21793 Volume 2 V. I The WVorld Bank Annual Report 2000 FINANCIAL STATEMENTS AND APPE NDIXES 10O THL ANNUAL REPORT FILE COPY THE WORLD BANK ANNUAL REPORT 2000 FINANCIAL STATEMENTS AND APPENDIXES TO THE ANNUAL REPORT THE WORLD BANK WASHINGTON, D.C. Note The World Bank's Annual Review and Summary Financial Infonnation is published as a separate volume and is available on the Internet at wwwworldbank.org/annrep/2000. Copyright ( 2001 The Intemational Bank for Reconstruction and Development / THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, USA All rights reserved Manufactured in the United States of America ISSN 0252-2942 ISBN 0-8213-4821-3 CONTENTS Letter of Transmittal v Management's Discussion and Analysis 1 International Bank for Reconstruction and Development Financial Statements 27 International Development Association Special Purpose Financial Statements 67 Interim Trust Fund Special Purpose Financial Statements 97 IBRD/IDA Appendixes 113 Summaries of Projects Approved for IBRD, IDA, IDA Interim Trust Fund, and Trust Fund for the West Bank and Gaza Assistance in Fiscal 2000 163 iii LETTER OF TRANSMITTAL This Annual Report, which covers the period July 1, 1999, to June 30, 2000, has been prepared by the Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) in accordance with the respective by-laws of the two institutions. James D. Wolfensohn, President of the IBRD and IDA and Chairman of the Boards of Executive Directors, has submitted this Report, together with accompanying administrative budgets and audited financial statements, to the Board of Governors. Annual Reports for the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID) are published separately. Executive Directors Alternates Khalid M. Al-Saad Mohamed Kamel Amr Yahya Alyahya Abdulrahman Almofadhi Ruth Bachmayer Luc Hubloue Andrei Bugrov Eugene Miagkov Federico Ferrer Cecilia Ramos Godfrey Gaoseb Girmai Abraham Valeriano F Garcia Ivan Rivera Inaamul Haque Mohamed Dhif Yuzo Harada Akira Kamitomai Jannes Hutagalung Wan Abdul Aziz Wan Abdullah Neil Hyden Lewis D. Holden Matthias Meyer Jerzy Hylewski Jean-Claude Milleron Emmanuel Moulin llkka Niemi Anna M. Brandt Terrie O'Leary Alan David Slusher Franco Passacantando Helena Cordeiro Stephen Pickford Myles Wickstead Jan Piercy (vacant) Murilo Portugal Patricio Rubianes Helmut Schaffer Eckhardt Biskup B. P. Singh Syed Ahmed Pieter Stek Tamara Solyanyk Bassary Toure Paulo F. Gomes Zhu Xian Chen Huan As of June 30, 2000 v INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2000 Section 1: Financial Overview 3 Section 2: Development Activities 3 Loans 4 Guarantees 10 Other Activities 11 Section 3: Financial Risk Management 12 Credit Risk 12 Asset/Liability Management 15 Operating Risk 17 Section 4: Liquidity Management 17 Section 5: Funding Resources 18 Equity 1 8 Borrowings 20 Section 6: Results of Operations 21 Glossary of Terms 25 Box 1: Selected Financial Data 2000 1999 1998 1997 1996 For the Year (us. $ millions) Loan Income (comprised of) 8,153 7,649 6,881 7,235 7,922 Interest 8,041 7,535 6,775 7,122 7,804 CommitrnentCharges 112 114 106 113 118 Provision for Loan Losses 166 (246) (251) (63) (42) Investment Income 1,589 1,684 1,233 834 720 Borrowing Expenses (7,128) (6,846) (6,144) (5,952) (6,570) Net Noninterest Expense (789) (723) (476) (769) (843) Net Income 1,991 1,518 1,243 1,285 1,187 Performance Ratios (%) Net Retum on Average Earning Assets' 1.34 1.05 0.96 1.02 0.89 Gross Return on: Average Earning Assetsa 6.53 6.47 6.29 6.41 6.50 Average Outstanding Loansa 6.71 6.58 6.43 6.62 6.78 Average Cash and Investments 5.74 6.00 5.63 5.02 4.47 Cost of Average Borrowings (after swaps) 5.92 5.92 6.01 6.06 6.31 Interest Coverage Ratio 1.28 1.22 1.20 1.22 1.18 Return on Equity 7.73 6.16 5.29 5.21 4.61 Equity Capital-to-Loans Ratio b 21.23 20.65 21.44 22.06 21.80 Total at Year-end (us. $ millions) Total Assets 227,810 230,445 204,808 161,786 151,837 Cash and Liquid Investmentsc 24,331 30,122 24,837 18,250 15,990 Loans Outstanding 120,104 117,228 106,576 105,805 110,246 Accumulated Provision for Loan Losses (3,400) (3,560) (3,240) (3,210) (3,340) Borrowings Outstandingd 110,379 115,739 103,477 96,679 96,719 Total Equity 29,289 28,021 26,514 27,228 28,300 a. Includes income from commitment charges. b. See Section 5: Funding Resources, Equity for additional discussion. c. Includes investments designated as held-to-maturity forfiscal years 1996-98. d. Outstanding borrowings, before swaps, net of premium/discount. Throughout Management's Discussion and Analysis, termns in boldface type are defined in the Glossary of Terms on page 25. The Management's Discussion and Analysis may contain forward looking statements. Such statements are based on current expectations which are subject to risks and uncertainties. Conse- quently, actual results could differ materially from those currently anticipated. 2 THE WORLD BANK ANNUAL REPORT 2000 1. FINANCIAL OVERVIEW The International Bank for Reconstruction and Devel- recovery from financial crises and country specific opment (IBRD) is an international organization estab- circumstances. Many of the borrowers directly lished in 1945 and is owned by its member countries. affected by the financial crisis have stabilized, in part IBRD's main goal is reducing poverty by promoting because of the quick and flexible response of the sustainable economic development. It pursues this international community. Lower commitments also goal primarily by providing loans, guarantees and reflected a general trend in demand from borrowers related technical assistance for projects and programs for smaller average lending operations. in its developing member countries. IBRD's ability to intermediate funds from international capital markets In the context of assessing changes in IBRD's operat- for lending to its developing member countries is an ing environment, it is management's practice to rec- important element in achieving its development goals. ommend each year the allocation of net income to IBRD's objective is not to maximize profit, but to earn augment reserves, waivers of loan charges to eligible adequate net income to ensure its financial strength borrowers, and grants from net income to support and to sustain its development activities. Box 1 pre- developmental activities. sents selected financial data for the last five fiscal As part of this annual review, in July 1998, IBRD's years. Executive Directors took several actions to augment its financial capacity. These measures included The financial strength of IBRD is based on the support itsefinancia capacty. Th ares included it receives from its shareholders and on its array of increasing the contractual charges on new loans, and financial policies and practices. Shareholder support reducing the interest waiver for FY 1999 from 25 basis for IBRD is reflected in the capital backing it has points to 5 basis points on old loans. These pricing ore e fBR its mlemberd in the rco of. its bor- changes effectively brought the net spread for FY rowing members in meeting their debt-service obliga- 1999 to 45 basis points on old loans and to 50 basis twions tomitmberDs financialg plic d peraices hblgav points on new loans. Also, a front-end fee of 100 basis tions to it. IBRD's financial policies and practices have pons aal o ahsc ona h iei led it to build reserves, to diversify its funding sources points, payable for each such loan at the time it to hol a lag prtfolo of lqi inetmns an to becomes effective, was introduced. In July 1999, the limit a variety of risks, including credit, market and Executive Directors allocated $955 million of FY liquiity avarietyskf risks , including credit, marketand 1999 income to reserves and maintained the FY 1999 liquidity risks, loan pricing strategy and interest waivers for FY 2000. IBRD's principal assets are its loans to member coun- FY 2000 net income was $1,991 million, $473 million tries. The majority of IBRD's outstanding loans are higher than the preceding year. An EN 2000 reduction priced on a cost pass-through basis, in which the cost n than the provisin year. A 412 million of funding the loans, plus a lending spread, is passed in the loan loss provision contributed $412 million to through to the borrower. this increase. Income was further bolstered by the impact of interest rate resets on loans. These increases To raise funds, IBRD issues debt securities in a variety to net income were partially offset by the absence in of currencies to both institutional and retail investors. FY 2000 of a one time gain of $237 million, resulting These borrowings, together with IBRD's equity, are from the liquidation in FY 1999 of the held-to-matu- used to fund its lending and investment activities, as rity portfolio. well as general operations. On August 1, 2000, the Executive Directors approved IBRD holds its assets and liabilities primarily in U.S. the allocation of $1,280 million of FY 2000 net dollars, euro (and its national currency units), and Jap- income to reserves, and recommended to IBRD's anese yen. IBRD mitigates its exposure to exchange Board of Governors the transfer of $635 million from rate risks by matching the currencies of its assets with unallocated net income to other development pur- those of its liabilities and reserves; however, the poses, and that the remainder be retained as surplus. reported levels of its assets, liabilities and income in For FY 2001, an increase to 15 basis points in the the financial statements are affected by exchange rate interest waiver was approved for old loans so that the movements of major currencies compared to IBRD's net lending spread will be 35 basis points. For new reporting currency, the U.S. dollar. This financial loans, the interest waiver of 25 basis points was main- statement reporting effect does not impact IBRD's tained. FY 2001 waivers of commitment charges were risk bearing capacity. also maintained at the FY 2000 level. FY 1998 and FY 1999 were marked by unprecedented IBRD continues to evaluate alternative strategies to growth in the loan portfolio as IBRD responded to the enhance its risk-bearing capacity to ensure that it can financial crisis that had begun in East and Southeast respond to borrowers as needed, while preserving its Asia and spread to other parts of the developing financial strength. world. While the global financial crisis led to an2.DVLPETAT IS increase in lending activity in NFY 1998 and EN 19 2. DEVELOPMENT ACTIVITIES the number of loans and the volume of lending IBRD offers loans, related hedging products, and guar- commitments fell sharply in FY 2000, returning to antees to its borrowing member countries to help pre-crisis levels. This decline was due partly to the meet their development needs. It also provides tech- IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2000 3 nical assistance and other services to support poverty The process of identifying and appraising a project and reduction in these countries, approving and disbursing a loan often extends over several years. However, on numerous occasions IBRD Loans has shortened the preparation and approval cycle in From its establishment through June 30, 2000, IBRD response to emergency situations such as natural disas- had approved loans, net of cancellations, totaling ters in Turkey and Central America, as well as the $309,839 million to borrowers in 129 countries. The financial crisis in Asia. loans held by IBRD, including loans approved but not Generally, the appraisal of projects is carried out by yet effective, at June 30, 2000, totaled $164,858 mil- IBRD's operational staff (engineers, financial analysts, lion, Of which $120,104s millon was outstanding and $44,754 million was undisbursed. Cumulative loan economists and other sector and country specialists). repayments at June 30, 2000, based on U.S. dollar With certain exceptions, each loan must be approved equivalents at the time of receipt, were $141,265 ml- by IBRD's Executive Directors (See Box 3, Adaptable lion ' Program Loans and Learning and Innovation Loans). Loan disbursements are subject to the fulfillrnent of The amount of loans outstanding at June 30, 2000 was conditions set out in the loan agreement. During $2,876 million higher than that at June 30,1999. The project implementation, IBRD staff with experience increase is primarily attributable to net disbursements in the sector or the country involved periodically visit of $2,750 million. project sites to review progress, monitor compliance with IBRD policies and assist in resolving any prob- During FY 2000, commitments of new loans to mem- lems that may arise. After completion, projects are ber countries were $10,919 million, down from levalate by aninependent unitnd thectsning $22,182 million in FY 1999. In FY 1998 and FY evaluated by an independent unit and the findings 2999, IBRD's commitments had reached unprece- reported directly to the Executive Directors to deter- dented levels. FY 2000 commitments have declined mme the met. which appraisal, mal, from these levels, most notably in adjustment lending. tives were met. Similar appraisal, approval, Three types of factors have contributed to this supervIsion and evaluation prother non-project loans decrease in lending commitrnents: * Cyclical Factors: Emerging market economies Lending Instruments have stabilized after the global financial crisis; IBRD lending generally falls into one of two catego- ries: investment or adjustment lending. Historically, * Long-term Factors: There S a contsiung trend most IBRD loans have been for investment projects or toward smaller averageprojeprograms. Figure 1 presents IBRD lending by category * Country-specific Factors: A number of country- for the last eight fiscal years, as a percentage of total specific factors such as political transitions, con- loans approved. flicts, and country performance. Figure 1: Compared to the preceding fiscal year, the relative regional composition of commitments in FY 2000 IBRD Lending Commitments shifted away from East Asia and slightly more towards Percent Eastern Europe, Central Asia and Latin America. 10; Under IBRD's Articles of Agreement (the Articles), as applied, the total amount outstanding of direct loans made by IBRD, participation in loans and callable 75 - guarantees may not exceed the statutory lending limit. At June 30, 2000, outstanding loans and callable guar- antees (net of the accumulated loan loss provision) 50- totaled $117,181 million, equal to 57% of the statu- - tory lending limit. IBRD's lending operations have conformed generally 25- to five principles derived from its Articles. These Adjustment principles, taken together, seek to ensure that IBRD loans are made to member countries for financially and economically sound purposes to which those 0- countries have assigned high priority, and that funds FY93 FY94 FY95 FY96 FY97 FY98 FY99 FYOO lent are utilized as intended. The five principles are described in Box 2. Within the scope permitted by the Articles, application of these principles must be devel- oped and adjusted in light of experience and changing conditions. 4 THE WORLD BANK ANNUAL REPORT 2000 Box 2: Lending Operations Principles (i) IBRD makes loans to governments, governmental authorities or private enterprises in the territories of member countries. A loan that is not made directly to the member in whose territories the project is located must be guaranteed as to principal, interest and other charges by the member or its central bank or a comparable agency of the member acceptable to IBRD. A guarantee by the member itself has been obtained in all such cases to date. (ii) IBRD's loans are designed to promote the use of resources for productive purposes in its member countries. Projects financed by IBRD loans are required to meet IBRD's standards for technical, eco- nomic, financial, institutional and environmental soundness. (iii) In making loans, IBRD must act prudently and pay due regard to the prospects of repayment. Deci- sions to make loans are based upon, among other things, studies by IBRD of a member country's eco- nomic structure, including assessments of its resources and ability to generate sufficient foreign exchange to meet debt-service obligations. (iv) IBRD must be satisfied that in the prevailing market conditions (taking into account the member's overall external financing requirements), the borrower would be unable to obtain financing under conditions which, in the opinion of IBRD, are reasonable for the borrower. IBRD is intended to pro- mote private investment, not to compete with it. (v) The use of loan proceeds is supervised. IBRD makes arrangements to ensure that funds loaned are used only for authorized purposes and, where relevant, with due attention to considerations of cost- effectiveness. This policy is enforced primarily by requiring borrowers (a) to submit documentation establishing, to IBRD's satisfaction, that the expenditures financed with the proceeds of loans are made in conformity with the applicable lending agreements and (b) to maximize competition in the procurement of goods and services by using, wherever possible, international competitive bidding or, when it is not appropriate, other procedures that ensure maximum economy and efficiency. Current operating guidelines state that adjustment Adjustment Lending lending, excluding debt and debt-service reduction loans, will normally not exceed 25% of total IBRD IBRD also makes adjustment loans designed to sup- ledn.9 Thi gudln wa esalse with.. the. ,, . port the introduction of basic changes in economic, lending. This guideline was established with the financial and other policies of key importance for the understanding that it was likely to be exceeded if economic development of member countries. Dis- world economic conditions worsened. This guideline bursements on these loans are conditioned on certain is not a rigid limit but rather a trigger for a reevalua- tino suc lnding As rslto svra larg performance objectives. Adjustment lending com- tion Of such lending. as a result Of several large mitted for FY 2000 totaled $4,426 million ( $13,937 adjustment loans made by IBRD during FY 1999, 63% million-FY 1999; $9,935 million-FY 1998.) Box 4 of IBRD's lending in that year consisted of such loans provides a description of each adjustment lending (47% for FY 1998). In FY 2000, this proportion instrument and the details of IBRD's adjustment lend- decreased to 41 % as fewer adjustment loans were nec- ing appioved in FY 2000 and each of the two preced- essary. The lower commitments for adjustment lend- n ro i ing reflect the general improvement in global financial ing fiscal years. circumstances compared to the two prior fiscal years. Enclave Lending The Executive Directors are aware that, in light of On rare occasions, IBRD will lend for a large, foreign recent financial circumstances in the world, the guide- exchange generating project in a member country usu- line has been exceeded in recent years, and may possi- ally eligible only for loans from the International bly be exceeded again in subsequent years. Development Association (IDA). In these circum- Investment Lending stances appropriate risk mitigation measures are incor- IBRD has several lending instruments that support porated (including off-shore escrow accounts and investmen activities, either discrete projedebt-service reserves acceptable to IBRD) to ensure nmvestment activites, either discrete projects or pro- that the risks to IBRD are minimized. At June 30, grams of investment. Investment lending committed 200 BDhd$7 iloni usadn on o fr 1Y 2000 totae 1 649 milo (h> $8 , >245 millio- 2000, IBRD had $170 million in outstanding loans for FY 1999F $11,151 million-FY 1998). Box 3 presents enclave projects. In FY 2000, IBRD approved enclave Fl I99 1,5 ilo-l 98.Bx3peet loans totalling $93 million. a description of each investment lending instrument and a breakdown of IBRD's investment lending approved in FY 2000 and in each of the two preceding fiscal years. IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2000 5 Box 3: Investment Lending (in millions of U.S. dollars) Specific Investment 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,00( Emergency Recovery = . . .________ * Specific Investment Loans fund the creation, rehabilitation and maintenance of economic, social and institutional infrastructure. 0 200 400 600 800 i,000 1,200o * Emergency Recovery Loans restore assets and productivitv immediately after a major emergency (such as war, civil Adaptable Program disturbance, or natural disaster) that seriously disrupts a member country's economy. Adaptable Program Loans provide phased support for long- :1111 :II term development programs through a series of opera- tions. Succeeding operations are committed on the basis of satisfactory performance on agreed milestones, indica- 0 200 400 600 800 1,000 1,200 tors, periodic reviews, and the evaluation of implementa- tion progress and emerging needs. Authority for approval Financial Intennediary of subsequent adaptable program loans under programs approved by the Executive Directors is with IBRD's man- agement, subject to oversight and review by the Executive Directors. ____ i_________________. _ * Financial Intermediary Loans provide long-term resources 0 200 400 600 800 to local financial institutions, helping to develop sound financial sector policies and institutions, promoting the operational efficiency of those institutions, and improving Sector Investment & Maintenance the terms of credit available to enterprises and households. * Sector Investment and Maintenance Loans aim to bring sec- tor expenditures, policies and performance in line with a country's development priorities. 0 200 400 600 800 * Technical Assistance Loans are used to build institutional capacity in the borrowing country. They are used to build Technical Assistance capacity in entities concerned with promoting economic and social development, as well as public sector reform. * Learning and Innovation Loans support small, pilot-type investment and capacity-building projects that, if success- ful, could lead to larger projects that would mainstream the learning and results of the loan. These loans do not 0 200 400 600 800 exceed $5 million and are normally implemented over two to three years. Approvals of specific individual loans are at Learning and Innovation the management level rather than at the Executive Direc- tor level. FY1998 r FY1999 C3 FY2000 M 0 200 400 600 800 6 THE WORLD BANK ANNUAL REPORT 2000 Box 4: Adjustment Lending (in millions of U.S. dollars) Structural Adjustment 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Special Structural and Sector Adjustmnent Structural Adjustment Loans support specific policy changes and institutional reforms. These loans require agreement on a satisfactory macroeconomic framework and policy actions that can be monitored on a specific schedule. FY 1998 commitments included a $3,000 mil- 0 1,200 2,400 3,600 4,800 lion economic reconstruction loan. * Special Structural and Sector Adjustment Loans are fast-dis- Sector Adjustment bursing loans which provide support to countries facing a sectoral or economy-wide crisis with a substantial struc- tural dimension. These instruments were introduced in FY 1999. * Sector Adjustment Loans support comprehensive policy I I I ~~~~~~~changes and institutional reforms in major sectors. They 0 1,200 2,400 3,600 4,800 also require agreement on a satisfactory macroeconomic PrgantcStructural Adjustment framework and its implementation, and a specific program Programatic ~~~~~~~that can be monitored. a Programmatic Structural Adjustment Loans support govern- mental programs of structural and social reforms that involve continuous, incremental policy changes and insti- ______________________________tution building through a series of loans. These loans rely on a solid foundation of completed or parallel analytic and 0 600 1,200 1,800 2,400 advisory work in related areas. The first of these instru- Debt Reduction ments was approved in FY 2000. _ * Debt Reduction Loans help eligible, highly-indebted mem- ap_rovak FY a manageable level as part of a medium-term financing No 1,08-0000 plan. IBRD did not make any commitments of this type -j 600 ~~~~~~~~~during FY 1998-FY 2000. _ 600 1,200 1,800 2,400 * Rehabilitation Loans support government policy reform programs to assist the private sector where foreign Rehabilitation exchange is required for urgent rehabilitation of key infra- structure and productive facilities. IBRD did not make any commitments of this type during FY 1998-FY 2000. No approvaii FY 1998-2~000 I I I ~~~~~~~~~FY 199 8r- FY 1999 M FY2000 0 600 1,200 1,800 2,400 IBRD MANAGEMENT's DISCUSSION AND ANALYSIS: JUNE 30, 2000 7 Financial Terms of Loans The lending rate on these cost pass-through loans is In recent years, IBRD has offered new loans with variable, adjusted every six months to reflect the pre- three types of financial terms: multicurrency pool vious semester's average cost of outstanding borrow- loans, variable-spread single currency loans, and fixed- ings allocated to fund these loans, weighted by the rate single currency loans. Beginning September 1, average currency composition of the pool. IBRD adds 1999, IBRD also made available a new LIBOR-based its lending spread to that average cost. fixed spread loan product and, effective December 1, Multicurrency Pool Loan Conversion Options 1999, the offer of fixed-rate single currency loans was terminated. This choice of financial terms is intended In FY 1997, in response to borrower demand for to provide borrowers with the flexibility to select broader currency choice, the Executive Directors terms that are both compatible with their debt man- approved the offer of currency choice for all IBRD agement strategy and suited to their debt-servicing multicurrency pool loans for which the invitation -o capability. Most multicurrency pool loans and vari- negotiate was issued before September 1, 1996. lThe able spread single currency loans mature over a period purpose of this invitation was to provide borrowers that ranges from fifteen to twenty years and carry a the flexibility to amend the terms of their existing three- to five-year grace period for principal. While multicurrency pool loans to reflect their choice of the fixed-spread loans offer more flexible repayment offered currencies by converting multicurrency pool terms, this flexibility is subject to limits aimed at loans to single currency loan terms or single currency maintaining a similar average loan maturity across all pool terms. Those options expired on July 1, 1998 loan products for a given borrower. Single currency pool terms are not available for new commitments. For most products, IBRD charges a lending rate com- posed of its average cost of borrowings plus a spread. Single Currency Loans Until July 31, 1998, that spread was 50 basis points. For new commitments, borrowers may select LIBOR- However, during the first quarter of fiscal year 1999, based, variable spread single currency terms. Fixed- the lending spread was increased to 75 basis points for rate single currency loan terms were available for loans new loans. Also, a front-end fee of 100 basis points, if the invitation to negotiate was issued before Decem- payable for each such loan at the time it becomes ber 1, 1999. effective, was introduced. In addition, most loans Variable-Spread Single Currency Loans carry a commitment charge of 75 basis points on undisbursed amounts. However, the fixed-spread IBRD currently offers variable-spread single currency loans carry a commitment charge of 85 basis points for loans in U.S. dollars, Japanese yen, euro, pounds ster- the first four years and 75 basis points thereafter. ling and Swiss francs, and will consider borrower requests for loans in other currencies. Variable-spre3d Waivers of a portion of interest owed by all eligible single currency loans carry a lending rate that is reset borrowers are determined annually and have been in semi-annually. The lending rate consists of a base rate, effect for each of the previous nine fiscal years. Waiv- which is LIBOR for the applicable currency plus a ers of a portion of the commitment charge owed on Th spread or ithe (a) IBrD's a the undisbursed portion of loans are also determined spread. The spread consists of: (a) IBRD s weighted annually and have been in effect for each of the last average cost margin for funding for the preceding elevnn fially years. have inteffect forpeachiods theg g lt semester allocated to these loans relative to LIBOR; eleven fiscal years. For interest periods beginning dur- and (b) IBRD's lending spread. These variable rate ing FY 2000, the interest waiver was 5 basis points for loans are designed to pass IBRD's funding spread to old loans and 25 basis points for new loans. The com- LIBOR through to its borrowers. This spread is set mitment charge waiver for FY 2000 was 50 basis LBRtruht t orwr.Ti pedi e points on all loans. Interest waivers for FY 2001 are 25 every six months, in January and July. At June 30, basispoints fon all loans. Interedt 15wbasiss for old 2002000, the proportion of outstanding variable-spread basis points for new loans and 15 basis points for old single currency loans denominated in U.S. dollars was loans. Commitment charge waivers for FY 2001 96 1% (92.3% at June 30, 1999). remain at 50 basis points. Further details are provided in the Notes to Financial Statements-Note C. Non-standard Single Currency Loans Multicurrency Pool Loans In response to the global financial crises, IBRD The currency composition of multicurrency pool loans approved and disbursed several large loans totaling is determined on the basis of a pool, which provides a $7,000 million on non-standard single currency loan currency composition that is the same for all loans in terms during FY 1998 and FY 1999. These loans carry the pool. Pursuant to a policy established by the a six-month U.S. dollar LIBOR interest rate plus a Executive Directors and subject to their periodic fixed spread ranging from 75 to 100 basis points and a review, at least 90% of the U.S. dollar equivalent value front-end fee, None of these loans is eligible for wais- of the pool is in a fixed ratio of one U.S. dollar to 125 ers of interest or commitment charges. Japanese yen to one euro. Subsequent to the disbursement of these loans, during FY 1999 IBRD introduced a new type of loan tailored 8 THE WORLD BANK ANNUAL REPORT 2000 to be part of a broad financial support package for bor- with a basis swap adjustment for non-U.S. dollar loans; rowing countries. These special structural and sector (b) a market risk premium of 5 basis points; and (c) adjustment loans also carry non-standard single cur- IBRD's standard lending spread. The fixed-spread rency loan terms. As of June 30, 2000, IBRD had offered will be evaluated from time to time and may approved a total of $5,051 million of special structural be reset when market changes warrant. Fixed-spread or sector adjustment loans. At June 30, 2000, $4,051 loans carry IBRD's standard loan charges for new com- million of this amount had been disbursed. Their mitments, including a 100 basis point front-end fee on terms include a six-month U.S. dollar LIBOR interest the loan amount and a 75 basis point commitment fee rate plus a minimum fixed spread, currently set at 400 on undisbursed loan amounts. In addition, these loans basis points, which may vary for new loans over time carry a commitment charge risk premium of 10 basis depending on IBRD's overall risk-bearing capacity and points on undisbursed loan amounts for the first four market conditions. These loans have a five year matu- years of the loan's life. This premium, along with the rity with a three-year grace period on principal, and a market risk premium in the interest spread, compen- front-end fee of one percent of the principal amount sates IBRD for funding and refinancing risk. payable on effectiveness. Special structural and adjust- Borrowers selecting this product may change the cur- ment loans are not eligible for waivers of interest or orveselcigtspodtmachneheu- commitment char ges. rency or interest rate basis over the life of the loan and have more flexibility in selecting loan maturities. Fixed-rate Single Currency Loans Effective February 1, 2000, a borrower may choose to include the following conversion features in the loan As of December 1, 1999, fixed-rate single currency contract: loans were no longer available for new commitments. Fixed-rate single currencv loans carry lending rates * option to change the currency at market that are set on specified semi-annual rate fixing dates rates of all or a part of the undisbursed or dis- for amounts disbursed during the preceding six bursed loan amounts (for a fee); months. The lending rate consists of a base rate, which reflects market interest rates for the applicable * option to fix the interest rate at market rates u7mcn~ ~ ~ ~ ~ ~ ~~~~~~~~o allct orKe atrs parts ofr the disbrseamunt currency on the rate-fixing date for the equivalent (without charge) for rate fixings for up to the loan maturity, plus a spread. The spread consists of: full maturity of the loan, and for amounts u (a) IBRD's funding cost margin relative to the base to tuty o ftthe loan ant s rate for these loans; (b) a risk premium to compensate to the outstanding loan amount; IBRD for market risks it incurs in funding these loans; * option to tnfix or re-fix the interest rate at and (c) IBRD's lending spread. market rates on all or part of disbursed loan Fixed-Spread Loans amounts (for a fee); During the first quarter of FY 2000, IBRD introduced * option to cap or collar the floating interest the fixed-spread loan, designed in response to the bor- rate on all or a part of disbursed loan rowers' desire for more flexible financial products. amounts (for a fee). Fixed-spread loans can be tailored to meet the needs Transaction fees range from 12.5 to 25 basis points of of individual projects and programs and support bor- the notional transaction amount. Repayment terms rowers' debt management strategies. Fixed-spread are more flexible than for prior products, subject to loans are currently offered in U.S. dollars, Japanese yen certain constraints on the average repayment maturity and euro. Requests for other currencies will also be and final maturity on a country basis. Within these considered. constraints, borrowers have flexibility to configure These fixed-spread loans carry an interest rate of grace periods and maturity profiles in a manner consis- LIBOR, plus a spread that is fixed at loan signing for tent with the purpose of the loan. Repayment profiles the life of the loan. At June 30, 2000, the fixed may be level repayment of principal, an annuity type spread was 55 basis points for U.S. dollar and euro schedule, a bullet repayment or a customized sched- denominated loans and 45 basis points for Japanese ule. Repayment profiles cannot be changed after a yen. The fixed spread consists of (a) IBRD's projected loan is signed. Table 1 presents a breakdown of funding cost margin relative to U.S. dollar LIBOR, IBRD's loan portfolio by loan product. IBRD MANAGEMENT'S DiSCUSSION AND ANAL.YSIS: JUNE 30, 2(000 9 Table 1: In millions of US. dollars FY2000 FY1999 FY1998 Principal As a % of Principal As a % of Principal As a % of Loan Product Balance Total Loans Balance Total Loans Balance Total Loans Adjustable-rate Multicurrency Pool Loans Outstanding $ 35,542 30 $ 37,203 32 $ 56,274 53 Undisbursed 4,567 10 6,344 12 8,765 17 Single Currency Pool Loans Outstanding 35,422 29 40,693 35 25,658 24 Undisbursed 241 1 374 * 131 * Variable-Spread Single Currency Loansa Outstanding 33,078 28 25,462 22 15,018 14 Undisbursed 29,486 66 33,862 66 29,801 58 Fixed-Rate Single Currency Loans Outstanding 13,636 11 11,238 9 5,683 5 Undisbursed 8,273 18 10,787 21 12,356 24 Fixed-Spread Loans Outstanding 968 1 Undisbursed 2,187 5 Other Loans Outstanding 1,458 1 2,631 2 3,943 4 Undisbursed - - 5 1 2 Total ** _ Outstanding loans $120,104 100 $117,228 100 $106,576 10O Undisbursed loans $ 44,754 100 $ 51,372 100 $ 51,065 100 a. Of which single currency loans with non-standard terms represent $10,801 million outstanding ($9,035 milion-June 30, 1999 and $5,000 million-June 30, 1998). At June 30, 2000, $1,000 milion was undisbursed. b. Includes fixed-rate single currency loans for which the rate had not yet been fixed at fiscal year-end. Indicates amounts less than 0.5%. May differ from the sum of individual figures due to rounding. For more information, see the Notes to Financial industry standards, or in individually negotiated trans- Statements-Note C. actions. IBRD is in the process of making these instru- ments available. Hedging Products Along with the approval of the introduction of the Guarantees fixed-spread loan product, IBRD also approved the IBRD offers guarantees on loans from private investors offer of new hedging products for its borrowers to for projects in countries eligible to borrow from IBRD. respond to their needs for access to better risk man- In exceptional cases, IBRD may offer enclave guaran- agement tools. These products assist borrowers in tees for loans for foreign-exchange generating projects hedging their risks on individual loans made to them in a member country usually eligible only for credits by IBRD. These hedging products include interest rate from IDA. IBRD guarantees are flexible instruments and currency swaps, and interest rate caps and collars. that provide the credit enhancement required to On a case-by-case basis, commodity-linked swaps may mobilize private sector financing for individual also be considered. projects through targeted and limited support, thus enhancing IBRD's developmental impact by cata- Each request from a borrower for execution of a hedg- lyzing private sector participation. On a pilot basis, ing product must include an explanation of its suit- ability for risk management purposes. IBRD will serve guarantees are being made available to support agreed- aDIuy rr rlK mnageentpuroses IBD Wll srve upon policies and reforms in certain member coun- as a financial intermediary, passing through the market tres ies api te sm country crei orne cost of the instrument to the borrower, and will charge and project evaluation criteria to guarantees as it an administrative fee which varies from 12.5 to 37.5 ap roject s in an mebrcntry t basis points of the notional principal involved. These is eligible for IBRD lending are also eligible for IBRD instruments may be executed either under a master e derivatives agreement which substantially conforms to guarantees. 