Chineseprovince of Hunan.ASSISTING IN REGIONAL REBALANCINGIn the fragile states of Afghanistan, Myanmar and Pakistan,AFD seeks to attenuate the roots of conflicts whileencouraging social cohesion. To do this, the Agency in2012 financed basic services – water, electricity, healthcare,microfinance – and agriculture to improve livingconditions, especially those of women. These projectsalso renew ties between governments and their citizens.AFD also supports projects that create economic growth,in an effort to achieve balance in the region and redressdevelopment gaps between countries. In Cambodia,AFD provided funds to the agricultural sector to financeirrigation and rice and peanut commercialization. In Vietnam,AFD has reinforced professional training capacitiesand helped expand public-private partnerships.In the face of unprecedented Asian urbanization, AFDhas also financed several low-carbon urban mobilityprojects; these include the Bangalore Metro, dedicatedmass transit lanes in Bandung and Dacca, and amultimodal transportation hub in Wuhan. Other urbanenergy efficiency projects include electricity gridsin Jakarta, public lighting in Phnom Penh, and watersupply in Jodhpur and Phnom Penh. Energy efficiencyand renewables are central priorities for AFD in Asia,since the region accounts for 50% of the world’s fossilfuel consumption. Thus, in 2012, the Agency extended28

AFD GROUP 2012 FUNDING APPROVALS FOR ASIA(€ million)SECTORS FINANCED IN ASIA(AFD Group, 2012)543.4 277.2Sovereign Loans148.3TOTAL :PROPARCO1,010.1NUMBER OF FUNDING APPROVALSNon-sovereign LoansGuarantees 0.2Grantsand Subsidies41.0Environment andNatural Resources5Water and Sanitation4Agricultureand Food Security8Infrastructureand UrbanDevelopment14Education, Healthand Anti-HIV/AIDS9Business, Industryand Trade10Multi-sector and Other12Cambodia – Irrigation canal on the urban peripheryPromoting French savoir-faireAFD’s Asian aid beneficiaries recognize and expect toprofit from French know-how and expertise, particularlyfor green economies and sustainable cities. In light ofthis, AFD promotes both the visibility of French skills andFranco-Asian synergies to its target partners, includinglocal authorities, specialized public agencies, NGOs,research centers, and other institutions. In 2012, AFDmade good use of innovative French solutions and skillsin its Asian sustainable cities projects. These includedproducing a workshop on water issues in Beijing, with theinvolvement of French experts and enterprises; refurbishingLuan Prabang in Laos with the help of Chinon, aFrench city; financing urban transportation and lighting,using the expertise of French companies; and partneringwith PlaNet Finance for microfinance services inMyanmar.IndiaIMPROVING URBAN MOBILITYBangalore, India’s third-largest city, will count 10 millioninhabitants in 2020 compared to 8.5 million today. Theurban bus network can no longer meet the city’s mobilitychallenges. This causes very slow traffic – the averagespeed is 12 km per hour – and high levels of air pollution.To remedy this situation, AFD loaned €110 million tobuild a metropolitan rail system, complementing financingfrom the Asian Development Bank and Japaneseand South Korean aid agencies. By 2017, two millionriders will use the system daily, which will eliminate sevenmillion tons of carbon emissions over 30 years. Followingopen requests for tenders, several French companieswere selected for expert consultancy services, trafficsignalequipment, and technical studies for the project.DISTRIBUTION OF FUNDING APPROVALSAgricultureand Food Security5%Environment andNatural Resources28%Water and Sanitation6%Education, Healthand Anti-HIV/AIDS4%Multi-sector and Other2%Business, Industryand Trade6%CambodiaEXEMPLARY WATER MANAGEMENTPhnom Penh concentrates 10% of Cambodia’s populationand most of its industrial activity. Eighty-five percentof its residents have drinking water services. This rate –remarkable in the region – comes from the good governanceand efficiency of the Phnom Penh Water SupplyAuthority. The city now faces a stronger demand forwater, due to a rural exodus and the city’s accelerateddevelopment. The water authority used a €30 millionloan from AFD to finance investments that will doublethe capacity of the main drinking water production plant.The project will increase residential access to drinkingwater, boost the city’s economic development, andreduce social inequality by supplying water to previouslyunconnected areas on the city’s periphery.Infrastructureand UrbanDevelopment49%The numbers on this page do not include approvals for delegated funds that AFDdeploys on behalf of third-party donors, such as the European Union.29

AFD2012 ACTIONSMEETING URBAN ANDENVIRONMENTAL CHALLENGESIN LATIN AMERICAIn Latin America, AFD promotes green andinclusive growth among central and localgovernments and public enterprises. In theCaribbean region, the Agency supportspoverty alleviation and regional cooperation.In 2012, AFD Group approved €1.214 billion of fundingfor the Latin America and Caribbean region. In additionto its financing, AFD puts its experience to workin technical cooperation programmes, and promotedpublic and private French expertise that may proverelevant to regional problem-solving. Furthermore, AFDactively participates in debates about the economic andsocial development challenges that the region faces,thus strengthening relations between France and LatinAmerican countries.Bolstered by its practical field experience, AFD has setnew goals for its Latin American aid activities for 2012-2014. The Agency intends to reconcile its interlocutors’expectations with its mandate for green and inclusivegrowth and with other donor interventions. AFD’s workin the region focuses on two major challenges: findingsustainable and inclusive solutions to problems posedby rapid urbanization, and helping develop public policiesthat protect the environment and fight climatechange.IMPROVING LIFE IN THE CITYLatin America has the world’s highest urbanization rate.This rapid and massive phenomenon creates a genuinelag in infrastructure and services which, in turn, contributesto social exclusion and economic inefficiency.That is why AFD strengthened its collaboration withLatin American national and local authorities in 2012,as they worked on formulating inclusive urban policies.In Colombia, AFD loaned €150 million to Findeter,Colombia’s municipal finance bank, to bolster the bank’sbalance sheet and to fund green and inclusive urbanpolicies.Brazil – Protecting urban biodiversityPROTECTING THE ENVIRONMENTIn 2012, AFD continued its support for policy developmentthat combines environmental protections withnatural resource valorization. After providing supportfor the Special Anti-Climate-Change Programme, AFDrenewed its commitment to work with Mexico on preservingbiodiversity, approving a loan to the federal governmentfor €60 million in 2011. This loan supports Mexico’ssustainable biodiversity management policy withnew land-use planning instruments, inspired by France’sregional natural park experience.STRENGTHENING HUMAN CAPITALAccess to and quality in education and healthcareservices constitute major challenges and central governmentpolicy concerns for Caribbean countries. AFDsupportedprojects in Haiti and the Dominican Republicwill improve access to healthcare, higher education andprofessional training among the most disadvantaged,increasing their future opportunities.30

AFD GROUP 2012 FUNDING APPROVALSFOR LATIN AMERICA AND THE CARIBBEAN(€ million)781.9149.9 260.7Sovereign LoansPROPARCONon-sovereign LoansGuaranteesBudget aid andHIPC InitiativeTOTAL :1,214.12.58.0Grants and Subsidies 11.1SECTORS FINANCED IN LATIN AMERICAAND THE CARIBBEAN(AFD Group, 2012)NUMBER OF FUNDING APPROVALSEnvironment andNatural Resources3Education, Healthand Anti-HIV/AIDS2Agricultureand Food Security5Infrastructureand UrbanDevelopment12Multi-sector and Other1Business, Industry and Trade10DISTRIBUTION OF FUNDING APPROVALSColombia – The capital city, BogotáEnvironment andNatural Resources5%Education, Healthand Anti-HIV/AIDS2%Multi-sector and Other1%Agricultureand Food Security1%International summit meeting« Cities and Climate Change »AFD co-produced the “Cities and Climate ChangeSummit” with the municipality of Bogotá in November2012, bringing together politicians, public officials,experts and civil society activists. Participants sharedbest-practice strategies for sustainable urban management,and set up a network of cities firmly engaged withthese issues.The guest of honor, Mexico City, presented the principaloutcomes of the “Mexico City Pact” or Global CitiesCovenant on Climate. So far, the covenant has been ratifiedby about 270 cities worldwide. Participating citiescommit to taking concrete steps toward climate changemitigation and adaptation. At the summit meeting, citiesshowed their willingness to innovate in order to maintaina balance between ecological responsibility and socialinclusion.2012: The Year of Brazil!Following a 2011 strategic redefinition of its Brazilianintervention mandate, AFD greatly expanded its operationsin that country. Four projects received fundingapprovals in 2012, for a total of €771 million.These new market-rate loans will provide €300 millionto support the urban mobility policy of Rio de JaneiroState; another €300 million for a multiyear action plan tobroaden basic services access in Minas Gerais State; and€45 million for electricity production and €66 million forpower grids in Rio Grande do Sul State.Business,Industry and Trade8%Geothermal powerin the Lesser AntillesA SUCESSFUL EXPLORATORY PHASEInfrastructureand Urban Development83%The numbers on this page do not include approvals for delegated funds that AFDdeploys on behalf of third-party donors, such as the European Union.The Caribbean Islands face major energy challenges. Astheir need for power grows, their energy mix, predominatelybased on imported hydrocarbons, leads to highproduction costs and exposes countries to internationalprice volatility. The development of renewables wouldreduce electricity costs and support the region’s competitivenesswhile preserving its environment.Since 2008, AFD, the FGEF and the European Unionhave supported the development of geothermal powerin Dominica. Studies and drilling tests have confirmeda production capacity of 120 MW, six times more thanthe country’s domestic demand. Excess electricity couldbe exported to the neighboring islands of Martiniqueand Guadeloupe, supplying them with clean energy. In2012, AFD provided additional aid for this project, with a€6.5 million loan to finance the first drilling site.31

AFD2012 ACTIONSPROMOTINGTHE FRENCH OVERSEASPROVINCES’ DYNAMISMIn France’s overseas provinces, AFD servesas a partner to the public sector, providingconsulting services and financing. It alsoserves as a public bank for private-sectorenterprises, as a shareholder in socialhousing companies, as an engine for regionaleconomic integration, and as a creator ofknowledge.ASSISTING LOCAL POLICYMAKERSIn the French Overseas Provinces, AFD offers financialtools and consultancy services to those working to defineand implement local public policies. In 2012, publicsectorfinancing commitments reached €467 million;three-quarters of these funds were state-subsidizedloans. Several small towns on the Marquise Islands inFrench Polynesia have asked AFD to finance their annualbudgets for sustainable capital investments. AFD alsosupported multiyear investment programmes in largertowns, such as those in Reunion; nearly all cities receivedsubsidized loans in 2012. In addition, AFD advises onpublic investment policies.A PUBLIC BANK FOR THE PRIVATESECTORStrengthening local companies is a crucial developmentissue in France’s overseas provinces. More than in mainlandFrance, provincial businesses struggle becauseof their constant under-capitalization. AFD worksclosely with local banks and complements their efforts,responding to the weak business climate in the FrenchOverseas Provinces with financing made directly availableto private-sector companies or via OSEO, France’ssmall-business support agency. The value of such fundingalmost doubled in 2012, reaching the record amount of€1 billion.HOUSING AND URBAN DEVELOPMENTSocial housing, urban renewal, green residences – AFDmeets strong demand for housing and urban developmentwith a variety of capital investments. Alongsidelocal governments, AFD invests in seven propertycompanies on behalf of the French government and onits own account. These major social housing providersMartinique – A bus from the Fort-de-FranceLégende metropolitan area urban transportation networkmanage 74,000 units between them, including 3,300built in 2012. This represents 50% to 75% of subsidizedhousing in each province, and generates considerablebenefits for local economies.PROMOTING INTER-REGIONAL TRADEAND SOLIDARITYAFD assists public and private organizations in theFrench Overseas Provinces as they pursue projects withneighboring countries. Such assistance takes the form offinancial tools for businesses wishing to expand internationally.AFD also provides regional project finance andtechnical assistance for healthcare, biodiversity preservation,and solid waste management, among otherneeds. In 2012, the Agency took steps to systematize itsapproach, defining a regional cooperation strategy forfive French Overseas Provinces.ENRICHING KNOWLEDGE ABOUTOVERSEAS ISSUESAFD-conducted studies of the French OverseasProvinces analyze the implications of their social andeconomic changes, and consider each region’s particularities.AFD published several studies on humandevelopment and business in 2012. The Agency is alsoconducting economic analyses as part of its partnershipwith an umbrella organization, CEROM, comprised oflocal reserve banks; the French statistical agency, INSEE;and Pacific-region statistical agencies.32

