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

53

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).

R E P O R T B Y T H E B O A R D O F D I R E C T O R S 2 0 1 0

S u m m a r y o f 2 0 1 0

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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.


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.

5


6

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.

6


7

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.


8

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


9

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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

12

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:

13

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

14

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.


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


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


(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

*


(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.

18


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”.

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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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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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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

ni

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


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


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


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


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


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


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


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



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


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



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


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


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

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