10 THE WORLD BANK ANNUAL REPORT 2000 IBRD guarantees can be customized to suit varying IBRD may also provide partial risk guarantees for country and project circumstances. They can be tar- export-oriented projects in an IDA-only country geted to mitigate specific risks, generally risks relating (enclave guarantees) if the project is expected to gen- to political, regulatory and government performance, erate foreign exchange outside the country, and IBRD which the private sector is not normally in a position determines that the country will have adequate for- to absorb or manage. Three basic types of guarantees eign exchange to meet its obligations under the are offered: counter-guarantee if the guarantee is called. A project * Partial risk guarantees cover debt-service defaults covered by an enclave guarantee includes security on a loan that may result from nonperformance of arrangements with appropriate risk mitigation mea- governmen obligations. The are d d in te sures, such as offshore revenue escrow accounts and government obligations. These ae refnmed n the debt-service reserves acceptable to IBRD, to minimize contracts negotiated between the government or IBRD's exposure and the risk of a call on the guaran- a government-sponsored enety and the private tee. The commitment of enclave guarantees is initially copn repnil for imlmetn the limited to an aggregate guaranteed amount of $300 project. The IBRD guarantee is limited to back- imiion. a ing the government's obligations; the obligations milon. of the private company contained in the project Each guarantee requires the counter-guarantee of the agreements are not covered and thus the private member government. Guarantees are priced within a lenders assume the risk of nonperformance by the limited range to reflect the risks involved, and prepa- private company. ration fees may be charged where there are excep- * Partial credit guarantees are used for public sector tional costs involved for IBRD. IBRD prices projects when there is ,, need to extend loanguarantees consistent with the way it prices its loans. projects when there iS a need to extend loan maturities and guarantee specified interest or IBRD's exposure at June 30, 2000 on its guarantees principal payments on loan to the government or (measured as their present value in terms of their first its instrumentalities. This approach may be most call date) was $1,376 million. For additional informa- appropriate when the lenders are not willing to tion see the Notes to Financial Statements-Note C. accept the sovereign risk of the host government for a term long enough to meet the needs of the Other Activities project. By guaranteeing later maturities, such Consultation: In addition to its financial operations, partial credit guarantees help induce the market IBRD provides technical assistance to its member to extend the term to the maximum risk it can countries, both in connection with, and independently bear. of, loan operations. There is a growing demand from * Policy-based guarantees are partial credit guaran- borrowers for strategic advice, knowledge transfer, and tees that cover a portion of debt-service on a bor- capacity building. Such assistance includes assigning rowing by an eligible member country from qualified professionals to survey developmental private foreign creditors in support of agreed opportunities in member countries, analyzing their structural, institutional and social policies and fiscal, economic and developmental environment, ructral, institution al and plces an assisting member countries in devising coordinated reforms. These guarantees are an extension ofr eeomn rgas aprisn prjctuial partial credit guarantees for projects. The guaran- fevelopment programs, apprasssmg projects suitable teed portion of the debt-service could consist of a or ovestment an assestang member countries tc combination of interest and principal payments, improve g ther asset and liabilty management tech- but the actual structure is determined on a case- mques. by-case basis. Eligibility for IBRD adjustment Research and Training: To assist its developing member lending is a necessary condition for eligibility for countries, IBRD-through the World Bank Institute- this type of instrument. The terms of this instru- provides courses and other training activities related to ment are the same as project-based partial credit economic policy development and administration for guarantees. Maturity and level of fees will be governments and organizations that work closely with standard if the guarantee is made in situations IBRD. The World Bank Institute also makes contribu- comparable to those under which a structural tions for research and other developmental activities. adjustment loan would be made; however, if the guarantee is made in connection with a special Trust Fund Administration: IBRD, alone or jointly with guctrane iadjustment loan, then it will be at spe- IDA, administers on behalf of donors, funds restricted structural adjustment loan equillent te- for specific uses. These funds are held in trust and are cial structural adjustment loan equivalent terms. nticue nteast fIR.SeteNtst This guarantee product was launched in FY 1999. not included in the assets of IBRD. See the Notes to Initially, IBRD is proceeding with a pilot program of up to $2,000 million. Once the $2,000 million Investment Management: IBRD has leveraged its trea- level is reached, the Executive Directors will sury management capacity and infrastructure to pro- review the program. At June 30, 2000, IBRD had vide investment management services to an external approved guarantees of $250 million under this institution for a fee. These funds are not included in program. the assets of IBRD. IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2000 11 3. FINANCIAL RISK MANAGEMENT the Country Credit Risk Deparment. It has three IBRD assumes various kinds of risk in the process of components as described below. Probable expectedl providing development banking services. Its activities losses from all three components are covered by the can give rise to four major types of financial risk: accumulated provision for loan losses, while unex- credit risk; market risk (interest rate and exchange pected losses are covered by IBRD's income general - crate) liquidity risk; and erati ris kn. The major ing capacity and risk-bearing capital. IBRD inherent risk to IBRD is country credit risk, or loan continuously reviews the creditworthiness of its bor- portfolioedit , rowing member countries and adjusts its overall cotin- try programs and lending operations to reflect the The risk management governance structure includes results of these reviews. an Asset/Liability Management Committee chaired by the Chief Financial Officer. This committee makes (i) The first component is idiosyncratic risk. This is decisions and recommendations to senior management the risk that idividual countres will accumulate in the areas of financial policy, the adequacy and allo- extended debt-service arrears or move closer to cation of risk capital, and oversight of financial report- accumulating extended debt-service arrears, fo ing. The Market Risk and Currency Management country specific reasons. Subcommittee reports to the Asset/Liability Manage- (ii) The second component is covariance risk. This is ment Committee. This subcommittee develops and the risk that one or more borrowers will accumu- monitors the policies under which market and com- late extended payment arrears, or move closer to mercial credit risks faced by IBRD are measured, accumulating extended payment arrears, as a reported and managed. The subcommittee also moni- result of a common external shock. This shock tors compliance with policies governing commercial could be, for example, a regional political crisis or credit exposure and currency management. Specific an adverse change in the global environment areas of activity include establishing guidelines for lim- (such as a fall in commodity prices or a rise in glo- iting balance sheet and market risks, the use of deriva- bal interest rates). tive instruments, and monitoring matches between assets and their funding. (iii) The third component is portfolio concentration risk, which arises when a small group of borrow- For the day-to-day management of financial risk, ers account for a large share of loans outstand- IBRD's risk management structure extends into its ing. Portfolio concentration increases the business units. Risk management processes have been potential financial impact of idiosyncratic and established to facilitate, control and monitor risk-tak- covariance risk. Portfolio concentration risk is ing. These processes are built on a foundation of ini- managed using the portfolio concentration limit tial identification and measurement of risks by each of described below. the business units. In 1997, the Executive Directors approved an The processes and procedures by which IBRD man- approach to portfolio concentration under which ages its risk profile continually evolve as its activities IBRD's largest loan portfolio exposure to a single bor- change in response to market, credit, product, and rowing country is restricted to the lower of an equita- other developments. The Executive Directors periodi- ble access limit or a concentration risk limit. The cally review trends in IBRD's risk profiles and perfor- equitable access limit is equal to 10% of IBRD's sub- mance, as well as any significant developments in risk scribed capital, reserves and unallocated surplus. Th management policies and controls. concentration risk limit is based on the adequacy of Credit Risk IBRD's risk-bearing capacity relative to its largest loan portfolio exposure to a single borrowing country. The Credit risk, the risk of loss from default by a borrower concentration risk limit takes into account not only or counterparty, is inherent in IBRD's development current exposure (loans outstanding, plus the present: activities. Under the direction of the Asset/Liability value of guarantees), but also projected exposure over Management Committee, policies and procedures for the ensuing three- to five-year period. The limit is measuring and managing such risks are formulated, determined by the Executive Directors each year at approved and communicated throughout IBRD. the time they consider IBRD's reserves adequacy and Senior managers represented on the committee are the allocation of its net income from the preceding fis- responsible for maintaining sound credit assessments, cal year. For FY 2001 the concentration risk limit is addressing transaction and product risk issues, provid- $13.5 billion, unchanged from FY 2000. The equita- ing an independent review function and monitoring ble access limit is $20.7 billion. IBRD's largest loan the loans, investments and borrowings portfolios. portfolio exposure (including the present value of guarantees) to a single borrowing country was $11.8 Country Credit Risk billion at June 30, 2000. Country credit risk is the primary risk faced by IBRD and is overseen by the Chief Credit Officer who leads 12 THE WORLD BANK ANNUAL REPORT 2000 Overdue and Non-performing Loans structural adjustment program; and (d) make debt- It is IBRD's policv that if a payment of principal, service payments as they fall due on IBRD loans dur- interest or other charges on an IBRD loan or IDA ing the performance period. The signing, effectiveness credit becomes 30 davs overdue, no new loans to that and disbursement of such loans will not take place member country, or to any other borrower in that until the member's arrears to IBRD have been fully country, will be presented to the Executive Directors cleared. for approval, nor will any previously approved loan be Accumulated Provision for Loan Losses signed, until payment for all amounts 30 days overdue IBRD's accumulated provision for loan losses reflects or longer has been received. In addition, if such pay- the folloooogl ment becomes 60 days overdue, disbursements on all the following: loans to or guaranteed by that member countrv are * Management's assessment of the overall collect- suspended until all overdue amounts have been paid. ibility risk on accruing loans (which includes call- Where the member country is not the borrower, the able guarantees); and time period for suspension of the approval and signing of new loans to or guaranteed by the member country * The present value losses on nonaccruing loans. is 45 days and the time period for suspension of dis- Such losses are equal to the difference between bursements is 60 days. It is the policy of IBRD to the discounted present value of the debt-service place all loans made to or guaranteed by a member of payments on a loan at its contractual terms and IBRD in nonaccrual status, if principal, interest or the expected cash flows on that loan. other charges on any such loan are overdue by more Management determines the adequacy of the accumu- than six months, unless IBRD determines that the lated provision for loan losses by assessing the amount overdue amount will be collected in the immediate reqr to co',er oableexpected losses i the future. IBRD maintains an accumulated provision for accrual portfolio and losses inherent in the nonaccrual loan losses to recognize the risk inherent in the portfo- portfolio as of the balance sheet date. The amount lio. The methodology for determining the accumu- required to cover probable expected losses in the lated provision for loan losses is discussed in the accrual portfolio is related to the mean of the distribu- following paragraphs. Additional information on tion of losses facing the institution over the next three IBRD's loan loss provisioning policy and status of non- years, which has been developed to estimate the prob- accrual loans can be found in the Notes to Financial able aosses inherent in the accrual portfolio at the bal- Statements-Summary of Significant Accounting and ance sheet date. This is calculated using a risk- Related Policies, and Note C. adjusted capital allocation framework that takes into In 1991, the Executive Directors adopted a policv to account the concentration and covariance risk in the assist members with protracted arrears to IBRD to portfolio. The amount required to cover losses inher- mobilize sufficient resources to clear their arrears and ent in the nonaccrual portfolio is based on the calcula- to support a sustainable grobth-oriented adjustment tion of the discounted present value of future cash program over the medium term. Under this policy, flows. IBRD will develop a lending strategy and will process Estimating probable expected losses is inherently loans, but not sign or disburse such loans, during a pre- uncertain and depends on many factors. IBRD period- clearance performance period with respect to mem- ically reviews such factors and reassesses the adequacy bers that: (a) agree to and implement a medium-term, of the accumulated provision for loan losses accord- growth-oriented structural adjustment program ingly. Actual losses mav differ from expected losses endorsed by IBRD; (b) undertake a stabilization pro- due to unforeseen changes in general macroeconomic gram, if necessary, endorsed, or financially supported, and political conditions, unexpected correlations by the International Monetary Fund; (c) agree to a within the portfolio, and other external factors. financing plan to clear all arrears to IBRD and other multilateral creditors in the context of a medium-term IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2000 13 Commercial Credit Risk Mark-to-market exposure is a measure, at a point in IBRD's commercial credit risk is concentrated in time, of the value of a derivative or foreign exchange investments in debt instruments issued by sovereigns, contract in the open market. When the mark-to-mar- agencies, banks and corporate entities. The majority ket is positive, it indicates the counterparty owes of these investments are in AAA and AA rated instru- IBRD and, therefore, creates an exposure for IBRD. tsments When the mark-to-market is negative, IBRD owes tne counterparty and does not have replacement risk. In the normal course of its business, IBRD utilizes var- When IBRD has more than one transaction outstand- ious derivatives and foreign exchange financial instru- in Ith a more an one tsa legand- ments to meet the financial needs of its borrowers, to ing with a counterparty, and there exists a legally- generate income through its investment activities and enforceable master derivatives agreement with the to manage its exposure to fluctuations in interest and counterparty, the "net" mark-to-market exposure rep- currency rates, resents the netting of the positive and negative expc- sures with the same counterparty. If this net mark-to- Derivative and foreign exchange transactions involve market is negative, then IBRD's exposure to the coun- credit risk. The effective management of credit risk is terparty is considered to be zero. Net mark-to-market vital to the success of IBRD's funding, investment and is, in IBRD's view, the best measure of credit risk asset/liability management activities. The monitoring when there is a legally enforceable master derivatives and managing of these risks is a continuous process agreement between IBRD and the counterparty which due to changing market environments. contains legally enforceable close-out netting provi- IBRD controls the creitiskasions. For the contractual value, notional amounts ard IBRD controls the credit risk arising from derivatives reae rdtrs xoueaonsb ntuet and foreign exchange transactions through its credit related credit risknexposureal aStatements-Note E. approval process, the use of collateral agreements and risk limits, and monitoring procedures. The credit Table 2 provides details of IBRD's estimated credit approval process involves evaluating counterparty exposure on its investments and swaps, net of collat- creditworthiness, assigning credit limits and determin- eral held, by counterparty rating category. The swap ing the risk profile of specific transactions. Credit lim- credit exposure, net by counterparty, of $440 million, its are calculated and monitored on the basis of for swap activity associated with investments and bor- potential exposures taking into consideration current rowings, is offset by collateral of $329 million, which market values, estimates of potential future move- results in a total net swap exposure of $1 11 million. ments in those values and collateral agreements with The FY 2000 decline in credit exposure parallels the counterparties. If there is a collateral agreement with decrease in the size of the investment portfolio. The the counterparty to reduce credit risk, then the credit exposure from swaps, net of collateral held, amount of collateral obtained is based on the credit declined from $230 million to $1 11 million during the rating of the counterparty. Collateral held includes year. cash and government securities. year IBRD treats the credit risk exposure as the replace- The FY 1999 increase in credit exposure over that of ment cost of the derivative or foreign exchange prod- FY 1998 reflected the growth in the size of the invest- uct. This is also referred to as replacement risk or the ment portfolio. The net credit exposure from swaps mark-to-market exposure amount. While contractual declined from FY 1998 to FY 1999 by $387 million to principal amount is the most commonly used volume $230 million. measure in the derivative and foreign exchange mar- kets, it is not a measure of credit or market risk. Table 2: In millions of US. dollars At June30, 2000 At June30, 1999 At June30, 1998 Investments Agencies, Net Total Exposure Total Exposure Total Exposure Counterparty Banks & Swap on Investments % of on Investments % of on Investments % of Rating Sovereigns Corporates Exposure and Swaps Total and Swaps Total and Swaps Total AAA $3,791 $ 8,516 $ - $12,307 49 $12,513 41 $ 9,740 37 AA 2,019 8,813 85 10,917 44 15,449 51 14,725 56i A - 1,776 26 1,802 7 2,311 8 1,939 7 Total $5,810 $19,105 $111 $25,026 100 $30,273 100 $26,404 10() 14 THE WORLD BANK ANNUAL REPORT 2000 Asset/Liability Management IBRD completed two forward interest rate swap trans- The objective of asset/liability management for JBRD actions and plans to enter into additional swap trans- is to ensure adequate funding for each product at the actions until the over-funded portion of the above- most attractive available cost, and to manage the cur- market fixed-rate debt is completely swapped to float- rency composition, maturity profile and interest rate ing rates. A portion of the loss attributable to the sensitivity characteristics of the portfolio of liabilities combined position will be passed as a rate adjustment supporting each lending product in accordance with to the multicurrency pool loans. the particular requirements for that product and Interest rate risk on non-cost pass-through products, within prescribed risk parameters. IBRD's Risk Man- which currently account for 16% of the existing loan agement Department is charged with identifying, portfolio (18% at the end of FY 1999), is managed by measuring and monitoring market risks, liquidity risks, using interest rate swaps to closely align the rate sensi- and counterparty credit risks in IBRD's financial oper- tivity characteristics of the loan portfolio with those of ations. their underlying funding. As the portfolio of fixed- Interest Rate Risk spread loans increases, the proportion of non-cost pass-though products will grow. The interest rate risk There are two potential sources of interest rate risk to on IBRD's liquid portfolio is managed within specified IBRD. The first is the interest rate sensitivity associ- duration-mismatch limits and is further limited by ated with the net spread between the rate IBRD earns stop-loss limits. on its assets and the cost of borrowings which fund those assets. The second is the interest rate sensitivity Because equity funds a portion of outstanding loans, of the income earned from funding a portion of IBRD IBRD's level of net income is sensitive to movements assets with equity. The borrowing cost pass-through in the level of nominal interest rates. In general, lower formulation incorporated in the lending rates charged nominal interest rates result in lower lending rates on most of IBRD's existing loans has traditionally which, in turn, reduce the nominal earnings on helped limit the interest rate sensitivity of the net IBRD's equity. spread earnings on its loan portfolio. Such cost pass- Interest rate risk also arises from a variety of other fac- through loans currently account for more than 84% of tors, including differences in the timing between the the existing outstanding loan portfolio (82% at the contractual maturity or repricing of IBRD's assets, lia- end of FY 1999). However, the majority of cost pass- bilities and derivative financial instruments. On float- through loans do entail some residual interest rate risk, ing rate assets and liabilities, IBRD is exposed to given the lag inherent in the lending rate calculation. timing mismatches between the re-set dates on its If new borrowings are at interest rates above the aver- floating rate receivables and payables. age of those already in the debt pool, the higher aver- age debt costs would not be passed through to the As part of its asset/liability management process, lending rate charged to the borrowers and thus would IBRD employs interest rate swaps to manage and align not affect the interest income generated on cost pass- the rate sensitivity characteristics of its assets and lia- through loans until the following semester. The bilities. IBRD uses derivative instruments to adjust reverse is true when market interest rates decline. the interest rate repricing characteristics of specific balance sheet assets and liabilities, or groups of assets Another potential risk arises because the cost pass- and liabilities with similar repricing characteristics. through currency pool products have traditionally been funded with a large share of medium- and long- Exchange Rate Risk term fixed rate borrowings, to provide the borrowers In order to minimize exchange rate risk in a multicur- with a reasonably stable interest basis. Given that the rency environment, IBRD matches its borrowing obli- cumulative hmpact of interest rate changes over the gations in any one currency (after swap activities) with last decade has resulted in a decline in the level of assets in the same currency, as prescribed by the Arti- interest rates, the cost of these historical fixed-rate cles. In addition, IBRD's policy is to minimize the borrowings in the multicurrency pool and the single exchange rate sensitivity of its reserves-to-loans ratio. currency pools is currently considerably higher than It carries out this policy by undertaking currency con- IBRD's new borrowing costs. Recent interest rate versions periodically to align the currency composition increases in the market have mitigated this difference of its reserves to that of its outstanding loans. This pol- to some extent. However, the amount of "above mar- icy is designed to minimize the impact of market rate ket" debt allocated to the multicurrency pool debt, in fluctuations on the reserves-to-loans ratio, thereby aggregate terms, still exceeds the outstanding multi- preserving IBRD's ability to better absorb potential currency pool loans beyond FY 201 1, i.e. the pool IS losses from arrears regardless of the market environ- over-funded beyond FY 2011. The present value of ment. IBRD is constantly evaluating alternative strate- this over-funded portion of the above-market debt is gies to better manage its exchange rate risk. about $230 million as of June 30, 2000. Over-funding reaches a maximum of approximately $5.6 billion in Figure 2 presents the currency composition of signifi- FY 2015. Strategies for managing this risk include cant balance sheet components (net of swaps) at the changing the rate fixity of the overfunded portion of end of FY 2000 and FY 1999. the debt from fixed to floating rates. During FY 2000, IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2000 15 Figure 2: Relative Currency Composition of Significant Balance Sheet Components At June 30, 2000 2% Others 2% 3% 1% JPY g7%>.9 12% EUR 11% USD ...lS . 64% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% Assets Liabilities & Equity * Loans 83% E Borrowings 81% El Investments 17% 0 Equity 19% 100% 100% At June 30, 1999 12% Others 2% 3% 1% JPY: 2% EUR 12% K~10% 2% USD U g X 5 f' 6 5 g 0 ~~~ ~~~~~~~11% l I I I l l l I I l l lI ' I I I l l l I I 'I 0% 10% 20% 30% 40% 50% 60% 70% 80% Assets Liabilities & Equity * Loans 78% El Borrowings 82% El Investments 22% El Equity 18% 100% 100% 16 THE WORLD BANK ANNUAL REPORT 2000 Operating Risk providers enabled IBRD to operate normally across Operating risk is the potential for loss arising from the globe without experiencing any material interrup- internal activities or external events caused by break- tions in any critical systems during the roll over and downs in information, communication, physical safe- thereafter. The total cost of Year 2000 preparation guards, business continuity; supervision, transaction was estimated at approximately $17 million. The cost processing, settlement systems and procedures and the of certain major systems replacements and enhance- execution of legal, fiduciary and agency responsibili- ments already planned were not considered Year 2000 ties. IBRD, like all financial institutions, is exposed to costs. rmany types of operating risks, including the risk of While ongoing tracking continues, no latent Year 2000 fraud by staff or outsiders. IBRD attempts to mitigate issues have arisen. Nor have there been indications operating risk by maintaining a system of internal con- from any borrowers that they have experienced any trols that is designed to keep operating risk at appro- serious disruptions to national infrastructure or public priate levels in view of the financial strength of IBRD administration due to Year 2000 problems which and the characteristics of the activities and markets in could affect their ability to continue to service IBRD which IBRD operates. In the past, lBRD has suffered loans. certain minor financial losses from operating risk and while it maintains an adequate system of internal con- 4. LIQUIDITY MANAGEMENT trols, there can be no absolute assurance that IBRD Liquidity risk arises in the general funding of IBRD's will not suffer such losses in the future. activities and in the management of its financial posi- In FY 1996, IBRD adopted the COSO' control frame- tions. It includes the risk of being unable to fund its work and a self-assessment methodology to evaluate portfolio of assets at appropriate maturities and rates the effectiveness of its internal controls over financial and the risk of being unable to liquidate a position in a reporting, and it has an on-going program in place to timely manner at a reasonable price. The objective of assess all major business units. In each of the last four liquidity management is to ensure the availability of fiscal vears, IBRD obtained an attestation report from sufficient cash flows to meet all of IBRD's financial its external auditors that IBRD's assertion that, as of commitments. June 30 of each of these fiscal years, its system of The cumulative performance of the liquid asset port- internal control over its external financial reporting folio in FY 2000 compared to FY 1999 is presented in met the criteria for effective internal control over Table 3. These returns exclude investment assets external financial reporting described in COSO, is funding certain other postemployment benefits. fairly stated in all material respects. Table 3: Economic and Monetary Union in Europe Since January 1, 1999, in the normal course of busi- Return f%/i) ness as a multicurrency organization, IBRD has been conducting euro-denominated transactions in paying FY 2000 FY 1999 and receiving, investments, bond issuance, loan dis- bursements, loan billing and new lending commit- IBRD Overall Portfolio 5.75 6.00 ments. Stable Portfolio of which: IBRD has adopted a gradual approach to redenomi- Actively Managed 5.93 5.35 nate national currency unit balance sheet items and Held-to-maturity Portfolio - 82.96 IBRD-administered donor trust funds to euro during Operational Portfolio 5.39 4.48 the transition period, before their automatic conver- Discretionary Portfolio 5.27 5.23 sion to euro on January 1, 2002. Year 2000 Update The returns for FY 1999 were heavily affected by The Year 2000 issue was the result of computer pro- IBRD's liquidation, in FY 1999, of the sterling U.K. grams using two digits rather than four to define the government securities in the held-to-maturity portfo- applicable year. Without remediation or replacement lio. At the time of liquidation the securities in the this could have resulted in a system failure or miscal- held-to-maturity portfolio had a fair value of $1,389 culations causing disruptions of operations, including, million and a carrying value of $1,152 million. This among other things, a temporary inability to process liquidation resulted in a realized gain of $237 million. transactions. Modification and replacement of soft- Under IBRD's liquidity management policy aggregate ware and hardware and coordination with third party liquid asset holdings should be kept at or above a spec- ified prudential minimum. That minimum is equal to a. In 1992, the Committe of Sponsoring Organizations of the highest consecutive six months of debt service the Treadwav Commission (COSO) issued its Internal Con- obligations for the fiscal year, plus one-half of net trol-Integrated Framework, which provided a common defini- approved loan disbursements as projected for the fis- tion of internal control and guidance on judging its cal year. The FY 2001 prudential minimum liquidity effectiveness. level has been set $18.4 billion, representing a $400 IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2000 17 million increase over that for FY 2000. IBRD also proceeds from the borrowing program undertaken to holds liquid assets over the specified minimum to pro- pre-fund the large amount of debt maturing in FY vide flexibility in timing its borrowing transactions and 2000. The IBRD liquid asset portfolio is largely com- to meet working capital needs. posed of U.S. dollars, with the currency composition of the operational portfolio varying the most as a IBRD's liquid assets are held princpally in obhigations result of the cash flows generated by disbursements, of governments and other official entities, time depos- debt-servie pays f new eboro insnrserens its and other unconditional obligations of banks and conversions. financial institutions, asset-backed securities, and futures and options contracts pertaining to such obli- 5. FUNDING RESOURCES gations. Equity Liquid assets are held in three distinct sub-portfolios: Total shareholders' equity at June 30, 2000 was stable; operational; and discretionary, each with differ- $29,289 million compared with $28,021 million at ent risk profiles, funding, structures and performance June 30, 1999. The increase from FY 1999 primarily benchmarks. The stable portfolio is principally an reflects the increase in retained earnings of $1,318 investment portfolio holding the prudential minimum million, the reduction in restricted paid-in capital o0 level of liquidity, which is set at the beginning of each $180 million due primarily to encashments of demand fiscal year. The operational portfolio provides working obligations, and the increase in paid-in capital of $23 capital for IBRD's day-to-day cash flow require- million. Table 4 presents the composition of equity at ments. The discretionary portfolio provides flexibility June 30, 2000 and 1999. for the execution of IBRD's borrowing program and can be used to take advantage of attractive market IBRD's equity base plays a critical role in securing its opportunities. The discretionary portfolio was gradu- financial objectives. By enabling IBRD to absorb risk ally liquidated over the first half of FY 2000. This liq- out of its own resources, its equity base protects share- uidation provided the funding necessary to meet an holders from a possible call on callable capital. The unusually large concentration of debt service pay- adequacy of IBRD's equity capital is judged on the ments during this period. Figure 3 represents IBRD's basis of its ability to generate future net income suff - liquid asset portfolio size and structure at the end of cient to absorb plausible risks and support normat loan FY 2000 and FY 1999, excluding investment assets growth, without reliance on additional shareholder associated with certain other postemployment bene- capital. IBRD uses the equity capital-to-loans measure fits. as a summary statistic for financial capacity. Cash flow analysis is the basis by which IBRD measures its At the end of FY 2000, the aggregate size of the IBRD income generating capacity and its capital adequacy. liquid asset portfolio stood at $24,193 million, a IBRD continues to consider additional methodologies decrease of $5,817 million over FY 1999. The higher for evaluating its risk-bearing capacity. volume of liquid assets at June 30, 1999 included the Figure 3: (nmltoN oW.f u.s. MIlr) June 30, 2000 June 30, 1999 Stable Po,tfoho Snble Portfolio $18,544 $18,794 77% 63%. op-rtto-I Po-tfoli Disct_r~to y Portfolo Ope,atiomal Portfoli 5649 1%$3,596 $7,620 23 THE WORLD BANK ANNUAL12% 25% 18 THE WORLD BAN'K ANNUAL REPORT 2000 Table 4: In millions of US. dollars June 30, 2000 June 30, 1999 Usable Paid-in Capital Paid-in Capital $11,418 $11,395 Net Receivable for Maintenance of Value (898) (869) Restricted Paid-in Capital (2,328) (2,509) Total Usable Paid-in Capital 8,192 8,017 Retained Earnings and Cumulative Translation Adjustments 18,386 17,072 Equity Excluded from Equity Capital-to-Loans Ratio Surplus (85) (195) Pension Reserve (549) (294) Prospective allocation of FY 2000/FY 1999 net income, other than to General Reserve (877) (818) Equity Capital Used in Equity Capital-to-Loans Ratio $25,067 $23,782 As a result of higher net income and the increase in available for lending and $3,250 million was not avail- reserves, shareholders' equity grew at a faster pace able for lending. The terms of payment of IBRD's than the loan portfolio, compared to the prior year. As capital and the restrictions on its use that are derived a result, the ratio of equity capital-to-loans rose to from the Articles and from resolutions of IBRD's 21.23% at June 30, 2000, from 20.65% one year ear- Board of Governors are: lier. In accordance with the financial policy defining this ratio, the amount of transfer to general reserves of (i) $2,563 million of IBRDs capital was initially paid $1,114 million approved on August 1, 2000 was in gold or U.S. dollars or was converted by the included in this ratio at June 30, 2000 ($700 million- subscribing members into U.S. dollars. This June 30, 1999). Figure 4 depicts this ratio over the amount may, under the Articles, be freely used by last five years. IBRD in its operations. Figure 4: (ii) $8,855 million of IBRD's capital was paid in the currencies of the subscribing members. Under the Articles this amount is subject to mainte- 22.5% Equity-to-Loans Ratio nance of value obligations and may be loaned only with the consent of the member whose cur- 9220% I rlrency is involved. In accordance with such con- sents, $5,301 million of this amount had been used in IBRD's lending operations at June 30, 21.5% 2000. (iii) $150,885 million of IBRD's capital may, under 21.0% the Articles, be called only when required to meet obligations of IBRD for funds borrowed or 20.5% ) \ /~1 on loans guaranteed by it. This amount is thus 2V.5% not available for use by IBRD in making loans. Payment on any such call may be made, at the 20.0% a--- r --T -I-T option of the particular member, either in gold, in - oc C> as 8U.S. dollars or in the currency required to dis- charge the obligations of IBRD for which the call is made. (iv) $26,303 million of IBRD's capital is to be called Capital only when required to meet obligations of IBRD The authorized capital of IBRD at June 30, 2000 was for funds borrowed or on loans guaranteed by it, $190,811 million, of which $188,606 million had pursuant to resolutions of IBRD's Board of Gov- been subscribed. Of the subscribed capital, $11,418 ernors (though such conditions are not required million had been paid in and $177,188 million was by the Articles). Of this amount, IO% would be callable. Of the paid-in capital, $8,168 million was payable in gold or U.S. dollars and 90% in the cur- IBRD MANAGEMENT's DISCUSSION AND ANA.YSIS: JUNE 30, 2000 19 rencies of the subscribing members. While these The United States is IBRD's largest shareholder. resolutions are not legally binding on future Under the Bretton Woods Agreements Act, the Par Boards of Governors, they do record an under- Value Modification Act and other U.S. legislation, the standing among members that this amount will Secretary of the U.S. Treasury is permitted to pay up not be called for use by IBRD in its lending activ- to $7,663 million of the uncalled portion of the sub- ities or for administrative purposes. scription of the United States, if it were called by IBRD, without any requirement of further congres- No call has ever been made on IBRD's callable capital. sional without an e of further cores- Ayclson unpaid subscriptions are required to be thenaU action. The balance of the uncalled portion of Any' calls onupi usrpln rerq1e ob h subscription, $22,303 million, has been uniform, but the obligations of the members of IBRD the U.S Con, but n, asrbien to make payment on such calls are independent of Further action by the U.S. Congress would be required each other. If the amount received on a call is insuffi- to able the Scea ofh reas to pa anyuir- cien to eet he bligtion of BRDfor bicbthe to enable the Secretary of the Treasury to pay any por- cient to meet the obligations of IBRD for which the tion of this balance. The General Counsel of the l .S call is made, IBRD has the right and is bound to make treasur ths rendered a opnionnthat the e Ire further calls until the amounts received are sufficient uncall ed an U S. the entie to met suh oblgatins. Hweve, no embe may uncalled portion of the U.S. subscription is an oblig a- to meet such obligations However, no member may tion backed by the full faith and credit of the United be required on any such ca alls to pay more than States, notwithstanding that congressional appropria- tions have not been obtained with respect to certai:l At June 30, 2000, $103,115 million (58%) of the portions of the subscription. uncalled capital was callable from the member coun- For a further discussion of capital stock, restricted cur- tries of IBRD that are also members of the Develop- rencies maintenance of value and membership refer ment Assistance Committee of the Organization for to the Notes to Financial Statements-Summary of ' ig- Economic Cooperation and Development. This .. Econoic Coperaion ad Devlopmnt. Tis nficant Accounting and Related Policies and Note Ak. amount was equal to 90.4% of IBRD's outstanding borrowings after swaps at June 30, 2000. Table 5 sets Borrowings out the capital subscriptions of those countries and the callable amounts. Source of Funding Table 5: IBRD diversifies its sources of funding by offering iis securities to institutional and retail investors globally In millions of US. dollars on terms acceptable to IBRD. Under its Articles, Total Capital Uncalled Portion IBRD may borrow only with the approval of the Member Country' Subscription of Subscription member in whose markets the funds are raised and the member in whose currency the borrowing is denomi- United States $ 31,965 S 29,966 nated, and only if each such member agrees that tht Japan 15,321 14,377 proceeds may be exchanged for the currency of any Germany 8,734 8a191 other member without restriction. France 8,372 7,851 Funding Operations United Kingdom 8,372 7,832 In FY 2000 medium- and long-term debt raised Canada 5,404 5,069 directly in financial markets by IBRD amounted to Italy 5,404 5,069 $15,789 million compared to $22,443 million in FY Netherlands 4,283 4,018 1999. Table 6 summarizes IBRD's funding operations Belgium 3,496 3,281 for FY 2000 and FY 1999. Funding raised in any given Switzerland 3,210 3,012 year is used for IBRD's general operations, including Australia 2,951 2,770 loan disbursements, refinancing of maturing debt and Spain 2,857 2,682 prefunding of future lending activities. All proceeds Sweden 1,806 1,696 from new funding are initially invested in the liquid Denmark 1,623 1,525 asset portfolio and subsequently allocated to the dif- Austria 1,335 1,254 ferent debt pools funding loans as necessary in accor- Norway 1,204 1,132 dance with operating guidelines. In FY 2000, IBRD Finland 1,033 971 followed a strategy of selective bond issuance, com- New Zealand 873 821 posed of cost-effective private placements, largely pre- Portugal 659 620 sold institutional public issues and retail targeted Ireland 636 599 transactions. Greece 203 189 IBRD strategically repurchases or prepays its debt to Luxembourg 199 190 reduce the cost of borrowings and to reduce exposure Total $109,940 $103,115 to refunding requirements in a particular year or meet other operational needs. During FY 2000, IBRD a. See details regarding the capital subscriptions of all mem- bers of IBRD at June 30, 2000 in Financial Statements- Statement of Subscriptions to Capital Stock and Voting Power 20 THE WORLD BANK ANNUAL REPORT 2000 repurchased or prepaid a total of $807 million of its whole, warranted a $243 million reduction in the outstanding borrowings. accumulated provision for loan losses. The Table 6: remaining $169 nmillion decrease in expense is attributable to a reduction in the growth of the FY 2000 FY 1999 loan portfolio. Total Medium- and Long-term * A $345 million increase in loan interest income Borrowings' (USD million) $15,789 $22,443 net of funding costs, resulting from an increase in Average Maturity (years) 5.8 6.7 the average outstanding loan balance, especially in Number of Transactions 148 186 the higher-yielding special adjustment loans, as Number of Currencies 13 12 well as the improved net returns from the single a. Includes one-year notes and represents net proceeds on a currency pool loans. Net returns from the single trade date basis. currency pool loans recovered because the higher U.S. dollar borrowing costs were not fully passed Use of Derivatives through to borrowers in FY 1999. The lower interest waivers and higher front-end fees in IBRD engages in a combination of interest rate and effect for the full FY 2000 also contributed to the currency swaps to convert direct borrowings into a increase in net returns from the loan portfolio. desired interest rate structure and currency composi- tion. Interest rate and currency swaps are also used for * A $208 million reduction in investment income, asset/liability management purposes to match the net of funding costs, primarily as a result of the pool of liabilities as closely as possible to the interest non-recurring $237 million gain realized in FY rate and currency characteristics of liquid assets and 1999 from the liquidation of the held-to-maturity loans. portfolio. In FY 2000 the majority of new funding continued to * A $66 million increase in net noninterest be initially swapped into floating rate U.S. dollars, with expenses, due primarily to a decrease in pension conversion to other currencies or fixed rate funding and postretirement income. being carried out subsequently in accordance with funding requirements. FY 1999 versus FY 1998 Composition of Borrowings FY 1999 net income was $1,518 million, $275 million higher than FY 1998. This increase was primarily Of the borrowings outstanding after swaps at June 30, attributable to: 2000, 55% was at variable rates (54% at June 30, 1999). The currency composition continues to be * A $237 million gain realized upon liquidation of concentrated in U.S. dollars, with its share at the end the held-to-maturity portfolio during the first of June 30, 2000 at 80% of the borrowings portfolio quarter of the fiscal year. (79% at June 30, 1999). This reflects IBRD borrow- * A $233 million increase in loan interest income, ers' preference for U.S. dollar-denominated loans and the corresponding currency composition of the liquid loan pricing. During the year IBRD reduced its asset portfolio.laprcn.DrnthyerIRrdudis interest waiver on existing loans, introduced a A more detailed analysis of borrowings outstanding is front-end fee on new loans and earned higher provided in the Notes to Financial Statements- loan spreads on the special adjustment loans dis- Note D. bursed during the year. 6. RESULTS OF OPERATIONS * Offset in part by an increase of $247 million in net noninterest expense due primarily to a IBRD's net income can be seen as broadly comprising decresein pensi d prirement i a spread on earning assets, plus the contribution of ecrease m pension and postrctirement mcome. equity, less provisions for loan losses and administra- Net Interest Income tive expenses. Table 7 shows a breakdown of income, IBRD's primary interest earning assets are its loans and net of funding costs. liquid asset investments. Table 8 provides a break- FY2000 versus FY 1999 down of the gross interest income on earning assets FY 2000 nenoewa191milo,$(including other loan income). Table 9 provides a FY 2000 net income was $1,991 ml1lion, $473 million breakdown of gross borrowing costs. higher than in FY 1999. The majority of this change was due to the following: FY2000 versus FY 1999 A $412 million reduction in loan loss provision Loan interest income increased by $504 million to expense resulting primarily from a reassessment $8,153 million in FY 2000 due primarily to the higher of the possible losses inherent in the loan portfo- average balance of loans outstanding during the year. lio. That assessment concluded that a general This increased volume resulted in an additional $354 improvement in credit quality for certain large million of net income. Additionally, an increase in the borrowers, as well as for the accrual portfolio as a average return from loans contributed another $150 IBRD MANAGEMENT'S DISCUSS1ON AND ANALYSIS: JUNE 30, 2000 21 million to the increase in income. This increase in the FY 1999 versus FY 1998 weighted average return were mainly due to four fac- The main factor contributing to the increase in loan tors: i) a higher average rate on the LIBOR-based loans interest income of $768 million was the higher aver- in a rising interest rate environment; ii) the full year age balance of loans outstanding in terms of U.S. clol- effect of the pass through of higher U.S. dollar bor- lars. A higher volume of loans outstanding, rowing costs funding single currency pool loans, iii) a representing $607 million of the increased incom, larger proportion of the higher-yielding special adjust- was the result of increased net disbursements and the ment loans during the year; and iv) having lower inter- effect of translation into U.S. dollar terms for reporting est waivers and higher front-end fees in effect for the r 11 r. I ~~~~~~~~~~purposes. Additionally, increases in loan pricing con- full fiscal year. tributed $161 million. Investment income decreased by $95 million in FY 2000 to $1,589millio prm riydettw fatrs Two significant factors contributed to the increase of In FY 1999 a $237 million one-time gain was realized $451 million in investment income. In FY 1999 a gain In .Y 1999, a $237 m .lhon one-time gain was realized of $237 million was realized upon liquidation of the upon liquidation of the securities in the held-to-matu- securities in the held-to-maturity portfolio. Addition- rity portfolio. This was partially offset by $165 mil- ally, income increased by $214 million reflecting lion increase in income from higher returs achieved increases in the average investment balance, offset by in the increasing interest rate environment seen over the effect of slightly lower