AFD GROUP 2012 FUNDING APPROVALSFOR THE FRENCH OVERSEAS PROVINCES (€ million)427.1 543.0 311.8Prêts souverainsPublic SectorLoansPrivate Sector Loansand Bank RefinancingPublic SectorGuarantees40.0Private Sector Guarantees146.2PROPARCOet FISEAPrivate SectorLoans (OSEO)1.8TOTAL :1,478.4PROPARCO8.5Grants (Foreign Affairs Ministry)SECTORS FINANCED IN THE FRENCHOVERSEAS PROVINCES(AFD Group, 2012)Excluding private sector guarantees and loans deployedas part of OSEO’s management mandate.NUMBER OF FUNDING APPROVALSEnvironment34Urban Development,Facilities and Energy40French Guiana – Student transportation on the Maroni RiverSocial Cohesion23Other2Business, Industry and Trade16Includes only loans. Does not include 39 small-scale funding approvals.DISTRIBUTION OF FUNDING APPROVALSReunionFINANCING A DEVELOPER’S CAPITALINVESTMENTSAs a complement to local banks, AFD provides multiyearfinancing to the largest private property company onReunion Island, CBo Territoria, via a direct loan for€35 million. This loan completes an investment byPROPARCO in the company’s convertible bonds. Thecombined support of AFD and PROPARCO will helpexpand the range of housing available on Reunion.Furthermore, capital investments made by CBo Territoriawill create or maintain about 2,300 jobs during the designand construction phases.MartiniqueADVISING ON CAPITAL INVESTMENTS INTRANSPORTATION, BIODIVERSITY AND ENERGYThe Martinique Region’s multiyear 2012-2014 investmentprogramme in major infrastructure and naturalresource valorization should spark a new economicdynamism. Officials solicited a €35 million AFD loan,along with technical expertise, to fund three essentialaspects of the programme: transportation, biodiversitypreservation, and energy supply.Social Cohesion14%Other4%Environment12% Urban Development,Facilities and Energy22%Business, Industry and Trade48%The numbers on this page do not include approvals for delegated funds that AFDdeploys on behalf of third-party donors, such as the European Union.French GuianaRELIEVING THE ISOLATION OF THE DISABLEDIn French Guiana, there are few services available to helpdisabled adults return to work, or the infirm to receivehealthcare or assistance at home. A company dedicatedto providing transportation for the disabled and othersneeding assistance was created in 2011. It sought topurchase new vehicles to meet increasing demand; AFDtherefore provided a DOM Fund credit guarantee tocover the company’s bank loan. In this way, AFD supportsa business that may hire people as it expands services tothe community – services that facilitate school and workattendance and that alleviate isolation.33

AFD2012 ACTIONSADDRESSING THE STRUCTURALCAUSES OF CRISESIN FRAGILE STATESIn fragile and post-conflict states, AFDsupports projects that take aim at thestructural causes of crises, developingalternatives to war economies, strengtheninglocal skills, and proposing psychosocialassistance for the victims of conflict.In 2012, AFD financed a dozen projects in countriesstruggling with crisis situations, such as ongoing orjust-ending conflicts, failing states, and major naturalcatastrophes. AFD funds flowed to Afghanistan, Haiti,Sudan, the Palestinian Territories, and other countries.The Agency also enlarged the scope of its interventionsto include Myanmar, where it has already financed agriculturalprojects and the development of rural enterprises.AFD has prepared a cross-disciplinary interventionframework to prevent crises and help countriesemerge from them; it targets six priority countries forgrant funding. However, given the many other countriesexperiencing fragile situations, AFD may interveneelsewhere according to the framework’s action principles.AFD does not intervene in humanitarian emergencies.Instead, it employs primarily grant monies for projects toprevent and alleviate the causes of fragility, reinforcingthe resilience of societies and helping them re-establishdevelopment processes. In 2012, grants, subsidies,budget aid, and NGO support accounted for €62 millionin funding approvals, out of a €66 million total.PROPOSING ALTERNATIVES TO WARECONOMIES AND CRIMINAL NETWORKSAlthough not all AFD-supported projects aim to eradicatethe roots of conflict, in certain cases AFD’s developmentinterventions do act upon deep social and economicdivisions.When the apparatus of the state crumbles, war economies,criminals, contraband and Mafia-like corruptionproliferate. Often such activities represent the onlymeans of survival for populations whose herds and flockshave been decimated, and where commercial areas andcommunications networks have been destroyed.In Afghanistan, opium poppy cultivation has expandedwith the wars; today, opiates generate 20% to 30% of thecounty’s GDP. To increase farmers’ incomes and reducepoppy growing – the source of destabilizing forces andMafia-like networks – AFD helped restore cottonseedcultivation in northern Afghanistan in 2005. Althoughmuch remains to be done, this operation has producedvery good results. Cottonseed production has increasedto 80,000 tons in Mazar-e Sharif and in Kunduz Province,versus 9,000 tons in 2005.Similarly, in the Sahel, where population growth is high,the inability of the economy to provide jobs to youngpeople constitutes a potentially destabilizing factor.Youth are fleeing from rural areas to cities without anyprospects or way to ensure subsistence. They becomeideal recruits for criminal activities and political militia. Innorthern Mali, they expand the ranks of jihadists.Creating jobs for youth is therefore the first priority: AFDaddresses the need for youth job creation by fundingmicrofinance and professional training projects.REINFORCING PUBLIC INSTITUTIONSAFD works to build skills in public administrations andthe state apparatus. For example, by financing a farmhydraulics project in Chad under the Ministry of Hydraulics,AFD helps improve the ministry’s technical supervision.The Agency also supports governments in their effortsto expand basic services, such as education and healthcare.Beyond improving living conditions, such projectsstrengthen national cohesion and bolster institutionallegitimacy, both often tarnished by years of conflict.34

Afghan trout farmEXPANDING PSYCHOSOCIALPROGRAMMESAFD takes special interest in providing psychosocialassistance to victims of conflicts, a key element ofpost-conflict reconstruction. After conducting detailedresearch on the topic, in 2012 AFD added psychosocialtrauma counseling to a programme in Chad, and plansto do the same in Haiti and in the Palestinian Territories.In Chad, “psychological first aid” takes place within apreexisting system of assistance for displaced persons,one that AFD funded with a €10 million grant for variousprogrammes.Eastern Chad has indeed seen much conflict in recentyears due to the government’s support for insurgents inDarfur; conversely, Sudan has protected internal rebellionsin Chad. These events have displaced 230,000Darfurians and have driven at least 180,000 Chadians todomestic refugee and displaced person camps.In 2010, as the conflict’s intensity lessened, thedisplaced Chadians were able to return home. However,in leaving the camps, they lost access to free food,water, medical care, and a minimum of schooling fortheir children. AFD took up the baton from humanitarianorganizations, easing the return of the displaced to thecountryside; it financed the recovery of rural activities byfunding irrigation systems for small farms, vaccinationsfor livestock, and new medical clinics. This soon-to-becompletedproject provides a good example of the articulationbetween humanitarian assistance and economicrecovery.Strengthening the partnershipbetween PROPARCO and OnyxDEVELOPMENT THAT FIGHTS MALNUTRITIONIn November 2012, PROPARCO, an AFD subsidiarythat finances private-sector investment in the developingworld, loaned €4 million to Onyx Développement,the French holding company behind Nutriset, a nutritionalproducts company. Jointly with the French ResearchInstitute for Development (or IRD), Nutriset developedan innovative product range, including “Plumpy’nut.” Thecompany has put ready-to-eat products on the marketfor the prevention and treatment of malnutrition. Nutrisetproducts have become a staple of internationalhumanitarian programmes, substituting for harder-tousemilk powders.PROPARCO’s financing will increase production capacityin the network of local “PlumpyField” factories thatprocess and market Nutriset products through franchisees,especially in India and Sudan. The funding willalso aid the expansion of African food production andprocessing companies. By 2018, these capital investmentsshould facilitate the care of nine million malnourishedchildren.In these countries, AFDaddresses the causes of criseswhile helping populations.35

AFD2012 ACTIONSSUPPORTINGTHE INITIATIVESOF NGOsPromoting family farms in AfricaNGOs are major and essential developmentactors. AFD has increased its engagementand collaboration with them in the past fewyears.For AFD, 2012 was the year of increased funding forNGOs and of more extensive sectoral discussions withcivil society. AFD gave nearly €45 million in grants, withan average worth of €860,000, to 41 French NGOs tofinance 52 initiatives and projects.Most of the in-country interventions that AFD supports(88% of funding granted, or €39.3 million) are projectsdeveloped in sub-Saharan Africa to achieve the UNMillennium Development Goals. A highlight of 2012was the first grant to the Belleville Institute, a nonprofitassociated with the French trade union, CFDT. Theinstitute will use the grant to support union activitiesand defend proper working conditions in West Africa.AFD also signed 12 substantial programme-conventionagreements with the French chapters of NGOs. Theseincluded Agronomists and Veterinarians WithoutBorders, for support of family farms; Handicap Internationalfor inclusive education; and Doctors of the Worldfor reproductive and sexual health.In 2012, AFD increasedthe amount of grant fundingfor NGOs.Twelve percent of the grants to NGOs financed so-calledgeneral interest projects, for educating nonprofits aboutdevelopment or for structuring France’s nonprofitsector. For instance, AFD gave funds to the InternationalMigrant-Solidarity Organizations Forum (or Forim); italso gave funds to The Partnership for a project promotingyouth and instructor understanding of developmentissues. In 2012, AFD also supported the Fund for FeasibilityStudies, Multidisciplinary Research and Evaluations;its research helps French NGOs and local governmentsmeasure the impact and quality of their work.In 2012, AFD enriched its strategic discussions withNGOs. It updated two NGO funding guides, workingclosely with Coordination Sud, a nonprofit platform.It also organized many seminars that summarized,exploited and shared knowledge, and it conducteda dozen geographic, sectoral and thematic studies.The latter included an evaluation of multi-participantprogrammes, with the aim of building civil society capacity,particularly in local public policy design.The Strategic Orientation Plan that AFD adopted in2012 reaffirmed the organization’s appreciation of NGOpartnerships – crucial allies in fighting poverty, bolsteringcivil society, and campaigning for human rights anddevelopment education. As part of this affirmation, theFrench government made AFD responsible for fulfillingthe president’s commitment: a doubling, by 2017, of thepublic development aid that flows to NGOs.The Sectoral Innovation Facilityfor NGOs (or FISONG)Since 2007, AFD has used a financial facility, FISONG,dedicated to funding innovative projects headed byinternational solidarity organizations. The facility assistsNGOs in finding innovative and practical solutions forAFD’s priority intervention sectors. It also promptsdialogue and synergies among AFD and NGOs forshared concerns.Every year, AFD makes two calls for proposals, usingobjectives jointly defined with NGOs. In 2012, the topicswere “Sanitation, waste, hygiene: durable mechanismsand local competencies,” and “Environment, biodiversityand development: sharing profits from biodiversity tobenefit village communities.” After reviewing the proposals,AFD granted €5 million to eight NGOs.36

PROJECT FINANCETHE HEART OF AFD’s ROLE AND MISSIONThe AFD project cycleFunding beneficiariesStates, central and local governments, businesses,NGOs, developers and project ownersAFDProvides project funding and technical assistanceif neededPROJECTIDENTIFICATION1Project ideaSubmission to AFD for consideration.2Proposal analysisExamination of the project’s goals and its relevanceto AFD’s geographic priorities.FEASIBILITYASSESSMENT3Feasibility studyMost often done by a third-party provider; it may befinanced by AFD.The study details project aims, expected results,technical and institutional feasibility, economic andfinancial viability (borrower’s repayment capacity,operating costs, etc.).The report describes the project, cost estimates andproposed financing.It analyzes social and environmental impacts andproject risk.4Analysis of the feasibility study and the financingapplicationAFD examines in particular:- The feasibility study’s hypotheses, conclusions, and financing plan;- Project compliance with aid effectiveness principles: local projectownership, coordination with other donors, integration in local policy;- Match with AFD and French development aid strategy;- Economic, social and environmental effects for the country or region; and- Risk: technical, institutional, economic, financial (project profitability,borrower’s solvency, country macroeconomics), environmental, social, andproject owner/shareholder risk of money laundering, terrorism financingand corruption.AFD gets a “second opinion” about any financing from a departmentindependent of the one examining the project proposal. Since 2013,this “second opinion” includes an analysis of the project’s contribution tosustainable development.FUNDINGDECISION6Request for funding sent to AFD(Project content, financing conditions)5Negotiation of financing terms7Submission of the funding requestto the proper decision-makers8Signing of the loan, grant or subsidy contractPROJECTIMPLEMENTATION9Physical building of the projectChoice of suppliers according to local laws and AFD’sprocurement principles (competition, social andenvironmental responsibility, etc.).Monitoring of the work (if necessary, with technicalassistance that may be financed by AFD) and paymentof suppliers. At the project owner’s request, AFD maypay suppliers directly.Funds disbursementOversight for compliance with contract clauses (preconditions for fundstransfers, no-objection notices for the selection modalities, choice ofsupplier and contracts, pre-authorization for any changes to the project,and so forth).Funds transfer as the project progresses and expenditure receipts arereceived.Vigilance over money laundering, terrorism financing and corruption risks.Ability to suspend fund transfers or require reimbursement.Technical and financial supervision of the project.PROJECTCOMPLETION10Loan repayment to AFD (if credit financed)11Project evaluationExamination of built works, their viability and economic, social and environmental impacts.37

