Download - NDF's Annual Report 2010
NORDIC DEVELOPMENT FUND Annual Report 2010
Report by the Board of Directors 2010 3
Income Statement 10
Balance Sheet 11
Changes in Equity 12
Cash Flow Statement 12
Notes to the Financial Statements 13
Auditors’ Reports 19
NDF and Innovation 22
Grant Portfolio 27
Credit Portfolio 28
Board of Directors 33
Control Committee 33
Management and Staff 34
I N D E X
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Pursuant to a decision by the Nordic Cooperation Ministers
in 2009 the bylaws of NDF were amended. According to its
new mandate, NDF shall use its repayments on credits in
the form of grant financing of climate-related interventions
in low-income countries. After the amendments became
valid, the Board approved a Strategy Document prepared by
the administration which constitutes the basis for NDF’s
operations during the years 2009-2011.
During 2010, the Board approved 14 projects under the
new mandate to a total value of EUR 54.2 million.
Under the previous lending mandate - credits - 17 projects
were completed in the course of the year. A total of 21
projects are still under implementation at the beginning
of 2011.
Disbursements of credits amounted to EUR 37.3 million in
2010 (2009: EUR 49.9 million). The disbursements of grant
aid amounted to EUR 8.2 million.
The net result for the year before adjustments for currency
exchange fluctuations and disbursements of grant aid
totalled EUR -1.9 million (EUR 6.2 million in 2009).
Disbursements of grant aid are recorded as expenses
in the Income Statement, affecting the net result.
Contrary to the previous year, the effects of currency
fluctuations showed a positive result of EUR 19.9 million
in 2010 (EUR -5.8 million in 2009).
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The new mandate
Pursuant to the recommendation of the NDF Board of Directors to the Nordic
Council of Ministers, the Nordic Cooperation Ministers approved in May 2009
amendments to NDF’s bylaws. According to these amendments, NDF is given a
new mandate to support interventions aimed at adaptation to and mitigation of
the negative effects of climate change.
The capital of NDF shall henceforth be utilised in the form of grant aid for
climate related interventions in low-income countries. This capital consists of
repayments from the 190 credits granted by NDF during 1989-2005. These
repayments are expected to amount to approximately one billion euro during
a period of 35 years. The last repayment is due in 2045.
At a meeting in June 2009, the Board of Directors approved a strategy document
prepared by the administration outlining the future activities of NDF during the
years 2009-2011. This document constitutes the basis for NDF’s operations
under the new mandate. The objectives shall be to facilitate greater investments
in developing countries in order to address the causes and consequences of
climate change. The grant assistance of NDF shall be utilised for technical
assistance, goods and civil works related to infrastructure, natural resources
and capacity-building. The Fund can provide grants to 27 countries in Africa,
Asia and Latin America. All of these countries have previously received support
from NDF in the form of credits. Financing in the form of grants shall be provided
by co-financing with other multilateral and bilateral financiers; mirror the
Nordic countries’ priorities in the areas of climate change and development
and as much as possible complement other available financing.
During 2010, the NDF administration prepared internal guidelines for screening
and identification of projects which have applied for financing from NDF.
Following a Board discussion in December, a summary of these guidelines
were published on the NDF website.
Grants
In 2010, the Board approved grant financing to 14 projects for a total value of
EUR 54.2 million:
- The Nordic Climate Facility, NCF, encourages innovations in areas susceptible
to climate change in low-income countries. The facility is based on calls for
proposals. Fourteen subprojects in nine countries received support within the
framework of the first call, which was launched in late 2009. In addition to the
EUR 4 million approved by the Board in 2009, the first call received an increase
of EUR 2 million in 2010, followed by a Board approval of EUR 6 million for a
second call launched in October 2010. Financing can be granted to Nordic
organisations, authorities and companies for innovative projects which reduce
emissions of harmful greenhouse gases or support the adaptation to climate
change in developing countries. The project is administered in cooperation
between NDF and the Nordic Environment Finance Corporation, NEFCO.
- The ProClimate Facility (ProCF) establishes and pilots a partial climate
guarantee and technical assistance facility to support small and medium-sized
investments in climate change mitigation and adaptation projects, including
those eligible for Clean Development Mechanism (CDM). ProCF receives a capital
of EUR 10 million from NDF and the program is implemented in partnership
with NEFCO.
- In Ghana, NDF will support Studies on Landfill Gas Capture and Utilization
with a grant of EUR 2 million. The studies are expected to pave the way for
private investments in land fill gas (LFG) capture and utilisation. The main aim
of the project is to mitigate climate change through a reduction of LFG emissions
equivalent to at least 120,000 CO2 tonnes per year over a period of about twenty
years. The project is part of a larger environmental project financed by the
World Bank and NDF.
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NDF supports three projects in Senegal:
- The Water and Sanitation Millennium Project (PEPAM) will receive grant finan-
cing of EUR 4 million for development of methane gas electricity generation as
well as the extension of a water system supplying treated wastewater for irriga-
tion. The World Bank PEPAM project aims at increasing access to sustainable
water resources and sanitation services. NDF’s contribution will strengthen the
climate change aspects of the project by increasing the use of renewable energy,
decreasing the emission of greenhouse gases and supporting a more efficient
use of water resources.
- The Sustainable and Participatory Energy Management Project (PROGEDE II)
Biomass, financed by the World Bank, receives grant financing of EUR 3 million
in order to contribute to the reduction of greenhouse gas emissions. The overall
objective is to increase the availability of diversified household fuels in order to
reduce deforestation and desertification. The NDF-financed activities will, for
example, help to prevent forest fires, establish forest nurseries and replant
degraded forest lands.
- The Transport and Urban Mobility Project (STUMP) has an overall objective to
improve effective road management and maintenance as well as public urban
transport in the Greater Dakar Area. The objective of the NDF grant of EUR 4
million is to contribute to climate-proofing of road infrastructure planning,
design and maintenance. The project is co-financed with the World Bank.
- In Asia, NDF supports a regional program Climate Friendly Bioenergy in the
Greater Mekong Subregion. Through a EUR 3.1 million grant, NDF will support
the use of environmentally friendly and affordable energy to people in the
Greater Mekong Subregion by converting local biomass into energy. The
NDF-financed intervention will be implemented with the Asian Development
Bank and the three countries concerned - Cambodia, Lao PDR and Vietnam.
Two projects in Cambodia will receive grant financing:
- Adaptation Approaches for the Transport Sector are supported with a grant of
EUR 4.2 million in order to reduce the severity of climate change impacts on the
transport sector. The project is implemented in cooperation with the Asian
Development Bank.
- The Water Resources Management Project (WRMP) receives EUR 3 million for
technical assistance to the Cambodian government in mainstreaming climate
change concerns in water resource planning. The NDF-financed intervention is
implemented with the Asian Development Bank and co-financed with the
Australian Agency for International Development, AusAID.
- Vietnam will receive grant financing of EUR 2.2 million for Support for the
National Target Program on Climate Change. The main objective is to develop
and put into operation detailed action plans and to strengthen the capacity of
institutions to plan and design climate change projects. The Asian Development
Bank will act as partner agency.
- NDF is supporting a regional GreenPyme Program - Increasing Energy
Efficiency in Small and Medium-sized Enterprises in Central America. The
Inter-American Investment Corporation (IIC) acts as the implementing agency of
the programme. IIC is a member of the Inter-American Development Bank (IDB)
Group. NDF’s grant financing of EUR 2.2 million will be directed to Nicaragua,
Honduras, Guatemala, El Salvador and Costa Rica.
- A project in Honduras, Indigenous Peoples Renewable Energy and Climate
Change will receive grant financing of EUR 3.5 million to build capacity among
indigenous people in Honduras to adapt to climate change and to provide
renewable energy solutions to local communities. The project will link up with
an ongoing larger program financed by the Inter-American Development Bank.
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NDF supports two projects in Nicaragua:
- The Disaster Management and Climate Change Program receives EUR 2.5 million
for a project which aims at reducing the vulnerability of rural populations and
particularly small and medium-sized producers to climate change related disasters.
The project is co-financed with the Inter-American Development Bank.
- The NDF grant of EUR 4.5 million to the Sustainable Electrification and
Renewable Energy Program in Nicaragua is part of a larger program which
aims at reducing poverty by increasing access to efficient and sustainable
energy services as well as at mitigating climate change. The Inter-American
Development Bank is implementing agency of the programme.
Credits
At the end of 2010, NDF had entered into 188 agreements, the total value of
which, including additional financing and adjusted for cancellations and calcu-
lating the EUR/SDR currency exchange rate as at December 31, 2010, amounted
to EUR 927.7 million (EUR 917.9 million in 2009). Of these agreements, 160
were credits to public sector projects (EUR 886.2 million), 25 were loans with
equity features or equity investments (EUR 29.3 million) and three were other
loans (EUR 12.1 million).
As at December 31, 2010, disbursements under signed agreements amounted to
EUR 788.2 million; approximately 60.3% of this amount is denominated in SDR.
As a result of the strengthening of the SDR against the euro, the value of
disbursed SDR credits and placements increased by EUR 19.9 million in 2010.
NDF’s participation in the HIPC Initiative
Since the World Bank and the International Monetary Fund (IMF) adopted the
“Debt Initiative for Heavily Indebted Poor Countries” (HIPC), NDF has participated
in the initiative through the HIPC Trust Fund, which is administered by IDA.