market interest rates. the past year. The cost of borrowings increased $702 million. While The cost of borrowing increased by $282 million to r $7,128 million in FY 2000, due to higher average bor- a falling interest rate environment reduced the cost of row$ gs outstanding. Te matur2ty Ot higher-costae ebo borrowings from 6.01% to 5.92%, total costs increased rowg oustndig Th matrit of hihrcs debt. because of the higher average borrowings balance. in FY 2000 just offset the increase in borrowing costs resulting from interest rate resets on variable rate debt. Table 7: In millions of US. dollars FY 2000 FY 1999 FY 1998 Loan interest income, net of funding costs Debt funded $ 678 $ 387 $ 374 Equity funded 1,771 1,717 1,497 Total loan interest income, net of funding costs 2,449 2,104 1,871 Other loan charges 49 59 22 Loan loss provision 166 (246) (251) Investment income, net of funding costs 116 324 77 Net noninterest expense (789) (723) (476) Net Income $1,991 $1,518 $1,243 22 THE WORLD BANK ANNUAL REPORT 2000 Table 8: In millions of US. dollars FY 2000 FY 1999 FY 1998 Interest Income Interest Income Interest Income Average Return Average Return Average Return Volume Amount % IVlume Amount % Volume Amount 96 Loans by Product Multicurrency Pool $ 37,654 $2,074 5.51 S 39,607 $2,361 5.96 $ 70,047 $4,335 6.19 Single Currency Pools 38,824 3,104 8.00 43,687 3,199 7.32 18,136 1,250 6.89 Variable-Spread Single Currency Loans 20,791 1,189 5.72 14,970 777 5.19 8,061 448 5.56 Fixed-Rate Single Currency Loans 11,855 742 6.26 7,468 468 6.27 3,330 218 6.55 Nonstandard Variable- Spread Single Currency Loans 9,676 773 7.99 6,833 477 6.98 2,165 158 7.30 Fixed-Spread Loans 383 23 6.00 - - - - - - Other Fixed Rate 2,272 199 8.76 3,618 308 8.51 5,323 450 8.45 Other Loan Income 49 59 22 Total Loans 121,455 8,153 6.71 116,183 7,649 6.58 107,062 6,881 6.43 Cash and Investments 27,652 1,589 5.74 28,049 1,684 6.00 21,895 1,233 5.63 Total Earning Assets $149,107 $9,742 6.53 $144,232 $9,333 6.47 $128,957 $8,114 6.29 Table 9: In millions of US. dollars FY2000 FY 1999 FY 1998 Borrowing Cost Borrowing Cost Borrowing Cost Average Cost Average Cost Average Cost Volume Amount 6 Volume Amount 9o Volume Amount % Borrowing Portfolio by Debt Pools MulticurrencyPool $ 26,475 $1,169 4.42 S 29,640 $1,514 5.11 $ 54,266 $3,092 5.70 Single CurrencyPools 28,598 2,213 7.74 33,832 2,507 7.41 14,252 1,012 7.10 Variable-Spread Single Currency Loans 16,828 906 5.38 11,961 581 4.86 6,341 348 5.49 Fixed-Rate Single Currency Loans 10,162 588 5.79 6,143 367 5.97 2,767 169 6.11 Nonstandard Variable- Spread Single Currency Loans 8,909 501 5.62 5,578 284 5.09 2,164 117 5.41 Fixed-Spread Loans 423 18 4.26 - - - - - - Other Debt Funding 29,060 1,733 5.96 28,541 1,593 5.58 22,382 1,406 6.28 Total Borrowings $120,455 $7,128 5.92 $115,695 $6,846 5.92 $102,172 $6,144 6.01 IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 30, 2000 23 Net Noninterest Expense FY 1999 versus FY 1998 The main components of net noninterest expense are Overall gross administrative expenses increased only presented in Table 10. slightly. From FY 1998 to FY 1999 net noninterest expense increased by $243 million, generally returnting FY 2000 versus FY 1999 to FY 1997 levels. Staff costs increased 15%; however, Overall gross administrative expenses decreased by the majority of the increase in expense is attributable $33 million (see Notes to Financial Statements-Note to the FY 1998 non-recurring reduction in expense G). Net noninterest expense increased $66 million. realized as a result of the change in accounting for The major factor was that the contribution of income other postretirement benefits. See Notes to the Fiinan- from pension and postretirement benefits dropped by cial Statements-Note I for a detailed discussion of $89 million, as a result of the decrease in the actuari- those changes. ally determined Staff Retirement Plan income. Table 10: In millions of US. dollars FY 2000 FY 1999 FY 1998 Gross Administrative Expenses Staff Costs $ 489 $ 538 $466 Consultant Fees 88 97 91 Operational Travel 92 94 94 Other Expenses 392 365 328 Total Gross Administrative Expenses 1,061 1,094 979 Less: Contribution to Special Programs 126 129 112 Total Net Administrative Expenses 935 965 867 Contribution to Special Programs 126 129 112 Service Fee Revenues (118) (116) (104) Pension & Postretirement Benefit Income (156) (245) (399) Net Other Expense (Income) 2 (10) _ Total Net Noninterest Expense $ 789 $ 723 $476 24 THE WORLD BANK ANNUAL REPORT 2000 GLOSSARY OF TERMS Asset-backed Securities: Asset-backed securities are New Loans: Loans for which the invitation to negoti- instruments whose cash flow is based on the cash ate was issued on or after July 31, 1998. flows of a pool of underlying assets managed by a Old Loans: Loans for which the invitation to negoti- trust. ate was issued prior to July 31, 1998. Cross-Currency Interest Rate Swaps: Cross-currencye Options: Options are contracts that allow the holder interest rate swaps are currency swaps where one set pfth optintergt u o h biainopr ocahflows reflects a fixed rate of interest and the of the option the right, but not the obligation, to pur- of cash chflows refloatin rate of interest. cbase or sell a financial instrument at a specified price other reflects a floating rate of interest. within a specified period of time from or to the seller Currency Swaps: Currency swaps are agreements of the option. The purchaser of an option pays a pre- between two parties to exchange cash flows denomi- mium at the outset to the seller of the option, who nated in different currencies at one or more certain then bears the risk of an unfavorable change in the times in the future. The cash flows are based on a pre- price of the financial instrument underlying the determined formula reflecting rates of interest and an option. exchange of principal. Repurchase and Resale Agreements and Securities Equity Capital-to-Loans: This ratio is the sum of Loans: Repurchase agreements are contracts under usable capital plus the special and general reserves, which a party sells securities and simultaneously cumulative translation adjustment and the proposed agrees to repurchase the same securities at a specified transfer from unallocated net income to general future date at a fixed price. The reverse of this transac- reserves divided by the sum of loans outstanding, the tion is called a resale agreement. A resale agreement present value of guarantees, net of the accumulated involves the purchase of securities with a simulta- provision for loan losses. neous agreement to sell back the same securities at a stated price on a stated date. Securities loans are con- Forward Interest Rate Swaps: A forward interest rate tracts under which securities are lent for a specified swap is an agreement under which the cash flow und which seurie. exchanges of the underlying interest rate swaps would period of time at a fixed price. begin to take effect from a specified date. Return on Equity: This return is computed as net income divided by the average equity balance during Futures and Forwards: Futures and forward contracts thyer are contracts for delivery of securities or money mar- the year. ket instruments in which the seller agrees to make Risk Bearing Capacity: The ability to absorb risks in delivery at a specified future date of a specified instru- the balance sheet while continuing normal operations ment at a specified price or yield. Futures contracts are without having to call on callable capital. traded on U.S. and international regulated exchanges. Short Sales: Short sales are sales of securities not held Government and Agency Obligations: These obliga- in the seller's portfolio at the time of the sale. The tions include marketable bonds, notes and other obli- seller must purchase the security at a later date and gations issued by governments, bears the risk that the market value of the security will move adversely between the time of the sale and the Interest Rate Swaps: Interest rate swaps are agree- time the security must be delivered. ments involving the exchange of periodic interest pay- ments of differing character, based on an underlying Statutory Lending Limit: Under IBRD's Articles of notional principal amount for a specified time. Agreement, as applied, the total amount outstanding of loans, participations in loans, and callable guaran- tees may not exceed the sum of subscribed capital, Maintenance of Value: Agreements with members reserves and surplus. provide for the maintenance of the value, from the Swaptions: A swaption is an option that gives the time of subscription, of certain restricted currencies. bolder the right to enter into an interest rate or ctr- Additional payments to (or from) IBRD are required rency swap at a certain future date. in the event the par value of the currency is reduced (or increased) to a significant extent, in the opinion of Time Deposits: Time deposits include certificates of IBRD. deposit, bankers' acceptances, and other obligations issued or unconditionally guaranteed by banks and Net Disbursements: Loan disbursements net of other financial institutions. repayments and prepayments. IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: JUNE 3(, 2(0() 25 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT FINANCIAL STATEMENTS JUNE 30, 2000 Balance Sheet 28 Statement of Income 30 Statement of Comprehensive Income 31 Statement of Changes in Retained Earnings 31 Statement of Cash Flows 32 Summary Statement of Loans 34 Statement of Subscriptions to Capital Stock and Voting Power 3 7 Notes to Financial Statements 41 Report ofIndependent Accountants 66 27 BALANCE SHEET June 30, 2000 and June 30, 1999 Expressed in millions of US. dollars 2000 1999 Assets Due from Banks Unrestricted currencies $ 32 $ 33 Currencies subject to restrictions-Note A 659 664 691 697 Investments-Trading-Notes B and E 24,941 30,345 Securities Purchased Under Resale Agreements-Trading-Note B 101 6 Nonnegotiable, Noninterest-bearing Demand Obligations on Account of Subscribed Capital 1,670 1,846 Amounts Receivable from Currency Swaps Investments-Trading-Notes B and E 11,317 11,420 Borrowings-Notes D and E 67,231 67,592 78,548 79,1)12 Amounts Receivable to Maintain Value of Currency Holdings on Account of Subscribed Capital 432 .527 Other Receivables Amounts receivable from investment securities traded 189 88 Accrued income on loans 2,196 2, 00 2,385 2,.88 Loans Outstanding (see Summary Statement of Loans, Notes C and E) Total loans 164,858 168,600 Less undisbursed balance 44,754 51,372 Loans outstanding 120,104 117,128 Less: Accumulated provision for loan losses 3,400 3,'60 Deferred loan income 460 363 Net loans outstanding 116,244 113,305 Other Assets Unamortized issuance costs of borrowings 608 712 Miscellaneous-Note I 2,190 1,80)7 2,798 2,519 Total assets $227,810 $230,445 28 THE WORLD BANK ANNUAL REPORT 2000 2000 1999 Liabilities Borrowings-Notes D and E Short-term $ 4,730 $ 5,328 Medium- and long-term 105,649 110,411 110,379 115,739 Securities Sold Under Repurchase Agreements and Payable for Cash Collateral Received-Trading-Note B 102 Amounts Payable for Currency Swaps Investments-Trading-Notes B and E 11,720 11,501 Borrowings-Notes D and E 70,864 70,484 82,584 81,985 Amounts Payable to Maintain Value of Currency Holdings on Account of Subscribed Capital 56 111 Other Liabilities Amounts payable for investment securities purchased 529 167 Accrued charges on borrowings 3,312 3,012 Payable for Board of Governors-approved transfers-Note F 861 607 Liabilities under other postretirement benefits plans-Note 1 119 103 Accounts payable and miscellaneous liabilities 681 598 5,502 4,487 Total liabilities 1 98,521 202,424 Equity Capital Stock (see Statement of Subscriptions to Capital Stock and Voting Power, Note A) Authorized capital (1,581,724 shares-June 30, 2000 and June 30, 1999) Subscribed capital (1,563,443 shares-June 30, 2000; 1,560,243 shares-June 30, 1999) 188,606 188,220 Less uncalled portion of subscriptions 177,188 176,825 11,418 11,395 Amounts to Maintain Value of Currency Holdings-Note A (522) (453) Payments on Account of Pending Subscriptions-Note A 7 7 Retained Earnings (see Statement of Changes in Retained Earnings, Note F) 19,027 1 7,709 Accumulated Other Comprehensive Income-Note K (641) (637) Total equity 29,28!9 28,021 Total liabilities and equity $227,81() $230,445 The NVotes to Financial Statements are an integral part of these Statements. IBRD FINANCIAI. STATEMENTS: JuNE 30, 2000 29 STATEMENT OF INCOME For the fiscal years ended June 30, 2000, June 30, 1999 and June 30, 1998 Expressed in millions of US. dollars 2000 1999 1998 Income Income from loans-Note C Interest $ 8,041 $7,535 $6,775 Commitment charges 112 114 106 Income from investments-Note B Trading Interest 1,575 1,425 1,107 Net gains (losses) Realized 3 1 (10) Unrealized 3 (5) 1 Held-to-maturity Interest - 47 76 Realized gains - 237 - Income from securities purchased under resale agreements-Note B 12 15 59 Income from assets designated for other postretirement benefits plans-Notes B and I - - 107 Income from Staff Retirement Plan-Note 1 166 255 182 Other income-Notes G and H 133 134 114 Total income 10,045 9,758 8,617 Expenses Borrowing expenses-Note D Interest 6,979 6,704 5,993 Amortization of issuance and other borrowing costs 149 142 151 Interest on securities sold under repurchase agreements and payable for cash collateral received-Note B 4 36 100 Administrative expenses-Notes G and H 935 965 867 Contributions to special programs-Note G 126 129 112 Other postretirement benefits expense-Note I 10 10 50 Provision for loan losses-Note C (166) 246 251 Other expenses 17 8 10 Total expenses 8,054 8,240 7,534 Operating Income 1,991 1,518 1,083 Effect of accounting change-Note I - - 1 (60 Net Income $ 1,991 $1,518 $1,243 The Notes to Financial Statements are an integral part of these Statements. 30 THE WORLD BANK ANNUAL REPORT 2000 STATEMENT OF COMPREHENSIVE INCOME For the fiscal years ended June 30, 2000, June 30, 1999 and June 30, 1998 Expressed in millions of US. dollars 2000 1999 1998 Net income $1,991 $1,518 $ 1,243 Other comprehensive income-Note K Currency translation adjustments (4) 323 (1,045) Total other comprehensive income (loss) (4) 323 (1,045) Comprehensive income $1,987 $1,841 $ 198 STATEMENT OF CHANGES IN RETAINED EARNINGS For the fiscal years ended June 30, 2000, June 30, 1999 and June 30, 1998 Expressed in millions of US. dollars 2000 1999 1998 Retained earnings at beginning of the fiscal year $17,709 $16,733 $16,194 Board of Governors-approved transfers to-Note F International Development Association (348) (352) (304) Trust Fund for Gaza and West Bank (60) (90) Trust Fund for East Timor (10) - Heavily Indebted Poor Countries Debt Initiative Trust Fund (200) (100) (250) Multilateral Investment Guarantee Agency - - (150) Capacity building in Africa (30) - Trust Fund for Kosovo (25) - Net income for the fiscal year 1,991 1,518 1,243 Retained earnings at end of the fiscal year $19,027 $17,709 $16,733 The Notes to Financial Statements are an integral part of these Statements. IBRD FINANCIAL STATEMENTS: JUNE 30, 2000 31 STATEMENT OF CASH FLOWS For the fiscal years ended June 30, 2000, June 30, 1999 and June 30, 1998 Expressed in millions of Us. dollars 2000 1999 1998 Cash flows from lending and investing activities Loans Disbursements $(13,222) $(18,100) $(19,193) Principal repayments 9,973 9,988 10,146 Principal prepayments 499 94 1,372 Loan origination fees received 19 32 - Investments: Held-to-maturity Purchases of securities and repayments of securities sold under repurchase agreements - (13,266) (33,202) Maturities of securities and proceeds from securities sold under repurchase agreements - 13,426 33,184 Proceeds from sale of held-to-maturity portfolio net of securities sold under repurchase agreements - 1,389 - Net cash used in lending and investing activities (2,731) (6,437) (7,693) Cash flows from Board of Governors-approved transfers to International Development Association (50) - (298) Debt Reduction Facility for IDA-Only Countries (19) - (18) Trust Fund for Gaza and West Bank (83) (62) (60) Heavily Indebted Poor Countries Debt Initiative Trust Fund (200) - (250) Multilateral Investment Guarantee Agency - - (150) Trust Fund for East Timor, Trust Fund for Kosovo, and capacity building in Africa (65) - Net cash used in Board of Governors-approved transfers (417) (62) (776) Cash flows from financing activities Medium- and long-term borrowings New issues 15,206 21,846 27,748 Retirements (19,211) (10,034) (13,569) Net short-term borrowings (917) (1,512) (1,009) Net currency swaps-Borrowings (454) (340) (300) Net capital stock transactions 154 175 217 Net cash (used in) provided by financing activities (5,222) 10,135 13,087 Cash flows from operating activities Net income 1,991 1,518 1,243 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 884 819 855 Amortization of deferred loan income (30) (20) (8) Provision for loan losses (166) 246 251 Income from Staff Retirement Plan (166) (255) (182) Gain on sale of held-to-maturity portfolio - (237) - Changes in other assets and hiabilities Increase in accrued income on loans and held-to-maturity investments (99) (46) (157) (Increase) decrease in miscellaneous assets (269) (130) 190 Increase in net assets associated with other postretirement benefits - - (739) Increase in accrued charges on borrowings 322 470 448 Increase (decrease) in accounts payable and miscellaneous liabilities 135 (258) 253 Net cash provided by operating activities 2,602 2,107 2,154 32 THE WORLD BANK ANNUAL REPORT 2000 2000 1999 1998 Effect on liquid investments due to decrease in net assets associated with other postretirement benefits $ - $ 650 $ Effect of exchange rate changes on unrestricted cash and liquid investments (23) 224 (207) Net (decrease) increase in unrestricted cash and liquid investments (5,791) 6,617 6,565 Unrestricted cash and liquid investments at beginning of the fiscal year 30,122 23,505 16,940 Unrestricted cash and liquid investments at end of the fiscal year $24,331 $ 30,122 $ 23,505 Composition of unrestricted cash and liquid investments: Investments held in trading portfolio $24,941 $ 30,345 $ 23,441 Unrestricted currencies 32 33 55 Net (payable) receivable for investment securities traded/purchased-Trading (340) (79) 7 Net (payable) receivable from currency swaps-Investments (403) (81) 397 Net receivable (payable) for securities purchased/sold under resale/repur- chase agreements and payable for cash collateral received 101 (96) (395) $24,331 $_30,122 $ 23,505 Supplemental disclosure Increase (decrease) in ending balances resulting from exchange rate fluctuations Loans outstanding $ 16 $ 2,519 $ (6,994) Investments-Held-to-maturity - 13 2 Borrowings (1,173) 1,010 (7,239) Currency swaps-Borrowings 1,195 1,244 1,632 Capitalized loan origination fees included in total loans 110 115 90 The Notes to Financial Statements are an integralpart of these Statements. IBRD FINANCIAL STATEMENTS: JUNE 30, 2000 33 SUMMARY STATEMENT OF LOANS June 30, 2000 Expressed in millions of US. dollars Loans approved Undisbursed Percentage but not yet balance of Loans of total loans Borrower or guarantor Total loans effective ' effective loans2 outstanding outstanding Algeria $ 2,045 $ 97 $ 459 $ 1,489 1.24% Argentina 11,374 87 2,995 8,292 6.90 Armenia 9 - - 9 0.01 Bahamas, The 3 - - 3 Bangladesh 27 - - 27 0.02 Barbados 17 2 IS 0.01 Belarus ; . 125 13 112 0.09 BeIze 45 - 4 41 0.03 Boliia- 5 5 * Bosnia and Herzegovina 569 - - 569 0.48 Botswana 19 - - 19 0.02 Brazil 10,747 544 2,580 7,623 6.35 Bulgaria 1,059 72 167 820 0.68 Cameroon 298 53 - 245 0.21 Chad 40 40 - - - Chile 1,026 - 174 852 0.71 China 19,769 1,829 7,221 10,719 8.93 Colombia 2,936 125 927 1,884 1.57 Co0g3 Demomrat Republic of 81 - - 81 0.07 Congo, Republic of 67 - - 67 0.06 Costa Rica 182 33 14 135 0.11 C6te d'Ivoire 625 - - 625 0.52 Croatia 656 - 270 386 0.32 Cyprus 41 - - 41 0.04 Czech Republic 287 - - 287 0.24 Domniica 7 - 5 2 * Domiin Republic 460 17 162 281 0.24 Ecuador 1,187 162 175 850 0.71 Egypt, ArabRepublicof 1,149 395 56 698 0.58 El Salvador 525 - 228 297 0.25 Estonia 108 23 5 80 0.07 Fiji 22 - - 22 0.02 Gabon 82 - 16 66 0.05 Ghana 14 - - 14 0.01 Grenada 5 - 4 1 * Guatemala 500 54 180 266 0.22 Guyana 10 - - 10 0 01 Honduras 165 - - 165 0.14 Hungary 773 - 198 575 0.48 India 11,071 808 2,755 7,508 6.25 Indonesia 14,354 - 2,599 11,755 9.79 Iran, Islamic Republic of 835 232 163 440 0.37 Iraq 38 - - 38 0.03 Jamaica 417 - 50 367 0.31 Jordan 1,033 35 185 813 0.68 Kazakhstan 1,708 17 629 1,062 0.88 Kenya 62 - - 62 0.05 Korea, Republic of 8,296 - 136 8,160 6.79 Latvia 304 - 70 234 0.19 Lebanon 703 136 324 243 0.20 34 THE WORLD BANK ANNUAL REPORT 2000 Loans approved Undisbursed Percentage but not yet balance of Loans of total loans Borrower or guarantor Total loans effective I effective loans2 outstanding outstanding Lesotho $ 96 $ - $ 38 $ 58 0.05'Xo Liberia 133 - - 133 (.1 I Lithuania 325 53 69 203 0.17 Macedonia, former Yugoslav Republic of 171 - 65 106 0.09 Malawi 13 - - 13 0.(i Malaysia 1,189 - 331 858 0.71 Mauritania I - - 1 * Mauritius 115 5 14 96 0.08 Mexico 14,0755 58 2,906 11,111 9.25 Moldova 213 -- 19 194 0.16 Morocco 3,380 7 448 2,925 2.44 Nicaragua 7 - - 7 0.01 Nigeria 1,844 - 40 1,804 1.50 Oman 4 - - 4 * Pakistan 3,462 - 287 3,175 2.64 Panama 365 - 80 285 0.24 PapuaNew Guinea 392 1 7 118 257 0.21 Paraguay 322 - 132 190 0.16 Peru 2,986 95 427 2,464 2.05 Philippines 5,070 150 1,090 3,830 3.19 Poland 3,019 148 766 2,105 1.75 Romania 2,642 68 784 1,790 1.49 Russian Federation 9,982 90 3,171 6,721 5.60 St. Kitts and Nevis 13 - 9 4 * St. Lucia 14 - 8 6 St. Vincent and the Grenadines 3 - 3 * Senegal 3 - - 3 Seychelles 3 *3 Slovak Republic 206 - 5 201 0.17 Slovenia 122 9 13 100 0.08 South Africa 25 - 23 2 * Sri Lanka 16 16 0.01 Sudan 1 - - 1 Swaziland 30 - 21 9 0.01 Syrian Arab Republic 31 - - 31 0.03 Tanzania 14 - - 14 0.01 Thailand 3,832 - 1,083 2,749 2.29 Trinidad and Tobago 133 - 45 88 0.07 Tunisia 1,966 204 516 1,246 1.04 Turkey 5,695 - 2,419 3,276 2.73 IBRD FINANCIAI. STATEMI.NTS: JUNE 30, 2000 35 SUMMARY STATEMENT OF LOANS (Continued) June 30, 2000 Expressed in miltions of US. dollars Loans approved Undisbursed Percetntage but not yet balance of Loans of total loams Borrower or guarantor Total loans effective I effective loans2 outstanding outstanding Turkmenistan $ 70 $ - $ 46 $ 24 0.02"' Ukraine 2,471 18 503 1,950 1.62 Uruguay 797 27 216 554 0.46 Uzbekistan 429 29 192 208 0.17 Venezuela, Republica Bolivariana de 1,414 23 336 1,055 0.88 Yugoslavia, Federal Rep3ublic of (Serbia/Montenegro) 1,111 - - 1,111 0.93 Zambia 28 - 28 0.02 Zimbabwe 465 - 5 460 0.38 Subtotal5 164,578 5,760 38,994 119,824 99.76 CaribbeanDevelopmentBank4 7 - - 7 0.01 InternationalFinanceCorporation 273 - - 273 0.23 Total-June 30, 20005 $164,858 $ 5,760 $38,994 $120,104 100.00°o Total-June 30, 1999 $168,600 $ 8,355 $43,017 $117,228 'Indicates amount less than $0.5 million or less than 0.005 percent. NOTES l .Loans totaling $4,754 million ($4,371 million-June 30, 1999) have been approved by IBRD, but the related agreements have not been signed. Loaa agreemenits totaling $1,006 million ($3,984 million-June 30, 1999) have been signed, but the loans do not become effective and disbursements the?e- under do not start until the borrowers and guarantors, if any, take certain actions and furnish certain documents to IBRD. 2. Of the undisbursed balance, IBRD has entered into irrevocable commitments to disburse $1,165 million ($1,301 million-June 30, 1999). 3. See Notes to Financial Statements-Notes A and C 4. These loanis are for the benefit of The Bahamas, Barbados, Grenada, Guyana, Jamaica, Trinidad and Tobago, and territories of the United Kingdont (Associated States and Dependencies) in the Caribbean Region, that are severally liable as guarantors to the extent of subloans made in their territories. 5. Mfay differ from the sum of individual figures shown due to rounding The Notes to Financial Statements are an integral part of these Statements. 36 THE WORLD BANK ANNUAL REPORT 2000 STATEMENT OF SUBSCRIPTIONS TO CAPITAL STOCK AND VOTING POWER June 30, 2000 Expressed in millions of Us. dollars Subscriptions lVoting Power Percentage Amounts Number Percentage of Total Amounts subject of of .Member Shares total amounts paid inI to call,2 votes total Afghanistan 300 0.02%) $ 36.2 $ 3.6 $ 32.6 550 0.03"%4, Albania 830 0.05 100.1 3.6 96.5 1,080 0.07 Algeria 9,252 0.59 1,116.1 67.1 1,049.0 9,502 0.59 Angola 2,676 0.17 322.8 17.5 305.4 2,926 0.18 Antigua and Barbuda 520 0.(3 62.7 1.3 61.5 770 0.05 Argentina 17,911 1.15 2,160.7 132.2 2,028.4 18,161 1.13 Armenia 1,139 0.07 137.4 5.9 131.5 1,389 0.09 Australia 24,464 1.56 2,951.2 181.8 2,769.5 24,714 1.54 Austria 11,063 (0.71 1,334.6 8(0.7 1,253.9 11,313 0.70 Azerbaijan 1,646 ().11 198.6 9.7 188.8 1,896 0.12 Bahamas, The 1,071 0.07 129.2 5.4 123.8 1,321 0.08 Bahrain 1,103 0.07 133.1 5.7 127.4 1,353 0.08 Bangladesh 4,854 0.31 585.6 33.9 551.6 5,104 0.32 Barbados 948 0.06 114.4 4.5 109.9 1,198 0.07 Belarus 3,323 0.21 400.9 22.3 378.5 3,573 0.22 Belgium 28,983 1.85 3,496.4 215.8 3,280.6 29,233 1.82 Belize 586 0.04 70 7 1.8 68.9 836 0.05 Benin 868 0.06 104.7 3.9 100.8 1,118 0.07 Bhutan 479 (.(3 57.8 1.0 56.8 729 0.(5 Bolivia 1,785 ).11 215.3 10.8 204.5 2,035 0.13 Bosnia and Herzegovina 549 0.04 66.2 5.8 60.4 799 0.05 Botswana 615 0.04 74.2 2.0 72.2 865 0.05 Brazil 33,287 2.13 4,015.6 245.5 3,770.1 33,537 2.08 Brunei Darussalam 2,373 0.15 286.3 15.2 271.1 2,623 0.16 Bulgaria 5,215 0.33 629.1 36.5 592.6 5,465 0.34 Burkina Faso 868 0(.6 104.7 3.9 100.8 1,118 0.07 Burundi 716 ()()5 86.4 3.0 83.4 966 0.()6 Cambodia 214 0.01 25.8 2.6 23.2 464 0.03 Cameroon 1,527 0.10 184.2 9.0 175.2 1,777 0.11 Canada 44,795 2.87 5,403.8 334.9 5,068.9 45,045 2.80 Cape Verde 508 0.03 61.3 1.2 60.1 758 0.05 Central African Republic 862 0.06 104.0 3.9 100.1 1,112 0.07 Chad 862 0.06 104.0 3.9 100.1 1,112 0.07 Chile 6,931 0.44 836.1 49.6 786.6 7,181 0.45 China 44,799 2.87 5,404.3 335.0 5,069.3 45,049 2.80 Colombia 6,352 0.41 766.3 45.2 721.1 6,602 0.41 Comoros 282 0.02 34.0 (1.3 33.7 532 0.03 Congo, Democratic Republic of 2,643 ().17 318.8 25.4 293.5 2,893 ().18 Congo, Republic of 927 .(06 111.8 4.3 107.5 1,177 0.07 Costa Rica 233 0.01 28.1 1.9 26.2 483 0.03 C6te d'Ivoire 2,516 0.16 303.5 16.4 287.1 2,766 0.17 Croatia 2,293 0.15 276.6 17.3 259.3 2,543 0.16 Cyprus 1,461 0.09 176.2 8.4 167.9 1,711 0.11 Czech Republic 6,308 0.40 761.0 45.9 715.0 6,558 0.41 Denmark 13,451 0.86 1,622.7 97.8 1,524.9 13,701 0.85 Djibouti 559 0.04 67.4 1.6 65.9 809 0.05 Dominica 504 (0.03 60.8 1.1 59.7 754 0.05 Dominican Republic 2,092 (0.13 252.4 13.1 239.3 2,342 0.15 Ecuador 2,771 (.18 334.3 18.2 316.1 3,021 0.19 Egypt, Arab Republic of 7,108 (1.45 857.5 50.9 806.6 7,358 0.46 IBRD FINANCIAL STATEMENTS: JUNE 30, 2000 37 STATEMENT OF SUBSCRIPTIONS TO CAPITAL STOCK AND VOTING POWER (Continued) June 30, 2000 Expressed in millions of US. dollars _ _ _ Subscriptions Voting Power Percentage Amounts Number Percentage of Total Amounts subject of of Member Shares total amounts paid in1 to calll2 votes total El Salvador 141 0.01% $ 17.0 $ 1.7 $ 15.3 391 0.02% Equatorial Guinea 715 0.05 86.3 2.7 83.5 965 0.06 Eritrea 593 0.04 71.5 1.8 69.7 843 0.05 Estonia 923 0.06 111.3 4.3 107.1 1,173 0.07 Ethiopia 978 0.06 118.0 4.7 113.3 1,228 0.08 Fiji 987 0.06 119.1 4.8 114.3 1,237 0.08 Finland 8,560 0.55 1,032.6 61.9 970.8 8,810 0.55 France 69,397 4.44 8,371.7 520.4 7,851.3 69,647 4.33 Gabon 987 0.06 119.1 5.1 113.9 1,237 0.08 Gambia, The 543 0.03 65.5 1.5 64.0 793 0.05 Georgia 1,584 0.10 191.1 9.3 181.8 1,834 0.11 Germany 72,399 4.63 8,733.9 542.9 8,190.9 72,649 4.52 Ghana 1,525 0.10 184.0 12.7 171.2 1,775 0.11 Greece 1,684 0.11 203.1 14.1 189.1 1,934 0.12 Grenada 531 0.03 64.1 1.4 62.7 781 0.05 Guatemala 2,001 0.13 241.4 12.4 229.0 2,251 0.14 Guinea 1,292 0.08 155.9 7.1 148.8 1,542 0.10 Guinea-Bissau 540 0.03 65.1 1.4 63.7 790 0.05 Guyana 1,058 0.07 127.6 5.3 122.3 1,308 0.08 Haiti 1,067 0.07 128.7 5.4 123.3 1,317 0.08 Honduras 641 0.04 77.3 2.3 75.0 891 0.06 Hungary 8,050 0.51 971.1 58.0 913.1 8,300 0.52 Iceland 1,258 0.08 151.8 6.8 144.9 1,508 0.09 India 44,795 2.87 5,403.8 333.7 5,070.1 45,045 2.80 Indonesia 14,981 0.96 1,807.2 110.3 1,697.0 15,231 0.95 Iran, Islamic Republic of 23,686 1.51 2,857.4 175.8 2,681.5 23,936 1.49 Iraq 2,808 0.18 338.7 27.1 311.6 3,058 0.19 Ireland 5,271 0.34 635.9 37.1 598.8 5,521 0.34 Israel 4,750 0.30 573.0 33.2 539.8 5,000 0.31 Italy 44,795 2.87 5,403.8 334.8 5,069.0 45,045 2.30 Jamaica 2,578 0.16 311.0 16.8 294.2 2,828 0.18 Japan 127,000 8.12 15,320.6 944.0 14,376.7 127,250 7.91 Jordan 1,388 0.09 167.4 7.8 159.6 1,638 0.10 Kazakhstan 2,985 0.19 360.1 19.8 340.3 3,235 0.20 Kenya 2,461 0.16 296.9 15.9 281.0 2,711 O.17 Kiribati 465 0.03 56.1 0.9 55.2 715 0.O4 Korea, Republic of 15,817 1.01 1,908.1 114.5 1,793.5 16,067 1.J0 Kuwait 13,280 0.85 1,602.0 97.4 1,504.6 13,530 0.84 Kyrgyz Republic 1,107 0.07 133.5 5.7 127.9 1,357 0.08 Lao People's Democratic Republic 178 0.01 21.5 1.5 20.0 428 0.03 Latvia 1,384 0.09 167.0 7.8 159.2 1,634 0.10 Lebanon 340 0.02 41.0 1.1 39.9 590 0.04 Lesotho 663 0.04 80.0 2.3 77.6 913 0.06 Liberia 463 0.03 55.9 2.6 53.3 713 0.04 Libya 7,840 0.50 945.8 57.0 888.8 8,090 0.50 Lithuania 1,507 0.10 181.8 8.7 173.1 1,757 0.11 Luxembourg 1,652 0.11 199.3 9.8 189.5 1,902 0.12 Macedonia, former Yugoslav Republic of 427 0.03 51.5 3.2 48.3 677 0.04 Madagascar 1,422 0.09 171.5 8.1 163.5 1,672 0.10 Malawi 1,094 0.07 132.0 5.6 126.4 1,344 0.08 38 THE WORLD BANK ANNUAL REPORT 2000 Subscriptions Voting Power Percentage Amnounts Nutmber Perceintage of 'lotal Amounts subject of of Member Shares total amounts paid in1 to callI'2 votes total Malaysia 8,244 0. 53%b S 994.5 $ 59.5 $ 935.0 8,494 0.53 k,, Maidives 469 0.03 56.6 0.9 55.7 719 0.04 Mali 1,162 0.07 140.2 6.1 134.1 1,412 (.09 Malta 1,074 0.07 129.6 5.4 124.1 1,324 0.08 Marshall Islands 469 0.03 56.6 0.9 55.7 719 0.04 Mauritania 900 0.06 108.6 4.1 104.4 1,150( (.(07 Mauritius 1,2 42 0.(8 149.8 6.7 143.1 1,492 (.(19 Mexico 18,804 1.20 2,268.4 139.0 2,129.4 19,054 1.18 Micronesia, Federated States of 479 0.03 57.8 1.( 56.8 729 0.(05 Moldova 1,368 0.09 165.0 7.6 157.4 1,618 0.11 M0ongolia 466 0.03 56.2 2.3 53.9 716 0.04 M6oroco 4,973 0.32 599.9 34.8 565.1 5,223 0.32 M bozamique 930 0.06 112.2 4.8 107.4 1,180 0.07 Myaimnar 2,484 0,16 299.7 16.1 283.6 2,734 0.17 Namibia 1,523 0.10 183.7 8.8 174.9 1,773 0.11 Nepal 968 0,06 116.8 4.6 112.1 1,218 0.(8 Netherlands 35,5()3 2.27 4,282.9 264.8 4,018.1 35,753 2.22 New Zealand 7,236 0)46 872.9 51.9 821.0 ,486 (0.47 Nicaragua 608 0o04 73.3 2.1 71.3 858 0.05 Niger 852 o.05 102.8 3.8 99.0 1,102 0(7 Nigeria 12,655 0.81 1,526.6 92.7 1,433.9 12,905 0.80 Norway 9,982 0.64 1,204.2 72.6 1,131.6 10,232 0.64 Oman 1,561 0.1( 188.3 9.1 179.2 1,811 (.1 Pakistan 9,339 0.60 1,126.6 67.8 1,058.9 9,589 0.60 Palau, Republic of 16 1.9 0.2 1.8 266 0.02 Panama 385 0.02 46.4 3.2 43.2 635 0.04 Papua New Guinea 1,294 (.08 156.1 7.1 149.0 1,544 (1.10 Paraguay 1,229 0.08 148.3 6.6 141.6 1,479 0.(9 Peru 5,331 ().34 643.1 37.5 605.6 5,581 0.35 Philippines 6,844 0.44 825.6 48.9 776.7 7,094 (.44 P6land 10,908 0.70 1,315.9 79.6 1,236.3 11,158 0.69 P6otugal 5,460 0.35 658.7 38.5 620.2 5,710 0.35 Qatar 1,096 0.07 132.2 9.0 123.3 1,346 0.(8 Romania 4,011 0.26 483.9 30.5 453.4 4,261 0.26 Russian Federation 44,795 2.87 5,403.8 333.9 5,070.0 45,045 2.80 Rwanda 1,046 0.07 126.2 5.2 12(0.9 1,296 (.08 St. Kitts and Nevis 275 0.02 33.2 0.3 32.9 525 0.(3 St. Lucia 552 0.04 66.6 I. 65.1 802 (.0O5 St. Vincent and the Grenadines 278 0.02 33.5 0.3 33.2 528 0.03 Samoa 531 0.113 64.1 1.4 62.7 781 (.05 Sao Tbme and Principe 495 0.03 59.7 1.1 58.6 745 (.05 Saudi Arabia 44,795 2.87 5,403.8 335.0 5,068.9 45,045 2.80 Senegal 2,072 0.13 250.0 13.0 237.0 2,322 0.14 tSeycShelles; 0 S: 0 : 263 0.02 31.7 0.2 31.6 513 0.03 Sierra Leone 718 0.05 86.6 3.0 83.6 968 0.06 Singapore 320 0.02 38.6 3.9 34.7 57( 0()(4 Slovak Republic 32 16 0.21 388.0 23.) 365.0 3,466 (0.22 Slovenia 1,261 1.08 152.1 9.5 142.6 1,51] 0.()9 Solomon Islands 513 1.03 61.9 1.2 60.7 763 (.05 Somalia 552 0.0)4 66.6 3.3 63.3 802 0.()5 IBRD FINANCIAI. STATEMEN'IS: JIUNE 30, 200(0 39 STATEMENT OF SUBSCRIPTIONS TO CAPITAL STOCK AND VOTING POWER (Continued) June 30, 2000 Expressed in millions of US. dollars Subscriptions Voting Power Percentage Amounts Number Percentage of Total Amounts subject of of Member Shares total amounts paid inI to call1'2 votes totai South Africa 13,462 0.86% $1,624.0 $ 98.8 $1,525.2 13,712 0.85% Spain 23,686 1.51 2,857.4 175.6 2,681.7 23,936 1 49 Sri Lanka 3,817 0.24 460.5 26.1 434.3 4,067 0 25 Sudan 850 0.05 102.5 7.2 95.3 1,100 0 07 Suriname 412 0.03 49.7 2.0 47.7 662 0 04 Swaziland 440 0.03 53.1 2.0 51.1 690 0 04 Sweden 14,974 0.96 1,806.4 110.2 1,696.2 15,224 095 Switzerland 26,606 1.70 3,209.6 197.2 3,012.4 26,856 1 67 Syrian Arab Republic 2,202 0.14 265.6 14.0 251.7 2,452 0 15 Tajikistan 1,060 0.07 127.9 5.3 122.5 1,310 0 08 Tanzania 1,295 0.08 156.2 10.0 146.2 1,545 0.10 Thailand 6,349 0.41 765.9 45.2 720.7 6,599 0 41 Togo 1,105 0.07 133.3 5.7 127.6 1,355 0,08 Tonga 494 0.03 59.6 1.1 58.5 744 0.05 Trinidad and Tobago 2,664 0.17 321.4 17.6 303.7 2,914 0 18 Tunisia 719 0.05 86.7 5.7 81.1 969 0 06 Turkey 7,379 0.47 890.2 52.9 837.2 7,629 0 47 Turkmenistan 526 0.03 63.5 2.9 60.5 776 0.(5 Uganda 617 0.04 74.4 4.4 70.1 867 0.05 Ukraine 10,908 0.70 1,315.9 79.3 1,236.6 11,158 0.69 United Arab Emirates 2,385 0.15 287.7 22.6 265.1 2,635 0.16 United Kingdom 69,397 4.44 8,371.7 539.5 7,832.2 69,647 4.33 United States 264,969 16.95 31,964.5 1,998.4 29,966.2 265,219 16.49 Uruguay 2,812 0.18 339.2 18.6 320.7 3,062 0.19 Uzbekistan 2,493 0.16 300.7 16.1 284.7 2,743 0.17 Vanuatu 586 0.04 70.7 1.8 68.9 836 0.05 Venezuela, Republica Bolivariana de 20,361 1.30 2,456.2 150.8 2,305.5 20,611 1.28 Vietnam 968 0.06 116.8 8.1 108.7 1,218 0.08 Yemen, Republic of 2,212 0.14 266.8 14.0 252.8 2,462 0.15 Zambia 2,810 0.18 339.0 20.0 319.0 3,060 0.19 Zimbabwe 3,325 0.21 401.1 22.4 378.7 3,575 0 22 Total-June 30, 20002 1,563,443 1000% $188,606 __$11,418 $177,188 1,608,693 100.00°% Total-June 30, 1999 1,560,243 100.00% $188 220 $11,395 $176,825 1,605,493 NOTES 1. See Notes to Financial Statements-Note A. 2. May differfrom the sum of individual figures showvn due to roun1dinig. The Notes to Financial Statements are an integral part of these Statements. 40 THE WORLD BANK ANNUAL REPORT 2000 NOTES TO FINANCIAL STATEMENTS PURPOSE AND AFFILIATED ORGANIZATIONS Translation of Currencies: IBRD's financial state- The International Bank for Reconstruction and Devel- ments are expressed in terms of U.S. dollars solely for opment (IBRD) is an international organization which the purpose of summarizing IBRD's financial position commenced operations in 1946. The principal pur- and the results of its operations for the convenience of pose of IBRD is to reduce poverty through promoting its members and other interested parties. sustainable economic development in its member IBRD is an international organization which conducts countries, primarily by providing loans and related its operations in the currencies of all of its members. technical assistance for specific projects and for pro- IBRD's resources are derived from its capital, borrow- grams of economic reform in developing member ings, and accumulated earnings in those various cur- countries. The activities of IBRD are complemented rencies. IBRD has a number of general policies aimed by those of three affiliated organizations, the Interna- at minimizing exchange rate risk in a multicurrencv tional Development Association (IDA), the Interna- environment. IBRD matches its borrowing obligations tional Finance Corporation (IFC), and the Multilateral in any one currency (after swaps) with assets in the Investment Guarantee Agency (MIGA). IBRD, IDA, same currency, as prescribed by its Articles of Agree- IFC, and MIGA are collectively known as the World ment, primarily by holding or lending the proceeds of Bank Group. Each of these other organizations in the its borrowings (after swaps) in the same currencies in World Bank Group is legally and financially indepen- which they are borrowed. In addition, IBRD periodi- dent from IBRD, with separate assets and liabilities, cally undertakes currency conversions to more closely and IBRD is not liable for their respective obligations. match the currencies underlying its Retained Earnings IDA's main goal is to reduce poverty through promot- with those of the outstanding loans. ing economic development in the less developed areas of the world included in IDA's membership by provid- Assets and liabilities are translated at market exchange ing financing on concessionary terms. IFC's purpose is rates in effect at the end of the period. Income and to encourage the growth of productive private enter- expenses are translated at either the market exchange prises in its member countries through loans and rates in effect on the dates on which they are recog- equity investments in such enterprises without a nized or at an average of the market exchange rates in member's guarantee. MIGA was established to effect during each month. Translation adjustments are encourage the flow of investments for productive pur- charged or credited to Accumulated Other Compre- poses among member countries and, in particular, to hensive Income. developing member countries by providing guarantees Valuation of Capital Stock: In the Articles of Agree- against noncommercial risks for foreign investment in ment, the capital stock of IBRD is expressed in terms its developing member countries, of "U.S. dollars of the weight and fineness in effect on July 1, 1944" (1944 dollars). Following the abolition SUMMARY OF SIGNIFICANT ACCOUNTING of gold as a common denominator of the monetary AND RELATED POLICIES system and the repeal of the provision of the U.S. law defining the par value of the U.S. dollar in terms of IBRD's financial statements are prepared in confor- gold, the pre-existing basis for translating 1944 dollars mity with the accounting principles generally into current dollars or into any other currency disap- accepted in the United States of America and with peared. The Executive Directors of IBRD have International Accounting Standards. decided, until such time as the relevant provisions of the Articles of Agreement are amended, that the The preparation of financial statements in conformity words "U.S. dollars of the weight and fineness in effect with generally accepted accountig prinmples requres on July 1, 1944" in Article II, Section 2(a) of the Arti- management to make estimates and assumptionesthat of Agreement of IBRD are interpreted to mean affect the reported amounts of assets and liabilities the Special Drawing Right (SDR) introduced by the and disclosure of contingent assets and liabilitiesa Interational Monetary Fund, as the SDR was valued date of the fiancial statements and the reportedn in terms of U.S. dollars immediately before the intro- amounts of revenue and expenses during the reporting dcino h aktmto fvligteSRo period. Actual results could differ from these duction of the basket method of valuing the SDR on mates. Significant judgements have been used in the July 1, 1974, such value heing SI.20635 for one SDR. computation of estimated and fair values of loans and Maintenance of Value: Article II, Section 9 of the borrowings, the determination of the adequacy of the Articles of Agreement provides for maintenance of the Accumulated Provision for Loan Losses, the determi- value (MOV), at the time of subscription, of such nation of net periodic income from pension and other restricted currencies (see Note A), requiring (1) the postretirement benefits plans, and the present value of member to make additional payments to IBRD in the benefit obligations. event that the par value of its currency is reduced or the foreign exchange value of its currency has, in the Certain reclassifications of the prior years' information opinion of IBRD, depreciated to a significant extent in have been made to conform to the current year's pre- its territories and (2) IBRD to reimburse the member sentation. IBRD FINANCIAL STATEMENTS: JUNE 30, 20()(1 -I in the event that the par value of its currency is Executive Directors of IBRD's reserve needs. Upon increased. recommendation by the Executive Directors, the Board of Governors, consisting of one Governor Since currencies no longer have par values, mainte- appointed by each member, periodically approves nance of value amounts are determied by measuring transfers out of unallocated Net Income and Surplus the foreign exchange value of a member's currency to various entities for development purposes consis- against the standard of value of IBRD capital based on tent with IBRD's Articles of Agreement. the 1974 SDR. Members are required to make pay- ments to IBRD if their currencies depreciate signifi- Loans: All of IBRD's loans are made to or guaranteed cantly relative to the standard of value. Furthermore, by members, except loans to IFC. The majority of the Executive Directors have adopted a policy of IBRD's loans have repayment obligations based on reimbursing members whose currencies appreciate specific currencies. IBRD also offers multicurrency significantly in terms of the standard of value. loans which have repayment obligations in various currencies determined on the basis of a currency pool- The net MOV amounts relating to restricted curren- ing system. cies out on loan, and amounts that have been reclassi- fied from receivables for those countries that have Any loan origination fees incorporated in a loan's been in arrears for two years or more, are included in terms are deferred and recognized over the life of the Amounts to Maintain Value of Currency Holdings. For loan as an adjustment of yield. However, incremental amounts on loan, these MOV amounts are shown as a direct costs associated with originating loans are component of Equity since MOV becomes effective expensed as incurred as such amounts are considered only as such currencies are repaid to IBRD. immaterial. The unamortized balance of loan origina- tion fees is included as a reduction of Loans Outstand- Retained Earnings: Retained Earnings consists of allo- ion fee islancludedet, andution ofigian Outs cated amounts (Special Reserve, General Reserve, ing on the balance sheet, and the loan origination fe'os catednamounts Reserve,andSurplus) Gend erallocat , amortization is included in Interest under Income Pension Reserve and Surplus) and unallocated Net from Loans on the income statement. Income. It is IBRD's practice not to reschedule interest or prn- The Special Reserve consists of loan commissions set cipal payments on its loans or participate in debt aside pursuant to Article IV, Section 6 of the Artcles rescheduling agreements with respect to its loans. In of Agreement, which are to be held in liquid assets, exceptional cases, however, such as when implemen- These assets may be used only for the purpose of tation of a financed project has been delayed, the lo.in meeting liabilites of IBRD on its borrowings and guar- amortization schedule may be modified to avoid sub- antees in the event of defaults on loans made, partci- stantial repayments prior to project completion. pated in, or guaranteed by IBRD. The Special Reserve Delays in receiving loan payments result in present assets are icluded under Investments held in the value losses to IBRD since it does not charge fees or Trading portfolio, comprising obligatons of the United additional interest on any overdue interest or loan States Government, its agencies, and other official charges. These present value losses are equal to the entities. The allocation of such commissions to the difference between the present value of payments for Special Reserve was discontinued in 1964 with respect interest and charges made according to the related to subsequent loans and no further additions are being ln's cntrctagers made presnt vle oflits made to it. ~~~~~~~~~loan's contractual terms and the present value of its made to it. expected future cash flows. Such present value losses The General Reserve consists of earnings from prior are considered in the determination of the Accumu- fiscal years which, in the judgment of the Executive lated Provision for Loan Losses. IBRD has not written Directors, should be retained in IBRD's operations. off any of its outstanding loans. The Pension Reserve consists of the difference It is the policy of IBRD to place in nonaccrual status between actual funding of the Staff Retirement Plan all loans made to or guaranteed by a member of IBRD (SRP) and the SRP's accounting income. This Pension if principal, interest, or other charges with respect to Reserve would be reduced if in any future fiscal year any such loan are overdue by more than six months, pension accounting expenses were to exceed the unless IBRD management determines that the over- actual funding of the SRP. due amount will be collected in the immediate future. In addition, if development credits made by IDA to a Surplus consists of earnings from prior fiscal years member government are placed in nonaccrual status, which are retained by IBRD until a further decision is all loans made to or guaranteed by that member gov- made on their disposition or the conditions of transfer ernment will also be placed in nonaccrual status by for specified uses have been met. IBRD. On the date a member's loans are placed in Unallocated Net Income consists of earnings in the nonaccrual status, unpaid interest and other charges current fiscal year. Commencing in 1950, a portion or accrued on loans outstanding to the member are all of the unallocated Net Income has been allocated deducted from the income of the current period. to the General Reserve after an assessment by the Interest and other charges on nonaccruing loans are 42 THE WORLD BANK ANNUAL REPORT 2000 included in income only to the extent that payments under resale agreements, monitors the fair value of the have actually been received by IBRD. If collectibility securities and, if necessary, requires additional collat- risk is considered to be particularly high at the time of eral. arrears clearance, the member's loans may not auto- Borr matically emerge from nonaccrual status, even though owings: Turpes funD are aiable forled the member's eligibility for new loans may have been and liquidity purposes, IBRD borrows in the world- restored. A decision on the restoration of accrual sta- wide capital markets offering its securities to private 1 1 1 . r . 