AFD2012 ACTIONSEVALUATINGFUNDEDPROJECTSAFD systematically conducts a post-projectperformance evaluation for each of itsstandard projects. It also conducts moretargeted project assessments for certain topicsor sectors of activity.AFD evaluations follow standards defined by the DevelopmentAssistance Committee of the Organisation forEconomic Cooperation and Development (OECD). Theevaluations have two objectives:• Improving future development policies, programs andprojects by deriving lessons from experience.• Responding to stakeholder demands for accountability,including those of the French public.SECTOR, THEMATIC AND PROJECTEVALUATIONSSix principles guide standard project evaluations:• Systematization: All projects must be assessed within12 months after their completion.• Decentralization: AFD field offices lead the effort andpresent the results to local stakeholders.• Externalization: Consultancies or technical officesoutside AFD perform the evaluation.• Use of national experts: AFD calls on local experts fromthe beneficiary country in order to take advantage oftheir knowledge of project context and to help buildlocal capacities.• Standardization: Evaluations must meet internationalcriteria and standards.• Partnership: AFD shares the results of each evaluationwith project stakeholders.In 2012, AFD commissioned 27 evaluations according tothis decentralized procedure. Each year, AFD summarizesthe results and presents them to AFD’s board ofgovernors and the public. AFD also uses the evaluationsto write summary reports that may teach others how todo similar projects.In addition, AFD conducts so-called strategic evaluationscovering sectors, topics or instruments. In 2012, the mainreports included an assessment of the ten-year plan todevelop the education sector in Benin, and one on theuse of credit lines by a regional development bank.AFD publishes all these sectoral and thematic evaluationson its website as part of its transparency policy.The Agency also marked 2012 by expanding its evaluationsto cover its operations in the French OverseasProvinces.AN EXTERNAL VIEW OF AFD’SEVALUATION ACTIVITIESTo better meet AFD’s accountability requirements, adedicated committee examines the annual evaluationsprogram. The committee judges the evaluations systemand the quality and relevance of the work accomplished.An outside director chairs the committee, whichcomprises four subject-matter experts and four representativesfrom AFD’s supervisory ministries. The evaluationscommittee also reports on its work to the AFDboard of governors. In 2012, the committee examinedsix strategic assessments.BeninAssessing the 2006-2015 EducationDevelopment PlanA ten-year plan serves as the main management tool forthe education sector in Benin. During the second phase(2009-2011) of the plan’s implementation, the governmentand its partners agreed to conduct a midwayassessment, involving local authorities and two of thethree donors: Denmark’s Danida cooperation agencyand AFD.The evaluation found that the plan’s focus on primaryschooling had opened basic education access to nearlyevery child and had almost eliminated the gap betweenboys and girls. However, the assessment proved lesspositive about the quality of teaching. The evaluationreport identified some ways to make progress and toimprove the plan’s performance during the next, thirdphase.38

A MULTI-ACTORPROCESS39

AFDA MULTI-ACTOR PROCESSTHINKING ABOUTDEVELOPMENT AIDMODALITIESAFD views new thinking about developmentaid modalities, along with participationin strategic international debates, asindispensible complements to its role andmission.As a vital tool for aid and development, knowledge creationhas two goals: improving donor-funded programmesand suggesting ways to fight poverty and promote sustainability.AFD sees knowledge creation as a means to achievethese aims:• Learning from experience via project evaluations andknowledge capitalization.• Enhancing French positions and discussions aboutdevelopmental policies and aid.• Anticipating global change and proposing innovativeadaptations. Knowledge creation draws on AFD’ssustainable development experience, allowing theAgency to offer public-policy solutions and proposalsin addition to project finance.AFD also regularly organizes workshops and conferencesin Paris and in aid beneficiary countries. Theseevents assist in disseminating the results of AFD’s workand contribute to debates; the same is true for the manybooks, journals and articles AFD makes freely availableon the Internet. Notably, AFD co-organized (with GRET,CIRAD, and support from the Agriculture Academy) anOctober 2012 colloquium on changes in the internationaljob market and the impact of joblessness on ruralworkers. This event took place at the Economic, Socialand Environmental Council; it presented findings fromstudies forecasting population and labor market growthby 2050. More than 3.3 billion new jobs must be createdby then to reach full employment. Creating jobs in newindustries remains a priority, but curbing job losses inthe agriculture sector is also crucial. The colloquiumexamined the causes of the rural unemployment crisisand policies that might contain it.Knowledge creation sifts the numerous questions posedby globalization, addressing poverty and inequality alleviationas well as sustainable development – issues thatregularly appear on the international agenda.AFD’s knowledge creation mobilizes the Agency’s internalexpertise; it also draws on a network of French andinternational research institutions that have long servedas the Agency’s partners. AFD has forged scientificpartnerships with the Development Research Institute(IRD), the Paris School of Economics, the InternationalEnvironment and Development Research Center(CIRED), the London School of Oriental and AfricanStudies, and Maastricht University, among others.40ID4D conference on energy efficiency

Conference on migrant remittancesand their impact on developmentA research program on the energy transitionThe global energy situation, currently undergoing radicalchanges, poses a major development challenge.These changes reflect the combined effects of “peak oil,”climate change, and increasing demand from emergingcountries, whose economies require energy support.This changing situation forces AFD’s aid beneficiarycountries to retool their energy use models towardssustainability; massive use of fossil fuels exhausts oil andgas resources, while greenhouse gas emissions damageclimatic equilibrium. Cost increases, price volatility, andoil scarcity undermine the reliability of energy suppliesin countries overly dependent on oil. To be sustainable,energy strategies must diversify the types of energyconsumed, and improve the fit between the energy mixand the specificities of developing countries – countriesthat typically see large parts of their population withoutenergy access.For these reasons, energy projects take up nearlytwo-thirds of AFD’s financing, which centers on threeprimary actions:1. Increasing the capacity and security of energy systemsin developing and emerging countries, therebyunleashing economic potential otherwise constrainedby deficient production capacity and unreliable fuelsupplies.2. Reducing the carbon intensity of energy productionand improving consumption efficiency. A mixof hydroelectricity and more renewables mitigatesgreenhouse gas emissions, exploits local energysources, and reduces fossil-fuel dependence.3. Expanding access to electricity in rural and suburbanareas, so as many as possible can enjoy the benefits ofpower services.AFD has developed a research programme to helpturn these three action points into actual operations.The research aims to bolster public policy and institutionalinterlocutors’ capabilities.The research programme uses economic analysis toolsto meet two objectives:1. Allowing AFD, as a development bank, to take its rightfulplace at the table during international discussionsabout the green-energy transition; in this way, AFDcan ensure that debates take development policy intoaccount. AFD’s extensive international experienceallows it to propose more innovative approaches thanthose that currently dominate “green growth” discussions.These latter approaches, whatever their merits,tend to fall short in considering the heterogeneity ofinstitutional, economic and social contexts.2. Producing comprehensive diagnostic tools thatmeasure the socioeconomic impacts of “green”development policies, programmes, and projectsin developing countries. These tools are usedto model energy transition options in differentgeographic regions, such as China, Mexico, SouthAfrica and Turkey. This will make it possible toassess the tools’ diagnostic range and how theymay integrate sectoral and local expertise. AFDwould thus acquire the expertise to strengthen itsdialogue with local public and private decisionmakersfrom countries requesting assistance.As AFD discusses budget loans and other subjects withlocal authorities, it can help design sectoral policiesthat encourage sustainable energy efforts or that assistnational climate-change strategies. AFD also works withenergy-sector actors in implementing these policies andin developing professional training curricula, in particularfor electricity company employees.41

AFDA MULTI-ACTOR PROCESSWORKING WITHOTHER DONORSAFD works alongside other donors by poolingskills, broadening the financial and technicalcapacities brought to certain projects, andformulating common positions within internationalbodies.AFD’s development aid policy mobilizes multiple bilateraland multilateral donors; it also assumes new forms,such as cofinancing or loans combined with grants, tomeet growing financing needs.These needs increasingly require donors to work intandem, multiplying the number of cofinanced projectsto extend their financial and technical capacities. Recognizingthis challenge, some donors have followed theexample of the Asian Development Bank (ADB) by developinga cofinancing and partnership strategy. For thefirst time, AFD has begun formalizing goals and objectivesfor its partnerships, a process it will complete in2013.A VARIETY OF PARTNERSHIPSBy partnering with bilateral donors (such as KfW, JICA,AusAID) and multilateral lenders (such as EIB, EBRD,the World Bank, Asian Development Bank [ADB], SouthAfrica Development Bank, and the Inter-America DevelopmentBank [IDB]), AFD meets three objectives:• Maximizing leverage and economies of scale byfinding new sources of funds to compensate for theconstraints in grants and subsidies.• Targeting partnerships according to AFD strategiesand the comparative advantages to the prospectivepartners – for example, by working with ADB or IDBto extend operations into Asia or Latin America,respectively.• Formulating common positions within internationalbodies, for example by promoting strong green growththrough the International Development Finance Club(IDFC).Brussels – Launch of mutual recognition proceduresbetween AFD, EIB and KfW.In 2012, out of 115 projects receiving loan, projectgrant,budget-support or debt-relief developmentfinancing, AFD cofinanced 48 (or 42%) with otherdonors. Some of AFD’s financing lay beyond the scopeof cofinancing measurements, which do not cover allGroup activity; nonetheless, AFD counted €2.1 billionin contributions to a multi-donor budget of approximately€10 billion. AFD primarily cofinanced infrastructureprojects because large-scale ventures generally requirefunds exceeding what any single donor can cover.More than half the projects that AFD cofinanced are insub-Saharan Africa.In 2012 as in preceding years, the European Union (EU)was AFD’s leading co-financier, utilizing its own financialinstruments and the EIB; the World Bank was the secondlargest, followed by ADB and KfW.AFD also collaborates with various United Nations (UN)agencies, such as the UN Development Programme(UNDP) and the International Fund for AgriculturalDevelopment (IFAD). In 2012, AFD signed a partnershipagreement with both agencies to formalize a preexistingrelationship. Their jointly financed actions takedifferent forms: projects in the field, trips to aid beneficiarycountries to assess project suitability, knowledgecreationthrough studies or expert consultations, andsponsorship of colloquia.42

AFD in BrusselsAFD has long been aware of the strategic and financial importance of the European Commission’s (EC) publicdevelopment assistance; nearly 20% of France’s foreign aid flows through the EC. AFD therefore opened an officein Brussels in 2002, where it works in coordination with France’s permanent representatives to the European Union.Indeed, the European Commission is the world’s largest donor and a key development actor; its aid actions coverall sectors and regions. In addition, the EC plays roles in political advocacy, standard-setting and coordination.AFD’s Brussels office has a simple objective: articulating the Agency’s actions with those of the EC. AFD and itspartners, especially KfW and EIB, have thus helped create a truly European financing product, one that combinesloans with grants.AFD’s ten-year presence in Brussels has made it a recognized actor among its peers. The latter appreciate howthe Agency shares its strategic expertise, organizes conferences, and advocates for development-related causesto lawmakers. They also recognize its operational know-how: AFD has deployed more than €500 million on behalfof the EC, as delegated funds or through investment facilities. In 2012, the Brussels office intensified its collaborationwith the EC by helping to launch the “Sustainable Energy for All” (SE4ALL) initiative. The Brussels office alsoincreased its presence in discussions on the European development financing platform, and on backing for newfinancing instruments, such as the Caribbean and Pacific Investment Facility.Brussels – From left to right: signatory representatives from KfW, EIB and AFD.AFD’s TIES WITH THE EUROPEAN UNIONFollowing some initial difficulties (the first attemptsat managing delegated funds proved complicated),substantial progress has been made, establishingcofinancing procedures with European aid agencies andthe European Commission.In 2012, AFD contributed€2.1 billion to cofinancedprojects.The donor group took two major steps to create ajoint-recognition of procedures process. On the onehand, it simplified European aid instruments, creatingnew financing modalities that blended grant monieswith loans. On the other hand, it audited each bilateralaid agency. Donors could be accredited once theysuccessfully passed the audit, and could then use theirown procedures to deploy the European funds. Thesereforms allowed the European Union to deploy largeramounts of public foreign aid, modernize aid instruments,and create European aid solutions. The reformsalso helped bring European donors closer to each other.These practices gradually changed the scale and expenditureof AFD-financed projects.Such working relationships and knowledge transfers withother European donors illustrate the Agency’s contributionto this European dynamic, as do the day-to-dayexchanges between EU delegations and AFD’s in-countryteams.One should stress that European aid comes under a“concurrent jurisdiction;” the 27 EU members’ financinginstruments and aid programmes coexist alongsidethose of the European Commission. The challengetherefore lies in determining the right mix of geography,sector, and instrument – in other words, in using theseEuropean-community and bilateral-agency tools to addvalue for aid beneficiaries and partners, more value thanAFD (or any single donor) could create on its own. Thisrequires coordinating all donor efforts, so that joint aidmay have higher impacts, lower costs, and more certaintyof effect. This also means that the European Commissionmust not duplicate the work of bilateral aid agencies orrestrain them; rather, it must collaborate with memberstates,constantly working to combine skills and remainresponsive.43