By the end of 2010, NDF had made allocations to the HIPC Initiative for debt
relief to nine of the Fund’s borrowing countries.
The allocations made in previous years from NDF's accumulated net income
before foreign exchange differences were increased in 2010 from EUR 28.5
million to EUR 29.6 million to cover the obligations of the Fund under the
enhanced HIPC Initiative. This amount has been paid in to the HIPC Trust
Fund. The refunds to NDF are paid from the HIPC Trust Fund instead of the
respective borrowing countries.
Project monitoring and evaluation
In 2010, ex post evaluations of two credit projects with NDF support were carried
out, in Honduras and in Senegal, respectively. Solar energy systems were in
focus and the evaluations showed that the impact of this new form of energy in
the communities was generally positive. An independent team of consultants
was engaged for this task and the results of the evaluations are valuable for the
Fund’s further development of its new portfolio of climate related projects.
Nordic cooperation
NDF maintains regular contact with the Nordic Council of Ministers and the
Nordic Council. NDF also maintains close contacts and cooperates with the
Nordic bilateral development agencies. In 2010, NDF continued its cooperation
with the Nordic Environment Finance Corporation, NEFCO, in the Nordic
Climate Facility (launched in 2009) and started cooperation in the ProClimate
Facility (ProCF). Both programmes are financed by NDF and implemented
jointly with NEFCO. NDF has close cooperation with the Nordic Investment
Bank (NIB) mainly regarding office premises, staff administration, IT services,
accounting, liquidity management and legal assistance.
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Capital and accounting currency
In 2000, the Nordic Council of Ministers decided that the Fund should change its
capital and accounting currency from SDR to EUR as from January 1, 2001. In
the annual reports for previous years, the Board of Directors has paid attention
to the fact that, since NDF will have outstanding credits denominated in SDR for
many years to come, fluctuations in the SDR-EUR exchange rates may lead to
substantial variations in financial results, positive or negative, from one year to
another.
Contrary to the previous year, the Fund’s financial result for 2010 shows a
positive foreign exchange difference of EUR 19.9 million (2009: EUR -5.8
million). This difference is to a large extent due to the fact that the US dollar
represents 44% of the SDR currency basket and the ensuing increase of the
purchasing power of the US dollar during 2010 against NDF’s capital and
accounting currency, the euro.
Liquidity and capital
The liquid assets of NDF are managed by the Nordic Investment Bank on behalf
of NDF. The average interest rate has been approximately 0.5% (2009: 1.5%).
NDF’s deposits are relatively short-term (up to 12 months). The Board has
authorised the administration in cooperation with the Nordic Investment
Bank to hedge NDF’s SDR-denominated loan portfolio against currency
exchange risk before the end of 2011. The chosen hedging methods should
be commonly accepted on the financial market.
During the year, disbursements amounted to EUR 45.5 million (2009: EUR 50.3
million), EUR 37.3 million on credits and EUR 8.2 million on grants. At the end
of the year, accumulated disbursements on credits amounted to EUR 788.2
million (2009: EUR 750.8 million) and EUR 8.6 million (2009: EUR 0.4 million)
on grants. Upon request by the Board, member countries paid in EUR 10.9
million of Fund capital in 2010 (2009: SDR 13.5 million and EUR 54.4 million).
During 2010, NDF received repayments under disbursed credits amounting to
EUR 10.7 million.
Board of Directors and administration
The Chair of the Board for the period January 1 to April 30, 2010 was Tomas
Danestad (Sweden), with Christoffer Bertelsen (Denmark) as Deputy Chair. As
from May 1, Christoffer Bertelsen took over the chair with the Finnish member
Satu Santala as Deputy Chair. The chair will pass to the Finnish member on May 1,
2011 and the Icelandic member will then become Deputy Chair. On February 12,
2010, Christoffer Bertelsen was appointed the new Danish member of the Board
of Directors after Ole Torpegaard Hansen. Lena Kövamees succeeded Lars
Liljeson as the Swedish deputy member of the Board from June 1, 2010.
A list of NDF Board members can be found on page 33.
Helge Semb is Managing Director of NDF. As of December 31, 2010, NDF staff
consisted of 12 employees (2009: 11 employees). Furthermore, NDF has signed
long-term contracts with two in-house consultants. A list of the management
and staff can be found on page 34.
Control Committee
The Control Committee ensures that the Fund’s operations are conducted in ac-
cordance with its Statutes and is responsible for its audit. The Committee pre-
sents an annual auditors’ report to the Nordic Council of Ministers. The Control
Committee met twice in 2010. A list of the members of the Committee can be
found on page 33.
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Financial results and allocation
NDF’s total assets as of December 31, 2010 amounted to EUR 848,357,001 (2009:
EUR 820,517,460). This amount includes outstanding credits to public sector
projects, other loans, loans with equity features and equity investments to the
amount of EUR 759,449,255 (2009: EUR 715,818,749) and placements with
credit institutions to the amount of EUR 83,740,423 (2009: EUR 100,698,588).
A reversal of provisions against possible losses on other loans, loans with equity
features and equity investments amounting to EUR 1,841,353 was made in the
accounts of 2010. The previous year showed a reversal of EUR 558,067.
Commitments under credits, signed but not yet disbursed, were distributed as follows:
MEUR 2010 2009
Credits 76.7 159.5
Loans with equity features and equity investments - 2.4
Total 76.7 161.9
As of December 31, 2010, NDF’s capital consisted of SDR 490 million and EUR
237.8 million in paid-in fund capital (2009: SDR 490 million and EUR 226.9
million) and EUR -53,098,721 (2009: EUR -70,066,157) in accumulated net
income after adjustments for currency exchange fluctuations.
The Fund’s income during 2010, amounting to EUR 7,344,28 (2009: EUR
8,583,322), consisted of income from credits to the public sector to the amount
of EUR 5,959,469 (2009: EUR 5,975,937), interest on placements with credit
institutions of EUR 399,921 (2009: EUR 1,500,888) and EUR 985,537 (2009:
EUR 1,101,176) as remuneration on equity loans and other loans. One of NDF’s
borrowing countries (Zimbabwe) continues to be in arrears to NDF. All of its
accrued, outstanding obligations towards NDF were therefore placed in
non-accrual status.
Administrative expenses were EUR 2,874,410 (2009: EUR 2,541,893). The
largest single item of expenditure consists of salaries and ancillary expenses
of EUR 1,492,810 (2009: 1,296,538).
The net income for the year, which after adjustments for currency exchange
fluctuations of EUR 19,881,181 (2009: EUR -5,820,340) amounts to EUR
17,973,759 (2009: EUR 339,191), is carried forward to the new account.
The Income Statement, Balance Sheet, Changes in Equity, Cash Flow Statement
and Notes to the Financial Statements can be found on pages 10-18.
Helsinki, March 2, 2011
CHRISTOFFER BERTELSEN
Chair
SATU SANTALA EGILL HEIÐAR GISLASON
INGRID GLAD TOMAS DANESTAD
HELGE SEMB
Managing Director
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I N C O M E S T A T E M E N T (amounts in EUR)
Jan.1-Dec.31,2010 Jan.1-Dec.31,2009
IncomeService charges from credits 5,450,579.57 5,144,139.95Income from loans with equity features 985,537.40 1,101,176.03Fee and commission income 508,889.68 831,796.98Interest income from placements with credit institutions 399,921.37 1,500,887.92Interest income from cash and balances with banks - 5,321.06Total income 7,344,928.02 8,583,321.94
ExpensesGrant financing for climate projects 8,209,899.70 415,000.00Fee and commission expenses 3,716.02 4,554.87General administrative expenses (Note 8) 2,874,410.22 2,541,892.81Interest expenses - 18,338.05Depreciations (Note 6) 5,677.76 2,071.87Changes in provision for credit losses, write-down of loans and reversals (Note 5) -1,841,353.20 -558,066.72Total expenses 9,252,350.50 2,423,790.88
Net result for the year before foreign exchange differences -1,907,422.48 6,159,531.06
Foreign exchange differences 19,881,181.28 -5,820,340.44
Net result for the year 17,973,758.80 339,190.62
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B A L A N C E S H E E T ( amounts in EUR)
Dec.31,2010 Dec.31,2009
ASSETSCash and cash equivalents (Note 1) 83,740,422.72 58,813,065.93Other long-term financial placements (Note 1) - 41,885,521.81
83,740,422.72 100,698,587.74
Other assets 3,877,226.90 2,207,908.96Accrued income 1,272,792.72 1,779,528.45Credits with government guarantee outstanding (Note 2) 744,508,872.59 699,706,399.84Other loans outstanding (Note 3) 7,792.609.42 9,097,111.34Loans with equity features and equity investments outstanding (Note 4) 7,147,772.50 7,015,237.70Intangible assets (Note 6) 1,499.76 3,342.10Tangible assets (Note 6) 15,804.58 9,343.91Total assets 848,357,001.20 820,517,460.04
LIABILITIES AND EQUITYLiabilitiesOther liabilities 308,304.53 287,362.40
Equity (Note 7)Fund capital SDR 515 000 000 Fund capital EUR 330 000 000 Paid-in fund capital 901,147,417.94 890,247,417.94
Accumulated net result -53,098,721.27 -70,066,156.62Appropriation to HIPC Initiative - 48,836.32
Total equity 848,048,696.67 820,230,097.64
Total liabilities and equity 848,357,001.20 820,517,460.04
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C H A N G E S I N E Q U I T Y (amounts in EUR 1 ,000 )
C A S H F L O W S T A T E M E N T (amounts in EUR 1 ,000 )
Paid-in fund capital Accumulated net income Appropriation to HIPC Initiative Result for the year TotalEquity as of January 1, 2009 820,181 -70,405 337 0 750,113Transfers between equity items 339 -339 0Appropriation to HIPC Initiative 0Paid-in fund capital 70,067 70,067Paid to HIPC Initiative -288 -288Result for the year 339 339Equity as of December 31, 2009 890,247 -70,066 49 0 820,230Transfers between equity items 17,974 -17,974 0Appropriation to HIPC Initiative -1,006 1,006 0Paid-in fund capital 10,900 10,900Paid to HIPC Initiative -1,055 -1,055Result for the year 17,974 17,974Equity as of December 31, 2010 901,147 -53,099 0 0 848,049
Net result for the year 17,974 339Depreciations 6 2Foreign exchange profit/loss -19,881 5,820Changes in accrued income 507 -482Changes in provision for loan losses and write-down of loans -1,841 -558Net cash from operating activities -3,236 5,121
Cash flow from investing activities:Credits disbursed -37,380 -49,766Amortizations of credits 10,747 8,549Disbursed other loans, equity loans and equity investments 0 -139Repayments of other loans, equity loans and equity investments 794 2,371Amortizations of other loans and equity loans 1,305 737Paid to HIPC Initiative -1,055 -288Changes in placements with a maturity longer than 6 months 41,886 -41,886Changes in other assets and liabilities -1,648 -18Changes in tangible and intangible assets -10 -11Net cash used in investing activities 14,637 -80,451
Cash flow from financing activitiesPaid-in fund capital 10,900 70,067
Foreign exchange loss 2,626 -1,185Changes in cash and cash equivalents 24,927 -6,448
Cash and cash equivalents consist of: 31.12.2010 31.12.2009Cash and balances with banks 8,033 9,025Placements with a maturity of less than 6 months 75,708 49,788
Total cash and cash equivalents 83,740 58,813
Dec. 31,2010 Dec. 31,2009Cash flow from operating activities:
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General operating policies
The purpose of the Nordic Development Fund, NDF, “the Fund”, is to promote economic and
social development in the developing countries through participation in financing, on
concessional terms, of projects of interest to the Nordic countries.