1 1 ~~~~andgovernmental buyers. IBRD issues short-term and tus is made on a case-by-case basis after a suitable g y period of payment performance has passed from the medium- and long-term debt instruments denomi- terime of arrear cerance,t nated in various currencies with both fixed and adjust- able interest rates. Borrowings are carried on the IBRD determines the Accumulated Provision for Loan balance sheet at their par value (face value) adjusted Losses based on an assessment of collectibility risk in for any unamortized premiums or discounts. Issuance the total loan and callable guarantees portfolio, includ- costs associated with a bond offering are deferred and ing loans in nonaccrual status. The accumulated provi- amortized over the period during which the related sion is periodically adjusted based on a review of the indebtedness is outstanding. The unamortized balance prevailing circumstances. Adjustments to the accumu- of the issuance costs is included in Other Assets on the lated provision are recorded as a charge or addition to balance sheet, and the issuance costs amortization is income. In the context of determining the adequacy of presented as a separate element under Borrowing the Accumulated Provision for Loan Losses, IBRD Expenses on the income statement. Amortization of considers the present value of expected cash flows rel- discounts and premiums is included in Interest under ative to the contractual cash flows for loans. Borrowing Expenses on the income statement. Investments: Investment securities are classified based IBRD uses derivatives in its borrowing and liability on management's intention on the date of purchase. management activities to create synthetic debt instru- Securities which management has the intention and ments to take advantage of cost saving opportunities ability to hold until maturity are classified as Held-to- across capital markets and lower its funding costs, to maturity and reported at amortized cost. Securities delink the time at which its borrowing costs are fixed designated for other postretirement benefits are car- from the timing of the actual market borrowings, and ried and reported at market value or at their estimated to establish an appropriate match between the cur- fair values. The changes in the values of the securities rency and interest rate characteristics of its assets and designated for other postretirement benefits are liabilities. These instruments include currency and included in the determination of net income. All other interest rate swaps, swap spread-locks, foreign investment securities are held in a Trading portfolio exchange forwards, exchange-traded futures and and classified as an element of liquidity in the State- options. These derivatives are used to modify the ment of Cash Flows due to their nature and IBRD's interest rate and/or currency characteristics of the bor- policies governing the level and use of such invest- rowing portfolio and are linked to the related borrow- ments. Investment securities and related financial ings at inception and remain so throughout the terms instruments held in IBRD's Trading portfolio are car- of their contracts. The interest component of these ried and reported at market value. Unrealized gains derivatives is recognized as an adjustment to the bor- and losses for investment securities and related finan- rowing cost over the life of the derivative contract and cial instruments held in the Trading portfolio are included in Interest under Borrowing Expenses on the included in income. Derivative instruments are used in income statement. Upon termination, the change in liquidity management to take advantage of profitable the derivative's market value is recorded as an adjust- trading opportunities and as a proxy for cash securi- ment to the carrying value of the underlying borrow- ties. These instruments include short-term, over-the- ing and recognized as an adjustment of the borrowing counter foreign exchange forwards, currency swaps, cost over the remaining life of the borrowing. In cross-currency interest rate swaps, interest rate swaps, instances where the underlying borrowing is prepaid, and exchange-traded futures and options on fixed the change in the associated derivative's market value income instruments. These derivatives are carried at is recognized immediately as an adjustment to the cost market value. From time to time, IBRD enters into of the underlying borrowing instrument and accord- forward contracts for the sale or purchase of invest- ingly in the determination of net income. Currency ment securities; these transactions are recorded at the swap payables and receivables are recorded on a his- time of commitment. torical cost basis and are separate items on the balance sheet. The notional principal on interest rate swaps is Securities Purchased Under Resale Agreements and treated as an off-balance sheet item. Securities Sold Under Repurchase Agreements and Payable for Cash Collateral Received: Securities pur- Fair Value Disclosures: Financial instruments for chased under resale agreements and securities sold which market quotations are available have been val- under repurchase agreements are recorded at histori- ued at the prevailing market value. Financial instru- cal cost. IBRD takes possession of securities purchased ments for which market quotations are not readily IBRD FINANCIAL STATEMENTS: JUNE 30, 2000 43 available have been valued using methodologies and Currencies Subject to Restrictions: A portion of capi- assumptions that necessarily require the use of subjec- tal subscriptions paid in to IBRD has been paid in th)e tive judgments. Accordingly, the actual value at which local currencies of the members. These amounts, such financial instruments could be exchanged in a referred to as restricted currencies, are usable by IBR D current transaction or whether they are actually in its lending operations, only with the consent of tl e exchangeable is not determinable. respective members, and for administrative expense . Accounting and Reporting Developments Maintenance of Value: Of the total amount of $52: In June 1998, the Financial Accounting Standards million ($453 million-June 30, 1999) included in Board (FASB) issued Statement of Financial Account- Amounts to Maintain Value of Currency Holdings, ing Standards (SFAS) No. 133, "Accounting for Deriv- which has been deducted from equity, $169 million ative Instruments and Hedging Activities". This ($87 million-June 30, 1999) represents MOV statement will significantly change accounting and receivables for countries that have amounts in arrears reporting standards for all derivative instruments, and for two years or more. IBRD still considers these hedging activities. It requires a company to recognize MOV receivables in arrears as obligations due from all derivatives as either assets or liabilities on the bal- the members concerned. The remaining $353 million ance sheet and to measure those instruments at fair ($366 million-June 30, 1999) represents net MOV value. The effective date of this standard was delayed amounts relating to restricted currencies out on loan by one year, to fiscal years beginning after June 15, that become payable under the same terms as other 2000 by the issuance of SFAS No. 137. In June 2000 MOV obligations only after such currencies are repaid SFAS No. 133 was further amended by SFAS No. 138 to IBRD. "Accounting for Certain Derivative Instruments and Membership: In February 1993, IBRD's Executive Certain Hedging Activities" which addresses a limited Directors decided that the former Socialist Federal number of implementation issues. Republic of Yugoslavia (SFRY) had ceased to be a In addition, in December 1998, the International member of IBRD and that the Republic of Bosnia and Accounting Standards Committee (IASC) issued Herzegovina (now called Bosnia and Herzegovina), International Accounting Standard (IAS) 39 "Financial the Republic of Croatia, the former Yugoslav Republic Instruments: Recognition and Measurement". IAS 39 of Macedonia, the Republic of Slovenia and the Fec.- requires that all financial assets and liabilities, includ- eral Republic of Yugoslavia (Serbia and Montenegro) ing derivatives, be included on the balance sheet and is (FRY) are authorized to succeed to the SFRY's mem- effective for fiscal years beginning on or after January bership when certain requirements are met, includi rig 1, 2001 although earlier application is permitted. entering into a final agreement with IBRD on IBRE 's IBRD intends to adopt the provisions of IAS 39 in fis- loans made to or guaranteed by the SFRY which the cal year 2001. Therefore, for IBRD, IAS 39 and SFAS particular successor Republic would assume. Four of No.133 along with its amendments under SFAS No. the five successor Republics-Bosnia and Herzegov- 138 will be effective for the fiscal year beginning July ina, Croatia, Slovenia and the former Yugoslav Repub- 1, 2000. IBRD is currently in the process of evaluat- lic of Macedonia-have become members of IBRD. ing the potential impact, including transition adjust- The paid-in portion of the SFRY's subscribed capiti I ment, of these standards on its financial statements. allocated to the FRY is included under Payments on Account of Pending Subscriptions until the require- ments of succession are met. NOTE A-CAPITAL STOCK, RESTRICTED CUR- RENCIES, MAINTENANCE OF VALUE, AND NOTE B-INVESTMENTS MEMBERSHIP Capital Stock: At June 30, 2000, IBRD's capital com- As part of its overall portfolio management strategy, prised 1,581,724 (1,581,724-June 30, 1999) autho- IBRD invests in government and agency obligation<, rized shares, of which 1,563,443 (1,560,243-June time deposits, asset-backed securities, repurchase 30, 1999) shares had been subscribed. Each share has agreements, securities loans, resale agreements and a par value of 0.1 million 1974 SDRs, valued at the related financial instruments with off-balance sheet rate of $1.20635 per 1974 SDR. Of the subscribed risk including futures, forward contracts, currency capital, $11,418 million ($11,395 million-June 30 swaps, cross-currency interest rate swaps, interest rite 1999) has been paid in, and the remaining $177,188 swaps, options and short sales. million ($176,825 million-June 30, 1999) is subject For government and agency obligations, IBRD may to call only when required to meet the obligations of only invest in obligations issued or unconditionally IBRD created by borrowing or guaranteeing loans. guaranteed by governments of countries with a mir i- mum credit rating of AA; however, if such obligations are denominated in the home currency of the issuer, 44 THE WORLD BANK ANNUAL REPORT 2000 no rating is required. IBRD may only invest in obliga- ited to the change in market value of the futures and tions issued by an agency or instrumentality of a gov- options contracts. Futures contracts generally entail ernment of a country, a multilateral organization or daily settlement of the net cash margin. any other official entity with a minimum credit rating For options, IBRD only invests in exchange-traded of AA. For asset-backed securities, IBRD may only 'i . . . invest in securities w ith a AAA credit rating. options. The inital price of an option contract is equal to the premium paid by the purchaser and is sig- With respect to futures and options, IBRD generally nificantly less than the contract or notional amount. closes out most open positions prior to maturity. IBRD does not write uncovered option contracts as Therefore, cash receipts or payments are mostly lim- part of its investment portfolio strategy. IBRD FINANCIAI. STATEMENTS: JUNE 30, 2000 45 Liquid Portfofio: A summary of IBRD's position in trading and other liquid portfolio instruments at June 30, 2000 and June 30, 1999 is as follows: In millions of US. dollars equivalent Other All Euroa Japanese yen US. dollars currencies currencies 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999 Trading: Government and agency obligations: Carryingvalue 3,386 1,601 3,596 4,415 911 1,368 34 80 7,927 7,464 Average balance during fiscalyear 2,253 1,569 4,266 4,618 1,020 1,618 53 294 7,592 8,099 Net gains (losses) for the fiscalyear (56) (39) (50) (19) (12) 13 * (118) (45) Average yield(%) 4.87 4.03 (0.18) 0.14 6.77 5.44 6.31 7.67 2.77 1.98 Average maturity (years) 1.52 1.31 1.09 1.62 1.08 1.31 1.27 1.23 1.27 1.54 Time deposits: Carryingvalue 3,252 3,072 289 1,110 7,289 14,406 1,611 1,217 12,441 9,805 Average balance during fiscal year 2,895 3,046 564 1,772 11,790 11,439 1,339 1,363 16,588 7,620 Net gains (losses) for the fiscal year - - - - - _ - - - - Average yield (%) 4.31 2.73 0.08 0.05 6.95 5.42 5.19 2.95 5.87 4.51 Average maturity (years) 0.26 0.18 0.15 0.11 0.13 0.04 0.16 0.20 0.17 0.08 Asset-backed securities: Carrying value - - - - 4,573 3,076 - - 4,573 3,076 Average balance during fiscal year - - - - 3,966 2,398 - - 3,966 2,398 Net gains (losses) for the fiscal year - - - - (1) (6) - - (1) (6) Average yield (%) - - - - 6.60 5.39 - - 6.60 5.39 Average maturity (years) - - - - 7.55 6.21 - - 7.55 6.21 Options, futures and forwards: Carrying value (*) * -* ( ) Average balance during fiscal year 2 * * (*) 2 * Net gains (losses) for the fiscal year I (*) (*) I 1 (M) 2 1 Total Trading Investments** Carrying value 6,638 4,673 3,885 5,525 12,773 18,850 1,645 1,297 24,941 30,345 Average balance during fiscalyear 5,150 4,615 4,830 6,390 16,776 15,456 1,392 1,657 28,148 .78,118 Net gains (losses) for the fiscalyearb (55) (39) (50) (19) (12) 8 * (117) (50) Repurchase agreements & securities loans: Carrying value -1 - _ _ _ (102) - - - (102) Average balance during fiscal year - (26) _ (76) (272) - (12) (76) (310) Average cost (%) - - - - - 4.91 - - - 4.91 Average maturity (years) - - - - - - - - Resale agreements: Carrying value - - - - 101 6 - - 101 6 Average balance during fiscalyear 3 39 - - 204 265 - 11 207 315 Averageyield(%) - - - - 6.50 4.10 - - 6.50 4.10 Average maturity (years) - - - - 2.38 - - 2.38 * 46 THE WORLD BANK ANNUAL REPORT 2000 In millions of US. dollars equivalent Other All Euro" Japanese yen US. dollars currencies currencies 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999 Short sales:' Carrying value - - - (100) (46) - - (100) (46) Average balance during fiscal year - &*) - _ (35) (1) - (*) (35) (1) Currency swaps receivable: Carrying value _ - 4,189 5,087 - - 4,189 5,087 Average balance during fiscalvear 1 3 - 10 3,819 5,017 27 26 3j,47 5,056 Average yield (6) - - - - .71 5.02 - - 6.71 5.02 Average maturity (years) - - - - 0.27 0.19 - - 0.27 0.19 Currency swaps payable: Carrying value (2,9(7) (2,942) (103) (1,002) - - (1,164) (990) (4,174) (4,934) Average balance during fiscal year (2,482) (2,413) (30)2) (1,485) (28) (31) (991) (1,135) (3,803) (5,064) Average cost ("%,6) 4.28 2.7( 0.14 (.05 - - 5.39 2.56 4.48 2.14 Average maturity (years) 0.30 (.18 0.39 0.16 - - 0.22 0.25 0.28 0.19 Cross-currency interest rate swaps receivable:2 Carrying value - 291 245 6,837 6,088 - - 7,128 6,333 Average balance during fiscal year - - 277 38 6,232 5,863 - - 6,509 5,901 Net gains (losses) for the fiscal year b _ (3) (2) (M) 5 _- (3) 3 Average yield ('l)) - - 0.41 0.48 6.50 5.12 - 6.25 4.94 Average maturity (years) - - 1.12 1.68 1.30 1.53 - - 1.30 1.54 Cross-currency interest rate swaps payable:d Carryingvalue (3,381) (1,593) (3,882) (4,651) (258) (238) (21) (67) (7,542) (6,549) Average balance during fiscal year (2,251) (1,590) (4,535) (4,234) (251) (112) (55) (283) (7,092) (6,219) Net gains (losses) for the fiscal year b 56 39 54 22 ( ) (1) (M) 109 61 Average cost('3) 4.87 4.0)3 (0.14) 0.19 6.50 5.07 6.31 7.67 2.33 1.37 Average maturity (years) 1.54 1.33 1.12 1.63 1.28 1.64 1.27 1.23 1.31 1.55 Net Interest rate swvaps:d Carrying value - - - - (4) (18) - - (4) (18) Average balance during fiscal year _ __ - (10) (47) -_- (10) (47) Net gains (losses) for the fiscalyearb - - - 17 (18) - - 17 (18) Average cost ('Y,) - _ - - (0.07) (0.09) - - (0.07) (0.09) Average maturity (years) __ - - 1.18 1.66 - - 1.18 1.66 a. Effective January 1, 1999, trIe euro uas introduced. For reporting purposes, holdinigs in the eleven national currencies that are consid- ered national currency units of the euro have been aggregated with the euro and reported as euro in both the current and prior year b. Included in Net gainzs (losses) on the Trading portfolio in the incomZe statemnent. c. Included in Amounts Payable tor Investment Securities Purchased on the balance sheet. d. Included in Currency Stvaps- 'radingon the balance sheet. Less than $0.5 million, 0.005 percent, or 0.05 years. May differfrom the sum of individual figures due to rounding. IBRD FINANCIAL STATEMENTS: JtJNE 30, 2000 47 Held-to-maturity portfolio: During fiscal year 1999, Single Currency Loans IBRD liquidated the securities in the held-to-maturity Fixed rate loans: IBRD introduced fixed rate single portfolio and thereby realized a gain of $237 million. currency loans in 1995. The rates charged on fixed Assets designated for other postretirement benefits rate single currency loans are set on semi-annual rati plans: During fiscal year 1999, the Retired Staff Ben- fixing dates for loan amounts disbursed during the efits Plan (RSBP) was modified and as a result, the preceding six-month period and remain fixed for such assets and liabilities designated for the health and life disbursed amounts until they are repaid. For the insurance accounts were removed from the balance interim period from the date each disbursement is sheet. made until its rate fixing date, interest accrues at a variable rate equal to the rate on LIBOR-based single currency loans applicable for such interim period. TI- e NOTE C-LOANS, COFINANCING AND fixed lending rate comprises a base rate reflecting GUARANTEES medium- to long-term market rates on the semi- annual rate-fixing date for loan amounts disbursed IBRD's loan portfolio includes multicurrency loans, a single currency pool loans, single currency loans, and during the preceding six-month period, plus a total fixed spread loans. Each of these is described below, spread consisting of (a) IBRD's funding cost margin for these loans in the loan currency, (b) a market rislk Multicurrency Loans premium (intended to compensate IBRD for market Fxrtlnoto July risks incurred in funding these loans), and (c) a lend Fixed rate loanls: On loans negotiated prior ing spread . 1982, IBRD charges interest at fixed rates. ing spread. Idln 1982, IBRD mitigated its Variable Spread loans: IBRD introduced variable Adjustable rate loans: In from IxeD ratedjst- spread single currency loans in 1993. The rates interest rate risk by moving from fixed rate to adjust- charged on variable spreasigecrny l onara able rate lending. This rate, reset twice a year, is based pass-through of IbRDes cs d sfunge c furrency loans are , on IBRD's own cost of qualified borrowings plus a and aretreset semI-annually They comrisese rate lending spreada, resulting in a pass-through of its aver- equal to the six-month rneufyThey cmprise a base rate age borrowing costs to those members that benefit rato the aicable rrency onteratered from IBRD loans. rate for the applicable currency on the rate reset dat and a total spread consisting of (a) IBRD's average Single Currency Pool Loans funding cost margin for these loans and (b) a lending In fiscal year 1997, IBRD offered its borrowers the spread. opportunity to convert their existing multicurrency Certain variable spread single currency loans, includ- pool loans to single currency pools. These pools were ing the Special Structural and Sector Adjustment available in four currencies (U.S. dollar, Japanese yen, Loans introduced in fiscal year 1999, have non-stan- Deutsche mark, or Swiss franc). At inception, each dard terms. These loans have a fixed spread ranging single currency pool reflected the composition of the from 75 to 400 basis points over LIBOR, a front-enc6 multicurrency pool. However, as of June 30, 1999, all fee, and are not eligible for waivers of interest or comn- of the pools had exceeded the 90% target in the desig- mitment charges. nated currency. All adjustable rate multicurrency pool loans that were converted to single currency pools Fixed Spread Loans carry the applicable pool's adjustable lending rate, During the first quarter of fiscal year 2000, IBRD reset semi-annually to reflect the previous semester introduced fixed-spread loans. These loans have an average cost of outstanding borrowings allocated to interest rate based on LIBOR plus a spread that will be fund that pool weighted by the shares of currencies in fixed for the life of the loan. The spread is currently the pool, plus a spread of 50 basis points. Any fixed 55 basis points for U.S. dollar and euro denominated rate multicurrency pool loans that were converted to loans, and 45 basis points for Japanese yen denomi- single currency pools continued to carry their fixed nated loans. A commitment charge premium of 10 rate. basis points over the standard 75 basis points charged on other IBRD loans will be included for the first four years from the date the commitment charge begins to accrue. a. Until July 31, 1998, the lending spread was 50 basis Borrowers selecting this product have the flexibility to points. However, during the first quarter of fiscal year change the currency or interest rate basis over the life 1999, the lending spread charged by IBRD to its borrowers of the loan, subject to certain conditions. was increased by 25 basis points to 75 basis points for loans where the invitation to negotiate was issued on or after July 31, 1998. In addition, a front-end fee of 100 basis points, payable for each such loan at the time it becomes effective, was introduced. 48 THE WORLD BANK ANNUAL REPORT 2000 XVaivers of Loan Interest and Commitment million (S102 million-June 30, 1999, $241 million- Charges June 30, 1998). For payment periods beginning during the fiscal year A one-year commitment charge waiver of 50 basis ended June 30, 2000, an interest waiver of five basis points was in effect on all eligible undisbursed loans to points on disbursed and outstanding loans to eligible all borrowers for all pavment periods commencing in borroxvers was in effect, except that for new loans the fiscal year ending June 30, 2000. A similar waiver where the invitation to negotiate was issued on or tefsa eredn ue3,20.Asmlrwie aftereh Ju nvitation98 wbic carry a 7asiss points lend of 50 basis points was in effect for the fiscal vears after July 31, 1998, xvhich carry a 75 basis points lend- ended June 30, 1999 and June 30, 1998. For the fiscal ing spread, the interest waiver was 25 basis points. A year ended June 30, 2000, the effect of the commit- similar waiver was in effect for the fiscal year ended ment charge waiver was to reduce Net Income by June 30, 1999. For the fiscal year ended June 30, $207 million ($229 million-June 30, 1999, $211 1998, a waiver of 25 basis points xvas in effect. For the million-June 30, 1998). fiscal year ended June 30, 2000, the combined effect of these waivers was to reduce Net Income by $59 A summary of IBRD's outstanding loans by currency and product at June 30, 2000 and June 30, 1999 follows: In millions of US. dollars equivalent 2000 Eurod Japanese yen US. dollars Others Loans Outstanding Fixed Adjust. Fixed Adjust. Fixed Adjust. Fixed Adjust. Fixed Adjust. Total Multicurrencv loansb Amount $ 386 $10,004 $364 $12,622 $ 479 $11,283 $221 $1,641 $ 1,450 $ 35,550 $ 37,000 Weighted average rate (,(,%) 8.28 5.23 8.30 5.23 8.08 5.28 7.92 5.23 8.16 5.24 5.36 Single currency pools Amount S 7 $ 3,860 $ - $ 68 8 63 S31,424 S - $ - S 70 $ 35,352 $ 35,422 Weighted average rate(5% 10.61 6.71 4.05 11.06 8.66 - - 11.01 8.44 8.44 Average Maturity (years) 0.85 4.31 - 3.50 0.84 4.63 - - 0.84 4.59 4.59 Single currency loans Amount $ 463 $ 1,126 $ - S 160 $12,486 $32,476 $ - $ 3 $12,949 $ 33,765 $ 46,714 W'eighted average rate (tIl< 5.46 4.50 - 0.35 6.76 7.29 - 3.25 6.71 7.16 7.04 Average Maturity (years) 5.20 6.81 7.84 5.45 6.47 - 4.97 5.44 6.48 6.20 Fixed Spread Loans Amount $ 229 8 - S - $ 8 - $ 739 8 - - 229 $ 739 $ 968 NVeighted average rate (24 6.36 _ - - - 7.57 - - 6.36 7.57 7.28 Total loans Amounit $1,085 $14,990 $364 $12,850 $13,028 $75,922 $221 $1,644 $14,698 $105,406 $120,104 Weighted average rate (11(4T 6.69 5.55 8.30 5.16 6.83 7.56 7.92 5.23 6.87 6.95 6.94 Total loans $120,104 Less accumtulated provision for loan losses and deferred loan income 3,860 Net loans otutstanding $116,244 Note: Forfootnotes seefollowingpage. IBRD FINANCIAL STATEMENTS: JUNE 30, 2000 49 In millions of US. dollars equivalent 1999 Euroa Japanese yen US. dollars Others Loans Outstanding Fixed Adjust. Fixed Adjust. Fixed Adjust. Fixed Adjust. Fixed Adjust. Total Multicurrency loansb Amount $786 $11,815 $661 $11,756 $774 $11,949 $390 $1,704 $2,611 $37,224 $39,835 Weighted average rate (%)C 8.81 6.04 8.85 6.04 8.46 6.06 8.12 6.04 8.61 6.05 6.21 Single currency pools Amount $18 $5,067 $- $74 $149 $35,385 $- $- $167 $40,526 $40,693 Weighted average rate (%)C 10.83 6.45 - 5.42 10.54 7.97 - - 10.58 7.78 7.79 Average Maturity (years) 0.96 4.61 - 3.73 0.94 5.03 - - 0.95 4.98 4.96 Single currency loans Amount $360 $719 $- $132 $8,759 $26,727 $- $3 $9,119 $27,581 $36,700 Weighted average rate (%)C 5.30 2.92 - 0.33 6.45 5.70 - 1.27 6.41 5.60 5.80 Average Maturity (years) 5.63 6.60 - 8.62 5.85 7.26 - 4.61 5.84 7.24 6.90 Total loans Amount $1,164 $17,601 $661 $11,962 $9,682 $74,061 $390 $1,707 $11,897 $105,331 3117,228 Weighted average rate (%)C 7.76 6.03 8.85 5.97 6.67 6.84 8.12 6.03 6.95 6.60 6.63 Total loans S117,228 Less accumulated provision for loan losses and deferred loan income 3,923 Net loans outstanding $113,305 a. Effective January 1, 1999, the euro was introduced. For reporting purposes, amounts in the eleven national currencies that are considered national currency units of the euro have been aggregated with the euro and reported as euro in both the current and prior year b. Average Maturity - Multicurrency loans. IBRD maintains a targeted currency composition in its multicurrency loans. The present target ro tio is one US. dollar for every 125 Japanese yen and one euro. These three major currencies comprise at least 90% of the multicurrency loans' U ' dol- lar equivalent value, with the remainder in other currencies. This ratio was changed in January 1999 as a result of the introduction of the euro. The composition of the multicurrency loans is affected by the selection of currencies for disbursements on those loans and by the currencies selected for the billing of the principal repayments. Along with the selection of disbursement currencies, IBRD manages the selection of repayment currencies to maintain the alignment of the multicurrency loans' composition with the target ratio. The selection of currencies for repayment biling by IBRD precludes the determination of average maturity information for multicurrency loans by individual currency. Accordingly, IBRD only discloses the maturity periods for its multicurrency loans on a combined US. dollars equivalent basis. c. Excludes effects of any waivers of loan interest. 50 THE WORLD BANK ANNUAL REPORT 2000 The maturity structure of IBRD's loans at June 30, 2000 and June 30, 1999 is as follows: In millions 2000 July 1, 2000 through July 1, 2001 through July 1,2005 through Product/Rate Type June 30, 2001 June 30, 2005 June 30, 2010 Thereafter Total Multicurrency loans Fixed $ 960 $ 429 $ 61 $ - S 1,450 Adjustable 4,531 15,097 12,717 3,205 35,550 Single currency pools Fixed 42 28 - - 70 Adjustable 4,728 16,157 11,949 2,518 35,352 Single currency loans Fixed 324 5,790 6,130 705 12,949 Adjustable 684 13,504 13,491 6,086 33,765 Fixed Spread Loans Fixed -I 10 95 124 229 Adjustable - - 687 5 2 739 All Loans Fixed 1,326 6,257 6,286 829 14,698 Adjustable 9,943 44,758 38,844 11,861 105,406 Total loans outstanding $1,l269 $51,015 $45,130 $12,690 $120,]04 In millions 1999 July 1, 1999 through July 1, 2000 through July 1,2004 through Product/Rate Type June 30, 2000 June 30, 2004 June 30, 2009 Thereafter Total Multicurrency loans Fixed $ 1,452 $ 1,041 $ 117 $ l $ 2,611 Adjustable 4,283 15,072 13,546 4,323 37,224 Single currency pools Fixed 97 70 - 167 Adjustable 4,823 17,496 14,307 3,900 40,526 Single currency loans Fixed 178 3,660 4,623 658 9,119 Adjustable 395 8,543 12,495 6,148 27,581 All Loans Fixed 1,727 4,771 4,740 659 11,897 Adjustable 9,501 41,111 40,348 14,371 105,331 Total loans outstanding $11,228 S4 8 82 $45,088 $_5,030 $117,228 Estimated Value of Loans ble market yield curves plus IBRD's relevant basis point All of IBRD's loans are made to or guaranteed by countries lending spread adjusted for waivers. that are members of IBRD, except for those loans made to The following table reflects the carrying and estimated val- IFC. IBRD does not currently sell its loans, nor is there a ues of the loan portfolio at June 30, 2000 and June 30, market for loans comparable to those made by IBRD. 1999: The estimated value of all loans is based on a discounted cash flow method. The estimated cash flows from princi- pal repayments and interest are discounted by the applica- IBRD FINANCIAI. STATEMENTS: JtNE 30, 2000 51 In millions 2000 1999 Carrying Estimated Canying Estimated value value value value Multicurrency loans Fixed $ 1,450 $ 1,480 $ 2,611 $ 2,763 Adjustable 35,550 37,487 37,224 39,940 Single currency pools Fixed 70 73 167 174 Adjustable 35,352 36,603 40,526 43,646 Single currency loans Fixed 12,949 12,433 9,119 8,873 Adjustable a 33,765 33,735 27,581 27,547 Fixed Spread loans Fixed 229 231 - - Adjustable 739 739 - - Total loans Fixed 14,698 14,217 11,897 11,810 Adjustable 105,406 108,564 105,331 111,133 Total loans outstanding 120,104 122,781 117,228 122,943 Less accumulated provision for loan losses and deferred loan income 3,860 3,860 3,923 3,923 Netloansoutstanding $116,244 $118,921 $113,305 $119,020 a. Amount includes carrying value of $10,800 million ($9,035 million-June 30, 1999) and estimated value of $10,789 mil- lion ($9,024 million-June 30, 1999) for non-standard single currency loans. Cofinancing and Guarantees Overdue Amounts IBRD has taken direct participations in, or provided At June 30, 2000, in addition to those loans referred partial guarantees of, loans syndicated by other finan- to in the following paragraph, principal installments of cial institutions for projects or programs also financed $3 million and charges of $2 million payable to IBRD by IBRD through regular loans. IBRD also has pro- on loans, were overdue by more than three months. vided partial guarantees of securities issued by an At June 30, 2000, the aggregate principal amounts entity eligible for IBRD loans. IBRD's partial guaran- outstanding on all loans to any borrower, other than tees of bond issues are included in the guarantees those referred to in the following paragraph, with any amount mentioned below. IBRD's direct participa- loan overdue by more than three months, was $460 tions in syndicated loans are included in the reported million. loan balances. At June 30, 2000, the loans made to or guaranteed by Guarantees of loan principal of $1,661 million at June certain member countries and the FRY with an aggre- 30, 2000 ($1,973 million-June 30, 1999), were not gate principal balance outstanding of $2,031 million included in reported loan balances. At June 30, 2000, ($2,053 million-June 30, 1999), of which $1,302 $467 million of these guarantees were subject to call million ($1,249 million-June 30, 1999) was overdue, ($466 million-June 30, 1999). In some cases, IBRD were in nonaccrual status. At such date, overdue inter- guarantees have included interest payments in addi- est and other charges in respect of these loans totaled tion to principal. At June 30, 2000, interest guaran- $1,060 million ($1,011 million-June 30, 1999). If tees of $10 million ($3 million-June 30, 1999) were these loans had not been in nonaccrual status, income subject to call. from loans for the fiscal year ended June 30, 2000, would have been higher by $52 million ($55 million-- June 30, 1999, $84 million-June 30, 1998). C}2 THE WORLD BANK ANNUAL REPORT 2000 A summary of countries with loans or guarantees in nonaccrual status follows: In millions 2000 Principal Principal and Nonaccrual Borrower outstanding charges overdue since Witlt overdues Congo, Democratic Republic of S 81 $ 113 November 1993 Congo, Republic of 67 55 November 1997 Iraq 38 66 December 1990 Liberia 133 291 June 1987 Syrian Arab Republic 31 130 February 1987 Yugoslavia, Federal Republic of (Serbia/ Montenegro) 1,111 1,707 September 1992 Total 1,461 2,362 Without overdues Bosnia and Herzegovina 569 - September 1992 Sudan 1 January 1994 Total $2,031 S2,362 a. Represents interest and charges overdue. During fiscal year 1999, Sudan reached an under- In June 1996, the accumulated arrears on loans to the standing with IBRD and IDA under which Sudan former SFRY assumed by Bosnia and Herzegovina agreed to make regular monthly payments of $1 mil- were cleared through three new consolidation loans lion commencing in July 1999. These payments are extended by IBRD. These new loans consolidated all being applied first to IBRD arrears and then to arrears outstanding principal and overdue interest on the with IDA. As of June 30, 2000, Sudan had paid off all loans assumed by Bosnia and Herzegovina. This of its arrears to IBRD. resulted in an increase in loans outstanding of $168 million and the deferral of the recognition of the During fiscal year 1998, the Syrian Arab Republic and reliatd itheres income. IBRD entered into an agreement covering, among other things, the application of payments by Syria of The average recorded investment in nonaccruing loans its overdue principal, interest, and charges. Under this during the fiscal year ended June 30, 2000, was agreement, Syria paid the overdue principal to IBRD $2,057 million ($2,084 million-June 30, 1999, in one payment of $263 million on September 2, 1997 $2,138 million-June 30, 1998). and has been making monthlv payments to IBRD since then. During the fiscal years ended June 30, 2000, and June 30, 1999, no loans went into or came out of nonac- In connection with the cessation of the membership of crual status. the SFRY discussed in Note A, in February 1993, IBRD reached an agreement with the FRY for the Accumulated Provision for Loan Losses apportionment and service of debt due to IBRD on IBRD has never suffered a loss on any of its loans, wvith loans made to or guaranteed by the SFRY and assumed the exception of losses resulting from the difference by the FRY, which confirmed a February 1992 interim between the discounted present value of expected agreement between the SFRY (then consisting of the payments for interest and charges according to the Republics of Bosnia and Herzegovina, Macedonia, related loan's contractual terms and the actual cash Montenegro and Serbia) and IBRD pertaining, among flows. Certain borrowers have found it difficult to other things, to such loans. As of the date hereof, no make timely payments for protracted periods, result- debt-service payments have been received by IBRD ing in their loans being placed in nonaccrual status. from the FRY. Several borrowers have emerged from nonaccrual sta- IBRD FINANCIAL STATEMENTS: JU-NE 30, 2000 53 tus after a period of time by bringing up-to-date all their debt burdens to sustainable levels. IBRD has principal payments and all overdue service payments, taken the situation of these countries into account in including interest and other charges. In an attempt to its review of the adequacy of the Accumulated Provi- recognize the risk inherent in these and any other sion for Loan Losses. potential overdue payments, IBRD maintains an accu- mulated provision for loan losses. Of the Accumu- Fifth Dimension Program lated Provision for Loan Losses of $3,400 million at Under IDA's Fifth Dimension program established in June 30, 2000 ($3,560 million-June 30, 1999), $700 September 1988, a portion of principal repayments to million is attributable to the nonaccruing loan portfo- IDA are allocated on an annual basis to provide sup- lio ($700 million-June 30, 1999). plementary IDA credits to IDA-eligible countries that Changes to thAcuultePovare no longer able to borrow on IBRD terms, but have Changes to the Accumulated Provision for Loan outstanding IBRD loans approved prior to September Losses for the fiscal years ended June 30, 2000, June 1988 and have in place an IDA-supported structural 30, 1999 and June 30, 1998 are summarized below: 18 n aei lc nIAspotdsrcua adjustment program. Such supplementary IDA credits In millions are allocated to countries that meet specified condi- tions, in proportion to each country's interest pay- 2000 1999 1998 ments due that year on its pre-September 1988 IBRD loans. To be eligible for such IDA supplemental cred- Balance, beginning of its, a member country must meet IDA's eligibility crn- the fiscal year $3,560 $3,240 $3,210 teria for lending, must be ineligible for IBRD lending Provision for loan losses (166) 246 251 and must not have had an IBRD loan approved within Translation adjustment 6 74 (221) the last twelve months. To receive a supplemental credit from the program, a member country cannot be Balance, end of the more than 60 days overdue on its debt-service pay- fiscal year $3,400 $3,560 53,240 ments to IBRD or IDA. At June 30, 2000, IDA had approved credits of $1,659 million ($1,623 million-- June 30, 1999) under this program from inception, of During fiscal year 2000, an assessment of the probable which $1,630 million ($1,604 million-June 30, losses inherent in the portfolio at June 30, 2000, com- 1999) had been disbursed to the eligible countries. pared to June 30, 1999, resulted in a reduction of the provisioning requirements, due to a decline in the NOTE D-BORROWINGS credit risk of certain large borrowers. As a result, the corresponding reduction in the accumulated provision Providing liquidity and minimizing the cost of funds for loan losses for this fiscal year resulted in an are key objectives to IBRD's overall borrowing strat- increase in net income. egy. IBRD uses swaps in its borrowing strategy to lower the overall cost of its borrowings for those IBRD has endorsed a multilateral initiative for members who benefit from IBRD loans. IBRD under- addressing the debt problems of a group of countries, takes swap transactions with a list of authorized coun- identified as heavily indebted poor countries (HIPCs), terparties. Credit limits have been established for to ensure that the reform efforts of these countries each counterparty. Swaps include currency swaps, will not be put at risk by unsustainable external debt interest rate swaps, forward interest rate swaps, and burdens. Under this initiative, creditors are to provide swaptions. debt relief for those countries that demonstrated good policy performance over an extended period to bring 54 THE WORLD BANK ANNUAL REPORT 2000 A summary of IBRD's borrowings portfolio at June 30, 2000 and June 30, 1999 follows: Medium- and Long-term Borrowvings and Swaps at June 30, 2000 In millions of US. dollars equivalent Currency Interest rate Direct borrowings swap agreements" swap agreements Net currency obligations WlZgtd. 