AFDA MULTI-ACTOR PROCESSCONSOLIDATING PARTNERSHIPSWITH NONGOVERNMENTALENTITIESAFD works with civil society alongsidelocal-government and private-sectordevelopment organizations, and in tandemwith developing-world civil society, engagingin partnerships and exchanging expertise.ASSISTING FRENCH LOCALGOVERNMENTS’ FOREIGN AID ACTIONSFrench local governments have expanded their internationalaid actions so much in the past 20 years that theynow constitute an arm of France’s foreign aid apparatus.More recently, they have become important partnersof AFD. Having started with twin-city initiatives, Frenchlocalities now encompass a variety of cooperativepartnerships with their foreign counterparts, especiallywith urban governments and local authorities in developingcountries.As decentralization progresses in many developingcountries, French local governments play an increasinglyrelevant role, helping their counterparts assumeresponsibilities, bolstering their abilities. In this way,the partners can underpin their political legitimacy withconcrete experience.Shared interests also drive French cooperativepartnerships with the developing world. Such relationshipsallow regional representatives, elected officialsand civil society activists to learn from one another, whileopening up local opportunities of mutual interest. Byorganizing exchanges and acts of solidarity, French territorialgovernments build bridges between localities thatotherwise might understand little of each other.In France, urban and regional governments makethree-quarters of civil public investments. In foreigncountries, local governments are often the owners ofAFD-financed programmes and projects. Hence, it wasnatural for AFD to approach French local governmentsthat had developed extensive international aid.Laos – Redevelopment project in Luang Prabang,supported by the French city of ChinonAFD, like its French local-government partners,mobilizes public funds to improve living conditions“elsewhere.” These international interventions canalso contribute to the vigor of the French regions.AFD’s marked its 70 th anniversary celebration with aphoto exhibition that toured through regional capitals –AFD’s partner-cities – and thus provided the Agency anopportunity to meet the French public.As a consequence of these efforts, AFD’s partnershipswith French decentralized aid providers have come torest on two strategic aims:• Exploiting the expertise of French cities, regions, andlocal authorities – public water utilities, urban planningagencies, regional park administrations, among others– in a way that complements AFD’s interventions, notablythrough direct loans to developing localities.• Anchoring AFD actions in each locality by strategizingwith French local governments, capitalizing ontheir international contacts and soliciting their supportfor official development assistance efforts.44

AFD and NGOsAFD has expanded dialogue with NGOs in recent years, aiming to share practical experience and develop innovativeinterventions. For instance, the Agency has supported development education initiatives in France thathelped NGOs advocate for development issues and deepen public awareness and understanding of them. Theseinitiatives have also allowed AFD to share practices with other international solidarity workers and thereby bolstertheir skills.The “AlimenTERRE” campaign, coordinated by the French Committee for International Solidarity and financedby AFD, proposes tools for raising awareness, such as a film festival and an online resource center. The campaignalso carries a strong advocacy component targeted at political decision-makers, especially European legislators.This effort also included the “Let’s Make Sense in Fighting Hunger” conference, which brought together more than200 attendees to discuss pro-development public policies. Pascal Canfin, the French development minister, andStéphane Hessel keynoted the conference; the program emphasized the need for harmonized European policies,and recommended joint action towards more lasting and rights-friendly policies.Lagos, Nigeria – AFD partners with nongovernmental organizations to fight povertyNEW PRIVATE SECTOR PARTNERSThe private sector plays a crucial role in reducing poverty,especially by supporting economic growth, creatingsustainable jobs, and increasing incomes. AFD partnerswith private enterprises to boost economic growth in thedeveloping world.At the end of 2012, AFD and Lafarge, a French buildingmaterials company, signed a partnership agreementsupporting a microfinance for affordable housingprogramme in sub-Saharan and North Africa. Launchedin June 2012, the programme will help low-income familiesfinance home construction or renovations.AFD will provide financing and financial technical assistanceto microfinance institutions selected by the Agencyand Lafarge. AFD plans to assist two or three institutionsduring the partnership. Lafarge will help borrowerswith their construction projects, providing a personalizedservice through counselors who are supervisedand trained (by meeting with architects, designing plans,and so forth). The partners’ first collaborative effort tookplace in Nigeria.The United Nations Global Compact gives private sectorcompanies reference points for socially and environmentallyresponsible commitments. Companies signing theGlobal Compact promise to follow ten principles underpinningenvironmental protections, labor conditions,anti-corruption measures and human rights. More than7,400 companies in 135 countries have signed itAFD and the French Global Compact network, whichcomprises 800 companies, have agreed on a partnershipto promote the ten principles in both the developingand developed worlds. In France, the partners will helptwo regions, Brittany and Nord-Pas-de-Calais, so thatregional companies – especially committed to internationaltrade – can adopt responsible practices. In thesub-Saharan countries of Côte d’Ivoire and Ghana, thepartnership will support local Global Compact networkswishing to expand and recruit more companies.45

AFDA MULTI-ACTOR PROCESSSTRENGTHENINGLOCALCAPABILITIESCEFEB lecture for Masters-degree studentsIn the developing world, one of AFD’s goals isto improve the performance of developmentprofessionals, essential contributors tosustainable growth.TECHNICAL ASSISTANCE THAT ALIGNSWITH PROJECT FINANCEAFD’s capacity-building efforts bolster individual skills,especially in project design, institutional project structuring,implementation, and evaluation. They also aimto improve operations at the organizational level, and tostructure public policies, for example in education andhealth.This AFD assistance targets a diverse set of recipients– ministries, local governments, public institutions, nongovernmentalorganizations, and private sector companies,among others – and focuses mainly on sub-SaharanAfrica. AFD generally uses grants to fund technical assistance.Such assistance may take several forms: consultingservices from engineering offices or public entities,or funding for technical assistants working primarily inagricultural, environmental and health fields.In 2012, CEFEB educated 1,470 studentsthrough about 40 seminarsand eight Masters programmes.Among its capacity-building actions, AFD financestraining for employees of Senegal’s national electricityutility, Senelec. This training complements AFD’sinvestment in Senegal’s electricity production and distributioninfrastructure and its work to turn around theSenegalese power sector.In China, where growth in energy demand is amongthe highest in the world, energy efficiency is an importantissue. AFD therefore organizes seminars to raiseawareness among banks receiving the Agency’s “greencredit lines;” these aim to finance small-business energyefficiencyprojects. At the fifth such seminar in November2012, an expert from Schneider Electric, a Frenchcompany, presented new energy-efficiency technologiesand solutions to an audience of 240 bankers.AFD also supports the emergence and strengthening oftrans-boundary water governance. The Agency notablysupports professional networking among water-usemanagers in developing countries, as well as partnershipsbetween watershed organizations in the developed anddeveloping worlds.TRAINING THROUGH CEFEBThe Center for Financial, Economic and Banking Studies(or CEFEB), AFD’s business university in Marseilles,offers courses for AFD’s aid beneficiaries in developingcountries, as well as to its employees and co-financiers.The Master of Public and Private Works, a degreeprogramme offered in conjunction with the University ofAuvergne, accepts 40 development practitioners eachyear. These professionals work in ministries, local governmentadministrations, enterprises, and financial institutionsin AFD beneficiary countries. The courseworkteaches students how to set up and manage projects,combining several disciplines: economics, finance,management, public policy, market regulation.CEFEB also produces about 40 seminars each year. Byfacilitating shared knowledge and experiences, theseseminars help development professionals networkwith one another. Thus, when the Jerusalem AFD officeidentified a need – training its Palestinian aid beneficiariesto prepare, plan, steer and evaluate developmentprogrammes – CEFEB organized a seminar in Ramallahon these subjects at the end of 2012.46

THE AFDTEAM47

BOARD OF GOVERNORSMembers as of 30 April 2013Pierre-André PÉRISSOLchairman - Former MinisterMINISTRY OF THE ECONOMY AND FINANCEEXTERNAL EXPERTSDelphine d’AMARZITDivision Head of Multilateral andDevelopment AffairsTreasury DirectorateDenis CHARISSOUXVice Director National Budget OfficeMINISTRY OF FOREIGN AFFAIRSJean-Baptiste MATTÉIGeneral DirectorGlobalization, Development & PartnershipsJean-Christophe BELLIARDDirector Africa & the Indian OceanArnaud BUISSÉVice Director for International Financial andDevelopment AffairsTreasury DirectorateDavid KNECHTOffice Head of Foreign Affairs andDevelopment AidBudget DirectorateJean-Marc CHÂTAIGNERDeputy DirectorGlobalization, Development & PartnershipsJean-François GIRAULTDirector Middle East and North AfricaAppointed by the Ministries of the Economy, Foreign Affairs,Overseas Provinces, and InteriorOmar KABBAJAdvisor to His Majesty, the King of MoroccoSylviane JEANNENEY-GUILLAUMONTProfessor Emeritus, Center for Studiesand Research on InternationalDevelopment (CERDI)Patrice FONLLADOSAAdministrator of the French BusinessMovement (MEDEF)Jean-Louis VIELAJUSPresident, Coordination SudJean-Louis MATTÉIChairman of the Supervisory Board,Société Générale MoroccoGuy DUPONTHonorary President, Federation of FrenchOverseas EnterprisesPierre ARNAUDAdministrator of the French Councilof Investors in Africa (CIAN)Appointed by the Ministry of Ecology, Sustainable Development and Energy—MINISTRY OF THE OVERSEAS PROVINCESSébastien GENESTAdministrator and Honorary PresidentFrance Nature Environment (FNE)Claude TRUCHOTHonorary General Engineer, RuralWater & Forest WorksThomas DEGOSDirector, General DelegateFrench Overseas Provinces PrefectMarc DEL GRANDEVice Director, Public Policy OfficePARLIAMENTARIANSMINISTRY OF THE INTERIOR— Francis HURTUTDivision Head, International Affairs andCohesive DevelopmentMichel DESTOTIsère RepresentativeNoël MAMÈREGironde RepresentativeRepresentatives appointed by the National Assembly PresidentStéphane DEMILLYSomme RepresentativeYves NICOLINLoire RepresentativeSenators appointed by the Senate PresidentINCUMBENTGovernment Commissioner: Claude WARNETALTERNATEYvon COLLINTarn and Garonne SenatorJean-Claude PEYRONNETHaute-Vienne SenatorFabienne KELLERBas-Rhin SenatorChristian CAMBONVal de Marne SenatorELECTED AFD EMPLOYEE REPRESENTATIVESJean-Bernard VÉRONDidier SIMONDenis VASSEUR—48

MANAGEMENTTEAMMembers as of 30 April 2013CORPORATE OFFICESDov ZERAH*Chief Executive OfficerDidier MERCIER*Deputy Chief ExecutiveJacques MOINEVILLE*Managing DirectorMonique BARBUT*Special AdvisorClaude RAYMONDChief of Internal AuditingFrançois KERHUELEthics AdvisorClaude DORWLING-CARTERDirector Board SecretariatPhilippe MICHAUDHead of Office Network CommitteeEXECUTIVE OFFICESPhilippe BASSERY*Chief Human Resources OfficerÉric BAULARD*Chief Risk OfficerStéphane FOUCAULT*Chief Administrative OfficerRémi GENEVEY*Chief Strategy OfficerJean-Yves GROSCLAUDE*Chief Operations OfficerLouis-Jacques VAILLANT*Chief External Affairs andPartnerships OfficerValérie ALEXISDeputy Risk OfficerChief Legal OfficerJean-Claude BREDELOUXDeputy Operations OfficerEmmanuel DEBROISEDeputy External Affairs andPartnerships OfficerLaurence LAJOINIE-GNANSIADeputy Human Resources OfficerDEPARTMENTSDepartment Managers and Unit HeadsFRENCH GLOBALENVIRONMENT FACILITYJean-Philippe AUBERTELGroup Risk ManagerChristian BARRIERHuman DevelopmentGilles BERGINFinance and AccountingMaurice BERNARDSustainable DevelopmentYves BOUDOTSub-Saharan AfricaGrégory CLEMENTEAsiaBernard ESNOUFStrategic Steering andForecastingCatherine GARRETAMultidisciplinary SupportRoger GOUDIARDCEFEBOdile LAPIERREPrivate Sector, Banks and LocalAuthoritiesBertrand LOISEAUBudget ComptrollerMarie-Pierre NICOLLETMiddle East and North AfricaPhilippe ORLIANGELatin America and the CaribbeanPascal PACAUTFrench Overseas ProvincesYves PICARDSecond Opinion UnitMarianne SIVIGNON-LECOURTInternal Auditing and ComplianceFrançoise TISSEYREIT, Buildings and LogisticsJean-Bernard VÉRONCrisis Prevention and Post-Conflict UnitFrançois-Xavier DUPORGEChief Administrative OfficerPROPARCOClaude PÉRIOU*Chief Executive OfficerColette GROSSETDeputy Chief Executive andAdministrative OfficerMarie-Hélène LOISONDeputy Chief Operating OfficerAlain HENRYResearch* Executive Committee Member49