The headquarters of the Fund are in Helsinki, Finland, at the premises of the Nordic Investment Bank.
On November 9, 1998, a new Agreement regarding NDF was signed by its member countries.
The new Agreement, which replaced the earlier Agreement of November 3, 1988, entered into
force on September 18, 1999. The new Agreement contains provisions concerning the Fund’s
immunity and the exemption of the Fund’s assets and income from all taxation.
The Fund has the legal status of an international legal person, with full legal capacity.
A Headquarters Agreement between NDF and the Government of Finland was signed on
October 14, 1999. This agreement is connected to the new Agreement regarding NDF.
Pursuant to the recommendation of the NDF Board of Directors to the Nordic Council of
Ministers, the Nordic Cooperation Ministers approved amendments to NDF’s bylaws in 2009.
According to these amendments, NDF is given a new mandate to support interventions aimed
at adaptation to and mitigation of the negative effects of climate change.
The capital of NDF shall in the future be utilised in the form of grant aid for climate-related
interventions in low-income countries. This capital, approximately one billion euros during a
period of 35 years consists of repayments on the 190 credits NDF granted during 1989-2005.
The last repayment is due in 2045.
Summary of significant accounting policies
Basis of preparation of financial statements
The Financial Statements have been prepared in accordance with methods of valuation and
recognition of income and expenses as described below. As from January 1, 2001, the Fund’s
Financial Statements are presented in euro in accordance with the decision of the Nordic Council
of Ministers of August 24, 2000 to replace SDR with EUR. The paid-in fund capital has been
converted into euro.
The Fund’s Financial Statements are presented in euro. With the exceptions noted below, they
are based on historical cost.
Assessments in preparation of financial statements
The preparation of financial statements requires management to make assessments and estimates
that affect the result, financial position and additional disclosures. Such assessments and estimates
are based on available information. Actual results may differ materially from the assessments made.
Foreign currency translation
Monetary assets and liabilities denominated in currencies other than euro are translated into
euro at the euro rate quoted by the European Central Bank (see Note 10). Any gain or loss
arising from the valuation appears in the Income Statement as “Foreign exchange differences”
and are mainly related to the SDR rate. As NDF will for many years to come have outstanding
credits denominated in SDR, changes in the SDR-euro rate may lead to the Income Statement
showing substantial foreign exchange differences since these currency positions are not hedged
against changes in foreign exchange rates.
Non-monetary assets are recorded in euro at the euro rate prevailing on the date of their
acquisition.
Cash and cash equivalents
Cash and Cash Equivalents consist of monetary assets and placements with an original maturity
of up to 6 months.
Placements with credit institutions
NDF has invested its monetary assets with the Nordic Investment Bank at current market
interest rates. The placements are mainly in EUR and are initially recognised at cost (normally
nominal value) at settlement date. Placements are also recorded at cost in the Annual Report.
Accrued interest on placements is recorded within Accrued Income in the Balance Sheet.
Placements with credit institutions longer than 6 months are shown as investments in the
Cash Flow Statement. The amount is included in the Balance Sheet as Other long-term financial
placements.
Credits with government guarantee outstanding
The recipient countries for NDF credits are low-income developing countries. The credit
period for credits with government guarantee is 40 years, including a 10-year grace period.
The loans are interest-free.
The credits are initially recognised at cost at settlement date. For payments which are more
than 180 days overdue, the Fund places all credits to the borrower in question in non-accrual
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
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status, whereupon the Fund stops recording accrued service charges and fee and commission
revenue as income on the Income Statement. All accrued but unpaid income in respect of the
borrower in question that had been recorded as income is then deducted from the Income
Statement. As of December 31, 2010, one of the Fund’s borrowing countries (Zimbabwe) was
more than 180 days overdue with payments.
There is a considerable concessionality in the credits from NDF as they are interest-free and
have very long maturities.
Provision for loan losses
NDF’s lending conditions allow for a long-term view to be taken of the repayment capacity of
recipient countries. In the event of debt consolidation, it is assumed that credits from NDF will
be treated in the same manner as loans from other multilateral institutions.
Credits outstanding are recognised in the Balance Sheet at their recoverable amount. Loans
with government guarantee outstanding are recorded net of provisions for possible loan losses
and actual loan losses. Provision for possible loan losses is established based on the assessment
of the nature and maturity structure of the credit portfolio.
Other loans outstanding
Other loans outstanding consist of loans with financial liability features to the private sector.
The loans are initially recognised at cost at settlement day. In the Balance Sheet, other loans
outstanding are recorded net of provisions for actual and possible loan losses. A provision for
possible loan losses is established based on the assessment of the nature and maturity structure
of the loan portfolio.
Loans with equity features and equity investments
During a trial period, the Nordic Development Fund has operated a facility which enables it to
provide loans with equity features to private sector projects in developing countries. In September
2001, the Nordic Council of Ministers approved a proposal from the Board of Directors to amend
the statutes of NDF enabling the Fund, as an integrated and permanent part of its operations, to
provide financing to private sector activities in developing countries without government guarantee.
Loans with equity features and equity investments are recognised in the Balance Sheet at cost
after write-down. The value of outstanding loans with equity features and equity investments are
continuously revalued by the Fund. If the book value exceeds the valuation made, a corresponding
write-down is made. Write-downs are presented separately in the Income Statement.
Intangible assets
Intangible assets mainly consist of investments in software and software licenses for IT-systems.
The investments are carried at historical cost and are amortised over the assessed useful life of
the assets, which is estimated to be between 3 and 5 years. The amortisations are made on a
straight-line basis.
Tangible assets
Tangible assets are recognised at historical cost, less any accumulated depreciation based on
their assessed useful life. The depreciation period for tangible assets is determined by assessing
the individual item, usually 3 to 5 years.
Write-downs and impairment of intangible and tangible assets
The Fund's assets are reviewed annually for impairment. If there is any objective evidence of
impairment, the impairment loss is determined based on the recoverable amount of the assets.
Equity
In August 2000, the Nordic Council of Ministers passed a resolution to increase the capital of
NDF by EUR 330 million. After this replenishment the capital of the Nordic Development Fund
amounted to SDR 515 million and EUR 330 million. As of December 31, 2010, SDR 490 million,
the equivalent of EUR 663 million, and EUR 238 million, totalling EUR 901 million has been
paid in by the owners. Payment of the remainder of the subscribed capital will take place upon
request by the Fund’s Board of Directors.
Since the World Bank and the International Monetary Fund (IMF) initiated the “Debt Initia-
tive for Heavily Indebted Poor Countries (HIPC) in 1996, NDF has participated in this debt relief
initiative through the HIPC Trust Fund which is administered by IDA. The enhancement of the
initiative carried out in 1999 has called for further financial commitments by NDF. To this end,
the Nordic Council of Ministers in 2000 approved the amendment of NDF’s statutes in order to
provide a general authorisation for the Fund to provide its part of shared contributions under
debt relief initiatives in the framework of internationally co-ordinated initiatives in which other
multilateral organisations participate.