1Vgtd. Notionial Wgtd. 14/gtd. avg. Average Amount auvg Average amount avg. Average Amount avg Average Currency/ cost maturint payable cost maturitv payable cost maturity payable cost maturityb Rate type Amount (%6) (years) (receivable) (%Yf) (years) (receivable) (%N)) (years) (receivable) (%o) (years) Euro' Fixed $14,418 6.71 5.53 $ 2,944 7.11 1.66 $ 3,731 6.38 3.51 $ 21,093 6.70 4.64 (13,050) 6.90 4.87 (1,591) 5.62 3.47 (14,641) 6.76 4.72 Adjustable 5,707 5.43 8.97 8,477 4.08 2.54 1,564 4.49 3.26 15,748 4.61 4.94 (6,481) 5.19 8.43 (3,711) 4.33 3.45 (10,192) 4.88 6.62 Japanese yen Fixed 12,334 4.97 4.82 51 4.98 1.41 4,761 0.84 1.21 17,146 3.82 3.80 (8,268) 5.05 4.14 (3,123) 2.74 4.45 (11,391) 4.42 4.22 Adjustable 2,857 3.70 1).99 5,174 (0.22) 0.90 3,123 0.07 4.45 11,154 0.86 4.48 (2,805) 2.10 11.57 (4,761) 0.12 1.21 (7,566) 0.86 5.05 U. S. dollars Fixed 45,816 6.48 5.22 13,629 9.16 3.20 15,448 5.98 7.84 74,893 6.86 5.39 (1,158) 8.26 1.0)9 (40,011) 5.93 4.46 (41,169) 6.00 4.37 Adjustable 1,757 6.58 4.86 38,452 6.46 6.45 39,762 6.39 4.37 79,971 6.43 5.38 (12,055) 6.46 1.84 (15,223) 6.60 7.68 (27,278) 6.54 5.11) Others Fixed 22,522 7.37 5.04 1,296 5.64 0.73 390 7.08 1.30 24,208 7.27 4.75 (22,881) 7.27 4.54 (158) 6.66 6.26 (23,039) 7.27 4.56 Adjustable 243 7.46 0.55 390 1.58 1.23 158 5.85 6.26 791 4.24 2.02 (401) 8.36 2.80 (390) 3.10 1.30 (791) 5.76 2.06 Total Fixed 95,090 6.53 5.17 17,920 24,330 137,340 6.53 4.97 (45,357) (44,883) (90,24(0) 6.25 4.45 Adjustable 10,564 5.20 8.64 52,493 44,607 107,664 5.57 5.20 (21,742) (24,085) (45,827) 5.22 5.37 Principal at face value 105,654 6.39 5.52 3,314 (31) 108,937 6.37 Net unamor- tized premium (discount) (5) 186 159 340 Total 5105,649 6.39 5.52 S 3,500 $ 128 $109,277 6.37 a. Currency swap agreements include cross-currency interest rate swvaps. b. At June 30, 2000, the average repricing period of the net currency obligations for adjustable rate borrowings was three months. c. Effective January 1, 1999, the euro was introduced. For reporting purposes, amounts in the eleven national currencies that are considered national currency units of the euro have been aggregated with the euro and reported as euro in both the current and pror year IBRD FINANCIAL STATEMENTS: JUNE 30, 2000 55 Medium- and Long-term Borrowings and Swaps at June 30, 1999 In millions of U.S. dollars equivalent Currency Interest rate Direct borrowings swap agreements' swap agreements Net currency obligations Wgtd. Wgtd. Notional Wgtd. Wgtd. avg. Average Amount avg. Average amount avg. Average Amount avg. Average Currency/ cost maturity payable cost maturty payable cost maturity payable cost maturityb Rate type Amount (%) (years) (receivable) (%) (years) (receivable) (%) (years) (receivable) (%) (ye srs) Euro' Fixed $19,054 6.85 5.39 $ 3,550 7.70 1.80 $ 3,445 7.20 3.23 $ 26,049 7.01 4.62 (15,106) 6.91 5.47 (2,838) 5.56 2.95 (17,944) 6.70 5.07 Adjustable 6,840 7.00 9.89 7,172 2.87 2.58 2,867 2.66 2.90 16,879 4.51 5.60 (7,720) 6.36 9.11 (3,463) 3.06 3.22 (11,183) 5.34 7.29 Japanese yen Fixed 15,119 4.97 4.16 63 5.15 2.43 2,811 1.01 1.88 17,993 4.35 3.80 (8,894) 5.14 4.03 (2,792) 2.72 5.34 (11,686) 4.56 4.34 Adjustable 1,969 3.42 8.09 2,780 (0.11) 1.31 2,792 0.14 5.34 7,541 0.90 4.57 (1,629) 0.97 9.90 (2,811) 0.15 1.88 (4,440) 0.45 4.82 U. S. dollars Fixed 42,239 6.45 5.61 16,431 9.15 3.60 10,149 6.18 7.88 68,819 7.05 5.46 (1,802) 6.97 1.50 (32,292) 5.84 5.08 (34,094) 5.90 4.89 Adjustable 1,430 4.99 6.08 37,298 4.94 6.65 32,977 4.94 5.20 71,705 4.94 5.97 (7,062) 4.91 1.60 (10,862) 5.18 8.07 (17,924) 5.07 5.52 Others Fixed 23,283 7.50 5.06 1,641 5.66 1.49 416 7.08 2.30 25,340 7.37 4.78 (24,078) 7.38 4.50 (159) 6.66 7.26 (24,237) 7.38 4.52 Adjustable 355 6.51 1.42 417 0.01 2.23 159 4.82 7.26 931 3.31 2.78 (450) 7.07 3.44 (416) 1.25 2.30 (866) 4.27 2.89 Total Fixed 99,695 6.55 5.22 21,685 16,821 138,201 6.75 4.96 (49,880) (38,081) (87,961) 6.29 4.75 Adjustable 10,594 6.05 8.76 47,667 38,795 97,056 4.54 5.77 (16,861) (17,552) (34,413) 4.54 5.94 Principal at face value 110,289 6.50 5.56 2,611 (17) 112,883 5.88 Net unamor- tized premium 122 167 157 446 Total $110,411 6.50 5.56 $ 2,778 $ 140 $113,329 5.88 a. Currency swap agreements include cross-currency interest rate swaps. b. At June 30, 1999, the average repricing period of the net currency obligations for adjustable rate borrowings was three months. c. Effective January 1, 1999, the euro was introduced. For reporting purposes, amounts in the eleven national currencies that are considered national currency units of the euro have been aggregated with the euro and reported as euro in both the current and prior year 56 THE WORLD BANK ANNUAL REPORT 2000 Short-term Borrowings and Swaps at June 30, 2000 and June 30, 1999 In millions of U.S dollars equivalent 2000 1999 Interest Interest Currency rate Wgtd. Currency rate 11'gtl. swap' swap Net avg swap' swap Net aLg. Currencyl Principal payable payable currency cost Principal payable payable currency cost Rate type outstanding (receivable) (receivable) obligationsb (%)) outstanding (receivable) (receivable) obligations (%) Euroc Fixed $ - $- - $ - S - $ 281 S- $ 281 4.71 Hong Kong dollars Fixed - - - - 451 - - 451 12.33 - - - - (451) - (451) 12.33 Japanese yen Fixed - - 556 556 0.21 - 12 - 12 I.S3 - -- - - (278) - (278) 5.29 Adjustable - - - - - - (556) (556) 0.20 Polish zlotys Fixed 215 - - 215 16.13 (215) 3 (215) 16.13 _ _ _ U. S. dollars Fixed 3,319 - - 3,319 6.59 3,606 289 - 3,895 5.31 - (95) (95) 6.65 (332) - (332) 6.06 Adjustable 1,196 220 100 1,516 5.98 1,188 536 - 1,724 4.71 - (6) (6) 1.67 - - - _ South African rand Fixed - - - - - 83 - - 83 15.96 _ - _ - (83) - (83) 15.96 Total Fixed 3,534 - 556 4,090 6.23 4,140 582 4,722 6.12 (215) (95) (310) 13.22 (1,144) - (1,144) 9.1)6 Adjustable 1,196 220 100 1,516 5.98 1,188 536 - 1,724 4.71 - (562) (562) 0.22 - - _ Principal at face value 4,730 5 (1) 4,734 6.40 5,328 (26) - 5,302 5.02 Net unamortized premium - I - I - - Total $4,730 $ 6 S (11 $4,735 6.40 $5,328 $ (26) $- $ 5,302 5.02 a. Currency swap agreements include cross-currency interest rate swvaps. b. At June 30, 2000, the average repricing period of the net currency obligations for short-term borrowings was one month (less than one rmonth--- June 30, 1999.) c. Effective January 1, 1999, the euro was introduced. For reporting purposes, amounts in the eleven national currencies that are coasidered national currency units of the euro have been aggregated with the euro and reported as euro in both the current and prior year IBRD FINANCIAI. STATEMENTS: l.IN1. 30, 2()00 57 The maturity structure of IBRD's Medium-and Long-term borrowings outstanding at June 30, 2000 and June 30, 1999 is as follows: In millions In millions Period 2000 Period 1999 July 1, 2000 through June 30, 2001 $ 14,181 July 1, 1999 through June 30, 2000 $17,900 July 1, 2001 through June 30, 2002 18,431 July 1, 2000 through June 30, 2001 14,319 July 1, 2002 through June 30, 2003 17,669 July 1, 2001 through June 30, 2002 14,682 July I, 2003 through June 30, 2004 8,408 July 1, 2002 through June 30, 2003 15,000 July 1, 2004 through June 30, 2005 9,515 July 1, 2003 through June 30, 2004 8,644 July 1, 2005 through June 30, 2010 22,568 July 1, 2004 through June 30, 2009 25,016 Thereafter 14,882 Thereafter 14,728 Total $105,654 Total $110,289 The following table reflects the carrying and estimated fair values of the borrowings portfolio at June 30, 2000 and June 30, 1999: In millions 2000 1999 Canying Estimated Canying Estimated valuea fair value valuea fair value Short-term $ 4,729 $ 4,726 $ 5,353 $ 5,338 Medium-and long-term 105,042 106,584 109,674 117,858 Swaps Currency Payable 70,632 71,384 70,467 73,736 Receivable (67,126) (68,018) (67,715) (72,371) Interest rate 127 777 140 458 Total $113,404 $115,453 $117,919 $125,019 a. The carrying value is net of unamortized issuance costs of borrowings. The estimated fair values are based on quoted market the share of outstanding loans to any individual bor- prices where such prices are available. Where no rower. The country credit risk is further managed by quoted market price is available, the fair value is esti- financial incentives such as pricing loans using IBRD's mated based on the cost at which IBRD could cur- own cost of borrowing and partial interest charge rently undertake borrowings with similar terms and waivers conditioned on timely payment that give bor- remaining maturities, using the secondary market yield rowers self-interest in IBRD's continued strong inter- curve. The fair value of swaps represents the estimated mediation capacity. Collectibility risk is covered by the cost of replacing these contracts on that date. Accumulated Provision for Loan Losses. IBRD also uses a simulation model to assess the adequacy of its equity including reserves in case a major borrower, or NOTE E-CREDIT RISK group of borrowers, stops servicing its loans for an Country Credit Risk: This risk includes potential extended period of time. losses arising from protracted arrears on payments Commercial Credit Risk: For the purpose of risk mar,- from borrowers. IBRD manages country credit risk agement, IBRD is party to a variety of financial instru- through individual country exposure limits according ments, certain of which involve elements of credit risk to creditworthiness. These exposure limits are tied to in excess of the amount recorded on the balance sheet. performance on macroeconomic and structural poli- Credit risk exposure represents the maximum poten- cies. In addition, IBRD establishes absolute limits on tial accounting loss due to possible nonperformance by 58 THE WORLD BANK ANNUAL REPORT 2000 obligors and counterparties under the terms of the con- mitigate its credit exposure. In addition, IBRD has tracts. Additionally, the nature of the instruments involve entered into master derivatives agreements which contain contract value and notional principal amounts that are legally enforceable close-out netting provisions. These not reflected in the basic financial statements. For both agreements may further reduce the gross credit risk expo- on- and off-balance sheet securities, IBRD limits trading sure related to the swaps shown below. Credit risk with to a list of authorized dealers and counterparties. Credit financial assets subject to a master derivatives arrange- risk is controlled through application of eligibility criteria ment is eliminated only to the extent that financial liabili- and volume limits for transactions with individual coun- ties to the same counterparty are settled after the assets terparties and through the use of mark-to-market collat- are realized. Because the exposure is affected by each eral arrangements for swap transactions. IBRD may transaction subject to the arrangement, the extent of the require collateral in the form of cash or other approved reduction in exposure may change substantially within a liquid securities from individual counterparties in order to short period of time following the balance sheet date. The contract value/notional amounts and credit risk exposure, as applicable, of these financial instruments at June 30, 2000 and June 30, 1999 (prior to taking into account any master derivatives or collateral arrangements that have been entered into) are given below: In millions 2000 1999 INVESTMENTS - TRADING PORTFOLIO Options, futures and forwards * Long position $ 805 $ 3,433 * Short position 1,250 3,653 * Credit exposure due to potential nonperformance by counterparties * 1 Currency swaps i Credit exposure due to potential nonperformance by counterparties 77 182 Cross-currency interest rate swaps * Credit exposure due to potential nonperformance by counterparties 306 100 Interest rate swaps e Notional principal 13,687 12,924 * Credit exposure due to potential nonperformance by counterparties 3 1 BORROWING PORTFOLIO Currency swaps * Credit exposure due to potential nonperformance by counterparties 3,863 2,051 Interest rate swaps * Notional principal 69,625 55,633 * Credit exposure due to potential nonperformance by counterparties 869 731 Less than $0.5 million. NOTE F-RETAINED EARNINGS, ALLOCATIONS On July 29, 1999, the Executive Directors allocated $700 AND TRANSFERS million of the net income earned in the fiscal year ended Retained Earnings: Retained Earnings comprises the fol- June 30, 1999 to the General Reserve and $255 million to lowing elements at June 30, 2000 and June 30, 1999: the Pension Reserve, representing the difference between actual funding of the Staff Retirement Plan (SRP) and its In millions accounting income for the fiscal year 1999. This Pension Reserve would be reduced if, in any future fiscal year, 2000 1999 pension accounting expenses were to exceed the actual Special reserve $ 293 $ 293 funding of the SRP. General reserve 16,109 15,409 On September 30, 1999, the Board of Governors approved the following transfers out of unallocated Net Pension reserve 549 294 Income: an amount equivalent to $273 million in SDRs Surplus 85 195 (valued at June 30, 1999) to IDA, $200 million to the Unallocated net income 1,991 1,518 Heavily Indebted Poor Countries (HIPC) Debt Initiative Trust Fund, $60 million to the Trust Fund for Gaza and Total $19,027 $17,709 West Bank, and $30 million for capacity building in Africa. In addition, the Board of Governors approved the following transfers out of Surplus: $75 million in SDRs (valued at June 30, 1999) to IDA and $25 million for IBRD FINANCIAL STATEMENTS: JUNE 30, 2000 59 emergency rehabilitation assistance for Kosovo. Of 1999 as a reimbursement of IDA's share of the fiscal the total amount of these transfers by IBRD to IDA year 1999 cost of implementing the Strategic Com- ($348 million in SDRs valued at June 30, 1999) $300 pact of IBRD and IDA. On March 13, 2000, the million is to be drawn down in fiscal year 2005; the Board of Governors approved a $10 million transfer remaining $48 million was transferred in October out of Surplus to the Trust Fund for East Timor. The aggregate transfers and amounts payable for these Board of Governors-approved transfers at June 30, 200C and June 30, 1999 are included in the following table: In millions of US dollars equivalent Fiscal Year 2000 AmountFPayat 'le Transfers from at June 30 Aggregate Transfers Unallocated Transfers to through June 30, 1999 Net Income Surplus 2000 1999 International Development Association a $6,087 $273 $75 $650 $354 Debt Reduction Facility for IDA-only Countries 300 - - 81 1l() Trust Fund for Gaza and West Bank 320 60 - 30 53 Heavily Indebted Poor Countries Debt Initiative Trust Fund 850 200 - 100 1(( Capacity building in Africa - 30 - - Trust Fund for Kosovo - 25 Trust Fund for East Timor - - 10 - Multilateral Investment Guarantee Agency 150 - - - $861 $6(07 a. All amounts are approved in an equivalent amount of SDRs. NOTE G-ADMINISTRATIVE EXPENSES, CON- staff reductions during the fiscal years 1997 througl TRIBUTIONS TO SPECIAL PROGRAMS, AND 2000. Through June 30, 2000, 745 staff had been OTHER INCOME identified for separation at a cumulative cost of $114 In fiscal year 1995 the Executive Directors authorized million. Included in the total charge of $114 million expenditures for costs associated with planned staff are costs associated with outplacement consulting, job reductions. The cost of this program charged through search assistance, training, medical insurance plan con- fiscal year 1997 was $112 million, of which $45 mil- tributions and related tax allowances. Of the total lion was allocated to IDA. During fiscal year 1998 all cumulative charge of $114 million, $45 million has remaining staff previously identified for separation been charged to IDA. Of the total fiscal year charg under this program began receiving severance pay- of $36 million, $15 million has been charged to IDA ments. The total cost under this program was $87 for the fiscal year ended June 30, 2000, consistent million. The difference of $25 million was taken back with normal cost apportionment procedures applied into income as a reduction of administrative expenses, in the calculation of the management fee. for fiscal year 1998, of which $10 million had been Administrative Expenses for the fiscal year ended June allocated to IDA as a reduction of the management fee 30, 2000 are net of the management fee charged to charged to IDA. At June 30, 2000, $86 million ($86 IDA of $549 million ($518 million-June 30, 1999, million-June 30, 1999, $82 million-June 30,1998) $474 million-June 30, 1998). had been charged against the accrual of $87 million. This accrual included costs associated with job search Contributions to special programs represent grants for assistance, training, outplacement consulting, pension agricultural research, and other developmental activi- plan contributions, medical insurance contributions ties. and related tax allowances. IBRD recovers certain of its administrative expenseM In March 1997 the Executive Directors approved a by billing third parties for services rendered. Prior tz multiyear program of institutional renewal to improve fiscal year 2000, these amounts were included as a IBRD's and IDA's business processes, products and reduction to Administrative Expenses. However, ir, services, strengthen their human resources through fiscal year 2000, it was decided that these amounts more skilled and better trained staff, and achieve a should be included in Other Income. The prior years' higher level of development effectiveness. Implemen- figures have been restated to reflect this change. For tation of this program resulted in costs associated with the fiscal years ending June 30, 2000, June 30, 1999, 60 THE WORLD BANK ANNUAL REPORT 2000 and June 30, 1998, the amount of fee revenue associ- the portfolio. This fee income is included in service ated with administrative services is as follows: fee revenues noted previously. At June 30, 2000, the assets managed under this agreement had a value of In millions $5,158 million. These funds are not included in the 2000 1999 1998 assets of IBRD. Service fee revenue $118 $116 $104 NOTE H-TRUST FUNDS Included in these amounts are the following: IBRD, alone or jointly with IDA, administers on Fees charged to IFC 16 17 14 behalf of donors, including members, their agencies Fees charged to MIGA I1 1 and other entities, funds restricted for specific uses which include the cofinancing of IBRD lending projects, debt reduction operations, technical assis- During fiscal year 2000 IBRD began offering invest- tance for borrowers including feasibility studies and ment management services to an institution outside project preparation, global and regional programs and the World Bank Group. Under this arrangement, research and training programs. These funds are held IBRD is responsible for managing investment account in trust and are not included in the assets of IBRD. assets on behalf of this institution, and in return The trust fund assets by executing agent at June 30, receives a quarterly fee based on the average value of 2000 and June 30, 1999 are summarized below: 2000 1999 Number Total fiduciary Number of Total fiduciarv of trust assets trust fund assets fund (In millions) accounts (In millions) accounts IBRD executed $ 447 1,184 $ 605 1,503 Recipient executed 2,088 2,093 1,635 1,287 Total $2,535 3,277 $2,240 2,790 The responsibilities of IBRD under these arrange- cumulative effect of prior periods on retained earnings ments vary and range from services normally provided at June 30, 1997, and has been included in Effect of under its own lending projects to full project imple- Accounting Change on the income statement. mentation including procurement of goods and ser- vices. During the fiscal year ended June 30, 2000, During the first quarter of fiscal year 1999, the RSBP IBRD received $17 million ($19 million-June 30, was modified so that some of the assets designated for 1999 and $14 million-June 30 1998) as fees for other postretirement benefits met the requirements 1anisern trust funds Thes fee hav heen f for plan assets prescribed under SFAS 106 recorded as Other Income. "Employer's Accounting for Postretirement Benefits Other than Pensions". Accordingly, the RSBP assets and liabilities were removed from the balance sheet. NOTE I-PENSION AND OTHER POSTRETIRE- As a result, the assets and liabilities designated on the MENT BENEFITS balance sheet for other postretirement benefits were reduced by $806 million and $620 million, respec- IBRD has a defined benefit Staff Retirement Plan tively. The $650 million of assets that remained on (SRP) that covers substantially all of its staff. The SRP the balance sheet xvere incorporated into Trading also covers substantially all the staff of IFC and MIGA. investments. At June 30, 2000, liabilities of $119 mil- In addition, IBRD provides other postretirement ben- lion ($103 million-June 30, 1999) for the PEBP efits for eligible active and retired staff through a shown on the balance sheet represent pension benefits Retired Staff Benefits Plan (RSBP) and a Post-Employ- administered outside the SRP. ment Benefits Plan (PEBP). The difference between the RSBP assets and liabilities During the fiscal year ended June 30, 1998, IBRD represents a prepaid postretirement benefits cost. The reviewed the status of the RSBP and PEBP accounts portion of this asset that is attributable to IBRD has and determined that the assets and liabilities did not been included in Other Assets on the balance sheet. qualify for off-balance sheet accounting. At June 30, 1998, the assets and liabilities were recorded on IBRD's balance sheet, resulting in net income to IBRD of $113 million, of which $56 million related to the IBRD FINANCIAL STATEMENTS: JUNE 30, 2000 61 The following table summarizes the benefit costs associated with the SRP, RSBP, and PEBP for IBRD and IDA for the fiscal years ended June 30, 2000, June 30, 1999, and June 30, 1998: In millions SRP RSBP PEBP 2000 1999 1998 2000 1999 1998 2000 1999 1998 Benefit Cost Service cost $ 230 $ 186 $ 184 $ 24 $ 25 $24 $ 9 $ 5 $- Interest cost 391 324 353 42 36 37 9 7 6 Expected return on plan assets (773) (738) (669) (67) (65) - - - - Amortization of prior service cost 7 7 7 - - (2) Amortization of unrecog- nized net (gain) loss (121) (175) (161) - - - - 3 12 Amortization of Transition Asset (11) (11) (11) - - - - - - Net periodic pension (income) cost $(277) $(407) $(297) $ (1) $ (4) $59 $18 $15 $18 TIhe portion of the SRP income related to IBRD that cost for the RSBP and PEBP related to IBRD that has has been included in income for the fiscal year ended been included in income for the fiscal year ended June June 30, 2000 is $166 million ($255 million-June 30, 30, 2000 is $10 million ($10 million-June 30, 1999; 1999; $182 million-June 30, 1998). The balance has $50 million-June 30, 1998). The balance has been been included as a payable to IDA. The portion of the included as a receivable from IDA. 62 THE WORLD BANK ANNUAL REPORT 2000 The following table summarizes the benefit obligations, plan assets, funded status and rate assumptions associated with the SRP, RSBP, and PEBP for the World Bank Group for the fiscal years ended June 30, 2000, June 30, 1999, and June 30, 1998: In millions SRP RSBP PEBP 2000 1999 1998 2000 1999 1998 2000 1999 1998 Benefit Obligation Beginning of year S 6,483 $5,890 $ 5,516 $662 $627 $ 739 $142 $ 90 $75 Service cost 271 217 213 27 28 28 10 6 - Interest cost 461 378 406 47 40 55 10 8 5 Employee contributions 64 61 58 5 5 5 - - - Amendments - - - - - 18 - - - Benefits paid (244) (231) (206) (17) (18) (17) (4) (5) (5) Actuarial (gain) loss (84) 168 (97) 7 (20) (201) (69) 43 15 End of year 6,951 6,483 5,890 731 662 627 89 142 90 Fair value of plan assets Beginning of year 10,226 9,608 8,613 846 - - - - - Assets transferred to the Plan - - - - 806 - - - - Employee contributions 64 61 58 5 5 - - - - Actual return on assets 1,516 788 1,143 141 53 - - - - Employer contributions - - - - - - - - - Benefits paid (244) (231) (206) (17) (18) - - - - End of year 11,562 10,226 9,608 975 846 - - - Funded status Plan assets in excess of pro- jectedbenefitobligation 4,611 3,743 3,718 244 184 (627) (89) (142) (90) Unrecognized net (gain) loss from past experience dif- ferent from that assumed and from changes in assumptions (3,258) (2,713) (3,158) (53) 6 - (30) 39 Unrecognized prior service cost 41 50 58 - - - - Remaining unrecognized net transition asset (39) (52) (65) - - _ _ _ _ Prepaid (accrued) pension cost $ 1,355 $ 1,028 $ 553 $191 $190 $(627) $(119) $(103) $(903 Of the $1,355 million prepaid SRP cost at June 30, Of the $191 million prepaid RSBP cost at June 30, 2000 ($1,028 million -June 30, 1999), $712 million 2000 ($190 million-June 30, 1999), $106 million was attributable to IBRD ($546 million-June 30, was attributable to IBRD ($105 million-June 30, 1999) and is included in Miscellaneous Assets on the 1999) and is included in Miscellaneous Assets on the balance sheet. The remainder has been attributed to balance sheet. The remainder has been attributed to IDA, IFC and MIGA. IDA, IFC and MIGA. IBRD FINANCIAL STATEMENTS: JUNE 30, 2000 63 Assumptions will impact future benefit costs and obligations. The The actuarial assumptions used are based on financial weighted-average assumptions used in determining market interest rates, past experience, and manage- expense and benefit obligations for the fiscal years ment's best estimate of future benefit changes and ended June 30, 2000, June 30, 1999, and June 30, economic conditions. Changes in these assumptions 1998 are as follows: In percent SRP RSBP PEBP 2000 1999 1998 2000 1999 1998 2000 1999 .998 Discount rate 7.75 7.25 6.50 7.75 7.25 6.50 7.75 7.25 6.50 Expected return on plan assets 9.00 9.00 9.00 9.00 9.00 Rate of compensation increase a 5.75 - 5.25 - 4.50 - 12.25 11.75 11.00 Health care growth rates - at end of fiscal year 7.25 6.25 5.00 - to year 201 1 and thereafter 5.75 5.25 4.50 a. The effect of projected compensation levels was calculated based on a scale that provides for a decreasing rate of salary increa.se depending on age, beginning with 12.25% (11. 75%-June 30, 1999; 11.00%-June 30, 1998) at age 20 and decreasing to S.75 % (5.25%-June 30, 1999; 4.50%-June 30, 1998) at age 64. The medical cost trend rate can significantly affect the effects of a one-percentage-point change in the reported postretirement benefit income or costs and assumed healthcare cost trend rate: benefit obligations. The following table shows the In millions One percentage point increase One percentage point decrease Effect on total service and interest cost $ 17 $ (13) Effect on postretirement benefit obligation 141 (112) - During the fiscal year ended June 30, 1998, health able segment since IBRD does not manage its care cost trend rates were reduced after completing a operations by allocating resources based on a deterrrii- five years' experience study, reducing the accrued lia- nation of the contribution to net income from individ- bility at June 30, 1998, from $808 million to $619 ual borrowers. In addition, given the nature of IBRI), million. This change in the health care cost trend rate the risk and return profiles are sufficiently similar resulted in income of $104 million for IBRD, which among borrowers that IBRD does not differentiate has been included in Effect of Accounting Change on between the nature of the products or services pro- the income statement. The balance was attributable vided, the preparation process, or the method for pro- to IDA, IFC, and MIGA. viding the services among individual countries. For fiscal year 2000, loans to two countries individu- NOTE J-SEGMENT REPORTING ally generated in excess of 10 percent of loan income. Loan income from these two countries was $916 mil- Based on an evaluation of IBRD's operations, manage- lion and $852 million respectively. ment has determined that IBRD has only one report- 64 THE WORLD BANK ANNUAL REPORT 2000 NOTE K-COMPREHENSIVE INCOME income. These items are presented in the Statement Comprehensive income consists of net income and of Comprehensive Income. The following table pre- other gains and losses affecting equity that, under gen- sents the changes in Accumulated Other Comprehen- erally accepted accounting principles, are excluded sive Income balances for the fiscal years ended June from net income. For IBRD, comprehensive income 30, 2000, June 30, 1999, and June 30, 1998: comprises currency translation adjustments and net In millions Accumulated Other Comprehensive Income a 2000 1999 1998 Balance, beginning of the fiscal year $(637) $(960) $ 85 Changes from period activity (4) 323 (1,045) Balance, end of the fiscal year $(641) $(637) $ (960) a. The total accumulated other comprehensive income represents the cumulative translation adjustment. IBRD FINANCIAL STATEMENTS: JtUNE 30, 2000 65 REPORT OF INDEPENDENT ACCOUNTANTS DeloitteTouche (International Firm) 555 12th Street NW Washington, DC President and Board of Governors International Bank for Reconstruction and Development We have audited the accompanying balance sheets of the International Bank for Reconstruction and Development as of June 30, 2000 and 1999, including the summary statement of loans and the statement of subscriptions to capital stock and voting power as of June 30, 2000, and the related statements of income, comprehensive income, changes in retained eamings, and cash flows for each of the three fiscal years in the period ended June 30, 2000. These fmancial statements are the responsibility of the International Bank for Reconstruction and Development's management. Our responsibility is to express an opinion on these fmancial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of the Intemational Bank for Reconstruction and Development as of June 30, 2000 and 1999, and the results of its operations and its cash flows for each of the three fiscal years in the period ended June 30, 2000, in conformity with accounting principles generally accepted in the United States of America and International Accounting Standards. July 31, 2000 Beijing London Mexico City Moscow NewYork Paris Tokyo Toronto 66 THE WORLD BANK ANNUAL REPORT 2000 INTERNATIONAL. DEVELOPMEN T ASSOCIATION SPECIAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Statement of Sources and Applications of Development Resources 68 Statement of Income 70 Statement of Comprehensive Income 71 Statement of Changes in Retained Earnings 71 Statement of Cash Flows 72 Summary Statement of Development Credits 73 Statement of Voting Power, and Subscriptions and Contributions 77 Notes to Special Purpose Financial Statements 81 Report of Independent Accountants on Special Purpose Financial Statements 95 67 STATEMENT OF SOURCES AND APPLICATIONS OF DEVELOPMENT RESOURCES June 30, 2000 and June 30, 1999 Expressed in millions of US. dollars 2000 1999 as adjusted (Note A) Applications of Development Resources Net Resources Available For Development Activities Due from Banks Unrestricted currencies $ 63 $ 71 Currencies subject to restriction 20 22 83 93 Investments-Notes B and F Investments-trading 9,760 8,206 Net (payable) receivable on investment securities transactions (282) 9 9,478 8,215 Receivable from the HIPC Debt Initiative Trust Fund-Note 1 573 Nonnegotiable, Noninterest-bearing Demand Obligations on Account of Member Subscriptions and Contributions 10,909 11,801 Receivable from the International Bank for Reconstruction and Development-Note D 650 354 Other Resources, Net 516 484 Total net resources available for development activities 22,209 20,947 Resources Used For Development Credits (see Summary Statement of Development Credits, Notes E, F and I) Total development credits 104,796 103,262 Less undisbursed balance 18,944 20,104 Development credits outstanding 85,852 83,158 Less accumulated allowance for HIPC Debt Initiative 8,020 Total resources used for development credits outstanding 77,832 83,158 Total Applications of Development Resources $100,041 $104,105 ,8 Tii i WORI D BANK ANNUAL REPORT 2000 2000 1999 as adjusted (Note A) Sources of Development Resources Member Subscriptions and Contributions (see Statement of Voting Power, and Subscriptions and Contributions, Note C) Unrestricted $105,635 $ 95,463 Restricted 289 286 Subscriptions and Contributions Committed 1(5,924 95,749 Less subscriptions and contributions receivable and unamortized discounts on contributions-Note C 6,624 165 Subscriptions and Contributions Paid In 99,300 95,584 Deferred Amounts Receivable to Maintain Value of Currency Holdings (233) (231) Payments on Account of Pending Membership-Note C 7 7 99,074 95,360 Transfers from the International Bank for Reconstruction and Development-Note D 6,427 6,082 Accumulated Other Comprehensive Income-Note J (718) (194) Retained Earnings (see Statement of Changes in Retained Earnings) (4,742) 2,857 Total Sources of Development Resources $100,041 $104,105 The Notes to Special Purpose Financial Statements are an integral part of these Statements. IDA SPFCIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 69 STATEMENT OF INCOME For the fiscal years ended June 30, 2000, June 30, 1999 and June 30, 1998 Expressed in millions of US. dollars 2000 1999 1998 as adjusted as adjusted (Note A) (Note A, Income Income from development credits-Note E $ 619 $ 588 $ 555 Income from investments, net-Note B 336 462 527 Total income 955 1,050 1,082 Expenses Net management fee charged by the International Bank for Reconstruction and Development- Notes G and H 438 368 222 Amortization of discount on subscription advances 3 2 6 Total expenses 441 370 228 Operating Income 514 680 854 Effect of exchange rate changes on accumulated income excluding HIPC Debt Initiative (284) (70) (283J Income before HIPC Debt Initiative 230 610 571 Enhanced HIPC Framework Allowance for principal component of debt relief- Notes E and 1 (7,958) - Contribution from the HIPC Debt Initiative Trust Fund-Note 1 584 - Total charges for Enhanced HIPC (7,374) - Initial HIPC Framework Allowance for write-down on sale of development credits-Note E (455) - (93) Development grants - (154) (75) Total charges for Initial HIPC (455) (154) (168) (Loss) Income after HIPC Debt Initiative _17,5991 $ 456 $ 403 The Notes to Special Purpose Financial Statements are an integral part of these Statements. 70 THE WORLD BANK ANNUAL REPORT 2000 STATEMENT OF COMPREHENSIVE INCOME For the fiscal years ended June 30, 2000, June 30, 1999 and June 30, 1998 Expressed in millions of US. dollars 2000 1999 1998 (Loss) Income after HIPC Debt Initiative $(7,599) $456 $ 403 Other Comprehensive Income-Note J Currency translation adjustment on development credits (524) 197 (2,764) Total other comprehensive (loss) income (524) 197 (2,764) Comprehensive (Loss) Income $(8,123) $653 $(2,361j STATEMENT OF CHANGES IN RETAINED EARNINGS For the fiscal years ended June 30, 2000 and June 30, 1999 Expressed in millions of US. dollars 2000 1999 Balance at Activitv Balance at Balance at Activity Balance at beginning of during the end of the beginning of during the end of the the fiscal year fiscal year fiscal year the fiscal year fiscal year fiscal year Allowance for Enhanced HIPC $ $(7,958) $(7,958) $ $ - $ Contribution for Enhanced HIPC from HIPC Debt Initiative Trust Fund 584 584 - Initial HIPC (322) (455) (777) (168) (154) (322) Accumulated income excluding HIPC Debt Initiative 3,179 230 3,409 2,569 610 3,179 Total $2,857 $(7,599) _54,742) $2,401 $456 $2,857 The Notes to Special Purpose Financial Statements are an integral part of these Statements. IDA SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 71 STATEMENT OF CASH FLOWS For the fiscal years ended June 30, 2000, June 30, 1999 and June 30, 1998 Expressed in millions of US. dollars 2000 1999 1998 as adjusted as adjusted (Note A) (Note A) Cash Flows from Development Activities Development credit disbursements $(4,886) $(5,843) $(5,432) Development credit principal repayments 920 814 682 Development credits sold to the HIPC Debt Initiative Trust Fund-Note I 354 84 Reimbursement received for principal repayments forgiven-Note I 11 (3,601) (4,945) (4,750) Development grant disbursements - (149) (74) Net cash used in development activities (3,601) (5,094) (4,824) Cash Flows from Member Subscriptions and Contributions 4,682 4,710 4,789 Cash Flows from the International Bank for Reconstruction and Development Transfers 50 - 298 Cash Flows from Operating Activities Operating income 514 680 854 Net assets previously designated for other postretirement benefits received from the International Bank for Reconstruction and Development - 76 Adjustments to reconcile operating income to net cash provided by operating activities: Amortization of discount on subscription advances 3 2 6 Net changes in other development resources (135) (184) (311) Net cash provided by operating activities 382 574 549 Effect of exchange rate changes on unrestricted cash and liquid investments (258) (83) (283) Net Increase in Unrestricted Cash and Liquid Investments 1,255 107 529 Unrestricted Cash and Liquid Investments at Beginning of the Fiscal Year 8,286 8,179 7,650 Unrestricted Cash and Liquid Investments at End of the Fiscal Year $ 9 $8286 $ 8,179 Composed of: Unrestricted currencies 63 71 33 Investments 9,478 8,215 8,146 $ 9,541 _$8,286 $8,179 Supplemental Disclosure (Decrease) increase in ending balances of development credits outstanding resulting from exchange rate fluctuations $ (524) $ 197 $(2,764) Total charges for Enhanced HIPC (7,374) Write-down on sale of development credits-Initial HIPC (455) (93) The Notes to Special Purpose Financial Statements are an integral part of these Statements. 72 THE WORLD BANK ANNUAL REPORT 2000 SUMMARY STATEMENT OF DEVELOPMENT CREDITS June 30, 2000 Expressed in millions of US. dollars Percentage of Total Undisbursed Development development development development credits credits Borrower or guarantor credits credits1 outstandinig outstanding Afghanistan S 75 $ $ 75 0.09 ,, Albania 517 213 304 0.35 Angola 277 54 223 0.26 Armenia 535 175 360 0.42 Azerbaijan 383 175 208 0.24 Bangladesh 7,524 1,122 6,402 7.46 Benin 702 130 572 0.67 Bhutan 61 36 25 0.03 Bolivia 1,435 348 1,087 1.27 Bosnia and Herzegovina 479 164 315 0.37 Botswana 9 - 9 0.01 Burkina Faso 812 71 741 0.86 Burundi 640 43 597 0.70 Cambodia 304 121 183 0.21 Cameroon 936 173 763 0.89 Cape Verde 142 46 96 0.11 Central African Republic 416 19 397 0.46 Chad 617 125 492 0.57 Chile 8 - 8 (.01 China 9,535 840 8,695 10.13 Colombia 8 - 8 0.01 Comoros 93 21 72 0.08 Congo, Democratic Republic of 1,205 - 1,205 1.40 Congo, Republic of 167 5 162 0.19 Costa Rica 2 - 2 * C6te d'Ivoire 1,662 293 1,369 1.59 Djibouti 84 34 50 0.06 Dominica 17 3 14 0.02 Dominican Republic 14 - 14 0.02 Ecuador 21 - 21 0.02 Egypt, Arab Republic of 1,656 401 1,255 1.46 El Salvador 17 - 17 0.02 Equatorial Guinea 48 - 48 0.(6 Eritrea 144 84 60 0.07 Ethiopia 2,582 835 1,747 2.03 Gambia, The 214 43 171 0.20 Georgia 530 188 342 0.40 Ghana 3,515 478 3,037 3.54 Grenada 11 1 10 0.(] Guinea 1,095 110 985 1.15 Guinea-Bissau 271 49 222 0.26 Guyana 211 31 180 0.21 Haiti 521 30 491 0.57 Honduras 941 108 833 0.97 IDA SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNKI 30, 20)()( SUMMARY STATEMENT OF DEVELOPMENT CREDITS (continued) Percentage of Total Undisbursed Development development development development credits credits Borrower or guarantor credits credits1 outstanding outstanding India $22,663 $3,810 S18,853 21.96% Indonesia 911 209 702 0.82 Jordan 59 - 59 0.07 Kenya 2,463 286 2,177 2.54 Korea, Republic of 66 - 66 0.08 Kyrgyz Republic 460 139 321 0.37 Lao People's Democratic Republic 530 129 401 0.47 Lesotho 251 68 183 0.21 Liberia 101 - 101 0.12 Macedonia, former Yugoslav Republic of 271 27 244 0.28 Madagascar 1,654 387 1,267 1.48 Malawi 1,823 226 1,597 1.86 Maldives 61 17 44 0.05 Mali 1,235 234 1,001 1.17 Mauritania 588 172 416 0.48 Mauritius 14 - 14 0.02 Moldova 142 64 78 0.09 Mongolia 198 65 133 0.15 Morocco 27 - 27 0.03 Mozambique 1,128 512 616 0.72 Myanmar 718 - 718 0.84 Nepal 1,316 181 1,135 1.32 Nicaragua 831 213 618 0.72 Niger 826 138 688 0.8 Nigeria 741 101 640 0.75 Pakistan 4,554 697 3,857 4.49 Papua New Guinea 94 - 94 0.11 Paraguay 29 - 29 0.03 Philippines 230 23 207 0.24 Rwanda 814 134 680 0.79 St. Kitts and Nevis 1 - I * St. Lucia 18 6 12 0.01 St. Vincent and the Grenadines 9 2 7 0.01 Samoa 56 11 45 0.05 Sao Tome and Principe 63 4 59 0.07 Senegal 1,830 538 1,292 1.50 Sierra Leone 424 106 318 0.37 Solomon Islands 49 10 39 0.05 Somalia 401 - 401 0.47 Sri Lanka 1,913 300 1,613 1.88 Sudan 1,183 - 1,183 1.38 Swaziland 5 - 5 0.01 Syrian Arab Republic 30 - 30 0.03 Tajikistan 202 76 126 0.15 Tanzania 3,221 645 2,576 3.00 Thailand 91 - 91 0.11 Togo 709 101 608 0.71 74 THE WORLD BANK ANNUAL REPORT 2000 Percentage of Total Undisbursed Development development development development credits credits Borrower or guarantor credits credits] outstanding outstanding Tonga $ 4 $ - $ 4 *% Tunisia 40 - 40 0.05 Turkey 104 - 104 0.12 Uganda 2,479 488 1,991 2.32 Vanuatu 13 - 13 0.02 Vietnam 2,195 1,199 996 1.16 Yemen, Republic of 1,565 360 1,205 1.40 Zambia 2,276 535 1,741 2.03 Zimbabwe 601 162 439 0.51 Subtotal members 5 104,716 18,944 85,772 99.91 West African Development Bank 2 49 - 49 0.06 Caribbean Development Bank 3 26 - 26 0.03 Subtotal regional development banks 75 - 75 0.09 Other 4 5 - 5 Total-June 30, 20005 $104,796 $18,944 $85,852 100.00% Total-June 30, 1999 $103,262 $20,104 $83,158 * Indicates amounts less than $0.05 million or less than 0.005 per cent. NomEs 1 . Of the undisbursed balance at June 30, 2000, IDA has entered into irrevocable commitments to disburse $153 million ($213 million-June 30, 1999). 2. These development credits are for the benefit of Benin, Burkina Faso, Cote d'Ivoire, Mali, Niger, Senegal, and Togo. 3. These development credits are for the benefit of Grenada and territories of the United Kingdom (Associated States and Dependencies) in the Caribbean region. 4. Represents development credits made at a time when the authorities on Taiwan represented China in IDA (prior to May 15, 1980). 5. May differ from the sum of individual figures shown because of rounding. The Notes to Special Purpose Financial Statements are an integral part of these Statements. IDA SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 75 SUMMARY STATEMENT OF DEVELOPMENT CREDITS (continued) June 30, 2000 Expressed in millions of US. dollars Maturity Structure of Development Credits Outstanding Period July 1, 2000 through June 30, 2001 $ 1,486 July 1, 2001 through June 30, 2002 1,38" July 1, 2002 through June 30, 2003 1,57'; July 1, 2003 through June 30, 2004 1,758 July 1, 2004 through June 30, 2005 1,954 July 1, 2005 through June 30, 2010 12,64 July 1, 2010 through June 30, 2015 15,949 July 1, 2015 through June 30, 2020 17,586 July 1, 2020 through June 30, 2025 15,81h July 1, 2025 through June 30, 2030 10,78'1 July 1, 2030 through June 30, 2035 4,397' July 1, 2035 through June 30, 2040 51S' Total $85,85=: The Notes to Special Purpose Financial Statements are an integral part of these Statements. 76 THE WORLD BANK ANNUAL REPORT 2000 STATEMENT OF VOTING POWER, AND SUBSCRIPTIONS AND CONTRIBUTIONS June 30, 2000 Expressed in millions of US. dollars Subscriptions and Number of Percentage of contributions Member I votes total votes committed Part I Members Australia 161(059 1.31% S 1,778.1 Austria 82,610 0.67 871.6 Belgium 138,249 1.13 1,572.3 Canada 367,216 2.99 4,634.6 Denmark 123,691 1.01 1,429.2 Finland 76,725 0.63 676.7 France 518,090 4.22 7,294.3 Germany 849,561 6.92 12,065.6 Iceland 29,224 0.24 22.4 Ireland 33,266 0.27 113.1 ItalY 355,274 2.90 3,924.2 Japan 1,301,679 10.61 23,936.4 Kuwait 78,663 0.64 707.2 Luxembourg 31,350 0.26 63.2 Netherlands 267,021 2.18 3,839.0 New Zealand 36,102 0.29 126.4 Norway 123,429 1.01 1,318.5 Portugal 30,787 0.25 52.3 Russian Federation 34,397 0.28 165.1 South Africa 35,280 0.29 92.4 Spain 63,889 0.52 454.8 Sweden 243,108 1.98 2,732.6 Switzerland 2 119,145 0.97 1,363.1 United Arab Emirates 1,367 0.01 5.6 United Kingdom 602,630 4.91 7,801.9 United States 1,818,989 14.83 25,841.8 Subtotal Part I Members 3 7,522,801 61.32 102,882.3 Part II Members Afghanistan 13,557 0.11 1.3 Albania 26,089 0.21 0.3 Algeria 27,720 0.23 5.1 Angola 45,662 0.37 7.9 Argentina 127,638 1.04 65.7 Armenia 2,717 0.02 (1.5 Azerbaijan 644 0.01 0.9 Bangladesh 67,075 0.55 7.2 Barbados 26,807 0.22 0.4 Belize 1,788 0.01 0.2 Benin 7,476 0.06 0.6 Bhutan 16,929 0.14 0.1 Bolivia 36,363 0.30 1.4 Bosnia and Herzegovina 19,571 0.16 2.3 Botswana 25,866 0.21 1.1 Brazil 208,638 1.70 301.1 Burkina Faso 21,166 0.17 0.7 Burundi 26,251 0.21 1.0 IDA SPECIAI PURPOSE FINANCIAL STATEMENTS: JUNE 30, 200(0 77 STATEMENT OF VOTING POWER, AND SUBSCRIPTIONS AND CONTRIBUTIONS (continued) June 30, 2000 Expressed in millions of US. dollars Subscriptions and Number of Percentage of contributions Member votes total votes committed Cambodia 10,322 0.08% $ 1.3 Cameroon 19,984 0.16 1.3 Cape Verde 4,916 0.04 0.1 Central African Republic 13,985 0.11 0.7 Chad 10,990 0.09 0.6 Chile 31,782 0.26 4.5 China 247,345 2.02 40.8 Colombia 43,080 0.35 24.4 Comoros 13,141 0.11 0.1 Congo, Democratic Republic of 12,164 0.10 3.8 Congo, Republic of 8,385 0.07 0.6 Costa Rica 12,480 0.10 0.3 C6te d'lvoire 23,784 0.19 1.3 Croatia 36,430 0.30 5.5 Cyprus 33,817 0.28 1.1 Czech Republic 48,633 0.40 33.3 Djibouti 532 * 0.2 Dominica 16,749 0.14 0.1 Dominican Republic 27,780 0.23 0.6 Ecuador 23,800 0.19 0.8 Egypt, Arab Republic of 60,884 0.50 6.9 El Salvador 6,244 0.05 0.4 Equatorial Guinea 6,167 0.05 0.4 Eritrea 25,295 0.21 0.1 Ethiopia 23,053 0.19 0.7 Fiji 9,423 0.08 0.7 Gabon 2,093 0.02 0.6 Gambia, The 19,647 0.16 0.4 Georgia 22,523 0.18 0.9 Ghana 23,831 0.19 3.0 Greece 52,928 0.43 39.3 Grenada 20,627 0.17 0.1 Guatemala 27,754 0.23 0.5 Guinea 28,087 0.23 1.3 Guinea-Bissau 6,790 0.06 0.2 Guyana 18,160 0.15 1.0 Haiti 22,816 0.19 1.0 Honduras 24,493 0.20 0.4 Hungary 92,676 0.76 43.1 India 405,142 3.30 55.8 Indonesia 115,860 0.94 14.4 Iran, Islamic Republic of 15,455 0.13 5.7 Iraq 9,407 0.08 1.0 78 THE WORLD BANK ANNUAL REPORT 2000 Subscriptions and Number of Percentage of contnibutions Member ] votes total votes committed Israel 41,681 0.34% $ 14.7 Jordan 24,865 0.20 0.4 Kazakhstan 806 0.01 1.9 Kenya 33,882 0.28 2.2 Kiribati 6,477 0.05 0.1 Korea, Republic of 60,220 0.49 310.9 Kyrgyz Republic 2,700 0.02 0.5 Lao People's Democratic Republic 14,788 0.12 0.6 Latvia 614 0.01 0.7 Lebanon 8,562 0.07 0.6 Lesotho 28,677 0.23 0.2 Liberia 22,467 0.18 1.1 Libya 7,771 0.06 1.3 Macedonia, former Yugoslav Republic of 15,759 0.13 1.0 Madagascar 11,600 0.09 1.2 Malawi 32,060 0.26 1.0 Malaysia 48,929 0.40 3.5 Maldives 27,547 0.22 0.1 Mali 24,808 0.20 1.2 Marshall Islands 4,902 0.04 8 Mauritania 15,650 0.13 0.7 Mauritius 34,730 0.28 1.2 Mexico 87,783 0.72 126.9 Micronesia, Federated States of 18,424 0.15 Moldova 612 0.01 0.7 Mongolia 24,389 0.20 0.3 Morocco 52,492 0.43 4.8 Mozambique 9,517 0.08 1.7 Myanmar 44,697 0.36 2.9 Nepal 31,410 0.26 0.7 Nicaragua 29,845 0.24 0.4 Niger 19,667 0.16 0.7 Nigeria 15,014 0.12 4.3 Oman 26,927 0.22 1.3 Pakistan 116,830 0.95 13.6 Palau, Republic of 504 Panama 7,550 0.06 * Papua New Guinea 16,368 0.13 1.1 Paraguay 14,342 0.12 0.4 Peru 20,428 0.17 2.2 Philippines 16,583 0.14 6.4 Poland 270,192 2.20 53.9 Rwanda 17,067 0.14 1.0 St. Kitts and Nevis 7,888 0.06 0.2 St. Lucia 24,503 0.20 0.2 St. Vincent and the Grenadines 2,214 0.02 0.1 Samoa 15,836 0.13 0.1 Sao Tome and Principe 6,414 0.05 0.1 Saudi Arabia 428,763 3.49 2,133.2 Senegal 35,224 0.29 2.2 Sierra Leone 14,367 0.12 1.0 Slovak Republic 27,324 0.22 11.2 Slovenia 18,956 0.15 3.0 IDA SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 79 STATEMENT OF VOTING POWER, AND SUBSCRIPTIONS AND CONTRIBUTIONS (continued) June 30, 2000 Expressed in millions of US. dollars Subscriptions and Number of Percentage of contributions Member votes total votes committed Solomon Islands 518 *% $ 0.1 Somalia 10,506 0.09 1.0 Sri Lanka 53,316 0.43 4.0 Sudan 22,484 0.18 1.3 Swaziland 12,773 0.10 0.4 Syrian Arab Republic 7,651 0.06 1.2 Tajikistan 20,568 0.17 0.5 Tanzania 35,867 0.29 2.2 Thailand 48,488 0.40 4.1 Togo 23,243 0.19 1.0 Tonga 14,144 0.12 0.1 Trinidad and Tobago 770 0.01 1.6 Tunisia 2,793 0.02 1.9 Turkey 82,045 0.67 101.6 Uganda 24,308 0.20 2.2 Uzbekistan 746 0.01 1.5 Vanuatu 13,821 0.11 0.2 Vietnam 15,454 0.13 1.9 Yemen, Republic of 37,025 0.30 2.1 Zambia 28,568 0.23 3.4 Zimbabwe 17,937 0.15 5.1 Subtotal Part II Members 3 4,746,061 38.68 3,553.8 Total-June 30, 20002,3 12,268,862 100.00% $106,436.1 Total-June 30, 19992 11,672,648 $ 96,261.7 Indicates amounts less than $0.05 million or less than 0.005 percent. NoTEs 1. See Notes to Special Purpose Financial Statements-Note A for an explanation of the two categories of membership 2. $512.3 million of Switzerland's subscription and contributions have not been included in the Statement of Sources and Applications of Development Resources at June 30, 2000 and June 30, 1999 since this represents the difference between the total cofinancing grants of $580.1 million provided by Switzerland directly to IDA borrowers as cofinancinggrants between thefourth and the ninth replenishments of IDA resources, and the July 1992 contribution by Switzerland of $67.8 million. 