GROUP ORGANIZATION CHARTMembers as of 31 March 2013Dov ZERAHchief executive officerDidier MERCIERdeputy chief executiveSpecial AdvisorMonique BARBUTEthics AdvisorFrançois KERHUELJacques MOINEVILLEmanaging directorChief of Internal AuditClaude RAYMONDDep. Sylvie SYROTABoard SecretaryClaudeDORWLING-CARTERPROPARCOchairman: Dov ZERAHvice chairman: Didier MERCIERchief executive officer: Claude PÉRIOUmanaging directors:Colette GROSSET and Marie-Hélène LOISONoperationsMarie-Hélène LOISONDep. Jérôme BERTRAND-HARDYBanks and Financial MarketsAmélie JULYBusiness and CorporatesStéphanie LANFRANCHIInfrastructure and MinesJean-Pierre BARRALCapital and Equity ParticipationsLaurent KLEINadministrationColette GROSSETDep. Ghislain DE VALONPortfolio ManagementYazid SAFIRRiskJean-Baptiste SABATIEEnvironment, Social Affairs, ImpactsOdile CONCHOUAdministration and FinanceCécile COUPRIELegalCatherine BAREYREOPERATIONSJean-Yves GROSCLAUDEDep. Jean-Claude BREDELOUXSUB-SAHARANAFRICAYves BOUDOTDep. Philippe CHEDANNEDep. Thierry PAULAISDep. Robert MOULIEMIDDLE EAST ANDNORTH AFRICAMarie-PierreNICOLLETDep. Jean-Marc BELLOTOVERSEASPROVINCESPascal PACAUTDep. BertrandWILLOCQUETASIAGrégory CLEMENTEDep. Yves GUICQUERODep. Laurent AMARLATIN AMERICAAND THE CARIBBEANPhilippe ORLIANGEDep. LaurenceROUGET-LE CLECHHUMANDEVELOPMENTChristian BARRIEREducation andProfessional TrainingJean-ChristopheMAURINHealth and SocialProtectionsCatherine BONNAUDSUSTAINABLEDEVELOPMENTMauriceBERNARDWater and SanitationCassilde BRENIÈRETransportation andSustainable EnergyAlain RIESAgriculture, RuralDevelopment andBiodiversityJean-Luc FRANÇOISBANKS, PRIVATESECTOR AND LOCALAUTHORITIESOdile LAPIERRELocal Authorities andUrban DevelopmentFrançois TIROTFinancial Institutions andPrivate Sector SupportMarie-Laure GARNIERFinancial EngineeringÉric BORDESGuaranteesMarie SENNEQUIERNon-sovereign CreditsMonitoringSTRATEGYRémi GENEVEYRESEARCHAlain HENRYEconomic andSocial Affairs ResearchVéronique SAUVATKnowledgeManagement SupportPhilippe CABINEvaluation andCapitalizationLaurent FONTAINEMacroeconomic andCountry Risk AnalysisFrançois-XavierBELLOCQSTRATEGICPLANNING ANDFORECASTINGBernard ESNOUFStrategic PlanningOrganization andForecastingStéphane MADAULECrisis andConflicts UnitJean-Bernard VÉRONCEFEBRoger GOUDIARDDep. Anne-FrançoiseDAYONAdministration andCommunicationJean-LouisPIQUEMALTrainingAnne-FrançoiseDAYONFRENCH GLOBALENVIRONMENTFACILITYSECRETARIATFrançois-XavierDUPORGEEXTERNALAFFAIRS ANDPARTNERSHIPSLouis-JacquesVAILLANTDep. Emmanuel DEBROISEExternal AffairsEmmanuel DEBROISECommunicationBenjamin NEUMANNNGO PartnershipsCatherine CHEVALLIERBrussels Liaison OfficeJean-François ARNALADMINISTRATIONStéphane FOUCAULTFINANCE ANDACCOUNTINGGilles BERGINDep. Hélène TEMPLIERFinancial Strategy and PlanningTanguy DENIEULFinancial AccountingSylvie BOYERBack OfficeClaire SCHMIDTFunding and Market OperationsBokar CHERIFFinancial CommunicationStéphane HLUSZKOBUDGET COMPTROLLERBertrand LOISEAUDep. Marc BENSEMHOUNBusiness Efficiency UnitChristine SABATIERProcurement OfficeSelvan PAJANIRADJAIT, BUILDINGS ANDLOGISTICSFrançoise TISSEYREDep. Pierre GUISERIXBusiness SupportJean-Jacques GENTRICAssistance for BusinessOwners ChangesDidier VIGNONSoftware Lifecyle ManagementOlivier MOREAUCross-functional BusinessManagementDominique DREXLERBuilding and LogisticsManagementSylvain PILLOUDUrbanization, Architectureand TechniquesRégis SALENBIERHUMANRESOURCESPhilippe BASSERYDep. LaurenceLAJOINIE-GNANSIACareer Managementand RecruitingBertrand FOUCAULTWork Force Developmentand TrainingÉric BUREAUAdministration andBenefitsNicolas MORAPayroll and BenefitsComptrollerMinh BUILabor RelationsSophie LE MOUELLICRISKÉric BAULARDDep. Valérie ALEXISLEGALValérie ALEXISDep. FrançoiseJACQUEMAINForeign OperationsAssistanceNicolas MOUNIEROverseas ProvincesOperations andother Legal AssistancePénélope DUTETINTERNAL AUDITAND COMPLIANCEMarianneSIVIGNON-LECOURTDep. Nicolas LE TARNECDisbursementsVerificationBruno BOCOGROUP RISKMANAGEMENTJean-PhilippeAUBERTELRisk MonitoringÉric BEUGNOTCredit Risk AnalysisSébastien FLEURYSecond OpinionYves PICARDMULTIDISCIPLINARY SUPPORTCatherine GARRETASecurity-RSSI-PCARenaud FALUOMIClimate ChangePierre FORESTIEREnvironmental and Social Affairs SupportJean-Noël ROULLEAUCapacity Building SupportProcurement Support50Dep. = Deputy

APPENDICES

AFDAPPENDICESAFD OFFICE NETWORKOperations in countries not listed here are supervisedby AFD headquarters in Paris.ETHIOPIAAddis AbebaTel: (251) 11 515 80 86afdaddisabeba@afd.frMaliBamakoTel: (223) 20 21 28 42afdbamako@afd.frAFD INTERNATIONALFIELD OFFICES ANDBUREAUSAfghanistanKABULTel: (93) 0 797 56 22 11afdkaboul@afd.frALGERIAAlgerTel: (213) 21 69 43 00afdalger@afd.frAngolaLuandaTel: (244) 222 333 309afdluanda@afd.frBENINCotonouTel: (229) 21 31 34 53afdcotonou@afd.frBRAZILBrasiliaTel: (55) 61 33 22 43 20afdbrasilia@afd.frSão PauloTel: (55) 11 25 32 47 51afdsaopaulo@afd.frBurkina FasoOuagadougouTel: (226) 50 30 60 92afdouagadougou@afd.frBurundiBujumburaResponsibilities sharedwith AFD Kenya officeTel: (257) 22 25 59 31afdbujumbura@afd.frCAMBODIAPhnom PenhTel: (855) 23 426 360 / 036afdphnompenh@afd.frCAMEROONYaoundETel: (237) 22 22 00 15afdyaounde@afd.frCentral AfricanRepublicBanguiResponsibilities sharedwith AFD Cameroon officeTel: (236) 75 53 53 53afdbangui@afd.frCHADN’DjamenaTel: (235) 252 70 71afdndjamena@groupe-afd.orgChinABeijingTel: (86) 10 84 51 12 00afdpekin@afd.frCOLOMBIABogotaTel: (57) 1 621 3299afdbogota@afd.frCOMOROSMoroniTel: (269) 773 29 10afdmoroni@afd.frCongoBrazzavilleTel: (242) 281 53 30afdbrazzaville@afd.frCôte d’IvoireAbidjanTel: (225) 22 40 70 40afdabidjan@afd.frDEMOCRATICREPUBLIC OF CONGOKinshasaTel: (243) 99 86 82 598afdkinshasa@afd.frDjiboutiDjiboutiTel: (253) 35 22 97afddjibouti@afd.frDOMINICANREPUBLICSanto DomingoTel: (809) 547 12 89afdsaintdomingue@afd.frEGYPTCAIROTel: (20) 2 2735 17 88afdlecaire@afd.frGabonLibrevilleTel: (241) 74 33 74afdlibreville@afd.frGhanaAccraTel: (233) 302 77 87 55afdaccra@afd.frGUINEAConakryTel: (224) 30 41 25 69afdconakry@groupe-afd.orgHAITIPort-au-PrinceTel: (509) 22 45 40 07afdportauprince@afd.frINDIANew DelhiTel: (91) 11 23 79 37 47afdnewdelhi@afd.frINDONESIAJakartaTel: (62) 21 29 92 15 00afdjakarta@afd.frIRAQBAGHDADTel: 964 (0) 781 703 88 49JORDANAmmanTel: (962) 6 46 04 703afdamman@groupe-afd.frKenyaNairobiTel: (254) 20 271 84 52 / 57afdnairobi@afd.frLaosVientianeResponsibilities sharedwith AFD Cambodia officeTel: (856) 21 24 32 95 / 96 / 97afdvientiane@afd.frLEBANONBEIRUTTel: (961) 1 420 192afdbeyrouth@afd.frMadagascarAntananarivoTel: (261) 20 22 200 46afdantananarivo@afd.frMAURITANIANouakchottTel: (222) 45 25 25 25afdnouakchott@afd.frMAURITIUSPort LouisTel: (230) 213 64 00afdportlouis@afd.frMEXICOMEXICO CITYTel: (52) 55 52 81 17 77afdmexico@afd.frMOROCCORabatTel: (212) 537 63 23 94afdrabat@afd.frCasablancaTel: (212) 522 29 53 97afdprocasablanca@groupe-afd.orgMozambiqueMaputoTel: (258) 21 30 43 00afdmaputo@afd.frNigerNiameyTel: (227) 20 72 33 93afdniamey@afd.frNigeriaAbujaTel: (234) 703 24 94 771afdabuja@afd.frLagosTel: (234) 1 271 7151afdabuja@afd.frPakistanIslamabadTel: (92) 51 201 15 17afdislamabad@afd.frPalestinianTerritoriesEast JerusalemTel: (972) 2 54 00 423afdjerusalem@afd.frPhilippinesMANILLATel: (63) 2 811 1003SENEGALDakarTel: (221) 33 849 19 99afddakar@afd.fr52