For 2010, the Board has decided to make an appropriation of EUR 1.0 million (2009: EUR 0)
of its accumulated net income before foreign exchange differences for its participation in the HIPC
Initiative. The allocated funds were increased from a total of EUR 28.5 million in 2009 to EUR
29.6 million in 2010. These funds have been paid in to the HIPC Trust Fund during 12 years.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
15
Income from service and commitment charges, loans with equity features and equity investments
The Fund’s long-term lending with government guarantee is interest-free, but a service charge of
0.75% per annum is collected on outstanding amounts. A commitment charge of 0.5 % per
annum is collected on any undisbursed balance one year after the loan agreement has been
signed. Income from other loans is presented within Service charges from credits in the Income
Statement. Income from loans with equity features is normally related to the return received by
the shareholders of the company.
Income from service charges on lending and income from loans with equity features and
equity investments are presented as separate items in the Income Statement. Commitment
charges are presented within Fee and commission income.
General administrative expenses
NDF receives a host country payment from the Finnish government equal to the tax levied on
the salaries of the Fund’s employees. The host country payment, which the Fund received in
2010, amounted to EUR 354,083 (2009: EUR 392,118). The payment is accounted for as a
reduction in the Fund’s administrative expenses.
Employees’ pensions and insurance
The Fund is responsible for offering pension protection to its personnel. In accordance with the
host country agreement between the Fund and the Finnish Government, the Fund has adopted
the Finnish government employee pension plan for the Fund’s personnel. The Fund’s liability in
respect of pension rights is completely covered. Contributions to the pension plan, which are
paid to the State Pension Fund, are calculated as a percentage of the salaries. The Finnish
Government determines the basis for the contributions, and the Republic of Finland State
Treasury establishes the actual amount of the contributions.
Under the Finnish pension system at present, the usual age of retirement is 63-68. NDF has
also introduced an additional pension system for its permanent employees. The additional pen-
sion insurance is a group pension insurance plan that is based on a defined contribution plan.
In addition to the Finnish social security system for its employees, NDF has subscribed to a
comprehensive accident insurance, life and health insurance programme.
Notes to the Income Statement and the Balance Sheet
(Note 1) Placements with credit institutions
The maturity profile for placements with credit institutions calculated from Balance Sheet date
to maturity is as follows:
(EUR 1,000) Dec. 31, 2010 Dec. 31, 2009
Up to 3 months 70,189 28,482
3 - 6 months 5,519 21,306
Over 6 months - 41,886
Total placements with credit institutions 75,708 91,674
(Note 2) Credits with government guarantee outstanding
Credits according to lending currency:
(Face value in EUR 1,000) Dec. 31, 2010 Dec. 31, 2009
EUR-credits 447,777 422,939
SDR-credits 296,732 276,767
Total, outstanding credits 744,509 699,706
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Amortisations on credits outstanding as at December 31,
2010 show the following maturity profile:
(EUR 1,000) Dec.31,2010 Dec. 31,2009
2010 9,909
2011-2015 78,184 74,283
2016-2020 116,462 109,652
2021-2025 144,429 135,121
2026-2030 157,516 146,292
2031-2035 133,758 122,942
2036-2040 85,638 76,878
2041-2045 28,522 24,630
Total, credits outstanding 744,509 699,706
(Note 3) Other loans outstanding
Other loans outstanding are distributed as follows:
(EUR 1,000) Dec. 31, 2010 Dec. 31, 2009
East African Development Bank 7,245 8,549
Maputo Port Development Corporation 1,096 1,096
Total, other loans outstanding 8,341 9,645
Provision for loan losses -548 -548
Total, other loans outstanding
after provisions 7,793 9,097
Amortisations on other loans outstanding as at December
31, 2010 show the following maturity profile:
(EUR 1,000) Dec. 31,2010 Dec. 31,2009
2010 1,285
2011-2015 2,600 2,620
2016-2020 1,366 1,366
2021-2025 1,366 1,366
2026-2030 1,366 1,366
2031-2035 1,093 1,093
2036-2040 0 0
2041-2045 0 0
Total, other loans outstanding 7,793 9,097
Credits outstanding:
(EUR 1,000): Dec. 31, 2010 Dec. 31, 2009 Bangladesh 23,224 19,327Benin 18,912 18,699Bolivia 27,892 25,953Botswana 5,269 5,417Burkina Faso 10,219 7,809Cambodia 8,267 5,663Cape Verde 2,091 2,007China 4,781 4,892Colombia 1,229 1,184Dominican Republic 7,987 7,664Ethiopia 25,170 22,740Ghana 42,713 36,791Honduras 27,786 26,502Indonesia 12,181 11,791Jamaica 5,962 5,722Kenya 25,969 24,499Kyrgyz Republic 4,699 4,800Lao PDR 53,734 52,363Malawi 23,179 23,013Maldives 9,802 10,023Mauritius 3,086 3,249Mozambique 62,302 60,178Mongolia 26,216 25,061Namibia 1,735 1,775Nepal 22,852 23,210Nicaragua 47,037 43,721Pakistan 11,007 11,435Philippines 15,038 14,537Rwanda 12,500 11,543Senegal 48,807 45,291Sri Lanka 21,102 20,477Tanzania 23,393 23,195Tunisia 5,427 5,550Uganda 48,115 42,768Vietnam 23,413 21,829Zambia 17,910 15,962Zimbabwe 15,926 14,945Credits outstanding 746,932 701,587Credits in default (Zimbabwe) 2,424 1,880Total, credits outstanding 744,509 699,706
In addition, agreements have been signed on a further EUR76.6 million (2009: EUR 159.4 million) in credits not yet disbursed.
(Note 4) Loans with equity features and equity investments
outstanding
Loans with equity features and equity investments are
distributed as follows:
(EUR 1,000) Dec. 31, 2010 Dec.31, 2009
Benin 0 1,014
China 2,195 2,195
Mekong Enterprise Fund 2,142 2,142
Nepal 2,913 2,913
Central American Small
Enterprise Investment Fund 911 911
Aureos Southern Africa Fund 1,760 2,403
Aureos West Africa Fund 341 492
Total, loans with equity
features and equity
investments outstanding 10,262 12,070
Write-down -3,114 -5,054
Total, loans with equity
features and equity investments
outstanding after write-down 7,148 7,015
As at December 31, 2010, the write-down for impairment
totaled EUR 3,114,288 (2009: EUR 5,054,490) based on
assessment of the risk of losses which exists or may exist.
The reversals for 2010 amounted to a total of EUR
1,940,202. Loans with equity features and equity
investments amounting to a total of EUR 0 (2009:
EUR 2.4 million) have been signed but not yet disbursed.
(Note 5) Loan losses, write-down of loans and reversals
The total loan losses, write-down on loans and reversals
during 2010 totalled EUR -1,841,353 (2009: EUR -558,067).
Provisions for loan losses and reversals amounted to
EUR -1,940,202 in 2010 and realised loan losses amounted
to EUR +98,849 (2009: EUR 0).
16
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
(EUR 1,000) SDR % EUR %Denmark 115,067 22 82,500 25Finland 96,726 19 58,740 18Iceland 5,453 1 3,300 1Norway 101,591 20 74,250 23Sweden 196,163 38 111,210 34Subscribed fund capital 515,000 100% 330,000 100%
The member countries have paid in the following amounts of the total fund capital:
Fund Capital Fund Capital Fund CapitalPaid-in Fund capital (EUR 1,000) Dec. 31,2009 in SDR Translated into EUR Dec. 31,2009 in EUR Dec. 31,2009 Total %Denmark 109,067 147,129 56,720 203,849 23 %Finland 92,576 125,938 40,385 166,323 19 %Iceland 5,178 6,994 2,268 9,262 1 %Norway 96,716 130,886 51,049 181,935 20 %Sweden 186,463 252,420 76,458 328,878 37 %Paid-in fund capital 490,000 663,367 226,880 890,247 100 %
Paid-in fund capital (EUR 1,000) Paid-in during 2010 in SDR Translated into EUR Paid-in during 2010 in EUR Paid-in total during 2010Denmark 0 0 2,725 2,725Finland 0 0 1,940 1,940Iceland 0 0 109 109Norway 0 0 2,453 2,453Sweden 0 0 3,673 3,673Paid-in fund capital 0 0 10,900 10,900
Fund capital Fund capital Fund capital Paid-in fund capital (EUR 1,000) Dec. 31, 2010 in SDR Translated into EUR Dec. 31, 2010 in EUR Dec. 31, 2010 Total %Denmark 109,067 147,129 59,445 206,574 23 % Finland 92,576 125,938 42,325 168,263 19 % Iceland 5,178 6,994 2,377 9,371 1 %Norway 96,716 130,886 53,502 184,388 20 % Sweden 186,463 252,420 80,131 332,551 37 %Paid-in fund capital 490,000 663,367 237,780 901,147 100 %
The member countries have subscribed the following amounts of the total Fund capital:Subscribed fund capital as at December 31, 2010
17
(Note 6) Intangible and tangible assets
(Amounts in EUR) 2010 2009Computer Computer
Intangible assets software software
Acquisition value at beginning of year 5,527 4,229
Acquisitions during the year 0 1,298
Acquisition value at end of year 5,527 5,527
Accumulated amortisation at beginning of year 2,185 620
Amortisation according to plan for the year 1,842 1,565
Accumulated amortisation at end of year 4,027 2,185
Net book value 1,500 3,342
2010 2009Office Office
Tangible assets equipment equipment
Acquisition value at beginning of year 9,872 291
Acquisitions during the year 10,296 9,581
Acquisition value at end of year 20,168 9,872
Accumulated depreciation at beginning of year 528 21
Depreciation according to plan for the year 3,835 507
Accumulated depreciation at end of year 4,364 528
Net book value 15,805 9,344
Intangible and tangible assets total 17,304 12,686
(Note 7) Equity
The total Fund capital amounts to SDR 515.0 million and
EUR 330.0 million. Of this, the paid-in capital as of Decem-
ber 31, 2010 amounted to SDR 490.0 million, equivalent to
EUR 663.4 million and EUR 237.8 million i.e. a total of EUR
901.1 million. The payments by the member countries in
2010 amounted to SDR 0 (equivalent to EUR 0) and EUR
10.9 million, i.e. a total of EUR 10.9 million.