3. May differffrom the sum of individualfigures shown because of rounding. The Notes to Special Purpose Financial Statements are an integral part of these Statements. 80 THE WORLD BANK ANNUAL REPORT 2000 NOTES TO SPECIAL PURPOSE FINANCIAL STATEMENTS NOTE A-ORGANIZATION, OPERATIONS AND Certain reclassifications of the prior years' information SIGNIFICANT ACCOUNTING AND RELATED have been made to conform to the current year's pre- POLICIES sentation. Purpose and Affiliated Organizations Basis of Accounting The International Development Association (IDA) is IDA's special purpose financial statements are prepared an international organization established on September on the accrual basis of accounting. That is, the effects of 24, 1960. IDA's main goal is reducing poverty through transactions and other events are recognized when they promoting economic development in the less devel- occur (and not as cash or its equivalent is received or oped areas of the world included in IDA's membership, paid) and are recorded in the accounting records and by providing financing on concessionary terms. IDA has reported in the financial statements of the periods to three affiliated organizations, the International Bank for which they relate. Reconstruction and Development (IBRD), the Interna- . o tional Finance Corporation (IFC), and the Multilateral Translation of Currencies Investment Guarantee Agency (MIGA). IDA, IBRD, IDA's special purpose financial statements are IFC and MIGA are collectively known as the World expressed in terms of U.S. dollars solely for the purpose Bank Group. Each of these other organizations is of summarizing IDA's financial position and the results legally and financially independent from IDA, with sep- of its operations for the convenience of its members arate assets and liabilities, and IDA is not liable for their and other interested parties. respective obligations. The principal purpose of IBRD is to promote the economic development of its member is an international organization which conducts its operations in the currencies of all of its members. countries, primarily by providing loans and related Applcations of development resources and sources of technical assistance for specific projects and for pro- development resources are translated at market grams of economic reform in developing member coun- exchange rates in effect at the end of the accounting tries. lEG's purpose is to encourage the growth of period, except Member Subscriptions and Contribu- productive private enterprises in its member countries tions which are translated in the manner described through loans and equity investments in such enter- below. Income and expenses are translated at either the prises without a member's guarantee. MIGA was estab- market exchange rates in effect on the dates of income lished to encourage the flow of investments for and expense anaexpnserecognition, or at an average of the market productive purposes among member countries and, in hr parodticulr, tohel dvong member countries by in exchange rates in effect during each month. Translation particular, to helpdevelopng member countries.bv adjustments relating to the revaluation of development providing guarantees against noncommercial risks for credits denominated in Special Drawing Rights (SDRs) foreign investmeint in its developing member countries. are charged or credited to Accumulated Other Com- Summary of Significant Accounting and Related prehensive Income. Other translation adjustments are Policies shown in the Statement of Income. Due to the nature and organization of IDA, these finan- Member Subscriptions and Contributions cial statements have been prepared for the specific pur- Re pose of reflecting the sources and applications of Recognition member subscriptions and contributions and other Member Subscriptions and Contributions committed development resources. These financial statements are for each IDA replenishment are recorded in full as Sub- not intended to be a presentation in accordance with scriptions and Contributions Committed upon effec- generally accepted accounting principles in the United tiveness of the relevant replenishment. Replenishments States of America or with International Accounting become effective when IDA has received Instruments Standards. I'hese special purpose financial statements of Commitments (IoCs) from members for subscrip- have been prepared to comply with Article VI, Section tions and contributions of a specified portion of the full II (a) of the Articles of Agreement of IDA, and are pre- replenishment. Amounts not yet paid in, at the date of pared in accordance with the accounting policies out- effectiveness, are recorded as Subscriptions and Contri- lined below. butions Receivable and shown as a reduction of Sub- scriptions and Contributions Committed. These 'The preparation of these special purpose financial state- receivables come due throughout the replenishment ments requires management to make estimates and period (generally three years) in accordance with an assumptions that affect the reported amounts of assets agreed maturity schedule. The actual payment of and liabilities and disclosure of contingent assets and receivables when they become due from certain mem- liabilities at the date of the financial statements and the bers is conditional upon the respective member's bud- reported amounts of revenue and expenses during the getary appropriation processes. reporting period. Actual results could differ from these estimates. Significant judgements have been used in The Subscriptions and Contributions Receivable are the computation of estimated fair values of develop- settled through payment of cash or deposit of nonnego- ment credits and allowances for the HIPC Debt Initia- tiable, noninterest-bearing demand notes. The notes tive. are encashed by IDA as provided in the relevant replen- IDA SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 81 ishment resolution over the disbursement period of the any other currency disappeared. The Executive Direc- credits committed under the replenishment. tors of IDA have decided, with effect on that date and until such time as the relevant provisions of the Arti- In certain replenishments, donors have had the option of cles of Agreement are amended, that the words "I.S. paying all of their subscription and contribution amount dollars of the weight and fineness in effect on in cash before it becomes due and receiving a discount January 1, 1960' in Article II, Section 2(b) of the Arti- In addition some replenishment arrangements have cles of Agreement of IDA are interpreted to mean the incorporated an accelerated encashment schedule. In SDR introduced by the International Monetary Fund these cases, IDA and the donor agree that IDA will invest SRitoue yteItmtoa oeayFn these cases aD rain the dncome. Thegreelthated IDAub stin as the SDR was valued in terms of U.S. dollars imme- the cash and retain the income. The related subscription diately before the introduction of the basket method and contribution is recorded at the full undiscounted of valuing the SDR on July 1, 1974, such value being amount The discount is recorded in Subscriptions and equal to $1.20635 for one SDR (the 1974 SDR), and Contributions Receivable and amortized over the pro- have also decided to apply the same standard of value to amounts expressed in 1960 dollars in the relevant Under the provisions governing replenishments, IDA resolutions of the Board of Governors. must encash the notes or similar obligations of contribut- The subscriptions and contributions provided through ing members on an approximately pro rata basis. As dis- the Third Replenishment are expressed on the basis of cussed in the previous paragraph, donors sometimes the 1974 SDR. Prior to the decision of the Executive contribute resources on an advanced or an accelerated Directors, IDA had valued these subscriptions and basis. IDA holds these resources until they become avail- contributions on the basis of the SDR at the current able for disbursement on a pro rata basis. market value of the SDR. Transfers to IDA from IBRD are recorded as Sources of The subscriptions and contributions provided under Development Resources and are receivable upon the Fourth Replenishment and thereafter are approval by IBRD's Board of Governors. expressed in members' currencies or SDRs and are For the purposes of its financial resources, the member- payable in members' currencies. Beginning July 1, ship of IDA is divided into two categories: (1) Part I 1986, subscriptions and contributions made available members, which make payments of subscriptions and for disbursement in cash to IDA are translated at mar- contributions provided to IDA in convertible currencies ket exchange rates in effect on the dates they were which may be freely used or exchanged by IDA in its made available. Prior to that date, subscriptions and operations and (2) Part II members, which make pay- contributions which had been disbursed or converted ments of ten percent of their initial subscriptions in freely into other currencies were translated at market convertible currencies, and the remaining ninety percent exchange rates in effect on dates of disbursement or of their initial subscriptions, and all additional subscrip- conversion. Subscriptions and contributions not yet tions and contributions in their own currencies or in available for disbursements are translated at market freely convertible currencies. Certain Part II members exchange rates in effect at the end of the accounting provide a portion of their subscriptions and contributions period. in the same manner as mentioned in (1) above. IDAs Article IV, Section 2(a) and (b) of IDA's Articles of Articles of Agreement and subsequent replenishment Agreement provides for maintenance of value pay- agreements provide that the currency of any Part II mem- ments on account of the local currency portion of the ber paid in by it may not be used by IDA for projects initial subscription whenever the par value of the financed by IDA and located outside the territory of the member's currency or its foreign exchange value has, member except by agreement between the member and in the opinion of IDA, depreciated or appreciated to a IDA. The cash paid and notes deposited in nonconvert- significant extent within the member's territories, so ible local currencies for the subscriptions of Part II mem- long as, and to the extent that, such currency shall not bers are recorded either as currencies subject to have been initially disbursed or exchanged for the cur- restriction under due from banks, or as restricted notes rency of another member. The provisions of Article included under nonnegotiable, noninterest-bearing IV, Section 2(a) and (b) have by agreement been demand obligations on account of member subscriptions extended to cover additional subscriptions and contri- and contributions. Restricted notes at June 30, 2000 butions of IDA through the Third Replenishment, but were $35 million ($35 million, June 30, 1999). are not applicable to those of the Fourth and subse- Valuation quent replenishments. The subscriptions and contributions provided through The Executive Directors decided on June 30, 1987 the Third Replenishment are expressed in terms of "U.S. that settlements of maintenance of value, which dollars of the weight and fineness in effect on January 1, would result from the resolution of the valuation issue 1960" (1960 dollars). Following the abolition of gold as a on the basis of the 1974 SDR, would be deferred until common denominator of the monetary system and the the Executive Directors decide to resume such settle- repeal of the provision of the U.S. law defining the par ments. These amounts are shown as Deferred value of the U.S. dollar in terms of gold, the pre-existing Amounts Receivable to Maintain Value of Currency basis for translating 1960 dollars into current dollars or Holdings. 82 THE WORLD BANK ANNUAL REPORT 2000 Development Credits thereafter are denominated in SDRs; the principal All development credits are made to or guaranteed by amounts disbursed under such development credits are member governments or to the government of a terri- to be repaid in currency amounts currently equivalent tory of a member (except for development credits to the SDRs disbursed. which have been made to regional development banks Development Grants for the benefit of members or territories of members of DevElopent an ts IDA). In order to qualify for lending on IDA terms, a The Eleventh and Twelfth Replenishment Resolutons country's per capita income must be below a certain nauthonrze the use of Eleventh and Twelh Replenish- level and the country may have only limited or no cred- ment donor funds to finance IDA development grants itothns for BR ledn. Deeomn creit in the context of the HIPC Debt Initiative. The net itwo srthiness chargeof IBRD lending. Devent and rgen y income transfers from IBRD for fiscal years 1997, 1998 carry a service charge of 0.75 percent and generally and 1999 also authorizes the use of such funds for IDA have 35- or 40-year final maturities and a 10-year grace d 1 period for principal payments. Development credits are development grants carried in the Special Purpose Financial Statements at Development grants are accrued by IDA upon their the full face amount of the borrowers' outstanding obli- commitment. gations. Heavily Indebted Poor Countries Debt Initiative It is the practice of IDA to place in nonaccrual status all The HIPC Debt Initiative was launched in 1996 as a development credits made to a member government or joint effort by bilateral and multilateral creditors to to the government of a territory of a member if princi- ensure that reform efforts of HIPCs would not be put pal or charges with respect to any such development at risk by unsustainable external debt burdens. As a credit are overdue by more than six months, unless part of this process, the HIPC Debt Initiative Trust IDA's management determines that the overdue Fund was established on November 7, 1996, adminis- amount will be collected in the immediate future. In tered by IDA and constituted by funds of donors addition, if loans by IBRD to a member government are including the IBRD, to help beneficiaries reduce their placed in nonaccrual status, all development credits to overall debt, including IDA debt. that member government will also be placed in nonac- crual status by IDA. On the date a member's develop- Under the Initial Framework of the initiative, eligible ment credits are placed in nonaccrual status, charges countries received relief on IBRD and IDA debt that had been accrued on development credits out- through three mechanisms: (i) partial financing of standing to the member which remained unpaid are lending operations with development grants; (ii) pur- deducted from the income from development credits of chase and cancellation of IDA credits by the World the current period. Charges on nonaccruing develop- Bank component of the HIPC Debt Initiative Trust ment credits are included in income only to the extent Fund; and (iii) in certain cases, the provision of debt that payments have actually been received by IDA. If service on selected IDA credits by the HIPC Debt Ini- collectibility risk is considered to be particularly high at tiative Trust Fund. the time of arrears clearance, the member's credits may Under the Enhanced Framework of the initiative, not automatically emerge from nonaccrual status, even which was approved by IDA's Executive Directors on though the member's eligibility for new credits may January by 2000s Execution mectors o have been restored. A decision on the restoration of January 27, 2000, implementa mechani also accrual status is made on a case-by-case basis after a include: (i) partial forgiveness of IDA and Interim Trust suitable period of payment performance has passed Fund debt service as it comes due, to be reimbursed to fromithe terime of parrearsclearance. ncehaspasse IDA by the World Bank Group component of the HIPC Debt Initiative Trust Fund; and (ii) in the case of In fulfilling its mission, IDA makes concessional loans countries with a substantial amount of outstanding to the poorest countries, therefore there is significant IBRD debt, partial refinancing by IDA resources credit risk in the portfolio of development credits. Man- (excluding transfers from IBRD) of outstanding IBRD agement continually monitors this credit risk. No provi- debt. sion for credit losses, other than allowances under the Heavily Indebted Poor Countries (HIPC) Debt Initia- Investments tive, has been established. This is because it is not prac- IDA carries its investment securities and related finan- ticable to determine a provision for credit losses in view cial instruments at market value. Both realized and of the nature and maturity structure of the credit port- unrealized gains and losses are included in Income from folio. Should probable losses occur, they would be Investments. included in the Statement of Income. Accounting Changes The repayment obligations of IDA's development cred- its funded from resources through the Fifth Replenish- In the fourth quarter of fiscal year 2000, IDA changed ment are expressed in the development credit its accounting policy related to the HIPC Debt Initia- agreements in terms of 1960 dollars. In June 1987 the tive and restated its financial statements of prior years Executive Directors decided to value those develop- to apply retroactively the new policy. A summary of ment credits at the rate of $1.20635 per 1960 dollar on the new accounting policy and details of debt relief a permanent basis. Development credits funded from provided under the HIPC Debt Initiatives are pre- resources provided under the Sixth Replenishment and sented in Note I. IDA SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 83 Under the new accounting policy, development grants Currency Swaps: Currency swaps are agreements and any impairments of IDA's outstanding develop- between two parties to exchange cash flows denomi- ment credits in connection with the HIPC Debt Initia- nated in different currencies at one or more certain tive are recognized as charges to income. This times in the future. The cash flows are based on a pre- recognition occurs when IDA either approves the determined formula reflecting rates of interest and an development grants or determines that impairments to exchange of principal. IDA is authorized to enter into IDA's credits are probable and can be reasonably esti- currency swaps for periods not exceeding one year, mated. Previously, development grants and such including covered forwards. impairments were not charged to income. Instead, they were directly reported in the Statement of Sources and Forwards and Futures: Futures and forward contracts App lircati rof tevelopmen Reses, as aSoeart are contracts for delivery of securities or money market Applications of Development Resources, as a separate intuesinwchheelragesomkedivy lin ite tie Hevl Indeb1te Poo Conre Debt. instruments in which the seller agrees to make delivery in itie. the new a ndtin Pol l rief Debt at a specified future date of a specified instrument, al a the impact of the HIPC Debt Initiative on IDAl s finan- specified price or yield. Futures contracts are traded on the impact of the HIPC. Debt Initiative on IDA's finan- regulated United States and international exchanges. cial position and operating activities. IDA generally closes out most open positions in futures The effect of the accounting change on income of fiscal contracts prior to maturity Therefore, cash receipts Dr year 2000 and on income as previously reported for fis- payments are mostly limited to the change in market cal years 1999 and 1998 is a reduction of $7,829 mil- value of the futures contracts. Futures contracts gener- lion, $154 million and $168 million, respectively. ally entail daily settlement of the net cash margin. In the third quarter of fiscal year 2000, all investment Government and Agency Obligations: These obliga- securities were included as an element of liquidity in tions include marketable bonds, notes and other obliga- the Statements of Cash Flows due to their nature, and tions issued by governments. Obligations issued ar IDA's policies governing the level and use of such unconditionally guaranteed by governments of coun- investments. As a result, Statements of Cash Flows of tries require a minimum credit rating of AA if denorr1i- prior years have been restated to reflect this change, for nated in a currency other than the home currency a which there is no income effect. the issuer, otherwise no rating is required. Obligations Interim Trust Fund issued by an agency or instrumentality of a government of a country, a multilateral organization or any oth-r The Interim Trust Fund (ITF), established by IDA's official entity require a credit rating of AAA. Board of Governors in June 1996 as a part of the Elev- enth Replenishment, is administered by IDA to help Interest Rate Swaps: Interest rate swaps are agreements fund operations approved during the period July 1, involving the exchange of periodic interest payments of 1996 to June 30, 1997, as well as certain additional differing character, based on an underlying notional operations approved after July 1, 1997. The develop- principal amount for a specified time. ment resources of the ITF have a separate legal, pro- Options: Options are contracts that allow the holder of curement and accounting status. Credits financed by the option the right, but not the obligation, to purchase the ITF are made on the same terms and conditions as or sell a financial instrument at a specified price within those of IDA credits with two exceptions. First, eligibil- a specified period of time from or to the seller of tie ity for procurement under the Interim Fund Credits is option. The purchaser of an option pays a premium at extended only to nationals of countries that either have the outset to the seller of the option, who then bea-s contributed to the ITF or are eligible to borrow from the risk of an unfavorable change in the price of the IBRD or IDA. Second, the Interim Fund Credits are financial instrument underlying the option. IDA invests approved by IDA's President after consultation with a only in exchange-traded options. The initial price of an committee of IDA's Executive Directors representing option contract is equal to the premium paid by the the donors and eligible borrowers. Effective December purchaser and is significantly less than the contract or 31, 1997, procurement restrictions were lifted from notional amount. IDA does not write uncovered option SDR 700 million in ITF contributions that were unallo- contracts. cated. Repurchase and Resale Agreements and Securities Charges paid by borrowers on ITF credits are directly Loans: Repurchase agreements are contracts under paid to IDA as compensation for its services as adminis- which a party sells securities and simultaneously agrees trator of the ITE These charges are included under to repurchase the same securities at a specified future Income from development credits. The ITF is expected date at a fixed price. The reverse of this transaction iS to be terminated when the credits it financed have been called a resale agreement. A resale agreement involve s substantially disbursed. Upon termination, the assets the purchase of securities with a simultaneous agre - and liabilities of the ITF will be transferred to IDA. ment to sell back the same securities at a stated price on NOTE B-INVESTMENTS a stated date. Securities loans are contracts under which securities are lent for a specified period of time As part of its portfolio management strategy, IDA at a fixed price. invests in the following financial instruments. 8.4 THE WVORLD BANK ANNUAL REPORT 2000 Short Sales: Short sales are sales of securities not held Time Deposits: Time deposits include certificates of in the seller's portfolio at the time of the sale. The deposit, bankers' acceptances, and other obligations seller must purchase the security at a later date and issued or unconditionally guaranteed by banks and bears the risk that the market value of the security will other financial institutions. move adversely between the time of the sale and the time the security must be delivered. A summary of IDA's investments, by instrument, at June 30, 2000 and June 30, 1999 is as follows: In millions of US. dollar equivalent 2000 '99- 9 Average Net gains Average Net gains balance (losses) balance (losses) Carrying during the for the Carrying during the for the value fiscal year fiscal year value fiscal year fiscal year Government and agency obligations $ 6,616 $ 7,288 $172 $ 7,302 $7,801 $(100) Time deposits 6,002 6,633 - 4,859 5,822 Currency swaps I 10 - 47 14 - Forwards, futures and options 1 4 1 2 1 18 Resale agreements 248 366 - 97 395 Repurchase agreements and securities loans (3,108) (4,797) - (4,101) (4,810) _ Total $ 9,760 $ 9,504 $173 $ 8,206 $9,223 $ (82) Short sales' $ (226) $ (141) $ - $ (65) $ (15) $ a. Included in Net (payable) receivable on investment securities transactions in the Statement of Sources and Applications of Development Resources. A summary of the currencv composition of investments For the purpose of risk management, IDA is party to a at June 30, 2000 and June 30, 1999 is as follows: variety of financial instruments, certain of which involve elements of credit risk in excess of the amount In millions of US. dollars equivalent reflected in the Statement of Sources and Applications -- 2000 - - of Development Resources. Credit risk exposure repre- _200 1999 sents the maximum potential accounting loss due to Euroa $2 524 $2 587 possible nonperformance by obligors and counterpar- Japanese yen $1471 '5804 ties under the terms of the contracts. Additionally, the pounds esetferling 2,679 351 nature of the instruments involve contract value and Pounds s,067 1,351 notional principal amounts that are not reflected in the U.S. dollars 3,086 3,464 basic financial statements. For both on- and off-balance Total $9,760 $8,206 sheet securities, IDA limits trading to a list of autho- ______ ______' rized dealers and counterparties. Credit limits have been established for each counterparty by type of a. Effective January 1, 1999, the euro was introduced. instrument and maturity category. For reporting purposes, holdings in the eleven national currencies that are considered national currency units of the euro have been aggregated with the euro and reported as euro, in both the current and prior year IDA SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 85 The credit risk exposure and contract value, as applicable, of these financial instruments at June 30, 2000 and June 30, 1999 (prior to taking into account any master derivatives agreements or collateral arrangements that have been made) are given below: In millions of U.S. dollars equivalent 2000 1999 Forwards, futures and options * Long position $781 $2,127 * Short position 354 377 * Credit exposure due to potential nonperformance by counterparties 7 3 Currency swaps * Credit exposure due to potential nonperformance by counterparties 9 48 NOTE C-MEMBER SUBSCRIPTIONS AND 2002, became effective on March 23, 2000. Of ttis CONTRIBUTIONS amount, new contributions from donor countries, including supplementary contributions provided by Subscriptions and Contributions Receivable: At June certain members and discounts on accelerated encash- 30, 2000, receivables from subscriptions and contribu- ments, total SDR 8,640 million. Certain procurement tions were $6,624 million ($165 million-June 30, restrictions apply to Twelfth Replenishment credits 1999) of which $54 million ($12 million-June 30, financed by donor funds. 1999) was due and $6,570 million ($153 million- June 30, 1999) was not yet due. As of June 30, 2000, IDA had received Instruments of Commitments (IoCs) totaling SDR 7,431 million, and Subscriptions and contributions due at June 30, 2000 has yet to receive IoCs representing donor were as follows: contributions totaling SDR 621 million, out of the total expected donor contributions of SDR 8,052 million. In millions of US. dollars equivalent Membership: In February 1993 the Socialist Federal Amounts initially due from Republic of Yugoslavia ceased to be a member of IDA due to the cessation of its membership in IBRD. Four of July 1,1999 through June 30, 2000 $42 the five successor Republics-Bosnia and Herzegovina, June 30, 1999 and earlier 1 2 the Republic of Croatia, the Republic of Slovenia ard the former Yugoslav Republic of Macedonia-have Total $54 since become members of IDA. At June 30, 2000, the Total $54 subscription and contributions allocated to the other successor country, the Federal Republic of Yugoslavia (Serbia and Montenegro), are included under Payments Subscriptions and contributions not yet due at June 30, on Account of Pending Membership. 2000 will become due as follows: NOTE D-TRANSFERS AND RECEIVABLES FROM In millions of US. dollars equivalent IBRD Period IBRD's Board of Governors has approved aggregate transfers to IDA totaling $6,435 million through June July 1, 2000 through June 30, 2001 $3,285 30, 2000 ($6,087 million-June 30, 1999). The aggre- July 1, 2000 ~~~~~~~~~gate transfers reported in the Statement of Sources and July 1, 2001 through June 30, 2002 3,246 Applications of Development Resources may differ Thereafter 39 from the amount of aggregate transfers approved due to exchange rate movements. Total $6,570 Of the aggregate transfers, $348 million in SDRs valued at June 30, 1999 was approved by IBRD's Board c.f Governors on September 30, 1999. Of this amount, Twelfth Replenishment: On April 8, 1999, the Board $300 million will be drawn down in fiscal year 2005, of Governors of IDA adopted a resolution authorizing which is the end of the defined encashment schedule the Twelfth Replenishment of IDA's resources. The for donor contributions to IDA's Twelfth Twelfth Replenishment, which provides IDA with Replenishment. Te remaining $48 million in SDRs resources of SDR 15,343 million to fund concessional valued at June 30, 1999 was transferred on October 14, lending during the period July 1, 1999 to June 30, 86 THE WORLD BANK ANNUAL REPORT 2000 1999. The transfer reported in the Statement of Cash ment Resources before any allowance in connection Flows is different due to exchange rate movements. with either the Enhanced or Initial HIPC Framework Of the aggregate transfers, $352 million in SDRs valued (see Note I). at June 30, 1998, which was approved by IBRD's Board The nominal value of the principal component of the of Governors on October 8, 1998, will be drawn down debt relief to be provided under the Enhanced HIPC by IDA after all other resources available to IDA for Framework is included under accumulated allowance purposes of the Eleventh Replenishment have been for HIPC Debt Initiative in the Statement of Sources drawn down. and Application of Development Resources. This amount is net of any debt relief delivered to date. The receivable of $650 million ($354 million-June 30, 1999) from IBRD reported in the Statement of Upon approval by the Executive Directors of IDA in Sources and Applications of Development Resources is connection with the sales of IDA credits to the HIPC different from the amounts approved due to exchange Debt Initiative Trust Fund, the estimated write-down, rate movements. representing the difference between the carrying value and the net present value (see Note F) of the develop- NOTE E-DEVELOPMENT CREDITS ment credits identified for sale, is recorded under accu- mulated allowance for HIPC Debt Initiative in the Accumulated Allowance for Heavily Indebted Poor Statement of Sources and Application of Development Countries Debt Initiative Resources. Development credits outstanding are presented in the Statement of Sources and Applications of Develop- Changes to the accumulated allowance for HIPC Debt Initiative for the fiscal years ended June 30, 2000, June 30, 1999 and June 30, 1998 are summarized below: In millions of US. dollars equivalent 2000 1999 1998 Balance, beginning of the fiscal year $ - $- $ Enhanced HIPC Framework Allowance for principal component of debt relief a 7,958 Principal component of debt relief delivered (11) - 7,947 - Initial HIPC Framework Allowance for write-down on sale of development credits 455 - 93 Credits written down on sale of development credits (382) - (93) 73 -- Balance, end of the fiscal year $8,020 $- $- a. This allowance is the sum of the principal component of the best estimate available of the amount of debt relief which is expected to be provided by IDA to eligible countries, and the actual amount of debt relief committed by IDA to those countries that have reached their decision points, and in certain cases their completion points. Overdue Amounts opment credits overdue by more than three months At June 30, 2000, charges of $0.1 million (principal of was $443 million. $nil) payable to IDA on development credits, other than those referred to in the folloxving paragraph, were At June 30, 2000, development credits made to or overdue by more than three months. At June 30, 2000, guaranteed by certain member countries with an aggre- the aggregate principal amounts outstanding on all gate principal balance outstanding of $4,190 million development credits to any borrower, other than those ($4,213 million-June 30, 1999), of which $284 mil- referred to in the following paragraph, with any devel- lion ($222 million-June 30, 1999) was overdue, were IDA SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 87 in nonaccrual status. At such date, overdue charges in such members during the period, for the fiscal year respect of these development credits totaled $185 mil- ended June 30, 2000 would have been higher by $29 lion ($157 million-June 30, 1999). If these develop- million ($35 million-June 30, 1999 and $24 millior- ment credits nad not been in nonaccrual status, income June 30, 1998). from development credits net of charges received from A summary of borrowers with development credits or guarantees in nonaccrual status follows: In millions of US. dollars equivalent June 30, 2000 Principal and Principal Charges Nonaccrual Borrower Outstanding Overdue Since With overdues Afghanistan $ 75 $ 21 June 1992 Congo, Democratic Republic of 1,205 149 November 1993 Congo, Republic of 162 7 November 19C 7 Liberia 101 24 April 19N8 Myanmar 718 43 September 19c 8 Somalia 401 68 July 19 1 Sudan 1,183 157 January 19C4 Total 3,845 469 Without overdues Bosnia and Herzegovinaa 315 - September 19S2 Syrian Arab Republicb 30 - April 19~8 Total $4,190 $469 a. Development credits are in non-accrual status consistent ivith the policies of IBRD and IDA, T which all Bosnia ard Herzegovina debt to these organizations is in nonaccrual status. b. Development credits are in nonaccrual status due to overdues to IBRD. During fiscal year 1998, the Syrian Arab Republic and As a result of development credits coming out of ncn- IDA entered into an agreement covering, among other accrual status during the fiscal year ended June 30, things, the application of Syria's overdue principal and 1999, the income for that year was increased by $3 mil- charges. Under this agreement, Syria paid all its over- lion. due principal and charges by October 31, 1997. Fifth Dimeion Program During the fiscal year ended June 30, 2000, Comoros Under the Fifth Dimension program established in Sep- paid off all its arrears to IDA. Its development credits tember 1988, a portion of principal repayments to IDA came out of nonaccrual status on January 6, 2000. As a is allocated on an annual basis to provide supplemen- result, income from development credits for the year tary IDA development credits to IDA-eligible countries ended June 30, 2000 increased by $1 million, that are no longer able to borrow on IBRD terms but corresponding to income that would have been accrued have outstanding IBRD loans approved prior to Sep- in the previous fiscal year had these development tember 1988 and have in place an IDA-supported credits not been in nonaccrual status. structural adjustment program. Such supplementary IDA credits are allocated to countries that meet spec i- During fiscal year 1999, Sudan reached an fied conditions, in proportion to each country's intere st understanding with IBRD and IDA under which Sudan payments due that year on its pre-September 1988 agreed to make regular monthly payments of $1 million IBRD loans. To be eligible for such IDA supplementa] to clear its arrears beginning in July 1999. These credits, a member country must meet IDA's eligibility payments are being applied first to IBRD arrears and criteria for lending, must be ineligible for IBRD lending then to arrears with IDA. As of June 30, 2000, Sudan and must not have had an IBRD loan approved within had paid off all of its arrears to IBRD. the last twelve months. To receive a supplemental 88 THE WORLD BANK ANNUAL REPORT 2000 credit from the program, a member country cannot be are not available, fair values are based on quoted market more than 60 days overdue on its debt-service pay- prices of comparable instruments. The fair value of ments to IBRD or IDA. short-term financial instruments approximates their A summary of cumulative IDA credits committed and carrying value. disbursed under this program from inception, at June Development Credits: IDA's development credits have 30, 2000 and June 30, 1999 is given below: a significant grant element because of the concessional nature of IDA's terms. Discounting the future cash In millions of US. dollars equivalent flows from IDA's development credits using govern- ment reference rates represented bv interest rates of 2000 1999 government securities having similar duration to the portfolio of development credits, provides an estimate Commitments $1,659 $1,623 for the grant element. Under the Initial HIPC Debt Less undisbursed 29 19 Initiative, development credits identified for sale to the HIPC Debt Initiative Trust Fund are written down to Disbursed and their estimated net present value using currency spe- Outstanding $1,630 $1,604 cific Commercial Interest Reference Rates (CIRRs) published monthly by the Organization for Economic Cooperation and Development (OECD). Using the six Guarantees months average CIRR as a discount rate provides an The guarantee of a development credit of $30 million alternative estimate for the grant element. at June 30, 2000 ($30 million-June 30, 1999) was not Since IDA's development credits are denominated included in the Total Resources Used for Development either in U.S. dollars or SDRs, currency specific rates Credits. At June 30, 2000, no amounts were subject to have been used to discount the corresponding future call. cash flows for each currency component of the devel- Concentration of Income opment credits, before being aggregated to provide the composite results. The prior year's fair value of devel- For fiscal year 2000, development credits to two coun- opment credits has been restated using government ref- tries individually generated in excess of ten per cent of erence rates to conform to the current year's total income from these credits, amounting to $141 presentation. million and $66 million. The grant element calculations consider interest rates, NOTE F-FAIR NTALUE OF FINANCIAL INSTRU- maturity structures and grace periods for the credits. MENTS They do not consider credit risk, portfolio seasoning, multilateral and sovereign credit preferences and other Investments: Since IDA carries its investments at mar- risks or indicators that would be relevant in calculating ket value, the carrying amount represents the fair value fair value. Estimating the impact of these factors is not of the portfolio. These fair values are based on quoted practicable. market prices, where available. If quoted market prices IDA SPECIAI. PURPOSE FINANCIAL STAIEMENI'S: JUJNEi 30, 2T0 -: However, under either alternative, the estimated fair values of development credits outstanding are substantially lower than the $85,852 million reflected on the Statement of Sources and Applications of Development Resources at June 30, 2000 ($83,158 million-June 30, 1999), as shown in the following table: In millions of US. dollars equivalent June 30, 2000 June 30, 1999 Government Government reference rate- reference rate- based CIRR-based based CIRR-based fair value fair value fair value fair value Development credits outstanding $85,852 $85,852 $83,158 $83,158 Less grant equivalent 38,497 44,618 38,236 37,247 Estimated value of development credits outstanding $47,355 $41,234 $44,922 $45,911 Estimated grant element 45% 52% 46% 45% Discount Rates Used Discount Rates Used Government reference rate securities -US dollar 6.01% 5.81% SDRa 4.90% 4.97% CIRRs: Average of six months to June - U.S. dollar 7.46% 6.00% - SDR 6.02% 4.87% a. Implies weighted average government reference rates of the component currencies contained in the SDR. Discounting the future cash flows from IDA's develop- element. The estimated grant element based on this ment credits using the standard 10 percent discount standard DAC rate for IDA's development credits is 68 rate of the Development Assistance Committee (DAC) percent as of June 30, 2000 (69 percent-June 30, of the OECD, provides another alternative for the grant 1999). NOTE G-NET MANAGEMENT FEE IDA receives charges paid by borrowers on Interim The following table shows the management fee, net of Fund Credits as compensation for its services as admin- IDA's share of income from pension plan and other istrator of ITF, and pays a management fee to IBRD postretirement benefits plans: representing its share of the administrative expenses incurred jointly by IBRD and IDA. In millions of U.S. dollars 2000 1999 1998 Management fee charged by IBRD $549 $518 $474 Less IDA's share of income from pension plan and other postretirement benefits plans 111 150 252 Net management fee $438 $368 $222 90 THE WORLD BANK ANNUAL REPORT 2000 During the fiscal year ended June 30, 1998, the status At June 30, 1998, these assets and liabilities were of the other postretirement benefits was reviewed by recorded on IBRD's balance sheet. As a result of this IBRD and it was determined that the assets and liabili- change, the management fee for the fiscal year ended ties associated with these postretirement benefits did June 30, 1998 was reduced by $133 million. not qualify for off-balance sheet accounting. NOTE H-IRUST FUNDS ADMINISTRATION IDA, alone or jointly with IBRD, administers on behalf borrowers including feasibility studies and project prep- of donors, including members, their agencies and other aration, global and regional programs and research and entities, funds restricted for specific uses which include training programs. These funds are placed in trust and the cofinancing of IDA lending projects, debt reduction are not included in the development resources of IDA. operations for IDA members, technical assistance for At June 30, 2000 and June 30, 1999, the allocation of trust fund assets by executing agent were as follows: 2000 1999 Total trust Number of Total trust Number of assets trust fund assets trust fund (In millions) accounts (In millions) accounts IDA executed $1,303 636 $1,059 712 Recipient executed 875 1,362 782 674 Total $2,178 1,998 $1,841 1,386 The responsibilities of IDA under these arrangements tion of the management fee charged by IBRD. During vary and range from services normally provided under the fiscal year ended June 30, 2000, IDA received $7.4 its own lending projects to full project implementation million ($5.6 million-June 30, 1999, $8.9 million- including procurement of goods and services. IDA June 30, 1998) as fees for administering trust funds. receives fees for administering trust funds as a reduc- NOTE I-IMPACT FROM HEAVILY INDEBTED POOR COUNTRIES DEBT INITIATIVE Enhanced HIPC Framework On January 27, 2000, the Executive Directors of IDA extent that funds are available) and income is recog- gave approval for IDA to provide debt relief under the nized. This receivable is limited to the nominal value enhanced HIPC framework by forgiving a portion of an equivalent of one-third of the net present value of the eligible country's IDA and ITF debt service obligations principal component of the total debt relief committed as they become due. Amounts of IDA and ITF debt to the specific country. This is the maximum debt service forgiven are expected to be reimbursed by the relief that can be provided before the country reaches World Bank Group component of the HIPC Debt Ini- its completion point (see below). tiative Trust Fund on a pay-as-you-go basis. A receivable from the HIPC Debt Initiative Trust Fund Upon approval of the Enhanced HIPC Framework by is created and income is recognized when the country the Executive Directors of IDA, the nominal value of reaches its completion point (that is when the condi- the principal component of the estimated debt relief tions specified in the legal notification are met), and costs is recorded as a reduction of the disbursed and the country's other creditors have confirmed their full outstanding development credits under accumulated participation in the debt relief initiative. This receiv- allowance for HIPC Debt Initiative, and as a charge to able represents the remaining principal component of income. This estimate is subject to periodic revision. the total debt relief committed which was not recog- Upon signature by IDA of the country specific legal nized at the decision point. notification, immediately following the decisions by the A summary of changes to the receivable from the HIPC Executive Directors of IDA to provide debt relief to the Debt Initiative Trust Fund is presented below. country (the decision point), a receivable from the The accumulated allowance for HIPC Debt Initiative is HIPC Debt Initiative Trust Fund is created (to the reduced when debt relief is provided by IDA. A sum- IDA SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 91 mary of changes to the accumulated allowance for Sales of IDA Development Credits HIPC Debt Initiative is presented under Note E. IDA sells specific development credits to the H[PC Debt relief composed of $11 million in principal repay- Debt Initiative Trust Fund for cash at a price equivalent ments and $6 million in charges has been delivered to to the net present value (see Note F) of the deve op- date by IDA since the start of the Enhanced HIPC, all ment credits, as calculated using the methodology of which was reimbursed by the HIPC Debt Initiative agreed under the Initial HIPC Framework. Upon Trust Fund. approval by the Executive Directors of IDA, the esti- mated write-down, representing the difference betxs een Receivable from the HIPC Debt Initiative Trust Fund the carrying value and the net present value of the development credits identified for sale, is recorded In millions of US. dollars under accumulated allowance for HIPC Debt Initiative 2000 in the Statement of Sources and Application of Devel- opment Resources. On the settlement date, the esti- Balance, beginning of the fiscal year $- mated write-down is adjusted to reflect the actual Contribution to IDA for Enhanced difference between the cash received and the caryring HIPC (see Statement of Income) 584 value of the development credit sold. The HIPC Debt Reimbursement received for principal Initiative Trust Fund subsequently cancels these devel- repayments forgiven (see opment credits. Statement of Cash Flows) (11) Balance, end of the fiscal year $573 Initial HIPC Framework Assistance under the Initial HIPC Framework has been provided by IDA by means of development grant fund- ing in lieu of credit funding and sales of development credits to the HIPC Debt Initiative Trust Fund. IDA Development Grants At June 30, 2000, development grants provided by country and source of funding since inception of the Initial HIPC Framework are as follows: In millions of US. dollars equivalent Source of Funds Transfers Eleventh from IeRD Replenishment Total Donor Funds Development grants provided: Uganda $75 $ - $ 75 Mozambique - 154 154 Total $75 $154 $229 Development grants disbursed as shown in the State- ment of Cash Flows differ from the amounts shown above, due to any outstanding payables and exchange rate movements in the period between the date of approval and the subsequent transfer of the funds. 