SOUTH AFRICAJohannesburgTel: (27) 11 540 71 00afdjohannesbourg@afd.frSri LankaColomboResponsibilities shared withAFD India officeTel: (94) 11 250 23 20afdcolombo@afd.frSurinameParamariboResponsibilities shared with theAFD French Guiana officeTel: (597) 52 12 94TANZANIADar es SalaamResponsibilities shared withAFD Kenya officeTel: (255) 22 219 88 66THAILANDBangkokTel: 66 (0) 2663 6090afdbangkok@afd.frTogoLoméTel: (228) 22 21 08 27afdlome@afd.frTunisiATunisTel: (216) 71 861 799afdtunis@afd.frTURKEYIstanbulTel: (90) 212 283 31 11afdistanbul@afd.frUgandaKampalaResponibilities shared with AFDKenya officeTel: (256) 414 30 45 33VietnamHANOITel: (844) 38 23 67 64 / 65afdhanoi@afd.frHO CHI MINH CITYTel: (848) 38 24 72 43 / 44afdhochiminhville@afd.frYEMENSanaaTel: (967) 1 448 308afdsanaa@afd.frAFD FIELD OFFICESAND BUREAUS INTHE FRENCHOVERSEASPROVINCESFrench GuianaCayenneTel: (33) 5 94 29 90 90afdcayenne@afd.frFRENCH POLYNESIAPapeeteTel: (689) 54 46 00afdpapeete@afd.frGuadeloupePointe-à-PitreTel: (33) 5 90 89 65 65afdpointeapitre@afd.frMartiniqueFort-de-FranceTel: (33) 5 96 59 44 73afdfortdefrance@afd.frMayotteMamoudzouTel: (33) 2 69 64 35 00afdmamoudzou@afd.frNEW CALEDONIANOUMEATel: (687) 24 26 00afdnoumea@afd.frREUNIONSaint-DenisTel: (33) 2 62 90 00 90afdsaintdenis@afd.frSAINT PIERRE ANDMIQUELONSaint-PierreTel: (33) 5 08 41 06 00agence@iedom-spm.frWALLIS AND FUTUNAMata-UtuResponsibilities shared withAFD New Caledonia officeTel: (681) 72 25 05afdmatautu@afd.frEuropeanInstitutionsLiaison OfficeBRUSSELSTel: (32) 2 287 73 00afdbruxelles@afd.frOTHER BENEFICIARY COUNTRIESSUB-SAHARANAFRICABotswanaCape VerdeEquatorial GuineaEritreaFrench Austral andAntarctic TerritoriesGambiaGuinea BissauLesothoLiberiaMalawiNamibiaRwandaSao Tomé and PrincipeSeychellesSierra LeoneSomaliaSudanSwazilandZambiaZimbabweLATIN AMERICAAND THE CARIBBEANBahamasBarbadosBelizeBrazil (Amapá)CubaGuyanaJamaicaLesser AntillesTrinidad and TobagoASIA ANDTHE PACIFICBangladeshMaldivesSouth Pacific IslandNationsVanuatuAFD supervisory officeSouth AfricaSenegalCameroonEthiopiaReunionSenegalSenegalSouth AfricaCôte d'IvoireSouth AfricaSouth AfricaKenyaGabonMauritiusGuineaEthiopiaEthiopiaMozambiqueSouth AfricaSouth AfricaAFD supervisory officeDominican RepublicMartiniqueFrench GuianaFrench GuianaDominican RepublicFrench GuianaDominican RepublicMartiniqueMartiniqueAFD supervisory officeIndiaIndiaNew CaledoniaNew Caledonia53

AFDAPPENDICESBOOKS, PERIODICALS AND VIDEOSThis is a partial list. You can download all English or French AFD publications from www.afd.frWORKS ABOUT AFD’s ROLEAND MISSIONafd and ...Brochures highlighting AFD’s operationsand activities in various regions and sectors.• AFD and Turkey• AFD and Climate Change• AFD, Partner to African Cities• AFD in the Mediterranean and in theMiddle East• AFD, Sustainable Development• AFD and Mauritius Sustainable Islandaction planThis collection summarizes AFD’s strategiesand commitments, and presentsits capabilities and expertise in specificdomains and countries. 2012 titles include:• Reconciling Development and the FightAgainst Climate ChangeANTHOLOGIESkaleidoscopeA monthly bibliography culled from internationaljournals, listing scientific and technicalarticles on economic developmentand poverty alleviation. In French.produitdocA quarterly bulletin reviewing commoditiesmarkets, organized by product and illustratedwith graphs and summary tables.In French.JOINT PUBLICATIONSin partnership with the world bankThe African Development Forum Seriesfocuses on sub-Saharan Africa’s principalsocial and economic development challenges.Each volume addresses one issue,enriching thought about local, regional andglobal policies.Financing Africa’s Cities. Thierry Paulais(tr. Suzan Nolan and Leila Whittemore).Washington, DC: World Bank Publishing,2012.Africa is experiencing the highest urbangrowth rate in the world. Sub-SaharanAfrican cities alone will gain over300 million people over the next twentyyears. This calls for a change in the scaleof urban investment funding. Based on casestudies, this volume analyzes local capitalinvestments and proposes workable avenuesto modernize investment-financingsystems.a planet for life 2012, in partnershipwith iddri and teriTowards Agricultural Change. PierreJacquet, Rajendra K. Pachauri, LaurenceTubiana (eds). New Dehli: TERI Press,2012.A Planet for Life 2012 focuses on agricultureand its relation to development, foodand the environment. As the 2000s cometo a close, an emerging consensus calls forurgent, massive investment in the agriculturalsector – once again viewed as one of theprime engines for development and foodsecurity, as well as for poverty reduction.But what issues, exactly, does this consensusencompass? A Planet for Life has calledupon many highly specialized authorsfrom different countries and perspectives,and invites the reader to discover thesector in all its complexity, upstream anddownstream of agricultural production.savoirs communsA discussion series based on AFD’s practicalexperiences and those of other developmentaid professionals and participants.The series capitalizes on shared knowledgeand good practices for mutual learning andenrichment.N° 12 | Street Children: from individualcare to the introduction of social policies(written with Samusocial International)This issue will help the reader understandthe situation of homeless “street children,”following them in the street and throughtheir young lives. It discusses aid mobilizationto provide lasting and multidisciplinarycare for their needs, overcoming realchallenges.Agence Françaisede Développement& Samusocial InternationalSavoirs communs n°12Street Children:from individual careto the introduction of socialpoliciesVIDEOSIn 2012, AFD produced about 20 films,including 42 interviews with experts, aidbeneficiaries and decision makers, andrecorded many conference proceedings.Titles include:• “Paris-Ouagadougou: same combat”An urbanist takes the viewer on a tourthrough Paris, showing how developedand developing world cities face similarchallenges.• “The Renewal of Faidherbe Bridge.”In Saint Louis, Senegal, AFD financedrenovations to Pont Faidherbe bridge,an essential roadway and UNESCOworld heritage site.• “The Voice of the River.” This filmshows an AFD project set up in Guinea,Mali, Senegal and Mauritania topopularize and broaden waterway useamong riverside residents.• “Love Jo’burg.” A portrait of a dynamic,unequal, teeming city, sketched throughthe eyewitness accounts of those whodesign and build it.• “Palestinian Municipalities: Looking forthe Future.” Presents the MunicipalDevelopment Fund’s funding allocationtool, an anchor of Palestinian nationalpolicies.• “Soweto Water Project.” An audiovisualevaluation of a project in Soweto,recounting the project’s history with itsups and downs.• “Rendez-vous in South Africa: Durbanand Sustainable Energy.” South Africaaccounts for 50% of greenhouse gasemissions on the African continent.It has adopted a sustainable developmentpolicy in line with the KyotoProtocol. AFD has granted a loan toDurban municipality for a methanerecovery and electricity generationproject. The saved greenhouse-gasemission credits are sold on the worldcarbon market.• “Haiti: Health Care Access.” In Haiti, AFDsupports NGO and public authorityefforts to provide healthcare, combatingHIV/AIDS and maternal and perinatalmortality. Since 2004, AFD has assistedZanmi la Santé, a Haitian NGO that hastaken up the challenge of introducinganti-retroviral drugs in rural areas.54

[1] Above a certain level of income, this relationship is reversed. However, the level of per capita income above which this turning point occurs is high (fromUSD 20,000 to 22,000 per capita according to Cadot et al., 2011); at low per capita income levels, the relationship is thus positive. The United NationsEconomic Commission for Africa (UNECA, 2007) confirms that export diversification trends upwards with the income of African countries.12SCIENTIFIC JOURNALSafrique contemporaineA quarterly journal of research articlesanalyzing major trends in African politics,economics and society. In French only.Published by de Boeck.À SavoirA series featuring reviews of books andpapers that frame current understanding ofoperational issues.AFD published 11 numbers in 2012,including:N° 15 | The Governance of Climate Changein Developing CountriesN° 14 | Creating Access to Agricultural Finance.Based on a horizontal study of Cambodia,Mali, Senegal, Tanzania, Thailand andTunisiaN° 13 | Methods for the Economic Valuationof Urban Heritage: A Sustainability-basedApproachDevelopment professionals now see urbanheritage as a territorial resource, one whoseeconomic value calls for assessment. Suchan evaluation is a delicate exercise giventhe complex reality of this heritage, oneconsisting of four interdependent economic,cultural, social and environmental dimensions.This paper presents a five-step methodology:identification of urban heritage,evaluation of services provided, comparisonof investment flows with degradation costs,introduction of threshold effects, and estimationof nonsustainability risk.N° 12 | Contract Farming in DevelopingCountries. A ReviewThis review analyzes academic, institutionaland technical literature along with casestudies to answer the most frequently raisedquestions about contract farming practices:Are smallholders excluded from contractfarming? Do contract participants displaysignificantly higher incomes than nonparticipants?Does this practice work with somecrops better than others, and if so, whichones? What roles do farm cooperatives andnongovernmental organizations play in successor failure?12Contract Farming inDeveloping Countries- A ReviewMartin PROWSEInstitute of Development Policy and Management, University of AntwerpFebruary 2012conferences & seminarsA series of presentations and conclusionsdrawn from seminars and conferences organizedby AFD’s research department.N° 5 | Evaluation and its Discontents: Do WeLearn from Experience in Development?A conference on 26 March 2012, which assembledover 1,000 participants from morethan thirty countries, posed a crucial question:do we learn from development experience?If so, how can evaluations help uslearn, and why are we unable to put theselessons into practice?working papersA series of varied works including in-deptharticles, academic works and discussionpapers on development policy.AFD published 13 numbers in 2012,including:N° 128 | China’s Coal Methane: Actors,Structures, Strategies and their Global ImpactsN° 126 | In Pursuit of Energy Efficiency inIndia’s Agriculture: Fighting ‘Free Power’ orWorking with it?N° 123 | Assessing Credit Guarantee Schemesfor SME Finance in Africa Evidencefrom Ghana, Kenya, South Africa and TanzaniaN° 120 | Fostering Low-Carbon Growth Initiativesin ThailandfocalesA series presenting accounts of field experiencesin developing and emerging countries,focusing on AFD and its partners– experts, researchers, consultants andpractitioners. 2012 editions include:N° 9 | The Environmental Challenges Facedby a Chinese Oil Company in ChadThe surge in Chinese investments in Africahas generated concern about their ecologicalimpacts. However, Chinese businessprinciples and environmental managementcapabilities remain largely unknown. Thiswork, born of a unique partnership betweenEuropean, Chadian and Chinese researchers,attempts to provide some insight onthis subject by examining a case study: aChadian project begun in 2009, initiated byCNPC, China’s largest oil company.N° 8 | Energy Efficiency Retrofitting of Buildings.Challenges and MethodsN° 7 | Decentralisation in TurkeyEx postA collection that evaluates work by AFD andits partners in search of key lessons, organizedaccording to five themes: Evaluationand Capitalization, Executive Summary, MethodologyNotes, Impact Analyses and JointEvaluations.AFD published 8 titles in 2012, including:Evaluation and Capitalization seriesN° 43 | Practical Case of Resident TechnicalAssistance, Lessons Learned from Supportto the Education Sector in MauritaniaImpact Analysis seriesN° 11 | Going Beyond Adverse Selection:Take-up of a Health Insurance Program inrural CambodiaStandard health insurance theory holdsthat households expecting high healthcarecosts are the most willing to purchase healthinsurance. However, other considerations –budgetary ones in particular – may influencethe decision. This study, conducted in ruralCambodia during the expansion of the SKYHealth microinsurance programme, showsthe importance of insurance and healthcarecosts.Summary Notes seriesN° 10 | The Forest Sector in Countries of theCongo Basin: 20 years of AFD InterventionJoint Evaluations seriesCurrent editions available in French only.macrodevA series providing macroeconomic analysesof development processes, by country, regionor topic. 2012 numbers include:N° 3 | Export Diversification in the FrancZone: its Extent, Sophistication and DynamicsIntroductionIt is now a widely recognised fact in the economicliterature that the level of per capita income andthe degree of sectoral concentration of economicactivity evolve together over the long term. Theempirical research of Imbs and Wacziarg (2003)has notably shown that production diversificationand wealth go hand in hand in countries with alow per capita income. More recently, variousstudies have found that export diversification issimilarly linked to per capita income (Klingerand Lederman, 2006; Hesse, 2009; Cadot et al.,2011): export diversification increases as percapita income rises, at least up to a certain levelof income. [1]This type of approach, however, does notexhaust the analysis of the phenomenon ofexport diversification. More specifically, it doesnot allow an investigation of how export structuresevolve over the short and medium term. Yet,these time scales can in fact prove useful tomore clearly identify the factors that impedediversification. It is thus on this aspect of exportdiversification that the present study will focus.December 2012 / No 3Macroeconomics and DevelopmentExportdiversification inthe franc zone:its extent,sophisticationand dynamicsChristophe Cottet (cottetc@afd.fr)Nicole Madariaga (madariagan@afd.fr)Macroeconomic Analysisand Country Risk UnitResearch Department, AFDNicolas JégouAdministrator at INSEEMuch of the research on this aspect of exportdiversification has above all addressed industrialisedor emerging countries (Rodrik, 2006; Besedesand Prusa, 2011), which is all the more regrettablegiven that high degrees of export concentrationheighten the vulnerability of the poorest countries.This paper therefore examines a group of countriesrecherchesA series featuring AFD-initiated and directedresearch studies.N° 2 | Water Services and the Private Sectorin Developing Countries. ComparativePerceptions and Discussion DynamicsThis book, which summarizes five years ofAFD research on public-private partnerships,questions the suitability of delegation models.It also describes changes in how developmentstakeholders — donors, researchers,experts — perceive the private-sector rolein drinking water and sanitation service indeveloping countries.55