* The EUR value of SDR is based on the historic EUR/SDR currency rate on the date of payment
*
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
(Note 8) General administrative expenses including compensation for the Board of
Directors, the Control Committee and the Managing Director
General administrative expenses 2010 2009
(EUR 1,000)
Personnel costs 1,308 1,142
Pension premiums in accordance with the
Finnish state pension system 254 227
Other pension premiums 26 24
Office premises costs 145 141
Other general administrative expenses 1,212 1,120
Cost coverage, NIB 284 280
Total 3,228 2,934
Host country reimbursement according to
agreement with the Finnish Government -354 -392
Net 2,874 2,542
Compensation for the Board of Directors and the Control Committee is set by the Nordic Council
of Ministers. Compensation for the Fund’s Managing Director is set by the Board of Directors
and is paid in the form of a fixed annual salary and usual salary-based benefits.
The Managing Director is permitted to borrow from the Nordic Investment Bank at interest rates
that are the same for all of the Fund’s employees. The rates are set with reference to the so-called
base rate determined periodically by Finland’s Ministry of Finance.
The pension benefits for the Managing Director are based on the Finnish State pension system,
with certain additions.
Compensation for the Chairman of the Board of Directors, the Board, the Control Committee and
the Managing Director appears from the table below:
2010 2009(amounts in EUR) Compensation/ Pension Compensation/ Pension
emolument premiums emolument premiums
Chairman of the
Board of Directors 5,326 5,326
Other members of the Board 18,848 18,850
Managing Director 329,797 109,347 317,778 103,674
Control Committee 1,333 1,427
(Note 9) Transactions between closely related partners
NDF receives services and enters into transactions with NIB. The outstanding claims and debts
between NDF and NIB as well as interest charged during the year are presented in the table
below. The interest charged corresponds to the normal market rate (EUR 1,000):
Interest collected NDF's outstanding debt to NIB NDF's outstanding claim on NIB
2010 400 4 75,762
2009 1,501 31 92,253
(Note 10) Currency exchange rates
EUR rate on Dec. 31, 2010 EUR rate on Dec. 31, 2009
DKK Danish krone 7.4535 7.4418
ISK Icelandic króna 153.1 178.87
NOK Norwegian krone 7.8 8.3
SEK Swedish krona 8.9655 10.252
USD US dollar 1.3362 1.4406
SDR Special Drawing Rights 0.86232*) 0.91893*)
*) The exchange rate is calculated in such a way that the market rate for USD/relevant currency
provides the EUR/relevant currency rate. The exchange quotation USD/relevant currency is per
December 31, 2010.
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N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
19
A U D I T O R S ’ R E P O R T S
INDEPENDENT AUDITORS’ REPORT TO THE CONTROL COMMITTEE OF THE
NORDIC DEVELOPMENT FUND
In our capacity as auditors appointed by the Control Committee of the Nordic Development Fund
we have audited the accompanying financial statements of the Fund, which comprise the balance
sheet as at 31 December 2010, and the income statement, statement of changes in equity and
statement of cash flows for the year then ended, and a summary of significant accounting
policies and other explanatory notes.
The Board of Directors’ and the Managing Director’s responsibility for the financial statements
The Board of Directors and the Managing Director are responsible for the preparation of the
financial statements in accordance with the accounting principles described in the notes to the
financial statements and for such internal control as they determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonab-
leness of accounting estimates made by management, as well as evaluating the overall presenta-
tion of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the
Nordic Development Fund as of 31 December 2010, and of its financial performance and its cash
flows for the year then ended in accordance with the accounting principles described in the notes
to the financial statements.
Report on the other requirements
In accordance with the Terms of Engagement our audit also included a review of whether the
Board of Directors’ and the Managing Director’s administration have complied with the Statutes
of the Fund. It is our opinion that the administration of the Board of Directors and the Managing
Director complied with the Statutes of the Fund.
Helsinki, 3 March, 2011
SIXTEN NYMAN
Authorised Public Accountant
KPMG Oy Ab
Mannerheimintie 20 B
00100 Helsinki
Finland
PER GUNSLEV
State Authorised Public Accountant
KPMG, Statsautoriseret Revisionspartnerselskab
Borups Allé 177
2000 Frederiksberg
Denmark
20
A U D I T O R S ’ R E P O R T S
STATEMENT BY THE CONTROL COMMITTEE OF THE NORDIC DEVELOPMENT FUND ON
THE AUDIT OF THE ADMINISTRATION AND ACCOUNTS OF THE FUND
To the Nordic Council of Ministers
In accordance with § 9 of the Statutes of the Nordic Development Fund, we have been appointed
to ensure that the activities of the Fund conform with the Statutes and to be responsible for the
auditing of the Fund's accounts. After having completed our assignment for the year 2010, we
hereby submit the following report:
The Control Committee met during the financial year as well as after the Fund's financial state-
ments had been prepared. Control and examination measures considered necessary were then
performed. The Annual Report of the Fund was examined at a meeting in Helsinki on March 3,
2011, at which time we also received the Auditor's Report, submitted on March 3, 2011, by the
authorised public accountants appointed by the Control Committee.
Following the audit performed, we note that:
• the Fund's operations during the financial year have been conducted in accordance
with the Statutes, and that
• the Financial Statements give a true and fair view of the financial position of the
Fund as at December 31, 2010 and of its results and financing in 2010. The Financial
Statements show a surplus of EUR 17,973,758.80, which will be carried forward to
new account.
We recommend to the Nordic Council of Ministers that:
• the Income Statement and Balance Sheet be adopted, and that
• the Board of Directors and the President be discharged from liability for the
administration of the Fund's operations during the accounting period examined by us.
Helsinki, 3 March, 2011
BILL FRANSSON
PER BISGAARD HANS FRODE KIELLAND ASMYHR JOHAN LINANDER
TUULA PELTONEN RAGNHEIÐUR RIKHARDSDÓTTIR
21
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CLIMATE CHANGE AND INNOVATION
Innovation is a key driver of economic development and a principal tool for coping with
major global challenges, particularly those induced by climate change. In low-income
countries innovation is generally not something brand new but rather something new to
the society in question. Therefore, innovation is not only about the creation of new tech-
nologies and practices but also about using existing technology and knowledge in a
new context. For NDF, innovation means finding new solutions to the problems caused
by climate change. In 2010, NDF encouraged this innovation both through its policy
measures and its range of project financing.
Innovation in action: selected projects
Climate change presents various challenges for managing risk. As an example, road
infrastructure in many developing countries has suffered extensive damage in recent
years due to increased prevalence of flooding and storms. Many of the perceived risk
issues can be readily addressed at the design stage. This involves designing roads so they
become more resilient to heavier rains, more frequent floods and higher temperatures.
Two transport sector projects were approved in 2010, Adaptation Approaches for the
Transport Sector in Cambodia and Transport and Urban Mobility Project (STUMP) -
Integrating Climate Change Adaptation to Transport in Senegal. In both cases, NDF
will finance special climate adaptation components of large road infrastructure projects.
NDF’s participation ensures that adaptation activities are integrated in the projects since
climate change is generally not included in initial design. This involvement includes
identification of areas which are most at risk of flooding and landslides, and enhancing
capacity to manage that risk, plus the analysis of potential trends in climate change and
the implications for operation and management of road networks in the two countries.
Outcomes and lessons learned from these projects will be available for dissemination to
other projects, sectors and countries.
The GreenPyme program will promote energy efficiency in small and medium-sized
enterprises (SMEs) in Central America. The program aims to provide SMEs with know-
how, tools and technical and financial support to implement energy efficiency measures.
One of the novel aspects in GreenPyme is involving and training local banks in energy
efficiency, and promoting the ESCO (Energy Service Company) concept. This type of
support is needed because SMEs in Central America consume a great deal of energy
inefficiently and at a high cost. Increased energy efficiency will reduce the energy
22
N D F A N D I N N O VA T I O N
consumption of SMEs, thereby helping to make them become more competitive. In
addition, the need for additional fossil fuel-based generation capacity will decrease,
and thus enable the SMEs to become more sustainable and climate-friendly as CO2
emissions are reduced.
The Indigenous Peoples and Climate Change project in Honduras aims to increase the
capacity of indigenous people and afro-descendants groups to tackle climate change and
to provide renewable energy solutions for local communities. To reduce greenhouse gas
emissions, the concept of Energy Kiosks will be introduced in remote indigenous commu-
nities that are not connected to the national grid. The Energy Kiosks will be based on a
hybrid renewable energy system that will produce electricity from locally available resour-
ces, e.g. water resources, organic waste and other organic materials, sun and wind. New
community enterprises will be provided with electricity, and services such as charging
LED lamps and recharging of mobile phones will be introduced. The Kiosks will be
managed by community cooperatives and the fees collected for services will be used for
operation and maintenance.