92 THE WORLD BANK ANNUAL REPORT 2000 At June 30, 2000, the cumulative position of the sales of IDA development credits under the Initial HIPC Frame- work is as follows: In millions of US. dollars equivalent Fiscal Year in W4lzhich Carrying Charge Against Sold Value Net Present Value Income Development credits sold Uganda 1999 S 177 $ 84 $ 93 Guyana 2000 52 27 25 Mozambique 2000 684 327 357 736 354 382 Total development credits sold 913 438 475 Development credits approved for sale Burkina Faso 163 90 73 Total $1,076 $528 $548 Debt Service on Development Credits The HIPC Debt Initiative Trust Fund also services amounts are not recorded in the Statement of Sources selected IDA development credits as they come due and Applications of Development Resources of IDA, as over a period of years. From inception through June 30, the HIPC Debt Initiative Trust Fund is a legally sepa- 2000, $52 million for Uganda and $54 million for rate and separately administered entity. Bolivia had been approved for this purpose. These IDA SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 93 Summary of HIPC Debt Initiative A summary table of debt relief provided as of June 30, 2000, and estimated to be provided, under both the Enhanced and Initial HIPC Framework follows: In millions of US. dollars equivalent HIPC Debt Initiative IDA ITF Trust Fund a Total Debt Relief under Enhanced HIPC Provided to date Principal $ 11 $- $ - $ 11 Charges 6 - 1 7 17 1 18 Remainder to be provided Principal 7,947 51 - 7,998 Charges 1,411 - 4 1,415 9,358 51 4 9,413 Total Enhanced HIPC Principal 7,958 51 - 8,009 Charges 1,417 - 5 1,422 9,375 51 5 9,431 Debt Relief under Initial HIPC Provided to date 704 - 489 1,193 Remainder to be provided 73 155 228 Total Initial HIPC 777 - 644 1,421 Total Debt Relief $10,152 $51 $649 $10,852 a. The debt relief relates only to the World Bank Group component of this trustfund, and includes amounts approved ip to June 30, 2000 by the Board of Executive Directors of IDA. NOTE J-COMPREHENSIVE INCOME Comprehensive income consists of net income and HIPC Debt Initiative. These items are presented in the other gains and losses affecting sources of development Statement of Comprehensive Income. The following resources that, under generally accepted accounting table presents the changes in Accumulated Other principles, are excluded from net income. For IDA, Comprehensive Income balances for the years ended comprehensive income comprises currency translation June 30, 2000, 1999 and 1998: adjustments on development credits and income after In millions of US. dollars equivalent Accumulated Other Comprehensive Income a 2000 1999 1998 Balance, beginning of the fiscal year $(194) $(391) $ 2,373 Changes from period activity (524) 197 (2,764) Balance, end of the fiscal year $(718) $(194) $ (391) a. The total accumulated other comprehensive income represents the cumulative translation adjustment on development credits. 94 THE WORLD BANK ANNUAL REPORT 2000 REPORT OF INDEPENDENT ACCOUNTANTS ON SPECIAL PURPOSE FINANCIAL STATEMENTS Deloit Touche Tohmatsu (International Firm) 555 12th Street NW Washington, DC President and Board of Govemors Intemational Development Association We have audited the accompanying special purpose statements of sources and applications of development resources of the International Development Association as of June 30, 2000 and 1999, including the summary statement of development credits and statement of voting power, and subscriptions and contributions as of June 30, 2000, and the related special purpose statements of income, comprehensive income, changes in retained eamings, and cash flows for each of the three fiscal years in the period ended June 30, 2000. These special purpose financial statements are the responsibihty of the Intemational Development Association's management. Our responsibility is to express an opinion on these special purpose financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. The accompanying special purpose financial statements were prepared to reflect the sources and applications of development resources, operations, and cash flows of the Intemational Development Association to comply with Article VI, Section II(a) of the Articles of Agreement of the Intemational Development Association, as discussed in Note A to the special purpose financial statements, and are not intended to be a presentation in conformity with accounting principles generally accepted in the United States of America or International Accounting Standards. As discussed in Note A to the financial statements, during fiscal year 2000 the Intemational Development Association changed its accounting policy for the HIPC Debt Initiative and, retroactively, restated the financial statements for the change. Under the new accounting policy, development grants and any impairments of outstanding development credits in connection with the HIPC Debt Initiative are recognized as charges to income. In our opinion, such special purpose financial statements referred to above present fairly, in all material respects, the sources and applications of development resources of the Intemational Development Association as of June 30, 2000 and 1999, and the results of its operations and its cash flows for each of the three fiscal years in the period ended June 30, 2000 in conformity with the accounting principles described in Note A to the special purpose financial statements. This report is intended solely for the information and use of the Board of Governors, management, and members of the Intemational Development Association. However, under the International Development Association's Articles of Agreement, this report is a matter of public record and its distribution is not limited. July 31, 2000 Beijing London Mexico City Moscow New York Paris Tokyo Toronto IDA SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 95 INTERIM TRUST FUND SPECIAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Statement of Sources and Applications of Development Resources 98 Statement of Income 99 Statement of Comprehensive Income 99 Statement of Changes in Retained Earnings 100 Statement of Cash Flows 101 Summary Statement of Interim Fund Credits 102 Statement of Contributions 104 Notes to Special Purpose Financial Statements 105 Report of Independent Accountants on Special Purpose Financial Statements 1I1 97 STATEMENT OF SOURCES AND APPLICATIONS OF DEVELOPMENT RESOURCES June 30, 2000 and June 30, 1999 Expressed in millions of US. dollars 2000 1999 Applications of Development Resources Net Resources Available For Development Activities Due from Banks Unrestricted currencies $ 9.7 $ 8.7 Investments-Notes B and D 1,346.2 935.8 Receivable from the HIPC Debt Initiative Trust Fund-Note F 17.3 -- Nonnegotiable, Noninterest-bearing Demand Obligations on Account of Contributions 711.5 1,357.5 Other Resources, net 1.5 -- Total net resources available for development activities 2,086.2 2,302.0 Resources Used For Interim Fund Credits (see Summary Statement of Interim Fund Credits, Notes D and E) Total Interim Fund Credits 2,679.8 2,653.4 Less undisbursed balance 1,889.3 2,145.') Interim Fund Credits outstanding 790.5 508.4 Less accumulated allowance for HIPC Debt Initiative 51.0 -- Total resources used for Interim Fund Credits outstanding 739.5 508.4 Total Applications of Development Resources $2,825.7 $2,810.4 Sources of Development Resources Contributions (see Statement of Contributions) Contributions committed $2,780.2 $2,788.4 Less contributions receivable-Note C 2.3 2.3 Less unamortized discount on contributions 1.0 1.5 Contributions paid in 2,776.9 2,784.6 Accumulated Other Comprehensive Income-Note G (20.3) (11. 7) Retained Earnings (see Statement of Changes in Retained Earnings) 69.1 37.5 Total Sources of Development Resources $2,825.7 $2,810.4 The Notes to Special Purpose Financial Statements are an integral part ofthese Statements. 98 THE WORLD BANK ANNUAL REPORT 2000 STATEMENT OF INCOME For the fiscal years ended June 30, 2000, June 30, 1999 and June 30, 1998 Expressed in millions of US. dollars 2000 1999 1998 Income Income from investments-Note B $ 70.1 $36.9 S 14.4 Expenses Amortization of discount on contribution advances (0.3) (0.4) (0.3) Operating Income 69.8 36.5 14.1 Effect of exchange rate changes on accumulated income excluding HIPC Debt Initiative (4.5) (2.3) (10.1) Income before HIPC Debt Initiative 65.3 34.2 4.0 Enhanced HIPC Framework Allowance for principal component of debt relief- Note E (51.0) Contribution from the HIPC Debt Initiative Trust Fund-Note F 17.3 Total charges for Enhanced HIPC (33.7) - - Income afier HIPC Debt Initiative $ 31.6 $34.2 $ 4.0 STATEMENT OF COMPREHENSIVE INCOME For the fiscal years ended June 30, 2000, June 30, 1999 and June 30, 1998 Expressed in millions of US. dollars 2000 1999 1998 Income after HIPC Debt Initiative $31.6 $34.2 $ 4.0 Other Comprehensive Income-Note G Currency translation adjustment on Interim Fund Credits (8.6) (2.2) (10.3) Total other comprehensive (loss) (8.6) (2.2) (10.3) Comprehensive Income (Loss) $23.0 $32.0 $ (6.3) 7he Notes to Special Purpose Financial Statements are an integral part of these Statements. INTERIM TRUST FUND SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 99 STATEMENT OF CHANGES IN RETAINED EARNINGS For the fiscal years ended June 30, 2000 and June 30, 1999 Expressed in millions of US. dollars 2000 1999 Balance at Activity Balance at Balance at Activity Balance at beginning of during the end of the beginning of during the end of the the fiscal year fiscal year fiscal year the fiscal year fiscal year fiscal year Allowance for Enhanced HIPC $ - $(51.0) $(51.0) $- $ $ Contribution for Enhanced HIPC from HIPC Debt Initiative Trust Fund 17.3 17.3 Accumulated Income excluding HIPC Debt Initiative 37.5 65.3 102.8 3.3 34.2 37.5 Total $37.5 $ 31.6 $ 69.1 $3.3 $34.2 $37.5 100 THE WiORLD BANK ANNUAL REPORT 2000 STATEMENT OF CASH FLOWS For the fiscal years ended June 30, 2000, June 30, 1999 an2d June 30, 1998 Expressed in mn illion2s of US. dollars 2000 1999 1998 Cash Flows from Development Activities Interim Fund Credit disbursements $ (290. 7) $(179.6) $(197.6) Cash Flows from Financing Activities Net short-term borrowings - - (22.0) Donor contributions 638.0 682.5 579.8 Net cash provided by financing activities 638.0 682.5 557.8 Cash Flows from Operating Activities Operating Income 69.8 36.5 14.1 Adjustments to reconcile operating income to net cash provided by operating activities Amortization of discount on contribution advances 0.3 0.4 0.3 Net changes in other development resources (6.7) 1.3 (3.7) Net cash provided by operating activities 63.4 38.2 10.7 Effect of exchange rate changes on unrestricted cash and liquid investments 0.7 (1.2) (9.3) Net Increase in Unrestricted Cash and Liquid Investments 411.4 539.9 361.6 Unrestricted Cash and Liquid Investments at Beginning of the Fiscal Year 944.5 404.6 43.0 Unrestricted Cash and Liquid Investments at End of the Fiscal Year $1,355.9 $ 944.5 $ 404.6 Composed of Unrestricted currencies 9.7 8.7 14.3 Investments 1,346.2 935.8 390.3 $1,355.-9 $ 944.5 $ 404.6 Supplemental Disclosure Decrease in ending balances of Interim Fund Credits outstanding resulting from exchange rate fluctuations S (8.6) S (2.2) $ (10.3) Total charges for Enhanced HIPC (33.7) INIlE'RIM TRt-SI FUNI) SPFCIAI. PUtRPOSE FINANCIAL. STA'TEMEN-T'S: Jt.NE 30, 2000 101 SUMMARY STATEMENT OF INTERIM FUND CREDITS June 30, 2000 Expressed in millions of US. dollars Percentage Total Undisbursed Credits of credits Borrower or guarantor credits credits outstanding outstanding Armenia $ 15.4 $ 3.0 $ 12.4 1.57% Bangladesh 417.8 374.4 43.4 5.49 Bolivia 14.4 7.4 7.0 0.88 Bosnia and Herzegovina 83.9 10.3 73.6 9.31 Burkina Faso 43.6 34.0 9.6 1.21 Cambodia 52.4 38.4 14.0 1.77 Chad 23.9 - 23.9 3.03 China 311.2 207.2 104.0 13.17 Comoros 6.8 6.8 - C6te d'lvoire 49.1 40.0 9.1 1.15 Egypt, Arab Republic of 68.5 51.2 17.3 2.19 Ghana 27.6 21.1 6.5 0.83 Guinea 23.9 18.6 5.3 0.67 India 738.1 672.5 65.6 8.30 Kenya 25.7 20.2 5.5 0.69 Kyrgyz Republic 42.5 - 42.5 5.38 Madagascar 92.0 10.1 81.9 10.35 Malawi 11.6 8.2 3.4 0.43 Mali 98.9 78.5 20.4 2.57 Mozambique 91.8 - 91.8 11.62 Senegal 6.5 2.8 3.7 0.47 Sri Lanka 14.2 9.6 4.6 0.59 Uganda 120.1 39.0 81.1 10.26 Vietnam 275.9 220.9 55.0 6.96 Yemen, Republic of 12.2 7.6 4.6 0.58 Zimbabwe 11.8 7.5 4.3 0.54 Total-June 30, 2000a $2,679.8 $1,889.3 $790.5 100.00% Total-June 30, 1999 $2,653.4 $2,145.0 $508.4 NOTES a. May differ from the sum of individual figures shown because of rounding. The Notes to Special Purpose Financial Statements are an integral part of these Statements. 102 THE WORLD BANK ANNUAL REPORT 2000 SUMMARY STATEMENT OF INTERIM FUND CREDITS (continued) June 30, 2000 Expressed in millions of US. dollars Maturity Structure of Interim Fund Credits Outstanding Period July 1, 2000 through June 30, 2005 $ July 1, 2005 through June 30, 2010 149.9 July 1, 2010 through June 30, 2015 218.0 July 1, 2015 through June 30, 2020 166.0 July 1, 2020 through June 30, 2025 110.7 July 1, 2025 through June 30, 2030 89.4 July 1, 2030 through June 30, 2035 42.1 JulY 1, 2035 through June 30, 2040 14.4 Total $790.5 The Notes to Special Purpose Financial Statements are an integral part of these Statements. INTERIM TRUST FUND SPECIAIL PURPOSE FINANCIAL. STATEMENTS: JUNE 30, 2000 103 STATEMENT OF CONTRIBUTIONS June 30, 2000 Expressed in millions of US. dollars Contributions Donor deposited Argentina S 4.5 Australia 71.0 Austria 34.1 Belgium 52.6 Botswana 0.5 Brazil 6.5 Canada 148.4 Czech Republic 2.0 Denmark 47.2 Finland 20.8 France 266.2 Germany 376.3 Greece 2.0 Hungary 2.7 Iceland 1.3 Ireland 5.9 Italy 160.8 Japan 744.8 Korea, Republic of 9.2 Luxembourg 3.4 Mexico 4.6 Netherlands 216.7 New Zealand 5.5 Norway 64.9 Poland 1.2 Portugal 7.0 Russian Federation 10.8 Saudi Arabia 25.0 Slovak Republic 1.4 South Africa 2.2 Spain 34.5 Sweden 101.2 Switzerland 60.3 Turkey 3.0 United Kingdom 281.7 Total-June 30, 2000a $2,780.2 Total-June 30, 1999 $2,788.4 NOTES a. May differfrom the sum of individualfigures shown because of rounding. The Notes to Special Purpose Financial Statements are an integral part of these Statements. 104 THE WORLD BANK ANNUAL REPORT 2000 NOTES TO SPECIAI PURPOSE FINANCIAL STATEMENTS NOTE A-ORGANIZATION, OPERATIONS AND reporting period. Actual results could differ from these SIGNIFICANT ACCOUNTING AND RELATED estimates. Significant judgements have been used in POLICIES the computation of estimated fair values of develop- Purpose ment credits and allowances for the HIPC Debt Initia- tive. The Interim Trust Fund (ITF) became effective on November 14, 1996. Certain reclassifications of the prior years' information have been made to conform to the current vear's pre- The Interim Trust Fund, established by IDA's Board of sentation. Governors in June 1996, is administered by IDA to help fund operations approved during the period July The Interim Trust Fund's special purpose financial 1, 1996 to June 30, 1997, as well as certain additional statements are prepared in accordance with the operations approved after July 1, 1997. The funds of accounting policies outlined below. the Interim Trust Fund have a separate legal, procure- Basis of Accounting ment and accounting status. Credits financed by the The Interim Trust Fund's special urpose financial Interim Trust Fund are made on the same terms and sTa pnte T red on the pual basial conditions as those of IDA credits with twvo exceptions. statements are prepared on the accrual basis of First, eligibility for procurement under the Interim accounting. That is, the effects of transactions and other Fund Credits is extended only to nationals of countries events are recognized when they occur (and not when that either have contributed to the Interim Trust Fund cash or its equivalent is received or paid) and are or are eligible to borrow from the International Bank recorded in the accounting records and reported in the for Reconstruction and Development (IBRD) or IDA. financial statements of the periods to which they relate Second, the Interim Fund Credits are approved by Translation of Currencies IDA's President after consultation with a committee of The Interim Trust Fund's special purpose financial IDA's Executive Directors representing the donors and statements are expressed in terms of U.S. dollars solely eligible borrowers. Effective December 31, 1997, pro- for the purpose of summarizing the Interim Trust curement restrictions were lifted from SDR 700 million Fund's financial position and the results of its opera in Interim Trust Fund contributions that were unallo- tions for the convenience of its donors and other inter- cated. Charges paid by borrowers on Interim Fund tid prtie Credits, currently 0.75 percent on balances outstand- este parties. ing, are received directly by IDA to compensate it for The Interim Trust Fund conducts its operations in the its services as administrator various currencies contributed to it. Development resources are translated at market exchange rates in The Interim Trust Fund is expected to be terminated effetathenofhecouigprodCnrb- when the credits it financed have been substantially dis- tnect at the end of the accountnng period Contrwbu bursed. Upon termination, its assets and liabilities will Income and expenses are translated either at the market be transferred to IDA. Voting rights in IDA on account exchange rates in effect on the dates of income and of contributions made to the Interim Trust Fund will be ,, , ., . . r, ~~~~~~expense recognition, or at an average of the market allocated to contributors upon termination of the exchange rates in effect during each month. Translation Interim Trust Fund.exhnertsiefetdrneahmt.Taslio adjustments relating to the revaluation of Interim Fund Sumnary of Significant Accounting and Related Credits denominated in Special Drawing Rights (SDRs) Policies are charged or credited to Accumulated Other Com- Due to the nature of the Interim Trust Fund, these prehensive Income. Other translation adjustments are financial statements have been prepared for the specific shown in the Statement of Income. purpose of reflecting the sources and applications of Contributions contributions and other development resources. These Contributions to the Interim Trust Fund are paid in financial statements are not intended to be a presenta- cash and nonnegotiable, noninterest-bearing demand tion in accordance with generally accepted accounting notes. The demand notes are encashed by IDA, on principles in the United States of America or weith behalf of the Interim Trust Fund, on an approximatelv International Accounting Standards. These special pur- . r pose financial statements have been prepared consis- pro rata basis among donors, at reasonable Intervals tent with Article VI, Section 11(a) of the Articles of over the projected encashment period (approximately Agreement of IDA, and Section 2(e) of the Board of seven years) to meet the Interim Trust Fund's opera- Governors' Resolution establishing the Interim Trust tiona commitments. Fund. Interim Trust Fund contributions are expressed and are The preparation of these special purpose financial state- payable in contributors' currencies, freelv convertible Thens requiresmanaofgtementto make purpostimatescurrencies and SDRs. Contributions made available for ments requires management to make estimates and disbursement in cash are turanlalted rate marke ecangbefo assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and rates in effect on the dates they were made available. liabilities at the date of the financial statements and the Contributions not yet available for disbursements are reported amounts of revenue and expenses during the translated at market exchange rates in effect at the end of the accounting period. INTERIM TRtST FUND SPECIAI. PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 1(05 Interim Fund Credits Credits outstanding to the member which remained Interim Fund Credits finance specific development unpaid are deducted from IDA's income from develop- projects or programs. The policies, practices and proce- ment credits of the current period. Charges on nonac- dures goveming the allocation of Interim Trust Fund cruing development credits are included in IDA's resources, the selection and appraisal of projects or pro- income only to the extent that payments have actually grams to be financed out of such resources and the been received by IDA. If collectibility risk is considered approval and administration of Interim Fund Credits, to be particularly high at the time of arrears clearance including the terms and conditions thereof, are the the member's Interim Fund Credits may not automati- same as those applicable with respect to development cally emerge from nonaccrual status, even though its credits made under IDA's Eleventh Replenishment eligibility for new Interim Fund Credits may have been with the two aforementioned exceptions. restored. A decision on the restoration of accrual sta- tus is made on a case-by-case basis after a suitable Interim Fund Credits are denominated in SDRs and are period of payment performance lhs passed from tde to be repaid in currency amounts currently equivalent time of arrears clearance. to the SDRs disbursed. They are carried in the Special Purpose Financial Statements at the full face amount of Heavily Indebted Poor Countries Debt Initiative the borrowers' outstanding obligations. Principal The HIPC Debt Initiative was launched in 1996 as a repayments of Interim Fund Credits will be part of the j.oint effort by bilateral and multilateral creditors t resources of the Interim Trust Fund until it is termi- eutt effort s of and wouldlat talecre it naed ensure that reform efforts of HIPCs would not be put nated. at risk by unsustainable external debt burdens. As a In fulfilling its mission, ITF makes concessional loans to part of this process, the HIPC Debt Initiative Trust the poorest countries, therefore there is significant Fund was established on November 7, 1996, adminis- credit risk in the portfolio of development credits. Man- tered by IDA and constituted by funds of donors agement continually monitors this credit risk. No provi- including the IBRD, to help beneficiaries reduce their sion for credit losses, other than allowances under the overall debt, including IDA debt. Heavily Indebted Poor Countries (HIPC) Debt Initia- Under the Enhanced Framework of the initiative, tive, has been established. This is because it is not prac- which was approved by IDA's Executive Directors on ticable to determine a provision for credit losses in view January 27, 2000, implementation mechanisms also of the nature and maturity structure of the credit port- include: (i) partial forgiveness of IDA and ITF debt ser- folio. Should probable losses occur, they would be vice as it comes due, to be reimbursed to IDA and IT included in the Statement of Income. by the World Bank Group component of the HIPC It is the practice to place in nonaccrual status all Debt Initiative Trust Fund; and (ii) in the case of coun- Interim Fund Credits made to a member government tries with a substantial amount of outstanding IBRD or to the government of a territory of a member if prin- debt, partial refinancing by IDA resources (excluding cipal or charges with respect to any such Interim Fund transfers from IBRD) of outstanding IBRD debt. Credits are overdue by more than six months, unless A summary of the accounting policy and details of any IDA management determines that the overdue amount debt relief provided under the Enhanced HIPC Frame- wil be collected in the immediate future. In addition, if work are included in Note F loans by IBRD or development credits by IDA to a member government are placed in nonaccrual status, all Investments Interim Fund Credits to that member government will also be placed in nonaccrual status by the Interim Trust The Interim Trust Fund carries its investment securities Fund. On the date a member's Interim Fund Credits and related financial instruments at market value. Both are placed in nonaccrual status, charges that had been realized and unrealized gains and losses are included tn accrued by IDA, as administrator, on Interim Fund Income from Investments. 106 THE WORLD BANK ANNUAL REPORT 2000 NOTE B-INVESTMENTS Interim Trust Fund resources are invested in time deposits including certificates of deposit, bankers' acceptances, and other obligations. A summary of the Interim Trust Fund's investment portfolio by instrument at June 30, 2000 and June 30, 1999 is as follows: In millions of US. dollars equivalent 2000 1999 Average Net gains Average Net gains balance (losses) balance (losses) Carrying during the for the Carrying during the for the value fiscal year fiscal year value fiscal year fiscal year Time deposits $1,346.0 $1,204.5 $_ $935.8 $718.5 $_ Currency swaps 0.2 2.1 - - Total $1,346.2 $1,206.6 $- $935.8 $718.5 S- A summary of the currency composition of investments NOTE D-FAIR VALUE OF FINANCIAL INSTRU- at June 30, 2000 and June 30, 1999 is as follows: MENTS Investments: Since the Interim Trust Fund carries its In millions of US. dollars equivalent investments at market value, the carrying amount rep- 2000 1999 resents the fair value of the portfolio. These fair values are based on quoted market prices, where available. Euroa $ 140.4 $ 14.4 The fair value of short-term financial instruments Japanese yen 253.5 - approximates their carrying value. Pound sterling 139.8 _ Interim Fund Credits: Interim Fund credits, which are U.S. dollars 812.5 921.4 denominated only in SDRs, have a significant grant ele- Total $1,346.2 $935.8 rnent because of the concessional nature of ITF's terms. Discounting the future cash flows from Interim Fund credits using government reference rates represented by a. Effective January 1, 1999, the euro was introduced. interest rates of government securities having similar For reporting purposes, holdings in the eleven national duration to the portfolio of Interim Fund credits, pro- currencies that are considered national currency units vides an estimate for the grant element. Currency spe- of the euro have been aggregated with the euro and cific Commercial Interest Reference Rates (CIRRs) are reported as euro, in both the current and prior year. published monthly by the Organization for Economic Cooperation and Development (OECD). Using the NOTE C-DONOR CONTRIBUTIONS average of six months as a discount rate provides an At June 30, 2000, receivables from donor contributions alternative estimate for the grant element. CIRR cur- were $2.3 million ($2.3 million-June 30, 1999), of rency specific rates for the SDR have been used to dis- which $0 X million ($nil June 30, 1999) was due and count the future cash flows from the Interim Fund $1i $ million ($2.3 million June 30, 1999) was not yet Credits. The prior year's fair value of Interim Fund due. The $0.8 million of contributions due at Jtne 30, credits has been restated using government reference 2000 were subsequently received in July 2000. Contri- rates to conform to the current year's presentation. butions not yet due at June 30, 2000 will become due The grant element calculations consider interest rates, as follows: maturity structures and grace periods for the credits. They do not consider credit risk, portfolio seasoning, In millions of US. dollars equivalent multilateral and sovereign credit preferences and other risks or indicators that would be relevant in calculating Period fair value. Estimating the impact of these factors is not practicable. However, under either alternative, the esti- July 1, 2000 through June 30, 2001 $0.8 mated fair values of Interim Fund credits outstanding July 1, 2001 through June 30, 2002 0.7 are substantially lower than the $790.5 million reflected Total $1.5 INTERIM TRUST FUND SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 107 on the Statement of Sources and Applications of Development Resources at June 30, 2000 ($508.4 million-June 30, 1999), as shown in the following table: In millions of US. dollars equivalent June 30, 2000 June 30, 1999 Government Government reference rate- reference rate- based CIRR-based based CIRR-based fair value fair value fair value fair value Interim Fund credits outstanding $790.5 $790.5 $508.4 $508.4 Less grant equivalent 361.9 420.9 246.6 245.2 Estimated value of Interim Fund credits outstanding $428.6 $369.6 $261.8 $263.2 Estimated grant element 46% 53% 48% 48% Discount Rates Used Discount Rates Used Government reference rate - SDRa 4.90% 4.99% CIRR: Average of Six months to June-SDR 6.02% 4.87% a. Implies weighted average government reference rates of the component currencies contained in the SDR. Discounting the future cash flows from Interim Fund ment. The estimated grant element based on this stan- credits using the standard 10 percent discount rate of dard DAC rate for Interim Fund credits is 71 percent as the Development Assistance Committee (DAC) of the June 30, 2000 (73 percent-June 30, 1999). OECD, provides another alternative for the grant ele- NOTE E-INTERIM FUND CREDITS Accumulated Allowance for Heavily Indebted Poor Framework is shown as accumulated allowance For Countries Debt Initiative HIPC Debt Initiative in the Statement of Sources and Application of Development Resources. This amount Interim Fund credits outstanding are presented in the is net of any debt relief delivered to date. Statement of Sources and Applications of Develop- ment Resources before any allowance in connection Changes to the accumulated allowance for HIPC Debt with the Enhanced HIPC Framework (see Note F). Initiative for the fiscal year ended June 30, 2000 ire summarized below: The nominal value of the principal component of the debt relief to be provided under the Enhanced HIPC In millions of US. dollars equivalent 2000 Balance, beginning of the fiscal year $ Enhanced HIPC Framework Allowance for principal component of debt relief a 51.0 Principal component of debt relief delivered Balance, end of the fiscal year $51.0 a. This allowance is the sum of the principal component of the best estimate available of the amount of debt relief which is expected to be provided by IDA to eligible countries, and the actual amount of debt relief committed by IDA to those countries that have reached their decision points, and in certain cases their completion points. 108 THE WORLD BANK ANNUAL REPORT 2000 Service Charges and Overdue Amounts equivalent of one-third of the net present value of the Charges on Interim Fund Credits, currently 0.75 per- principal component of the total debt relief committed cent of balances outstanding, are directly received from to the specific country. This is the maximum debt borrowers by IDA as compensatiorelief that can be provided before the country reaches borrowers by IDA as compensation for Its services as itcopeonont(eblw) administrator of the ITE Therefore, the Statement of its completion point (see below). Income does not report any income from Interim Fund A receivable from the HIPC Debt Initiative Trust Fund Credits, or expenses for management fee. is created and income is recognized when the country At June 30, 2000, Interim Fund Credits made to or reaches its completion point (that is when the condi- Bosnia and Herzegovina with an aggre- tions specified in the legal notification are met), and guaranteed by tonaaaHreoln ha gr- he conr's ohe crdtr hav cofre .terfl gate principal balance outstanding of $73.6 million, te country's other creditors ave confirmed their full ($65.0 million-June 30, 1999) none of which were participation in the debt relief initiative. This receiv- overdue, were in nonaccrual status, consistent with the able represents the remaining principal component of poiisof IBRD and IDA by which all Bosnia and the total debt relief committed which was not recog- policies nize atR the decsio point. al osan Herzegovina debt to these organizations is in nonac- nized at the decision point. crual status. A summary of changes to the receivable from the HIPC Debt Initiative Trust Fund is presented below. NOTE F-IMPACT FROM HEAVILY INDEBTED POOR COUNTRIES DEBT INITIATIVE The accumulated allowance for Enhanced HIPC Framework is reduced when debt relief is provided by Enhanced HIPC Framework ITF. A summary of changes to the accumulated allow- O u 7r IDA ance for HIPC Debt Initiative is presented under Note On January 27, 2000, the Executive Directors of E.A gave approval for IDA to provide debt relief under the enhanced HIPC framework by forgiving a portion of an Since no Interim Fund Credits outstanding are due for eligible country's IDA and ITF debt service obligations repayment at least until June 30, 2005, no debt relief as they become due. Amounts of IDA and ITF debt composed of principal repayments has been delivered service forgiven are expected to be reimbursed by the to date by ITF. Charges on Interim Fund Credits are World Bank Group component of the HIPC Debt Ini- directly received from borrowers by IDA and therefore tiative Trust Fund on a pay-as-you-go basis. any debt relief delivered on such charges are recorded Upon approval of the Enhanced HIPC Framework by in the financial statements of IDA. the Executive Directors of IDA, the nominal value of Receivable from the HIPC Debt Initiative Trust Fund the principal component of the estimated debt relief costs is recorded as a reduction of the disbursed and In millions of US. dollars outstanding Interim Fund credits under accumulated 2000 allowance for HIPC Debt Initiative, and as a charge to income. This estimate is subject to periodic revision. Balance, beginning of the fiscal year $ - Upon signature by IDA of the country specific legal Contribution to ITF for the Enhanced notification, immediately following the decisions by the HIPC (see Statement of Income) 17.3 Executive Directors of IDA to provide debt relief to the country (the decision point), a receivable from the HIPC Debt Initiative Trust Fund is created (to the extent that funds are available) and income is recog- Balance, end of the fiscal year $17.3 nized. This receivable is limited to the nominal value INTERIM TRUST FUND SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 109 NOTE G-COMPREHENSIVE INCOME Comprehensive income consists of net income and HIPC Debt Initiative. These items are presented in the other gains and losses affecting sources of development Statement of Comprehensive Income. The following resources that, under generally accepted accounting table presents the changes in Accumulated Other principles, are excluded from net income. For ITF, Comprehensive Income balances for the years encded comprehensive income comprises currency translation June 30, 2000, 1999 and 1998: adjustmnents on Interim Fund Credits and income after In millions of US. dollars equivalent Accumulated Other Comprehensive (Loss) Income w 2000 1999 1998 Balance, beginning of the fiscal year $(11.7) $ (9.5) $ 0.8 Changes from period activity (8.6) (2.2) (10.3) Balance, end of the fiscal year $(20.3) $(11.7) $ 9.5) a. The total accumulated other comprehensive income represents the cumulative translation adjustment on Interim Fu'd Credits. 