AFDAPPENDICESFINANCIALSTATEMENTSA view of the AFD Group’s (AFD and PROPARCO) financial standing as of 31 December 2012.The complete 2012 AFD Group financial report is available in the Registration Document, which can be downloaded from www.afd.frRounding may cause totals to vary slightly from item-by-item addition.BALANCE SHEETASSETS (€ million) 2011 2012 LIABILITIES AND CAPITAL (€ million) 2011 2012Loans (net outstanding) 15,629 18,617 Bonds and borrowings from markets 11,316 14,271Loans (gross outstanding) 15,960 18,941(-) Allowances for capital andinterest impairments-420 -422(+) Accrued interest 89 98 Borrowings from French Treasury 2,496 2,548Financial liabilities (excluding own debt) 252 223IMF-PRGF operations* 2,086 1,861 IMF-PRGF operations* 2,085 1,860Investment portfolio 687 692Managed funds and advances from Frenchgovernment568 646Cash and short-term instruments 625 1,228 Accruals and other liabilities 481 992Equity participations 421 436Provisions 724 781Property, plant, equipment andintangible assets184 203 Capital and Retained Earnings 2,182 2,200Accruals and other assets 547 573 Net income 73 88TOTAL 20,178 23,610 TOTAL 20,178 23,610*PRGF: Poverty Reduction and Growth Facility. IMF: International Monetary FundKEY RATIOS AND INDICATORS2010 2011 2012Net banking income (€ million) 383 361 363Net income (€ million) 104 73 88Dividends paid to French treasury (€ million) 220 71 55Return on equity Overhead expenses 1 / Net banking income 65.5 % 71.6 % 73.8 %Return on capital employed Earnings before interest and tax / Capital employed 2 6.1 % 4.3 % 5 %Return on assets Net income / Total assets 0.6 % 0.4 % 0.4 %1Overhead includes depreciation and amortization expenses; 2010 ratios have been recalculated to reflect this change.2Average debt liabilities and average shareholder’s equity net of provisions for general banking risk (€460 million).56

INCOME STATEMENTEXPENSES (€ million) 2011 2012 INCOME (€ million) 2011 2012Borrowings expense 757.5 952.4 Income earned on loans and guarantees 847.3 1,027.9Interest expense 317.1 398.2 Interest income and commissions on loans and guarantees 443.7 528.2Swaps expense 439.3 549.9 Swaps income 432.0 539.7Net allowances for unpaid interest -2.1 -7.1Interest income losses -0.8 0.0Net allowances for sovereign credits impairments -37.4 -42.1Net foreign exchange loss (- gain) 1.0 4.3 Recoveries on subsidy account for SAL* and mixed loans-grants 11.9 9.2Income earned on interest rate subsidies 183.0 184.6Investment income 42.7 54.5Income from equity participations 4.5 3.5Commissions on operations 36.8 36.6Miscellaneous financial expenses 30.7 30.2 Miscellaneous commissions 33.8 37.4Expenses for IMF-PRGF operations 37.0 37.1 Income from IMF-PRGF operations 37.9 38.0Total Banking Expenses 825.2 1,019.7 Total Banking Income 1,186.0 1,382.6Net of IMF-PRGF Operations Expenses 788.2 982.6 Net of IMF-PRGF Operations Income 1,148.1 1,344.5NET BANKING INCOME 360.8 362.9General and administrative expenses 245.8 254.1• Employee compensation and benefits 166.4 170.3Employee compensation net of overseas reserve bankreimbursements164.0 166.9Allowances for retirement benefits 2.4 3.4• Taxes and regulatory fees 3.8 4.7• Other general and administrative expenses 75.6 79.1• Net other allowances 0.0 0.0Net allowances for depreciation of property, plantand equipment and amortization of intangibles12.6 13.7Total operating expenses 258.5 267.8GROSS OPERATING INCOME 102.4 95.1Cost of risk and other credit risk provisions -33.8 -8.8Net allowances for loan impairments 0.8 5.2Provisions for contingencies and charges -33.8 -12.1Capital losses on bad debt and loan losses -0.7 -2.0Gross income from operations 68.6 86.3Gains or losses on fixed assets 5.2 1.9Net profit before tax and exceptional items 73.8 88.1Net income (- loss) from exceptional operations -0.3 -0.3Income tax expense 0.0 0.0Net Income 73.5 87.9*SAL: Structural Adjustment Loan57

AFDAPPENDICESAFD GROUP 2012FUNDING APPROVALS(€ million)GRANTS andSUBSIDIES LOANS GUARANTEES EQUITYBUDGET SUPPORTAND HIPCINITIATIVETotalDELEGATEDCOOPERATIONFUNDS2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012SUB-SAHARAN AFRICABenin 10.0 0.3 10.0 1.4 1.7 11.4 12.0 2.0 1.3Burkina Faso 8.3 23.6 18.4 7.9 5.7 19.5 34.6 48.8 2.8Burundi 1.2 5.2 1.0 0.3 2.2 5.6Cameroon 2.4 0.5 329.0 83.2 24.7 14.1 211.8 33.5 567.9 131.3 5.7Cape Verde 27.2 27.2Central African Republic 5.7 6.6 6.0 5.7 12.6 3.8Chad 6.4 11.4 2.6 6.6 8.9 18.0Comoros 5.2 15.0 3.0 5.2 18.0 4.2Congo (Democratic Rep. of the) 15.5 0.5 8.0 2.4 0.7 0.5 16.2 11.3Congo (Republic of the) 0.3 31.0 31.3 12.9Côte d'Ivoire 1.5 1.2 358.0 76.3 66.3 30.4 144.7 425.9 252.7 19.9Djibouti 6.0 4.3 4.3 6.0 5.2Ethiopia 0.6 70.0 0.1 70.6 0.1 4.0Gabon 15.0 6.5 6.7 1.5 12.0 23.0 18.7Ghana 1.6 0.6 231.6 125.6 1.2 2.0 4.0 5.4 238.3 133.7 4.8 5.0Guinea 10.7 9.0 3.1 5.0 13.8 14.0Guinea Bissau 0.1 0.1Kenya 3.9 0.0 235.9 128.9 8.7 0.4 248.6 129.3 5.0 26.1Liberia 3.9 3.9Madagascar 22.0 16.6 7.2 11.6 5.0 34.1 28.2Mali 8.5 0.8 44.3 4.1 1.6 56.8 2.4Mauritania 4.1 6.5 45.0 41.3 2.0 13.0 51.1 60.9 0.1 20.4Mauritius 117.5 82.6 2.2 0.2 1.7 3.9 121.4 86.8 3.0Mozambique 3.2 40.0 50.0 0.9 44.1 50.0 3.1Namibia 4.8 2.0 6.8Niger 15.7 2.7 11.4 40.0 1.8 10.0 10.0 38.8 52.7Nigeria 0.4 6.7 76.8 0.2 6.9 77.2Rwanda 0.3 0.1 3.8 4.2Senegal 7.1 30.2 86.5 152.0 11.0 11.1 104.6 193.3Seychelles 10.0 10.0South Africa 234.3 145.2 7.1 234.3 152.3Sudan 1.4 1.4Tanzania 0.5 0.9 43.6 56.5 3.7 0.8 3.4 4.1 55.4 58.2Togo 6.5 8.1 40.0 5.2 3.8 2.0 53.6 11.8 39.9Uganda 0.5 16.1 18.8 0.7 0.2 16.8 19.5 14.0 0.8Zambia 10.4 59.1 0.5 10.9 59.1 6.7Zimbabwe 0.8 0.8MULTI-COUNTRY PROGRAMMES 56.5 46.0 4.0 256.8 7.2 58.8 11.9 40.0 159.3 322.0 1.4 25.0Total 197.5 195.1 1,984.9 1,425.8 163.8 109.2 75.8 32.7 301.3 250.7 2,723.3 2,013.5 55.7 161.3MIDDLE EAST AND NORTH AFRICAEgypt 1.0 10.5 387.0 3.9 15.4 387.0 1.3 20.8Jordan 1.6 1.0 150.0 1.6 151.0Lebanon 1.4 2.7 70.0 56.5 71.4 59.2Libya 0.3 0.3Morocco 3.2 0.7 540.0 380.0 543.2 380.7Palestinian Territories 22.6 16.4 2.3 1.5 24.9 17.9 4.9Tunisia 0.6 3.4 185.0 50.0 2.0 8.5 185.6 63.9 7.8 32.1Turkey 0.4 231.0 151.9 231.4 151.9 20.0MULTI-COUNTRY PROGRAMMES 8.9 5.9 26.5 35.4 5.9 0.1 0.2Total 39.6 30.4 1,036.5 1,175.3 2.3 3.5 30.4 8.5 1,108.9 1,217.7 29.1 58.058

GRANTS andSUBSIDIES LOANS GUARANTEES EQUITYBUDGET SUPPORTAND HIPCINITIATIVETotalDELEGATEDCOOPERATIONFUNDS2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012ASIA AND THE PACIFICAfghanistan 25.9 26.3 25.9 26.3Bangladesh 57.3 0.2 57.5Cambodia 5.5 6.8 8.2 69.7 13.8 76.4China 176.8 130.6 4.0 180.8 130.6Georgia 15.6 15.6India 0.1 248.6 280.4 0.2 15.6 26.9 264.3 307.4Indonesia 0.3 156.6 140.5 156.8 140.5Laos 2.0 2.0Myanmar 1.9 1.9Pakistan 61.0 61.0Philippines 60.0 60.0Sri Lanka 0.4 24.0 24.4Thailand 20.0 20.0Vanuatu 0.3 0.3 0.02Vietnam 1.5 1.6 129.0 103.0 130.5 104.6MULTI-COUNTRY PROGRAMMES 3.6 3.6 0.1Total 35.2 41.0 739.1 942.0 0.2 0.2 19.6 26.9 794.1 1,010.1 0.1LATIN AMERICA AND THE CARIBBEANArgentina 14.8 15.1 14.8 15.1Brazil 2.0 56.4 756.4 10.0 56.4 768.4 1.5Colombia 1.9 351.8 149.9 353.7 149.9 9.5Costa Rica 5.2 7.7 5.2 7.7Dominica 10.0 6.5 10.0 6.5 2.0Dominican Republic 0.1 159.7 59.6 0.6 160.3 59.7 10.0Ecuador 7.6 16.2 7.6 16.2Guatemala 1.5 1.5Haiti 21.9 7.5 2.5 18.0 8.0 39.9 18.0 19.6 4.7Honduras 16.0 16.0Mexico 1.5 385.0 60.0 0.1 385.1 61.5 2.0 7.0Nicaragua 20.3 20.3Panama 24.5 6.8 24.5 6.8Peru 15.3 36.9 15.3 36.9Uruguay 31.1 31.1MULTI-COUNTRY PROGRAMMES 3.5Total 25.3 11.0 1,030.3 1,175.7 0.7 2.5 16.8 18.0 8.0 1,074.3 1,214.1 25.1 34.6NON-COUNTRY-SPECIFICPROGRAMSTOTAL DEVELOPING ANDEMERGING COUNTRIES13.7 34.4 49.8 4.0 12.1 5.0 75.5 43.4 3.1311.3 312.1 4,840.6 4,722.8 167.0 115.4 137.9 89.8 319.3 258.7 5,776.1 5,498.7 113.3 254.0FRENCH OVERSEASPROVINCESFrench Guiana 50.5 77.3 12.8 6.9 63.3 84.2French Polynesia 0.4 35.1 170.7 3.6 67.3 0.3 39.1 238.4 0.3Guadeloupe 127.2 190.6 33.9 33.5 161.1 224.1Martinique 206.2 175.6 20.1 23.1 226.3 198.7Mayotte 85.6 46.5 3.0 6.7 88.6 53.2 2.8New Caledonia 0.3 275.6 241.9 10.7 10.9 286.3 253.1 0.2Reunion 163.3 337.8 72.5 67.5 8.5 235.8 413.8Saint Pierre and Miquelon 5.0 4.8 0.6 0.3 5.6 5.1Wallis and Futuna 0.1 0.1Shared by several local governments 0.6 1.5 1.8 1.5 2.4 0.4Shared by several provinces 5.0 5.0Shared by several local governments0.4 0.4and provincesTOTAL 1.8 948.5 1,250.2 158.7 217.9 0.3 8.5 1,107.5 1,478.4* 0.9 2.8TOTAL ALL 311.3 313.9 5,789.1 5,973.0 325.7 333.3 138.2 98.3 319.3 258.7 6,883.5 6,977.2 114.1 256.8* Includes a larger scope than in 2011, for €80 million59