The Senegal Sustainable and Participatory Energy Management Project (PROGEDE II)
aims to increase the availability of diversified household fuels in a sustainable way, and to
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increase the income of participating communities while preserving forest ecosystems.
NDF will help to support the production and marketing of improved stoves. Innovative
and energy-saving cooking equipment has been developed by local expertise in Senegal,
and will be replicated and distributed on a large scale. A financing mechanism will help
make the improved stoves affordable to end-users, so the local producers will be able to
increase production volumes and thus create income and jobs. The project promotes
efficient cooking equipment, efficient charcoal production methods and new CO2 neutral
biomass energy sources. There are significant climate benefits from the project as well as
social benefits to women in particular. The time and money women spend on collecting
and buying fuel wood and charcoal will decrease, and indoor air pollution will be
reduced, improving women’s health.
The Nordic Climate Facility (NCF)
NCF facilitates the exchange of technology, know-how and innovative ideas between the
Nordic countries and low-income countries in the area of climate change. The facility
encourages and promotes innovation in areas susceptible to climate change such as:
energy, transport, water and sanitation, health, agriculture and forestry as well as other
areas related to natural resource management. The purpose is to increase the ability of
low-income countries to mitigate and adapt to climate change.
Once a year, NCF calls for innovative proposals comprising specific themes related to
climate change. The two themes for the first call for proposals were “energy efficiency”
and “water resources”. When the applications for the first call for proposals were received
at the beginning of 2010, the interest was greater than expected. A total of 138 proposals
were received and 33 of these were invited to present detailed project proposals; 14 cont-
racts were eventually signed.
The experience of the process of the first call has been positive. The co-operation between
Nordic and local partners seems promising and project implementation is expected to be
successful because of the involvement of strong local stakeholders. Furthermore, the pro-
jects are likely to create potential for replication and scaling up as innovative solutions
and knowledge transfer are well incorporated in the projects’ design. The second call
for proposals was launched at the end of 2010 with the themes “renewable energy”
and “urban adaptation to climate change”.
N D F A N D I N N O VA T I O NP
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N D F A N D I N N O VA T I O N
NCF: stimulating innovation
Since innovation is a key element of NCF, applicants have to describe the innovativeness
of the proposed project in their proposals. Amongst the 14 awarded contracts, there were
several notable proposals for addressing climate-related problems.
One of the NCF projects, situated in the drought-prone Isiolo District in Kenya, aims
to increase communities’ access to safe water and thus help them adapt to the changing
climate. To achieve this, the project will introduce a water system called LIFELINK in the
project area. The heart of the LIFELINK system is a well-proven submersible pump driven
by solar panels. The technology includes a satellite link to a computer-based system with
an integrated communication and surveillance module, which enables the water system
to be remotely monitored for breakdowns. The communities will pay for their water
via mobile telephones, which are already widely used throughout the country, and the
user fees will be used to cover operation and maintenance costs.
Another NCF project will introduce sustainable and energy efficient electric and electronic
scrap (e-scrap) recycling methods in Ghana. E-scrap is an important source of secondary
raw materials as it contains valuable concentrations of metals. The extraction of metals
from e-scrap requires much less energy than the extraction from virgin ores, e.g. the
extraction of the same amounts of metal from secondary raw materials requires, depen-
ding on the different metals, between 50% and 90% less energy than the extraction from
primary raw materials. The project is innovative since it probably is the first time a project
related to e-scrap in a developing country focuses on e-scrap as a valuable resource. In
addition, it is also most likely the first time in a developing country where the climate
aspect of extracting metals from e-scarp is acknowledged in a project through the energy
savings potential.
NCF also supports a project that will systematically collect end-use data from different
types of customers all over Ethiopia, and use the database to indentify, evaluate and pro-
pose demand side management (DSM) measures for the power sector. The project aims to
change the electricity use behaviour of various consumer groups, thereby encouraging
end-use efficiency and reducing energy consumption and costs, with consequent benefits
in terms of climate change mitigation and adaptation.
Charcoal is an important energy source in Africa, vital for the daily household activities
of the poorest people. The high demand for firewood and charcoal is the main source of
deforestation in Uganda. Current charcoal production methods are highly inefficient,
usually illegal since indigenous forests are being used as raw material, and polluting
because methane gas is emitted. NCF supports a project that pioneers the installation of
modern, energy efficient, and methane-free charcoal kilns that are capable of producing
7,500 tonnes of sustainable charcoal a year, enough to supply 9,000 households. With
the kilns, the project intends to more than double the efficiency of traditional charcoal
production. These will be the first plants in East Africa where methane emissions from
charcoal production are recycled in this manner. It is expected that the project’s innovative
gas capture technology will set a precedent for future charcoal production in the region.
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N D F A N D I N N O VA T I O N
The Energy and Environment Partnership (EEP) with Mekong countries
Financed by the Ministry for Foreign Affairs of Finland and NDF, the Mekong EEP Program
provides seed money for a variety of renewable energy, clean technology and energy effici-
ency activities in the Mekong region. Eligible countries for EEP grants include Cambodia,
Lao PDR, Thailand and Vietnam. The objective is to combat climate change while providing
sustainable energy services to those in need. The Program is designed to facilitate the
development of innovative ideas, approaches and concepts into sustainable and bankable
investment projects that will bring substantial benefits to the partner countries. Projects
are identified through calls for proposals. In 2010, the result of the first call for proposals
was revealed and the outcome was extremely positive. 162 proposals were received and 13
were pre-selected for further elaboration. In the end seven contracts were signed. The
projects include one that will refurbish obsolete small hydropower stations in Lao PDR
with Permanent Magnetic generators, which is a completely new technology now being
introduced in the country. Another project will construct a wind turbine in Vietnam and
use wind power for ice production to conserve fish caught by local fishermen. During the
second call for proposals, a total of 105 proposals were received and 81 were found eligible.
At the EEP Mekong Fourth Steering Committee Meeting in December 2010, 14 projects
were pre-selected for the second call.
The ProClimate Facility (ProCF)
The ProCF was launched in December, 2010 with the objective of supporting small and
medium scale climate-friendly and innovative investment projects that often would not
otherwise be realised due to lack of financing, perceived risk and/or size. ProCF can
extend partial loan guarantees, technical and operational guarantees, and provide technical
assistance in combination with a guarantee to selected projects. By providing these types
of guarantees ProCF will supplement already available financing and thus help to close
remaining financing gaps. The Facility is financed by NDF and will be implemented jointly
with the Nordic Environment Finance Corporation (NEFCO).
Identification and screening of climate projects
In 2010, the NDF developed internal guidelines for project identification and climate
screening. The guidelines consist of quantitative screening criteria for both mitigation
and adaptation projects. The criteria, for mitigation activities, set minimum requirements
regarding greenhouse gas reductions. More specifically, the total value of greenhouse gas
reductions, from emissions or carbon sequestration, should be at least 10% of the project’s
investment costs. With regard to adaptation activities, NDF has chosen to adopt a criterion
that sets minimum requirements regarding the projects’ budgets. At least 50% of the
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N D F A N D I N N O VA T I O N
projects’ total investment costs should be for adaptation-related activities. The guidelines
are to be used during the preparatory phase to ensure that all projects financed by NDF
are in compliance with the new mandate. During the development of the guidelines, NDF
consulted with several major partners, including the World Bank, the Asian Development
Bank and the Inter-American Development Bank, who have all reacted positively to NDF’s
initiative. A summary of the screening guidelines is available on the NDF website.
Evaluation
NDF has provided financing to the energy sector in more than 25 countries during the
past two decades. While much of this support went to traditional energy solutions, NDF
credits have also financed a number of renewable energy solutions such as solar energy.
Two external evaluations were launched in May 2010 to assess results and capture lessons
learned from solar energy projects. The evaluation focused on:
• NDF 286 Senegal: Poverty Alleviation project 1999-2009 (Installation of 62 solar
energy systems to provide electricity to water pumps in rural areas of Senegal in
the period 2004-05).
• NDF 350 Honduras: National Education Reform 2001-2009 (Installation of 151
solar energy systems in the period 2005-06, and installation of 102 additional solar
energy systems in 2008 to provide electricity to rural schools in Honduras)
The evaluation was carried out by two external consultants who undertook the project
visits and fieldwork between May and July 2010. In Honduras, 25 villages were visited
while the consultant in Senegal visited 15 villages. The site visits allowed for an inspection
of individual solar energy installations, interviews with users and focus group discussions.
Further interviews were conducted with national and local authorities and the service
providers.
The main findings revealed that the provision of solar energy systems was highly
relevant to the communities since they are outside of the national electrical grid and expect
to remain so. In Honduras, the solar energy systems were exclusively used for electricity
in schools while those in Senegal were used for electrical water pumps. However, the deli-
very of the solar energy systems experienced delays both in Honduras and Senegal. The
training of recipients seems not to have been optimal, which in some cases led to problems
with operation and maintenance.
A main lesson learned is that future solar energy projects need to place more emphasis
on local ownership and long-term sustainability. The impacts of the solar energy systems
in the communities in Honduras and Senegal were found to be generally positive. In the
case of Honduras, the arrival of solar energy means that many schools now benefit from
other national programs as they have computers and televisions available in classrooms.
The evaluation reports are available on the NDF website.