AFDAPPENDICESAFD 2012PROJECT APPROVALSThis is a partial list of AFD-approved projects by sector.SECTOR COUNTRY PROJECT BENEFICIARYTOTALCOMMITMENT(€ million)AGRICULTURE ANDFOOD SECURITYINFRASTRUCTUREAND URBANDEVELOPMENTAFGHANISTAN Capacity building for the Ministry of Agriculture, Irrigation and Livestock Farming Central Government 1.50CAMBODIA Support for hydro-agricultural sector policy makers Central Government 24.00CAMEROON Support programme for project owners in rural administrations Central Government 7.80EGYPTProgramme to improve credit access for agricultural producers and processors; commitmentincludes delegated EU fundsCentral Government 50.80GHANA Perennial crop plantations and small agro-industries Bank 17.70GUINEA Second phase of a support programme for village communities Central Government 6.00HAITIMAURITANIAFood security improvement in the South Province and strenghtening of the food processingindustry; commitment includes delegated EU fundsExtension of the second phase of a support programme for local development anddecentralizationMYANMAR Equity participation in the Livelihoods and Food Security Trust Fund (LIFT) International TrustFundCentral Government 11.67Central Government 3.64NIGERIA Refurbishment of rural roadways and transportation improvements Central Government 46.32SENEGALFood security improvement project and support for bringing products to market in MatamProvinceMULTI-COUNTRY Regional program to fight fruit fly infestations in the ECOWAS area InternationalOrganizationBANGLADESH Partial financing for sustainable urban transportation in Greater Dacca Public sectorcooperative1.00Central Government 22.50BRAZIL Mass transit policy in Rio de Janeiro State Central Government 299.93Partial financing of the "Management for Citizenship" programme in Minas Gerais State Central Government 300.00CHINA Multi-modal transportation hub in Wuhan Province Central Government 100.00COLOMBIA Financing for local governments' capital investments; commitment includes delegated EU funds Bank 154.93DJIBOUTI Solid waste management, valorization, and treatment programme in City of Djibouti Central Government 6.00DOMINICA Support for geothermal power development; commitment includes delegated EU funds Central Government 8.50EGYPT Third phase of Number 3 metro line in Cairo Central Government 300.00GHANA Extension of roadway and drainage infrastructure in Kumasi Central Government 37.50INDIA Cofinancing with JICA and SADB for the Bangalore Metro Central Government 110.00INDONESIA Partial financing for an urban rail transportation project in Bandung Central Government 46.00MAURITIUSPartial financing for the capital investment programme of the Port Authority of Port Louis;commitment includes delegated EU fundsPublic SectorEntrepriseMEXICO Credit line for the Federal Mortgage Company to support green social housing Public SectorFinancial InstitutionMOROCCOPALESTINIANTERRITORIESTUNISIAPartial financing for the National Port Agency for the refurbishment and expansion of regionalportsFinancing for capital investment in the first tramway line in CasablancaConstruction of the first high-speed rail line between Tangier and KenitraPublic SectorEntreprisePublic SectorEntreprisePublic SectorEntreprise1.5034.7235.607.0050.3023.00220.00Construction of a modern landfill in the Gaza Strip; commitment includes delegated EU funds Central Government 14.65Neighborhood redevelopment and support for integrated local development; commitmentincludes delegated EU fundsCentral Government 62.39TURKEY Extention of metropolitan rail line to a multi-modal hub in Yenikapi Local Government 45.54Partial financing for a sustainable urban transportation project in Izmir Local Government 45.00MULTI-COUNTRY Support for affordable housing in Africa Public SectorFinancial InstitutionPartial financing for ASECNA's capital investment programme to strengthen air traffic safety inAfrica and MadagascarInternational PublicSector EntityContribution to the European Neighborhood Investment Trust Fund Investment fund 5.0019.3140.0060

SECTOR COUNTRY PROJECT BENEFICIARYTOTALCOMMITMENT(€ million)WATER ANDSANITATIONAFGHANISTAN Capacity buidling and drinking-water supply extension in Kabul Central Government 7.00CAMBODIAFinancing for capital investments to double the Niroth plant's water treatment capacity and toextend the water adduction and distribution networkPublic SectorEntrepriseCOLOMBIA Budget support for a comprehensive water management policy Central Government 4.50COMOROSDrinking-water supply project in Domoni on Anjouan Island; commitment includes delegated EUfunds30.00Central Government 5.72DJIBOUTI Wastewater sewerage and treatment project in the Balbala district of Djibouti Central Government 5.20EGYPT Cofinancing for a European programme to improve water and sanitation in Upper Egypt Central Government 57.00GHANA Cofinancing with the EIB for rural hydraulics; commitment includes delegated EU funds Central Government 45.00INDIA Second phase of a project to improve drinking water supply in Jodhpur Central Government 23.00KENYA Water-supply system extension project in Nairobi Central Government 100.00MAURITANIAImprove access to drinking water and sanitation for rural and semi-urban populations;commitment includes delegated EU fundsDrinking water and sanitation access for residents of Aftout El Charghi; funding includesdelegated EU loanMOROCCO Cofinancing to improve drinking-water adduction and distribution Public SectorEntreprisePALESTINIANTERRITORIESCentral Government 14.63Central Government 27.30Refurbishment of drinking-water supply network in Beit Sira Central Government 1.00Water supply improvement project in the Tubas governorate Central Government 4.50SEYCHELLES Improve water and sanitation services on three largest islands Central Government 10.0030.00TANZANIA Lake Victoria regional sanitation project Central Government 45.00TOGO Improvement to school and rural sanitation conditions in the Savanes region Central Government 6.00Delegated EU funds to finance urban development and sanitation in Lomé Central Government 39.91TUNISIA Partial financing of a rural water supply programme Central Government 20.00EDUCATION BURKINA FASO Support programme for upgrading teaching practices and for technical and professional training Central Government 5.00Support for a basic education development plan Central Government 7.00BURUNDI Support for an education and training development programme Central Government 5.00CAMEROON Extension and modernization of the Catholic University of Central Africa InternationalOrganization10.00Extension and modernization of the University of MountainsPrivate NonprofitOrganizationProfessional training centers Central Government 15.00CÔTE D'IVOIRE Debt relief contract for education, training and workplace integration Central Government 93.00DOMINICANREPUBLICSupport for hospitality and catering industry training Central Government 4.00LEBANON Support for education Central Government 46.50MADAGASCAR Support for education quality improvement project Central Government 10.00MAURITANIASupport for vocational and professional training, part of the National Education DevelopmentPlan II7.72Central Government 3.00SENEGAL Support for middle-school teaching Central Government 12.00MULTI-COUNTRYFinancing for the Conference of Education Ministers of Countries Using French as a CommonLanguage (or CONFEMEN ) for a comparative analysis of educational systemsENERGY BRAZIL Modernization and extension of the electricity grid in Rio Grande do Sul State; commitmentincludes delegated EU fundsImprovements to electricity production and transmission in Rio Grande Do Sul StatePublic SectorFinancial InstitutionPublic SectorEntreprisePublic SectorEntrepriseCAMBODIA Modernization and extension of public lighting in Phnom Penh Private SectorEntrepriseCAMEROON Hydroelectric project in Lom Pangar Central Government 60.00INDONESIA Strengthening the electric transportation network in metropolitan Jakarta Central Government 15.04JORDAN Sectoral budget aid Central Government 150.00MAURITANIAHybrid solar photovoltaic/thermal power plant and electricity grids in the Kiffa region;commitment includes delegated EU funds4.0067.9944.9411.69Central Government 23.80MAURITIUS Budget support for green energy development Central Government 50.00MOROCCO Second phase of a programme to strengthen high and medium voltage electricity grid Public SectorEntrepriseMOZAMBIQUE Refurbishment of hydroelectric plants in Mavuzi and Chicamba Central Government 50.00PAKISTAN Hyrdroelectric plant in Harpo Central Government 50.00First phase of a multi-use dam project in Munda Central Government 11.00SOUTH AFRICA Concentrated-solar power plant Public SectorCooperativeUGANDA Installation of a power transmission line betweeen Nkenda and Hoima Central Government 18.7657.00100.0061

AFDAPPENDICESSECTOR COUNTRY PROJECT BENEFICIARYTOTALCOMMITMENT(€ million)ENERGY VIETNAM 500 kV electricity transmission lines between Pleiku and Ho Chi Minh City Central Government 75.50ZAMBIAConstruction of transmission lines from a 120 MW hydroelectric plant; commitment includesdelegated EU fundsMULTI-COUNTRY Refinancing for projects under the Regional Initiative for Sustainable Energy (WAEMU) InternationalOrganizationCentral Government 33.3575.50ENVIRONMENT CAMEROON Second round of support for the Forests and Environment Sector Programme (first debt reliefcontract)Central Government 10.70CENTRALAFRICANREPUBLICSouthwest Regional Development Programme; commitment includes delegated EU funds Central Government 8.75CHINA Sustainable forest management project in Hunan Province Central Government 30.60GABON Integrated management project for nature reserves outside Libreville (Arc d'Émeraude) Central Government 12.00INDIA Energy efficiency and renewables project Public SectorFinancial Institution100.00INDONESIA Environmental credit line Bank 75.49MAURITANIA Grant to the Banc d'Arguin and Biodiversity Trust Fund Private SectorFinancial Iinstitution2.50MEXICO Budget loan for biodiversity Central Government 60.00PHILIPPINES Climate change mitigation projects Public SectorFinancial Institution60.00VIETNAM Third phase of a climate-change response programme Central Government 20.00MULTI-COUNTRY Framework agreement with the International Union for Conservation of Nature (IUCN) InternationalOrganization1.00HEALTH BURKINA FASO Support for population and health policies Central Government 9.00CAMEROON Expansion of the Cameroon Baptist Convention Health Board network of healthcare services Private NonprofitOrganizationCHAD Urban health project Private SectorFinancial Iinstitution5.498.00COMOROS Support for health, particularly maternal and infant health Central Government 8.00CÔTE D'IVOIRE Strengthening of family planning policies Central Government 7.62LIBERIA Contribution to the Common Fund for Health Central Government 3.94SENEGAL Improvements to maternal and infant health in the Louga region Central Government 14.00MULTI-COUNTRY Expansion of Africans' access to new treatments for malaria, sleeping-sickness and pediatric AIDS NGO 5.00Project to fight emerging diseases in Cambodia, Laos, Myanmar and Vietnam NGO 2.70Capacity building to fight tuberculosis in eight French-speaking African countries NGO 3.50BUSINESS,INDUSTRYAND TRADEBENIN Support for mesofinance Bank 1.26CHAD Microfinance capacity building Central Government 2.00Support for structuring the gum arabic industry Central Government 1.40MADAGASCAR Implementation of remote-banking services in rural areas Central Government 2.00SENEGAL Support for the expansion of Saint-Louis Finances Private SectorFinancial IinstitutionSUDAN Support for structuring the gum arabic industry Central Government 1.40TOGO Support for structuring a microfinance institution Private SectorFinancial IinstitutionTUNISIASupport to set up a workplace integration programme for young graduates by starting-upcompanies in the Médenine regionPrivate NonprofitOrganizationVIETNAM Contribution to a public-private partnership support programme Central Government 8.60MULTI-COUNTRY Support to develop fair trading practices as a sustainable development tool in West Africa NGO 2.901.502.001.50OTHER AFGHANISTAN Fourth economic development programme for Kapisa Province and the Surobi District(agriculture, rural electrification and health)Central Government 15.40BURKINA FASO Global budget aid Central Government 19.50CENTRALAFRICANREPUBLICGlobal budget aid Central Government 6.00COMOROS Global budget aid Central Government 3.00CÔTE D'IVOIRE Drafting and management of a debt-relief contract Central Government 19.10Global budget aid Central Government 25.00GUINEA Global budget aid Central Government 5.00HAITI Global budget aid Central Government 8.00MAURITANIA Global budget aid (health and food security) Central Government 6.40NIGER Global budget aid Central Government 10.00Budget support loan Central Government 40.00SENEGAL Budget support loan Central Government 130.0062Refer to the AFD French Overseas Provinces annual report and the PROPARCO annual report for their respective project lists.

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

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