Ph
oto:
© W
orld
Ban
k / D
omin
ic S
anso
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27
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Nordic Climate Facility 1 n/a 6,0 EUR 2010
Nordic Climate Facility 2 n/a 6,0 EUR 2011
Pro Climate Facility n/a 10,0 EUR 2011 *)
G R A N T P O R T F O L I O / G L O B A L
*) tentative
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Increased Access to Modern Energy Project -Modernizing Biomass Energy Services IDA 1,5 EUR 2010
Studies on Landfill Gas Capture and Utilization IDA 2,0 EUR 2011 *)
Promotion of Solar Water Heaters IDA 4,0 EUR 2011 *)
Transport and Urban Mobility Project -Environmental Activities IDA 4,0 EUR 2011 *)
Water and Sanitation Millennium Project -Cambérène Climate Change IDA 4,0 EUR 2011 *)
Senegal Biomass IDA 3,0 EUR 2011 *)
Increasing Access to Modern Energy Packages in Rural Areas IDA 3,0 EUR 2010
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Adaptation Approaches for the Transport Sector ADB 4,2 EUR 2011 *)
Water Resources Management ADB 3,0 EUR 2011
Pakse Urban Environmental Improvement Project ADB 0,4 EUR 2009
Capacity Enhancement for Coping with Climate Change ADB 2,0 EUR 2010
Support for the National Target Program on Climate Change ADB 2,21 EUR 2011
Mekong Energy and Environment Partnership (EEP) UM Finland 3,0 EUR 2010
GMS Bioenergy ADB 3,1 EUR 2011 *)
G R A N T P O R T F O L I O / A F R I C A
G R A N T P O R T F O L I O / A S I A
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Indigenous Peoples and Climate Change IDB 3,5 EUR 2011 *)
Sustainable Electrification and Renewable Energy Program IDB 4,5 EUR 2011 *)
Programme for Disaster Management and Climate Change IDB 2,5 EUR 2011 *)
GreenPYME: Energy Efficiency for Small and Medium-sized Enterprises IIC 2,2 EUR 2010
G R A N T P O R T F O L I O / L A T I N A M E R I C A
Regional Distribution of Approved Financing
Distribution of Adaptation and Mitigation Projects
28
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Public Sector Projects
Transport Sector Investment IDA 4,7 SDR 1997
Energy Services Delivery IDA 13,8 EUR 2005
Power Sector Development IDA 10,2 EUR 2005
Mochudi-Molepolole Groundwater Exploitation NIB 1,1 EUR 1990
Trans-Kgalagadi Road AfDB/NIB 0,5 EUR 1992
Transmission Line Francistown-Maun NIB 5,0 EUR 1993
Integrated Fisheries Development ICEIDA 2,0 SDR 1994
Addis Ababa Airport Improvement EIB 5,0 SDR 1998
Energy II IDA 7,0 SDR 1998
Road Sector Development IDA 4,8 SDR 1998
Road Sector Development II IDA 10,0 EUR 2003
Urban II IDA 5,2 EUR 1994
National Electricity IDA 6,1 EUR 1994
Accra Tema Water Supply Rehabilitation AfDB 5,2 EUR 1994
Urban Environment Sanitation IDA 2,6 EUR 1996
Mining Sector Development and Environment IDA 4,0 SDR 1996
Health Sector Support IDA 5,0 SDR 1998
Urban V IDA 2,1 SDR 2000 Health Services Rehabilitation III AfDF 8,3 EUR 2003
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Land Administration IDA 7,0 EUR 2004
Urban Water Project IDA 6,0 EUR 2004
Urban Environment Sanitation II IDA 9,0 EUR 2004
Northern Transport Corridor Improvement IDA 16,0 EUR 2004 Energy Sector Recovery IDA 10,0 EUR 2004
Fisheries Development IDA 2,8 EUR 1991
National Water Development IDA 5,3 SDR 1995
Power V IDA 5,0 SDR 1997
Preparatory Programme to Support the Telecommunications Sector Danida 5,1 EUR 1998
Road Maintenance and Rehabilitation (ROMARP) IDA 4,8 SDR 1999
Environmental Investment for Sustainable Development IBRD 4,1 EUR 1990
Urban Household Energy IDA 5,6 EUR 1989
Cahora Bassa Interconnection NORAD 4,6 EUR 1994
Semi Industrial Fisheries Danida/ICEI 3,6 SDR 1996
National Water Development IDA 5,2 SDR 1997
Municipal Development IDA 3,4 SDR 2001
Mineral Resources Management Capacity Building IDA 12,6 EUR 2001
The Roads and Bridges Management and Maintenance IDA 11,7 EUR 2001
Agricultural Sector Public Expenditure (PROAGRI) IDA 7,4 EUR 2002
Energy Reform and Access (ERAP) IDA 10,1 EUR 2003
C R E D I T P O R T F O L I O / A F R I C A
29
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Seaflower -Whitefish Corporation NIB 2,0 EUR 1994
Urgent Electricity Rehabilitation IDA 7,5 EUR 2005 Urban Infrastructure and City Management IDA 5,0 EUR 2005
Women's Groups Support AfDB 4,3 EUR 1992 Water Sector IDA 6,1 EUR 1995 Integrated Health Sector Development IDA 5,0 SDR 1997Second Transport Sector IDA 2,1 SDR 1999Long Term Water Sector Project - Water Resources Management IDA 5,6 SDR 1999Poverty Alleviation AfDB 7,5 SDR 1999Quality Education for All IDA 5,0 SDR 2000Long Term Water Sector Project - Urban Sanitation, Thiès IDA 11,5 SDR 2000Urban Mobility Improvement IDA 5,7 SDR 2002
Electricity IV AfDB 6,1 EUR 1993Power VI IDA 6,0 EUR 1995Mineral Sector Development Technical Assistance IDA 6,7 SDR 1999Songwe River Stabilisation Study IDA 1,3 EUR 1999Central Transport Corridor Roads IDA 4,1 EUR 2004The Lake Tanganyika Integrated Regional Development (PRODAP) AfDF 6,0 EUR 2005
Second Forestry Development IBRD 4,4 EUR 1994Water Supply and Sewerage IBRD 1,8 EUR 1996
Second Power - Installation of SCADA System IDA 4,9 EUR 1990First Urban IDA 5,8 EUR 1991Third Power - Owen Falls Extension IDA 5,8 EUR 1994Transport Rehabilitation IDA 4,4 EUR 1994Northern Reconstruction - Telecommunications component IDA 5,0 SDR 1998Second Economic and Financial Management (EFMP2) IDA 3,2 SDR 2000Roads Development Program, Phase II (RDPPII) IDA 7,0 SDR 2001Fourth Power IDA 12,7 EUR 2002Sustainable Management of Mineral Resources (SMMRP) IDA 6,0 EUR 2005Farm income Enhancement and Forest Conservation Project AfDF 5,0 EUR 2006
Environment Support IDA 0,9 EUR 1997Power Rehabilitation IDA 6,1 EUR 1999
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Copperbelt Environment IDA 9,6 EUR 2003Road and Rehabilitation and Maintenance Project - In Support of ROADSIP II (Phase I) IDA 8,0 EUR 2004
Urban Sector and Regional Development IBRD 4,4 SDR 1990Cahora Bassa Interconnection NORAD 3,5 SDR 1994Pungwe Mutare Water Transfer Sida 5,9 SDR 1996
Private Sector Projects. Loans with equity features
Cimbenin S.A. Swedfund 0,7 SDR 1996
Paper Conversion Company Ltd. Swedfund 0,5 SDR 1995Ghana Emulsion Company Ltd. IFU 0,4 SDR 1996Danafco Ltd. IFU 0,2 SDR 1998
Maputo Port Privatisation and Rehabilitation Swedfund 0,9 SDR 2003
Seaflower Whitefish Corporation Ltd. NBVF 0,7 SDR 1999
Nielsen Tap (Pty) Ltd. IFU 0,1 SDR 1995Princeton Computing Training Solutions (Pty) Ltd. IFU 0,0 SDR 1996New Africa Signs and Graphics (Pty) Ltd. IFU 0,0 SDR 1997Danforge Engineering (Pty) Ltd. IFU 0,0 SDR 1998
Sao Hill Timber Ltd. NORAD 0,3 SDR 1997
MTN (Uganda) Ltd. Swedfund 1,5 SDR 1999
Imperial Derby Refrigeration Ltd. IFU 1,0 SDR 1995Oscars Fine Foods IFU 0,1 SDR 1995Frese (Zimbabwe) (Pvt) Ltd. IFU 0,3 SDR 1996Powervision (Pvt) Ltd. IFU 0,1 SDR 1997
African Infrastructure Fund Swedfund 1,5 SDR 1999 Aureos Southern Africa Fund (ASAF) Norfund 3,4 EUR 2003 Aureos West Africa Fund Norfund 3,0 EUR 2004
Credit LinesFifth Line of Credit and Technical Assistance to the East African Development Bank AfDB 6,8 EUR 1995Second NDF Credit Line to the East African -Development Bank (EADB) n/a LA 4,2 EUR 2003
30
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Public Sector Projects
Energy Generation, Transmission and Distribution IDB 4,8 EUR 1991Environment, Industry & Mining IDA 5,0 SDR 1995National Land Administration IDA 5,0 SDR 1996Ventilla - Tarapaya Highway IDB 2,6 SDR 1999Institutional Reform Project (IRP) IDA 1,3 SDR 2000Bolivian Epidemiological Shield and Supportfor Health-Sector Reform Program IDB 5,0 SDR 2000Road Rehabilitation and Maintenance IDA 4,8 EUR 2002Environmental and Social Protection in the - Santa Cruz-Puerto Suàrez Corridor IDB 3,5 EUR 2002
Pacific Coast Sustainable Development IDB 1,4 SDR 1997
Energy Control Center / SCADA System IDB 5,1 SDR 1993Health Sector Modernization and Restructuring IDB 2,7 SDR 1998
Road Reconstruction and Improvement IDA 7,8 SDR 2000Potable Water and Sanitation Investment IDB 1,5 SDR 2000National Education Reform IDB 7,0 EUR 2001Three National Sustainable Development Program for Upper Lempa River Basin IDB 3,4 EUR 2002Land Administration IDA 6,0 EUR 2005Support for Rural Electrification and the Energy Sector IDB 5,6 EUR 2005
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Primary Education Improvement IDB 2,0 SDR 1993Multisectoral Pre-investment IDB 1,8 SDR 1994Airport Reform and Improvement IDB 2,0 SDR 1997
Electric Power System Rehabilitation IDB 2,7 SDR 1992Rehabilitation of the Water Supply & Sewerage Systems IDB 4,8 SDR 1992Rural Road Rehabilitation and Upgrading IDB 4,0 SDR 1993Forestry Resource Management and Conservation IDB 3,2 SDR 1996Management of Lake Managua IDB 6,9 SDR 1997Atlantic Biological Corridor IDA 2,3 SDR 1997Health Sector Modernization II IDA 2,5 SDR 1999Road Yalagüína-Las Manos, Rehabilitation and Improvement Sida 3,0 SDR 2000Socioenvironmental and Forestry Development Program II - (POSAF II) IDB 2,5 EUR 2002Land Administration IDA 5,5 EUR 2003Transport Program for Improved Competition IDB 9,5 EUR 2004
Private Sector ProjectsLoans with equity features
Owens Corning Andercol Tuberías S.A. NORAD 1,4 SDR 1996
Central American Small Enterprise Investment Fund (CASEIF) Norfund 3,1 EUR 2003
C R E D I T P O R T F O L I O / L A T I N A M E R I C A A N D T H E C A R I B B E A N
31
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Public Sector Projects
KAFCO IFU 4,0 SDR 1993
Jamuna Bridge Access Roads ADB 1,5 SDR 1997
Urban Primary Health Care ADB 1,2 SDR 1998
Southwest Road Network Development ADB 2,7 SDR 2000
West Zone Power System Development ADB 10,0 EUR 2002
Dhaka Clean Fuel Project ADB 10,0 EUR 2003
Power Sector Development ADB 8,3 EUR 2004
Greater Mekong Subregion (GMS) Transmission ADB 10,0 EUR 2004
Beishigiao Wastewater Treatment Plant, Xi'an City NIB 1,6 EUR 1993
Hedong Wastewater Treatment Plant, Urumqi City NIB 3,1 EUR 1993
Tanggu Geothermal Plant NIB 0,8 EUR 1994
Central Nurseries Establishment NIB 3,9 SDR 1990
Indonesia/Nordic Forestry NIB 3,8 SDR 1993
Digital Marine Mapping NORAD 5,0 SDR 1995
Power and District Heating Rehabilitation ADB 5,1 EUR 1997
Highways Improvement IDA 4,8 EUR 1991
Airports Improvement ADB 5,7 EUR 1994
Bridge Construction Sida 6,0 EUR 1994
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Theun Hinboun Hydropower ADB 6,0 EUR 1995 Third Highway Improvement IDA 4,0 SDR 1997 Power Transmission and Distribution ADB 6,4 EUR 1997 Road Maintenance IDA 4,5 SDR 2001 Northern Area Rural Power Distribution ADB 12,3 EUR 2003 Roads For Rural Development ADB 6,1 EUR 2004
Third Fisheries IDA 4,2 EUR 1992 Male-Water and Sewerage IFU 2,1 EUR 1995 Third Power System Development ADB 4,7 EUR 1998
Telecommunications ADB 4,9 SDR 1994 Power Rehabilitation ADB 3,9 SDR 1995 Transport Infrastructure Development IDA 3,8 SDR 2001 Social Security Sector Development, SSSDP ADB 4,4 EUR 2001 Second Education Development ADB 8,5 EUR 2002
Power Sector Efficiency IDA 5,1 EUR 1992
Fifth Telecommunication IDA 5,8 EUR 1993
Biratnagar II Multifuel Power Plant Extension Finland 5,4 EUR 1996
Khimti Power Transmission Finland 1,7 EUR 1997
Melamchi Water Supply ADB 7,4 EUR 2001
NLC -Radio Link NIB 3,3 EUR 1993
WAPDA Twelfth Power Sector ADB 7,0 EUR 1993
Provincial Highway ADB 4,3 EUR 1994
C R E D I T P O R T F O L I O / A S I A
32
Country/ Lead Investment Year ofProject Agency million, NDF Signing
Industrial Restructuring IBRD 2,8 EUR 1992
Leyte-Cebu Geothermal IBRD 4,2 EUR 1995
Local Government Units (LGU),
Urban Water and Sanitation IBRD 0,6 SDR 1998
Mindanao Basic Urban Services Sector ADB 4,3 SDR 2000
Technical Education and Skills Development ADB 5,0 SDR 2000
Second Power Distribution and Transmission IDA 5,4 EUR 1996
Southern Transport Development ADB 3,7 SDR 1999
Skills Development ADB 6,3 SDR 1999
Secondary Education Modernization ADB 4,5 SDR 2000
Song-Hinh Hydropower Sida 7,4 EUR 1996
Vocational and Technical Education ADB 4,3 SDR 1999
Bai Bang Paper Mill Sida 5,9 EUR 2001
Central Region Transport Network ADB 11,6 EUR 2005
Private Sector Projects
Loans with equity features
Scancement International Norfund 1,4 SDR 2000
Scana Leshan Machinery Company Limited IFC 1,6 SDR 1999
Khimti Hydropower ADB / IFC 2,1 SDR 1996
Thailand Research Test Center (TRTC) Norfund 0,3 SDR 1998
Mekong Enterprise Fund Ltd. (MEF) ADB 3,4 EUR 2002
33
The picture was taken at the NDF Board of Directors' meeting in Helsinki in March 2011. From left to right: Helge Semb, Tomas Danestad, Christoffer Bertelsen, Satu Santala, Egill Heiðar Gislason.
DENMARKChristoffer Bertelsen, Senior Adviser, Ministry of Foreign Affairs, Chair of the BoardDeputy: Mads-Emil Stærk, Embassy Secretary, Ministry of Foreign Affairs
FINLANDSatu Santala, Director, Ministry for Foreign Affairs, Deputy Chair of the BoardDeputy: Pertti Anttinen, Director, Ministry for Foreign Affairs
ICELANDEgill Heiðar Gislason, Advisor Deputy: Anna Karlsdóttir, Assistant Professor, University of Iceland
NORWAYIngrid Glad, Assistant Director General, the Royal Ministry of Foreign AffairsDeputy: Harald Tollan, Senior Adviser, the Royal Ministry of Foreign Affairs
SWEDENTomas Danestad, Director, Ministry for Foreign Affairs Deputy: Lena Kövamees, Senior Programme Manager, Sida
Observer:Johan Ljungberg, Senior Director, Nordic Investment Bank
*) As at December 31, 2010
B O A R D O F D I R E C T O R S *) C O N T R O L C O M M I T T E E *)
CHAIRMANBill Fransson, Managing Director
DENMARKPer Bisgaard, Member of Parliament
FINLANDTuula Peltonen, Member of Parliament
ICELANDRagnheiður Ríkharðsdóttir, Member of Parliament
NORWAYHans Frode Kielland Asmyhr, Member of Parliament
SWEDENJohan Linander, Member of Parliament
AUDITORS APPOINTED BY THE CONTROL COMMITTEE
Sixten Nyman, Authorised Public Accountant, KPMG, FinlandPer Gunslev, State Authorised Public Accountant, KPMG, Denmark
Secretary to the Control CommitteeBirgitta Immerthal, KPMG, Finland
34
M A N A G E M E N T A N D S T A F F
Helge Semb, Managing Director
Leena Klossner, Deputy Director
Juhani Annanpalo, Country Program Manager
Hannu Eerola, Country Program Manager
Martina Jägerhorn, Country Program Manager
Aage Jørgensen, Country Program Manager
Linda Lundqvist, Country Program Manager and Legal Counsel
Emeli Möller, Program Officer
Mats Slotte, Manager, Financial Administration
Jessica Suominen, Financial Administrator (on leave of absence)
Henna Vuorinen, Financial Administrator
Stella Eckert, Manager, Administration and Corporate Affairs
Ann-Christin Lundin, Secretary
Nordic Development Fund • Annual Report 2010 • Lay-out: Kubik advertising • Photos: Getty Images, Jørgen Schytte, Olga Saxén, Dominic Sansoni, Sebastian Szyd, Jakob Dall, Masaru Goto, Johannes Mansner, • Printed by Libris, Finland
441 014Printed matter
Nordic Development Fund (NDF)P.O. Box 185FIN-00171 Helsinki, FinlandOffices: Fabianinkatu 34
Telephone +358 10 618 002Telefax +358 9 622 1491E-mail: [email protected]: http://www.ndf.fi