110 THE WORLD BANK ANNUAL REPORT 2000 REPORT OF INDEPENDENT ACCOUNTANTS ON SPECIAL PURPOSE FINANCIAL STATEMENTS Deloitb Tuche Tohmatu (International Firm) 555 12th Street NW Washington, DC President and Board of Govemors Intemational Development Association as Administrator of the Interim Trust Fund We have audited the accompanying special purpose statements of sources and applications of development resources of the Interim Trust Fund as of June 30, 2000 and 1999, including the surnmary statement of interim fund credits and statement of contributions as of June 30, 2000, and the related special purpose statements of income, comprehensive income, changes in retained eamings, and cash flows for each of the three fiscal years in the period ended June 30, 2000. These special purpose financial statements are the responsibility of the Intemational Development Association's management as Administrator of the Interim Trust Fund. Our responsibility is to express an opinion on these special purpose financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Intemational Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. The accompanying special purpose financial statements were prepared to reflect the sources and applications of development resources, operations, and cash flows of the Interim Trust Fund to comply with Article VI, Section 1 l(a) of the Articles of Agreement of the Intemational Development Association, as discussed in Note A to the special purpose financial statements, and are not intended to be a presentation in conformity with accounting principles generally accepted in the United States of America or Intemational Accounting Standards. In our opinion, such special purpose financial statements referred to above present fairly, in all material respects, the sources and applications of development resources of the Interim Trust Fund as of June 30, 2000 and 1999, and the results of its operations and its cash flows for each of the three fiscal years in the period ended June 30, 2000 in confomiity with the accounting principles described in Note A to the special purpose financial statements. This report is intended solely for the information and use of the Board of Governors, the Intenational Development Association's management as Administrator of the Interim Trust Fund, and contributors to and borrowers from the Interim Trust Fund. However, under the International Development Association's Board of Governors' resolution establishing the Interim Trust Fund, this report is included in the Annual Report of the Executive Directors to the Board of Governors of the Intemational Development Association and is therefore a matter of public record and its distribution is not lirmited. July 31, 2000 Beijing London Mexico City Moscow New York Paris Tokyo Toronto INTERIM TRUST FUND SPECIAL PURPOSE FINANCIAL STATEMENTS: JUNE 30, 2000 111 IBRD/IDA APPENDIXES 1. Governors and Alternates of the World Bank 114 2. Executive Directors and Alternates of the World Bank and Their Voting Power 119 3. Officers of the World Bank 122 4. Offices of the World Bank 123 5. World Bank Expenditures, by Program, Fiscal 1996-00 127 6. Country Eligibility for Borrowing from the World Bank 128 7. Note to Appendixes 7-11 130 7a. IBRD and IDA Disbursements for Foreign and Local Expenditures 131 7b. IBRD and IDA Disbursements for Foreign Expenditures, by Source of Supply 131 7c. IBRD and IDA Payments to Supplying Eligible Borrowing Countries for Local and Foreign Procurement in Fiscal 2000 132 8. IBRD and IDA Payments to Supplying Countries for Foreign Procurement 135 9. IBRD and IDA Payments to Supplying Countries for Foreign Procurement, by Description of Goods, Fiscal 2000 138 10. IBRD and IDA Disbursements for Foreign Expenditures, by Description of Goods (for Investment Lending), Fiscal 1998-00 141 11. Estimates of IBRD and IDA Payments to Supplying Countries for Foreign Procurement under Adjustment Lending, Fiscal 2000 142 12. IBRD and IDA Cumulative Lending since Fiscal 1990 by Major Purpose and Region, June 30, 2000 143 13. IBRD and IDA Cumulative Lending by Country, June 30,2000 145 14. Projects Approved for IBRD and IDA Assistance in Fiscal 2000, by Region, July 1, 1999-June 30, 2C00 149 15. Projects Approved for IBRD and IDA Assistance in Fiscal 2000, by Purpose, July 1, 1999-June 30, 2000 151 16. Development Committee Communiques, Fiscal 2000 156 113 APPENDIX 1: GOVERNORS AND ALTERNATES OF THE WORLD BANK June 30, 2000 Member Governor Alternate Afghanistan (vacant) (vacant) Albania Anastas Angjeli Fatos Ibrahimi Algeria Abdellatif Benachenhou Omar Bougara Angola Ana Dias Lourenco Job Graca Antigua and Barbuda + John E. St. Luce Ludolph Brown Argentina Jose Luis Machinea Pedro Pou Armenia Levon Barkudaryan Karen Chshmarityan Australia Peter Costello Kay Patterson Austria Karl-Heinz Grasser Thomas Wieser Azerbaijan Elman Siradjogly Rustamov Fuad N. Akhundov Bahamas, The + William C. Allen Ruth R. Millar Bahrain + Abdulla Hassan Saif Zakaria Ahmed Hejres Bangladesh Shah A.M.S. Kibria A.K.M. Masihur Rahman Barbados Owen S. Arthur Erskine R. Griffith Belarus + Gennady V Novitsky Vladimir N. Shimov Belgium Didier Reynders Guy Quaden Belize Said W Musa Yvonne S. Hyde Benin Bruno Amoussou Pierre John Igue Bhutan Yeshey Zimba (vacant) Bolivia Ronald MacLean Abaroa Bernardo Requena Blanco Bosnia and Herzegovina Mirsad Kurtovic Dragan Covic Botswana Baledzi Gaolathe Serwalo S.G. Tumelo Brazil Pedro Sampaio Malan Arminio Fraga Neto Brunei Darussalam + Haji Hassanal Bolkah Haji Selamat Haji Munap Bulgaria + Muravei Radev Martin Mihaylov Zaimov Burkina Faso Tertius Zongo Patrice Nikiema Burundi Charles Nihangaza Dieudonne Nintunze Cambodia Keat Chhon Ouk Rabun Cameroon Martin Okouda Daniel Njankouo Lamere Canada Paul Martin Leonard M. Good Cape Verde Antonio Gualberto do Rosario Jose Ulisses Correia e Silva Central African Republic Anicet-Georges Dologuele Jacob Mbaitadjim Chad Ahmed Lamine Ali Etienne Moita Djimram Chile Nicolas Eyzaguirre Mario Marcel China Xiang Huaicheng Jin Liqun Colombia Juan Camilo Restrepo Salazar Mauricio Cardenas Santamaria Comoros Mihidhoir Sagaf Ibrahim Mohamed Soule Congo, Democratic Republic of Mawampanga Mwana Nanga Jean-Claude Masangu Mulongo Congo, Republic of Mathias Dzon Clement Mierassa (continued next page) 114 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 1 (continued) Member Governor Alternate Costa Rica Leonel Baruch G. Eduardo Lizano Fait C6te d'lvoire Seydou DiarTa Mamadou Koulibaly Croatia Mato Crkvenac Josip Kulisic Cyprus Takis Klerides Andreas Tryfonides Czech Republic Pavel Mertlik Oldrich Dedek Denmark Jan Trojborg Ellen Margrethe Loj Djibouti Yacin Elmi Bouh Nouh Omar Miguil Dominica Ambrose George Ambrose M.J. Sylvester Dominican Republic Hector Manuel Valdez Albizu Luis Manuel Piantini M. Ecuador Luis G. Iturralde M. Alonso Perez-Kakabadse Egypt, Arab Republic of Medhat Hassanein Ahmed Mahrous El-Darsh El Salvador Juan Jose Daboub Jose Luis Trigueros Equatorial Guinea Fortunato Ofa Mbo Rosendo Otogo Meneng Eritrea Gebreselassie Yosief Gabriel Fassil Ogbazghy Estonia + Siim Kallas Mihkel Parnoja Ethiopia Sufian Ahmed Girma Birru Fiji Mahendra Pal Chaudhry Savenaca Narube Finland Sauli Niinisto Satu Hassi France Laurent Fabius Jean-Pierre Jouyet Gabon Casimir Oye-Mba Claude Ayo Iguendha Gambia, The Famara L. Jatta Dodou B. Jagne Georgia Zurab Nogaideli Vladimer Papava Germany Heidemarie Wieczorek-Zeul Caio K. Koch-Weser Ghana Richard Kwame Peprah Victor Selormey Greece Yannos Papantoniou Christos Pachtas Grenada Anthony Boatswain Timothy Antoine Guatemala Manuel Hiram Maza Castellanos Lizardo Arturo Sosa Lopez Guinea Cheick Ahmadou Camara Cellou Dalein Diallo Guinea-Bissau Purna Bia Verissimo Nancassa Guyana Bharrat Jagdeo Saisnarine Kowlessar Haiti Fred Joseph Fritz Jean Honduras Gabriela Nunez de Reyes Victoria Asfura de Diaz Hungary Zsigmond Jarai Werner Riecke Iceland Halldor Asgrimsson Geir Hilmar Haarde India Yashwant Sinha E.A.S. Sarma Indonesia Bambang Sudibyo Achjar lijas Iran, Islamic Republic of Hossein Namazi Mohammad Mehdi Navab Motlagh Iraq Issam Rashid Hwaish Hashim Ali Obaid Ireland Charlie McCreevy John Hurley Israel David Klein Avi Ben-Bassat (continued next page) GOVERNORS AND ALTERNATES OF THE WORLD BANK 115 APP E N D I X 1 (continued) Member Governor Alternate Italy Antonio Fazio Mario Draghi Jamaica + Omar Lloyd Davies Wesley George Hughes Japan Kiichi Miyazawa Masaru Hayami Jordan Jawad Hadid Jamal M. Salah Kazakhstan Erzhan A. Utembayev Zhaksybek A. Kulekeev Kenya Chrysanthus Barnabas Okemo Martin Luke Oduor-Otieno Kiribati Beniamina Tinga Bureti Williams Korea, Republic of Hun-Jai Lee Chol-Hwan Chon Kuwait Ahmed Abdullah Al-Ahmed Al-Sabah Bader Meshari Al-Humaidhi Kyrgyz Republic Sultan Mederov Urkaly Isaev Lao People's Democratic Republic Boungnang Vorachith Phouphet Khamphounvong Latvia Roberts Zile Aigars Kalvitis Lebanon Georges Corm Nasser Saidi Lesotho Kelebone Albert Maope Molelekeng E. Rapolaki Liberia Lami Kawah M. Nathaniel Barnes Libya Mohamed A. Bait Elmal Ali Ramadan Shnebsh Lithuania + Vytautas Dudenas Arvydas Kregzde Luxembourg Luc Frieden Jean Guill Macedonia, former Nikola Gruevski Trajko Slavevski Yugoslav Republic of Madagascar Pierrot J. Rajaonarivelo Simon Constant Horace Malawi Mathews A.P Chikaonda Mapopa Chipeta Malaysia Daim Zainuddin Samsudin bin Hitam Maldives Fathulla Jameel Adam Maniku Mali Bacari Kone Toure Alimata Traore Malta + John Dalli Joseph Scicluna Marshall Islands Tony de Brum David Blake Mauritania Mohamed Ould Nany Abdallah Ould Hormtallah Mauritius Rundheersing Bheenick Philippe Ong Seng Mexico Jose Angel Gurria Trevino Carlos Noriega Curtis Micronesia, Federated States of John Ehsa Sebastian L. Anefal Moldova Mihail Manoli Dumitru Ursu Mongolia Yansanjav Ochirsukh Jigjid Unenbat Morocco Fathallah Oualalou Ahmed Lahlimi Alami Mozambique Adriano Afonso Maleiane Manuel Chang Myanmar Khin Maung Thein Soe Lin Namibia + Saara Kuugongelwa Usutuaije Maamberua Nepal Mahesh Acharya Bimal P. Koirala Netherlands Gerrit Zalm Eveline Herfkens New Zealand Michael Cullen Alan Bollard Nicaragua Esteban Duque Estrada David Robleto (continued next page) 1 6 THE WORLD BANK ANNUAL REPORT 2000 APP E N D I x (contin?ued) Member Governor Alternate Niger Ali Badjo Gamatie Maliki Barhouni Nigeria Adamu Ciroma Samuel Chukwuma Nwokedi Norway Anne Kristin Sydnes Sigrun Mogedal Oman Ahmed Bin Abdulnabi Macki Mohammed bin Nasser Al-Khasibi Pakistan Shaukat Aziz Nawid Ahsan Palau Tommy Remengesau, Jr Elbuchel Sadang Panama Victor Juliao Ricardo Quijano Papua New Guinea Mekere Morauta Koiari Tarata Paraguay Federico Antonio Zayas Chirife Anibal Fernando Paciello Rodriguez Peru Efrain Goldenberg Alfredo Jalilie Awapara Philippines Jose T Pardo Rafael B. Buenaventura Poland Hanna Gronkiewicz-Waltz Ryszard Kokoszczynski Portugal Joaquim Pina Moura Antonio Nogueira Leite Qatar + Yousef Hussain Kamal Abdullah Bin Khalid Al-Attiyah Romania + Decebal Traian Remes Emil Iota Ghizari Russian Federation Viktor Khristenko Andrei Shapovaliants Rwanda Donald Kaberuka Jean Marie Karekezi St. Kitts and Nevis Denzil Douglas Timothy Harris St. Lucia Kenny D. Anthony Bernard La Corbiniere St. Vincent and the Grenadines James F Mitchell Maurice Edwards Samoa Tuilaepa S. Malielegaoi Hinauri Petana Sao Tome and Principe Adelino Santiago Castelo David Angela M. da Graca Viegas Santiago Saudi Arabia Ibrahim A. Al-Assaf Jobarah Al-Suraisry Senegal Makhtar Diop Oumar Khassimou Dia Seychelles + Jeremie Bonnelame Alain Butler-Payette Sierra Leone James O.C. Jonah James Bucknall Singapore + Richard Hu Tsu Tau Lim Siong Guan Slovak Republic Ivan Miklos Marian Jusko Slovenia Zvonko Ivanusic Irena Sodin Solomon Islands Alpha Kimata George Kiriau Somalia (vacant) (vacant) South Africa Trevor Andrew Manuel Mandisi Bongani Mpahlwa Spain Rodrigo de Rato Figaredo Juan Costa Climent Sri Lanka Chandrika Bandaranaika Kumaratunga PRB. Jayasundera Sudan Mohamed Kheir Ahmed El Zubeir Sabir Mohamed Hassan Suriname + I.A.E. Alibux Lesley Willem Winter Swaziland Majozi Sitbole Musa 1). Fakudze Sweden Bosse Ringholm Maj-lnger Klingvall Switzerland Pascal Couchepin Joseph Deiss Syrian Arab Republic Mohammed Khaled Al-Mahavni Mohamad Bittar (continned next page) GOVERNORS AND ALTERNATES OF THE WORLD BANK 117 APP E N D I X 1 (continued) Member Governor Alternate Tajikistan Safarali Najmuddinov Sharif Rakhimov Tanzania Nassoro W Malocho Raphael 0. Mollel Thailand Tarrin Nimmanahaeminda Suphachai Phisitvanich Togo Simfeitcheou Pre Kossi Assimaidou Tonga Kinikinilau Tutoatasi Fakafanua 'Aisake V. Eke Trinidad and Tobago Brian Kuei Tung Monica Clement Tunisia Fethi Merdassi Abdelhamid Triki Turkey Selcuk Demiralp Ferhat Emil Turkmenistan + Seitbay Kandymov Serdar Bairiev Uganda Gerald M. Ssendaula Emmanuel Tumusiime-Mutebile Ukraine + Yriy Yekhanurov Sergiy L. Tigipko United Arab Emirates Hamdan bin Rashid Al-Maktoum Mohammed Khalfan Bin Khirbash United Kingdom Clare Short Gordon Brown United States Lawrence H. Summers Alan P. Larson Uruguay + Alberto Bension Ariel Davrieux Uzbekistan Bakhtiyar Sultanovich Khamidov Akram Mukhidov Vanuatu Stevens Morking latika Jeffry Wilfred Venezuela, Republica Jorge Antonio Giordani Cordero Jose Alejandro Rojas Ramirez Bolivariana de + Vietnam Le Duc Thuy Duong Thu Huong Yemen, Republic of Ahmed Mohamed Sofan Anwar Rizq Al-Harazi Zambia James Mwalimu Mtonga Stella M. Chibanda Zimbabwe Herbert M. Murerwa Leonard Ladislas Tsumba + Not a member of IDA 118 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 2: EXECUTIVE DIRECTORS AND ALTERNATES OF THE WORLD BANK AND THEIR VOTING POWER June 30, 2000 IBRD IDA Executive Total % of Total % of director Alternate Casting votes of votes total votes total Appointed Jan Piercy (vacant) United States 265,219 16.50 1,818,989 14.86 Yuzo Harada Akira Kamitomai' Japan 127,250 7.92 1,301,679 10.63 Helmut Schaffer Eckhardt Biskup Germany 72,649 4.52 849,561 6.94 Jean-Claude Milleron Emmanuel Moulin France 69,647 4.33 518,090 4.23 Stephen Pickford Myles Wickstead United Kingdom 69,647 4.33 602,630 4.92 Elected Ruth Bachmayer Luc Hubloue Austria, Belarus,/ Belgium, Czech 76,720 4.77 522,649 4.27 (Austria) (Belgium) Republic, Hungary, Kazakhstan, Luxembourg, Slovak Republic, Slovenia, Turkey Pieter Stek Tamara Solyanyk Armenia, Bosnia and Herzegovina, 72,208 4.49 440,131 3.59 (Netherlands) (Ukraine) Bulgaria,' Croatia, Cyprus, Georgia, Israel, Macedonia (former Yugoslav Republic ofl, Moldova, Netherlands, Romania,' Ukraine' Federico Ferrer Cecilia Ramos Costa Rica, El Salvador, Guatemala, 68,475 4.26 252,488 2.06 (Spain) (Mexico) Honduras, Mexico, Nicaragua, Spain, Venezuela (Republica Bolivariana de) a Terrie O'Leary Alan David Slusher Antigua and Barbuda,)The Bahamas,' 62,217 3.87 519,218 4.24 (Canada) (Belize) Barbados, Belize, Canada, Dominica, Grenada, Guyana, Ireland, Jamaica,' St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines Murilo Portugal Patricio Rubianes Brazil, Colombia, Dominican 58,124 3.62 351,017 2.87 (Brazil) (Ecuador) Republic, Ecuador, Haiti, Panama, Philippines, Suriname,' Trinidad and Tobago Neil Hyden Lewis D. Holden Australia, Cambodia, Kiribati, 55,800 3.47 368,942 3.01 (Australia) (New Zealand) Korea (Republic of), Marshall Islands, Micronesia (Federated States of), Mongolia, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Vanuatu Godfrey Gaoseb Girmai Abraham Angola, Botswana, Burundi, 55,190 3.43 498,975 4.07 (Namibia) (Eritrea) Eritrea, Ethiopia, The Gambia, Kenya, Lesotho, Liberia, Malawi, Mozambique, Namibia,' Nigeria, Seychelles,' Sierra Leone, South Africa, Sudan, Svaziland, Tanzania, Uganda, Zambia, Zimbabwe (continued next page) EXECUTIVE DIRECTORS AND ALTERNATES OF THE WORLD BANK AND THEIR VOTING POWER 119 APPENDIX 2 (continued) IBRD IDA Executive Total % of Total % of director Alternate Casting votes of votes total votes total Franco Passacantando Helena Cordeiro Albania, Greece, Italy, 55,093 3.43 465,078 3.80 (Italy) (Portugal) Malta,' Portugal B. P. Singh Syed Ahmed Bangladesh, Bhutan, India, 54,945 3.42 542,462 4.43 (India) (Bangladesh) Sri Lanka Inaamul Haque Mohamed Dhif Algeria, Ghana, Iran (Islamic 54,052 3.36 248,528 2.03 (Pakistan) (Algeria) Republic of), Iraq, Morocco, Pakistan, Tunisia llkka Niemi' Anna M. Brandt Denmark, Estonia,' Finland, 54,039 3.36 596,791 4.87 (Finland) (Sweden) Iceland, Latvia, Lithuania,' Norway, Sweden Matthias Meyer Jerzy Hylewski Azerbaijan, Kyrgyz Republic, 46,096 2.87 413,995 3.38 (Switzerland) (Poland) Poland, Switzerland, Tajikistan, Turkmenistan,' Uzbekistan Zhu Xian Chen Huan China 45,049 2.80 247,345 2.02 (China) (China) Yahya Alyahya Abdulrahman Saudi Arabia 45,045 2.80 428,763 3.50 (Saudi Arabia) Almofadhi (Saudi Arabia) Andrei Bugrov Eugene Miagkov Russian Federation 45,045 2.80 34,397 .28 (Russian Federation) (Russian Federation) Khalid M.Al-Saad Mohamd KamelAmr Bahrain,' Egypt (Arab Republic 43,984 2.74 281,262 2.30 (Kuwait) (Arab Republic of of), Jordan, Kuwait, Lebanon, Egypt) Libya, Maldives, Oman, Qatar,' Syrian Arab Republic, United Arab Emirates, Yemen (Republic of) Jannes Hutagalung Wan Abdul Aziz Brunei Darussalam,' Fiji, Indonesia, 41,096 2.56 343,193 2.80 (Indonesia) Wan Abdullah Lao People's Democratic Republic, (Malaysia) Malaysia, Myanmar, Nepal, Singapore,' Thailand, Tonga, Vietnam Valeriano E Garcia Ivan Rivera Argentina, Bolivia, Chile, 37,499 2.33 230,553 1.88 (Argentina) (Peru) Paraguay, Peru, Uruguay' BassaryToure Paulo F Gomes Benin, Burkina Faso, Cameroon, 32,252 2.01 368,063 3.01 (Mali) (Guinea-Bissau) Cape Verde, Central African Republic, Chad, Comoros, Congo (Democratic Republic of), Congo (Republic of), Cote d'lvoire, Djibouti, Equatorial Guinea, Gabon, Guiinea, Guinea-Bissau, Madagascar, Mali, Mauritania, Mauritius, Niger, Rwanda, Sao Tome and Principe, Senegal, Togo (continued next page) 120 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 2 (continued) In addition to the executive directors and alternates shown in the foregoing list, the following also served after June 30, 1999: Executive director End of period of sen ice Alternate director End of period of service Khalid H. Alyahya Octoher 31, 1999 KhaledAl-Aboodi January 31, 2000 (Saudi Arabia) (Saudi Arabia) Young-Hoi lee July 31, 1999 Michael Marek December 3, 1999 (Republic of Korea) (United States) Sstoru Miyamura Mav 21, 2000 Jean Pesme June 2, 2000 (Japan) (France) Surendra Singh July 31, 1999 Zou Jiayi January 31, 2000 (India) (China) Note: Afgluosistao (550 votes in IBRD and 13,557 votes in IDA) ana Somalia (802 votes in IBRD and 10,506 votes in IDA) did not participate in the 1998 Regulair Election of Executive Directors a Mlember of the IBRD onlb b To be succeeded by Ivasanori Yoshida (Japan) effective August 7, 2000. c To be succeeded 6b Finn Jonck (Denmark) effective August 7, 2000. EXECUTIVE DIRECTORS AND ALTERNATES OF THE WORLD BANK AND THEIR VOTING POWER 121 APPENDIX 3: OFFICERS OF THE WORLD BANK June 30, 2000 President James D. Wolfensohn Managing Director Sven Sandstr6m Managing Director Shengman Zhang Managing Director Jeffrey A. Goldstein Managing Director Mamphela Ramphele Managing Director Peter Woicke Senior Vice President and Chief Financial Officer Gary Perlin Senior Vice President, Development Economics, and Chief Economist Nicholas Stern (effective July 1, 2000) Vice President, Financial Sector Manuel Conthe Vice President, Latin America and the Caribbean David de Ferranti Vice President and Network Head, Poverty Reduction and Economic Management Kemal Dervis Vice President and Network Head, Human Development Eduardo Doryan Vice President and Corporate Secretary Cheikh Ibrahima Fall Vice President and Network Head, Environmentally and Socially Sustainable Development Ian Johnson Vice President, External Affairs and U.N. Affairs Mats Karlsson Vice President, East Asia and Pacific Jemal-ud-din Kassum Vice President, Resource Mobilization and Cofinancing Motoo Kusakabe Vice President, Europe and Central Asia Johannes Linn Vice President, Africa Callisto Madavo Vice President and Treasurer Afsaneh Mashayekhi-Beschloss Vice President and Chief Information Officer Mohamed Muhsin Vice President and Controller Jules W Muis Vice President, South Asia Mieko Nishirnizu Vice President, External Affairs, Europe Jean-Francois Rischard Vice President, Development Policy Josef Ritzen Vice President, Operations Policy and Strategy Joanne Salop Vice President, Middle East and North Africa Jean-Louis Sarbib Vice President, Private Sector Development and Infrastructure and Network Head, Private Sector and Infrastructure Nemat Shafik Vice President and Network Head, Operational Core Services Katherine Sierra Vice President, Strategy and Resource Management Anil Sood Vice President, Human Resources Richard Stern Vice President and General Counsel Ko-Yung Tung Vice President, World Bank Institute Vinod Thomas Director-General, Operations Evaluation Robert Picciotto 122 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 4: OFFICES OF THE WORLD BANK June 30, 2000 Headquarters: 1818 H Street N.W, Washington, D.C. 20433, U.S.A. New York Office: The World Bank, Office of the Special Representative to the U.N., 809 United Nations Plaza, Suite 900, New York, N.Y 10017, U.S.A. Europe: Banque Mondiale, 66 avenue d'lena, 75116 Paris, France Brussels: Banque Mondiale, 10 rue Montoyer, B-1000 Brussels, Belgium Frankfurt: The World Bank, Bockenheimer Landstrasse 109, 60325 Frankfurt am Main, Germany Geneva: The World Bank, c/o International Labour Office, 4, route des Morillons, CH-1 211 Geneva 22, Switzerland London: The World Bank, New Zealand House, 15th Floor, Haymarket, London SWI Y4TE, England Tokyo: The World Bank, 10th Floor, Fukoku Scimei Building, 2-2-2 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011 Japan Albania: The World Bank, Deshmoret e 4 Shkurtit, No. 34, Tirana, Albania Angola: Banco Mundial, Rua Alfredo Troni (Edificio BPC), No. 15, 14 Andar (14th Floor), Luanda, Angola (postal address: Caixa Postal 1331) * Argentina: Banco Mundial, Edificio Bouchard, Bouchard 547, 3er Piso, 1106 Buenos Aires, Argentina Armenia: The World Bank, Republic Square, 2 Khorhertarani Street, Yerevan 375010, Armenia Azerbaijan: The World Bank, 91-95 Mirza Mansur Street, Icheri Sheher, Baku, 370004, Azerbaijan - Bangladesh: The World Bank, 3A, Paribagh, Dhaka 1000, Bangladesh (postal address: G.PO. Box 97) Belarus: The World Bank, 2A Gertsen Street, 2nd FlooT, Minsk, 220030, Republic of Belarus Benin: Banque Mondiale, Zone R6sidentielle de la Radio, Cotonou, Benin (postal address: B.P. 03-2112) Bolivia: Banco Mundial, Edificio BISA, piso 9, Av. 16 de Julio 1628, La Paz, Bolivia (postal address: Casilla 8692) Bosnia and Herzegovina: The World Bank, Hamdije Kresevljakovica 19/5, 71000 Sarajevo, Bosnia and Herzegovina * Brazil: Banco Mundial, Setor Comercial Norte, Quadra 02, Lote A - Ediflcio, Corporate Financial Center, Conjuntos 303/304, 603, Brasilia, DF 70712-900, Brazil Brazil: Banco Mundial, Edificio SUDENE, Sala IS-108, Cidade Universitaria, 50670-900 Recife, PE, Brazil Bulgaria: The World Bank, World Trade Center - Interpred, 36 Dragan Tsankov Blvd., Sofia 1057, Bulgaria Burkina Faso: Banque Mondiale, Immeuble BICIA, 3eme etage, Ouagadougou, Burkina Faso (postal address: B.P 622) Burundi: Banque Mondiale, avenue du 18 septembre, Bujumbura, Burundi (postal address: B.P. 2637) Cambodia: The World Bank, 164 Pasteur Street (STR 51), Phnom Penh, Cambodia (postal address: P.O. Box 877) Cameroon: Banque Mondiale, rue 1. 792, No. 186, Yaound6, Cameroon (postal address: B.P 1128) Central African Republic: Banque Mondiale, rue des Missions, Bangui, Republique Centrafricaine (postal address: B.P. 819) * Country Directors are located in the country offices. (continued next page) OFFICES OF THE WORLD BANK 123 APPENDIX 4 (continued) Chad: Banque Mondiale, avenue Charles de Gaulle et avenue du Commandant Lamy, Quartier Bololo, N'Djamena, Chad (postal address: B.P. 146) * China: The World Bank, 9th Floor, Building A, Fuhua Mansion, No. 8, Chaoyangmen Beidajie, Dongcheng District, Beijing 100027, China Colombia: Banco Mundial, Diagonal 35 No. 5-98, Bogota, Colombia * Cote d'lvoire: Banque Mondiale, Corner of Booker Washington and Jacques Aka Streets, Cocody, Abidjan 01, C6te d'lvoire (postal address: B.P. 1850) Croatia: The World Bank, Trg IE Kennedya 6b/111, HR-10000 Zagreb, Croatia Dominican Republic: Banco Mundial, Calle Virgilio Diaz Ordoniez #36, esq. Gustavo Mejia Ricart, Edificio Mezzo Tempo, Suite 401, 4ta. Planta, Santo Domingo, R.D. East Timor: The World Bank, Rua Dos Direito Humanos, Dili, East Timor (postal address: World Bank Mission, East Timor, GPO Box 3548, Darwin, NT 0801, Australia) Ecuador: Banco Mundial, Calle 12 de Octubre 1830 y Cordero, World Trade Center, Torre B, Piso 13, Quito, Ecuador * Egypt, Arab Republic of: The World Bank, World Trade Center, 1191 Corniche El-Nil, 15th Floor, Boulaq, Cairo, Arab Republic of Egypt, 11221 Eritrea: The World Bank, 15/17, Tsegai Adig Street, Zone 03, Subzone 01, Asmara, Eritrea Estonia: The World Bank, Suur-Ameerika 1, 13th Floor, Tallinn EEOI00, Estonia Ethiopia: The World Bank, Africa Avenue, Bole Road, Addis Ababa, Ethiopia (postal address: P.O. Box 5515) Georgia: The World Bank, 18A Chonkadze Street, Tbilisi, 380 007 Georgia •Ghana: The World Bank, 69 Dr. Isert Road, North Ridge Residential Area, Accra, Ghana (postal address: P.O. Box M. 27) Guatemala: Banco Mundial, 13 Calle 3-40, Zona 10, Edificio Atlantis, Piso 14, Guatemala City, Guatemala Guinea: Banque Mondiale, Immeuble de l'Archeveche, Face Baie des Anges, Conakry, Guin&e (postal address: B.P 1420) Haiti: Banque Mondiale, 18 rue Emeric (Montana), Port-au-Prince, Haiti Honduras: Banco Mundial, Centro Financiero BANEXPO, Boulevard San Juan Bosco, Colonia Payaqui, Apartado Postal 3591, Tegucigalpa, Honduras * Hungary: The World Bank, Bajcsy-Zsilinszky ut 42-46, 5th floor, 1054 Budapest, Hungary * India: The World Bank, 70 Lodi Estate, New Delhi 110 003, India (postal address: P.0. Box 416, New Delhi 110 001) * Indonesia: The World Bank, Jakarta Stock Exchange Building, Tower 2, 12th Floor, Sudirman Central Business District (SCBD), JI. Jendral Sudirman Kav. 52-53, Jakarta 12190, Indonesia (postal address: P.O. Box 324/JKT) Jamaica: The World Bank, Island Life Center, 6 St. Lucia Avenue, Third Floor, Kingston 5, Jamaica Kazakhstan: The World Bank Almaty Office, 41 Kazybek bi Street, 4th Floor, 480100 Almaty, Republic of Kazakhstan Kazakhstan: The World Bank, 21 Beibitshilik (Mira), (National Bank Building), 4th Floor, 473000 Astana, Republic of Kazakhstan * Kenya: The World Bank, Hill Park Building, Upper Hill, Nairobi, Kenya (postal address: P. O. Box 30577) - Country Directors are located in the country offices. (continued next page) 124 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 4 (continued) * Korea, Republic of: The World Bank, 11 th Floor, Youngpoong Building, # 33 Suhrin-Dong, Chongro-Ku, Seoul 110-110, Republic of Korea Kyrgyz Republic: The World Bank, 214 Moskovskaya Street., Bishkek 720010, Kyrgyz Republic Lao People's Democratic Republic: The World Bank, Pathou Xay - Nehru Road, Vientiane, Lao PDR Latvia: The World Bank, 2, Smilsu Street, Riga, lV-1 162, Latvia Lebanon: The World Bank, UN-House, 6th Floor, Riad El Solh Square, Beirut, Lebanon (postal address: PO. Box 11-8577) Lesotho: The World Bank, UN House, United Nations Road, Maseru, Lesotho Lithuania: The World Bank, Vilniaus Str 28, 2600 Vilnius, Lithuania Macedonia, Former Yugoslav Republic of: The World Bank, 34 Leninova Street, 91000 Skopje, FYR Macedonia Madagascar: Banque Mondiale, I bis, rue Patrice Lumumba, Antananarivo 101, Madagascar (postal address: B. P. 4140) Malawi: The World Bank, Development House, Capital City, Lilongwe 3, Malawi (postal address: PO. Box 30557) Mali: Banque Mondiale, Immeuble SOGEFIH, Centre Commercial Rue 321, Quartier du Fleuve, Bamako, Mali (postal address: B. P. 1864) Mauritania: Banque Mondiale, Villa No. 30, Lot A, Quartier Socogim, Nouakchott, Mauritanie (postal address: B. P 667) * Mexico: Banco Mundial, Insurgentes Sur 1605, Piso 24, San Jose Insurgentes, 03900 Mexico, D. F, Mexico Moldova: The World Bank, Sciusev stt, 76/6, MD 2012, Chisinau, Republic of Moldova Mongolia: The World Bank, 11-A Peace Avenue, Ulaanbaatar 210648, Mongolia Morocco: The World Bank, 7, rue Larbi Ben Abdellah, Rabat-Souissi, Morocco Mozambique: The World Bank, Ave. Kenneth Kaunda, 1224, Maputo, Mozambique (postal address: Caixa Postal 4053) * Nepal: The World Bank, Yak & Yeti Hotel Complex, Lal Durbar, Kathmandu, Nepal (postal address: P-O. Box 798) Nicaragua: Banco Mundial, De los Semaforos de la Centroamerica, 400 mts. abajo, Segundo Piso Edificio SYSCOM, Managua, Nicaragua Niger: Banque Mondiale, 42 rue des Dallols, Niamey, Niger (postal address: B. P 12402) Nigeria: The World Bank, Plot 433 Yakubu Gowon Crescent, Opposite ECOWAS Secretariat, Asokoro District, Abuja, Nigeria (postal address: PO. Box 2826, Garki) * Pakistan: The W\orld Bank, 20 A Shahrah-e-Jamhuriyat, Ramna 5, G-5/1, Islamabad, Pakistan (postal address: PO. Box 1025) Papua Newv Guinea: The World Bank, c/o Islander Travelodge Hotel, Suite 102, P.O Box 1877, Port Moresby, National Capital District, Papua New Guinea Paraguay: Banco Mundial, 14 de Mayo No. 535, Asunci6n, Paraguay Peru: Banco Mundial, Avenida Pardo y Aliaga 640, Piso 16, San Isidro, Lima, Peru * Philippines: The World Bank, 23/F The Taipan Place Building, Emerald Avenue, Ortigas Center, Pasig City, Metro Manila, Philippines * Country Directors are located in the country offices. (continued next page) OFFICES OF THE WORLD BANK 125 APPENDIX 4 (continued) * Poland: The World Bank, 53, Emili Plater St., Warsaw Financial Center, 9th Floor, 00-113 Warsaw, Poland Romania: The World Bank, Boulevard Dacia 83, Sector 2, Bucharest, Romania * Russian Federation: The World Bank, Sadovaya-Kudrinskaya No. 3, Moscow 123242, Russian Federation Rwanda: The World Bank, Boulevard de la Revolution, SORAS Building, Kigali, Rwanda (postal address: P.O. Box 609) Saudi Arabia: The World Bank, UNDP Building King Faisal Street (Olaya), Riyadh, Saudi Arabia (postal address: P.O. Box 5900, Riyadh 11432, Saudi Arabia) Senegal: Banque Mondiale, 3, place de l'independance, Dakar, Senegal (postal address: B. P. 3296) Sierra Leone: The World Bank, Regent House, 14 Wilberforce Street, Freetown, Sierra Leone Singapore: The World Bank, #15-08, MAS Building, 10 Shenton Way, Singapore, 079117 South Africa: The World Bank, Pro Equity Court Building, First Floor, 1250 Pretorius Street, Hatfield, Pretoria, Republic of South Africa (postal address: P.O. Box 12629, Hatfield 0028, Pretoria) ' Sri Lanka: The World Bank, Ist Floor, DFCC Bank Building, 73/5, Galle Road, Colombo 3, Sri Lanka (postal address: P.O. Box 1761) Tajikistan: The World Bank, Rudaki Avenue 105, Dushanbe, Tajikistan ' Tanzania: The World Bank, 50 Mirambo Street, Dar-es-Salaam, Tanzania (postal address: P.O. Box 2054) ' Thailand: The World Bank, Diethelm Towers, Tower A, 17th Floor, 93/1 Wireless Road, Bangkok 10330, Thailand Togo: The World Bank, 169 Boulevard du 13 Janvier, Immeuble BTCI, 8eme Etage, Lome, Togo (postal address: Boite Postale 3915) ' Turkey: The World Bank, Ugur Mumcu Caddesi 88, Kat: 2, 06700 Gaziosmanpasa, Ankara, Turkey Turkmenistan: The World Bank, United Nations Building, Atabaev Street, 40, Ashgabat 744000, Turkmenistan Uganda: The World Bank, I Lumumba Avenue, Rwenzori House, 4th Floor, Kampala, Uganda (postal address: P.O. Box 4463) Ukraine: The World Bank, 2 Lysenko Street, Kiev 252034, Ukraine Uzbekistan: The World Bank, 43 Academician Suleimanova Street, Tashkent, Uzbekistan 700017 Venezuela, Republica Bolivariana de: Banco Mundial, Av. Francisco de Miranda, con Av. del Parque, Torre Edicampo, Piso 9, Campo Alegre, Caracas, Republica Bolivariana de Venezuela ' Vietnam: The World Bank, 63 Ly Thai To Street, Hanoi, Vietnam * West Bank and Gaza: The World Bank, P.O. Box 54842, Jerusalem Yemen, Repubic of The World Bank, Hadda Street No.40; off Damascus Road, Sana'a, Republic of Yemen (postal address: P.O. Box 18152) Zambia: The World Bank, Anglo American Building, 74 Independence Avenue, 3rd Floor, Lusaka, Zambia 10101 (postal address: P.O. Box 35410) Zimbabwe: The World Bank, Finsure House, 5th Floor, 84-86 Union Avenue, Harare, Zimbabwe (postal address: P.O. Box 2960) * Country Directors are located in the country offices. 126 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 5: WORLD BANK EXPENDITURES, BY PROGRAM, FISCAL 1996-00 (amounts in millions of US. dollars) Actual FY96 FY97 FY98 FY99 FY00 Program Regional 669.5 650.5 710.1 740.8 780.4 Networks 61.6 61.4 88.0 111.4 129.4 Other Operational Programs 1.1 2.3 5.6 10.7 10.4 Development Economics and World Bank Institute 80.5 87.8 95.3 101.8 92.4 Financial 74.9 74.4 74.9 83.3 85.7 Administrative 124.6 122.0 139.5 139.9 147.0 Corporate Management and Services 85.1 88.4 90.6 93.5 95.1 Centrally Managed Overheads and Benefits 202.6 195.0 69.8 46.8 39.4 Administrative Budget 1,299.8 1,281.8 1,273.7 1,328.2 1,379.8 Less: Reimbursements and Fee Income (102.4) (107.6) (102.9) (115.1) (117.0) Net Administrative Budget 1,197.4 1,174.3 1,170.8 1,213.1 1,262.7 Development Grant Facility 112.7 120.0 110.3 129.4 126.1 Corporate Secretariat 51.0 53.0 57.1 58.1 61.8 Operations Evaluation 14.9 15.2 16.0 16.8 18.5 Less: Reimbursements and Fee Income (0.1) (0.5) (1.0) (1.3) (1.3) Total Administrative Budget 1,375.8 1,362.0 1,353.3 1,416.2 1,467.9 WORLD BANK EXPENDITURES, BY PROGRAM, FISCAL 1996-00 127 APPENDIX 6: COUNTRY ELIGIBILITY FOR BORROWING FROM THE WORLD BANK (as of July 1, 2000) 1999 GNP 1999 GNP Income group and country per capita' Income group and country per capita COUNTRIES ELIGIBLE FOR IBRD FUNDS ONLY Per capita income over $5,225 Jamaica 2,330 Slovenia 9,890 Russian Federation 2,270 Korea, Republic of 8,490 Colombia 2,250 Argentina 7,600 Fiji 2,210 Seychelles 6,540 Tunisia 2,100 St. Kitts and Nevis 6,420 Thailand 1,960 Uruguay 5,900 Dominican Republic 1,910 Antigua and Barbuda n.a. El Salvador 1,900 Namibia 1,890 Per capita income $2,996 - $5,225 Micronesia, Federated States of 1,810 Czech Republic 5,060 Iran, Islamic Republic of 1,760 Chile 4,740 Guatemala 1,660 Hungary 4,650 Paraguay 1,580 Croatia 4,540 Marshall Islands 1,560 Brazil 4,420 Algeria 1,550 Mexico 4,400 Romania 1,520 Trinidad and Tobago 4,390 Jordan 1,500 Poland 3,960 Suriname n.a. Lebanon 3,700 Venezuela, Republica Bolivariana de 3,670 Per capita income $756 - $1,445 Mauritius 3,590 Egypt, Arab Republic of 1,400 Slovak Republic 3,590 Bulgaria 1,380 Estonia 3,480 Swaziland 1,360 Malaysia 3,400 Ecuador 1,310 Botswana 3,380 Kazakhstan 1,230 Gabon 3,350 Morocco 1,200 South Africa 3,160 Equatorial Guinea 1,170 Panama 3,070 Philippines 1,020 Palau n.a. Syrian Arab Republic 970 Papua New Guinea 800 Per capita income $1,446 - $2,995 China 780 Turkey 2,900 Iraq n.a. Costa Rica 2,740 Belize 2,730 Per capita income $755 or less Belarus 2,630 Ukraine 750 Lithuania 2,620 Uzbekistan 720 Latvia 2,470 Turkmenistan 660 Peru 2,390 COUNTRIES ELIGIBLE FOR A BLEND OF IBRD and IDA FUNDSb Per capita income $2,996 - $5,225 Per capita income $756 - $1,445 St. Lucia, 3,770 Bosnia and Herzegovina n.a. Grenada' 3,450 Dominica' 3,170 Per capita income $755 or less Indonesia 580 Per capita income $1,446 - $2,995 Azerbaijan 550 St. Vincent and the Grenadines, 2,700 Zimbabwe 520 Macedonia, Former Yugoslav Republic of 1,690 Pakistan 470 India 450 Nigeria 310 (continued next page) 128 THE WORLD BANK ANNUAL REPORT 2000 A P P E N D I X 6 (continued) 1999 GNP 1999 GNP Income group and country per capita' Income group and country per capita COUNTRIES ELIGIBLE FOR IDA FUNDS ONLYb Per capita income $1,446 - $2,995 Comoros 350 Tonga' 1,720 Mongolia 350 Yemen, Republic of 350 Per capita income $756 - $1,445 Gambia, The 340 Cape Verde: 1,330 Sudan 330 Maldivesi 1,200 Togo 320 Vanuatu' 1,170 Uganda 320 Samoac 1,060 Zambia 320 Bolivia 1,010 Kyrgyz Republic 300 Kiribati 910 Central African Republic 290 Albania 870 Tajikistan 290 Sri lanka 820 Lao People's Democratic Republic 280 Djibouti 790 S5o Tome and Principe 270 Guyana 760 Cambodia 260 Honduras 760 Madagascar 250 Rwanda 250 Per capita income $755 or less Burkina Faso 240 Solomon Islands 750 Mali 240 Cote d'lvoire 710 Tanzania 240 Congo, Republic of 670 Mozambique 230 Georgia 620 Angola 220 Cameroon 580 Nepal 220 Lesotho 550 Chad 200 Bhutan 510 Eritrea 200 Guinea 510 Malawi 190 Senegal 510 Niger 190 Armenia 490 Guinea-Bissau 160 Haiti 460 Sierra Leone 130 Nicaragua 430 Burundi 120 Ghana 390 Ethiopia 100 Benin 380 Afghanistan n.a. Mauritania 380 Congo, Democratic Republic of n.a. Bangladesh 370 Liberia n.a. Moldova 370 Myanmar n.a. Vietnam 370 Somalia n.a. Kenya 360 n.a. Precise figures not available- a. Wsorld Bank Atlas methodology; per capita GNP figures are in 1999 US. dollars. bs Countries are eligible for IDA on the basis of (a) relative poverty and (b) lack of creditworthiness. The operational cutoff for IDA eligibility for fiscal 2001 is a 1999 GNP per capita of US$885, using Atlas methodology. To receive IDA resources, countries also meet tests of performance. In exceptional circumstances, IDA extends eligibility temporarily to countries that are above the operational cutoff and are undertaking major adjustment efforts but are not creditworthy for IBRD lending An exception has been made for small island economies (see footnote c). c. During the IDA-12 period (fiscal 2000-02), an exception to the GNP per capita operational cutoff for IDA eligibility (US$885 for fiscal 2001) has been made for some small island economies, which otherwise would have little or no access to Bank Group assistance because they lack creditworthiness. For such countries, IDA funding is considered case by case for the financing of projects and adjustment programs designed to strengthen creditworthiness. COUNTRY ELIGIBILITY FOR BORROWING FROM THE WORLD BANK 129 NOTE TO APPENDIXES 7-1 1 DISBURSEMENTS AND PROCUREMENT member countries in fiscal 2000 and cumula- tively through fiscal 2000. The procurement rules and procedures to be fol- lowed in the execution of each project depend Appendix 9 shows the proportion of foreign on individual circumstances. Four considerations disbursements from the IBRD and IDA for specific generally guide the Bank's requirements: categories of goods and services provided by * economy and efficiency in the execution of a selected member countries in fiscal 2000. project; * opportunity for all eligible bidders from Appendix 10 provides a summary listing of the borrowing and nonborrowing member amounts paid to eligible World Bank borrowing countries to compete in providing goods, country suppliers and nonborrowing country works, and services financed by the Bank; suppliers in each fiscal year from 1998 to 2000 * development of local contractors, manufactur- under investment projects. Amounts disbursed ers, and consulting services in borrowing are compared with respect to significant countries; and categories of goods procured from foreign * transparency in the procurement process. suppliers. The extent to which eligible bor- rowing countries and nonborrowing countries Appendix 7A shows consolidated foreign and participated in supplying these major categories local disbursements for the IBRD and IDA through of goods in each of the past three fiscal years is the end of fiscal 1995 and for period fiscal 1996 also compared. through fiscal 2000. Advance disbursements consist of payments made into special accounts Under simplified procedures for structural of borrowers, from which funds are paid to and sectoral adjustment loans approved by the specific suppliers as expenditures are incurred. executive directors in fiscal 1996, disbursements Because balances in these accounts cannot be are no longer directly linked to procurement attributed to any specific supplying country until under adjustment loans disbursed using simpli- expenditures have been reported to the Bank, fled procedures. Thus, while appendixes 7b to 10 these are shown as a separate category. report on disbursements from the IBRD and IDA, they do not include disbursements under Appendix 7B provides details on foreign dis- adjustment loans disbursed using simplified bursements by countries eligible to borrow from procedures. The information in Appendix 11 the World Bank and nonborrowing countries' for reflects simplified adjustment loan disburse- the IBRD and IDA separately. ments to each borrower as pro-rata shares of that borrower's eligible imports from supplying Appendix 7C shows disbursements made in fiscal countries using import data drawn from United 2000 by the IBRD and IDA for local procurement by Nations trade statistics. current borrowing countries and disbursements made for goods, works, and services procured In all these tables and appendixes, IBRD figures from them by other Bank borrowers (foreign exclude disbursements for loans to the IFC and procurement) for projects funded by the Bank. "B" loans. IDA figures include Special Facility for SubSaharan Africa and Interim Trust Fund Appendix 8 shows the amounts disbursed from credits. Disbursements for Project Preparation the IBRD and IDA separately for foreign procure- Facility advances are excluded for both the IBRD ment of goods, works, and services from selected and IDA. 1. Appendix 6 lists countries eligible for borrowing from the World Bank. 130 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 7A: IBRD AND IDA DISBURSEMENTS FOR FOREIGN AND LOCAL EXPENDITURES (amounts in millions of US. dollars) IBRD and IDA Net advance Foreign' Local disbursementsb Total Amount % Amount % Amount % Amount Cumulative to June 30, 1995 140,388 57 101,783 41 4,234 2 246,405 1996 10,013w 52 8,787 46 456 2 19,256 1997 8,733 44 10,543 53 487 2 19,763 1998 14,292 57 10,112 41 449 2 24,853 1999 14,781 60 8,859 37 736 3 24,376 2000 8,742 47 9,013 49 753 4 18,508 Cumulative to June 30, 2000 196,951 56 149,097 42 7,113 2 353,161 Note: Foreign expenditures are expenditures in the currency of any country other than that of the borrower or guarantor, for goods or services supplied from the territory of any country other than the territory of the borrower or guarantor Local expenditures are expendi- tures in the currency of the borrower or guarantor or for goods or services supplied from the territory of the borrower or the guarantor Amounts may not add to totals because of rounding a. Amounts exclude debt-reduction disbursements of $3,693 million through fiscal 1995, $213 million in fiscal 1997 and $82 million in fiscal 1998. Amounts include disbursements under simplified procedures for structural and sectoral adjustment loans of $556 million in fiscal 1996, $3,333 million in fiscal 1997, $9,540 million in fiscal 1998, $10,423 million infiscal 1999, and $5,329 million in fiscal 2000. Amounts include HIPC initiative grant disbursements of $74 million in fiscal 1998 and $149 million in fiscal 1999. b. Net advance disbursements are advances made to special accounts net of amounts recovered (amounts for which the Bank has applied evidence of expenditures to recovery of the outstanding advance). c Disbursements for fiscal 1996 include the refinancing/rescheduled overdue charges of $168 million for Bosnia and Herzegovina. APPENDIX 7B: IBRD AND IDA DISBURSEMENTS FOR FOREIGN EXPENDITURES, BY SOURCE OF SUPPLY (amounts in millions of US. dollars) IBRD IDA Countries Countries Countries Countries not eligible eligible not eligible eligible to borrow to borrow Total to borrow to borrow Total Period Amount % Amount % Amount Amount % Amount % Amount Cumulative to June 30, 1995 89,020 87 13,186 13 102,206 30,316 79 7,866 21 38,181 1996 5,264 77 1,541 23 6,806 1,762 66 891 34 2,652 1997 3,082 86 521 14 3,602 1,374 76 425 24 1,798 1998 2,734 85 468 15 3,202 1,103 75 374 25 1,477 1999 2,228 89 275 11 2,503 1,164 68 542 32 1,706 2000 1,842 84 343 16 2,186 851 69 376 31 1,228 Cumulative to June 30, 2000 104,169 86 16,334 14 120,503 36,570 78 10,474 22 47,044 Note: Amounts exclude disbursements for debt reduction, net advance disbursements, and disbursements under simplified procedures for structural and sectoral adjustment loans and disbursements under HIPC Initiative grants. Countries eligible to borrow from IBRD and IDA are listed in Appendix 6. For consistency of comparison, the Republic of Korea is included as a country eligible to borrow for all periods covered by this table. Korea (a former graduate) again became eligible to borrow in December 1997. Amounts may not add to totals because of rounding IBRD AND IDA DISBURSEMENTS FOR FOREIGN AND LOCAL EXPENDITURES 131 APPENDIX 7C: IBRD AND IDA PAYMENTS TO SUPPLYING ELIGIBLE BORROWING COUNTRIES FOR LOCAL AND FOREIGN PROCUREMENT IN FISCAL 2000O (amounts in millions of US dollars) Percentage Local Foreign Total of total Borrowing countries procurement procurement amount disbursements' Afghanistan - Albania 11 - 11 0.06 Algeria 54 3 57 0.31 Angola 8 1 9 0.05 Antigua and Barbuda - 2 2 Argentina 592 38 630 3.41 Armenia 33 1 34 0.18 Azerbaijan 12 - 12 0.06 Bangladesh 201 2 203 1.1 Barbados + + + Belarus - + + Belize 2 1 3 Benin 21 7 28 0.15 Bhutan 2 - 2 Bolivia 64 1 65 0.35 Bosnia and Herzegovina 24 + 24 0.13 Botswana - + + * Brazil 523 19 542 2.93 Bulgaria 15 5 20 0.11 Burkina Faso 32 + 32 0.17 Burundi 6 + 6 * Cambodia 11 - 11 0.06 Cameroon 14 + 14 0.08 Cape Verde 6 - 6 Central African Republic + + + Chad 16 - 16 0.09 Chile 50 13 63 0.34 China 1,375 179' 1,554 8.4 Colombia 385 5 390 2.11 Comoros + - + Congo, Republic of - - Congo, Democratic Republic of - + + * Costa Rica 9 5 13 0.07 C6te d'Ivoire 43 1 44 0.24 Croatia 36 5 41 0.22 Cyprus 1 16 17 0.09 Czech Republic - 8 8 Djibouti 2 - 2 i Dominica I + I Dominican Republic 19 1 20 0.11 Ecuador 65 2 67 0.36 Egypt, Arab Republic of 72 7 79 0.43 El Salvador 8 1 9 Equatorial Guinea + - + Eritrea 6 - 6 * Estonia 8 1 8 Ethiopia 34 + 34 0.18 Fiji 2 + 2 Gabon 3 1 4 * Gambia, The 6 + 6 (continued next page) 132 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 7C (continued) Percentage Local Foreign Total of total Borrowing countries procurement procurement amount disbursements' Georgia 11 2 13 0.07 Ghana 79 2 81 0.44 Grenada I - I Guatemala 53 4 57 0.31 Guinea 18 + 18 0.1 Guinea-Bissau 4 4 Guyana 3 + 3 Haiti 7 + 7 Honduras 17 + 18 0.1 Hungary 30 7 37 0.2 India 1,152 31 1,183 6.39 Indonesia 498 1 499 2.69 Iran, Islamic Republic of 66 7 73 0.39 Jamaica 60 1 61 0.33 Jordan 25 11 36 0.2 Kazakhstan 8 7 15 0.08 Kenya 41 9 50 0.27 Korea, Republic of 37 76 113 0.61 Kyrgyz Republic 8 + 8 Lao People's Democratic Republic 12 - 12 0.06 Latvia 13 1 13 0.07 Lebanon 18 1 19 0.11 Lesotho 4 + 4 * Liberia - + + * Lithuania 10 + 10 0.06 Macedonia, Former Yugoslav Republic of 13 2 15 0.08 Madagascar 49 + 49 0.26 Malawi 44 + 44 0.24 Malaysia 20 3 22 0.12 Maldives + - + Mali 21 + 21 0.11 Mauritania 13 - 13 0.07 Mauritius + 1 2 * Mexico 661 12 673 3.64 Moldova 10 + 10 0.05 Mongolia 6 - 6 * Morocco 89 1 89 0.48 Mozambique 40 + 41 0.22 Myanmar Namibia - + + * Nepal 25 1 26 0.14 Nicaragua 54 + 54 0.29 Niger 24 4 27 0.15 Nigeria 68 1 69 0.37 Pakistan 194 2 196 1.06 Panama 13 12 25 0.13 Papua New Guinea and Pacific Islands 3 - 3 * Paraguay 30 2 32 0.17 Peru 168 1 169 0.91 Philippines 141 1 142 0.77 (continued next page) IBRD AND IDA PAYMENTS TO SUPPLYING ELIGIBLE BORROWING COUNTRIES FOR LOCAL AND FOREIGN PROCUREMENT IN FISCAL 2000 133 APPENDIX 7 C (continued) Percentage Local Foreign Total of total Borrowing countries procurement procurement amount disbursements Poland 215 22 237 1.28 Romania 33 3 36 0.2 Russian Federation 105 41 146 0.79 Rwanda 6 + 7 * Samoa + - + * Sao Tome and Principe + - + * Senegal 42 10 52 0.28 Seychelles I - I Sierra Leone 9 + 9 * Slovak Republic I 1 3 * Slovenia 2 11 13 0.07 Solomon Islands 8 - 8 * Somalia - - -* South Africa - 51 51 0.27 Sri Lanka 28 1 28 0.15 St. Kitts and Nevis + - + St. Lucia I _ I * St. Vincent and the Grenadines - - Sudan + + * Swaziland + 2 3 Syrian Arab Republic - I I * Tajikistan 7 - 7 Tanzania 41 1 41 0.22 Thailand 194 6 200 1.08 Togo 10 + 10 0.05 Tonga + + Trinidad and Tobago 10 + 11 0.06 Tunisia 133 2 135 0.73 Turkey 205 22 226 1.22 Turkmenistan + + + Uganda 45 2 47 0.25 Ukraine 3 4 7 Uruguay 44 + 44 0.24 Uzbekistan 2 1 3 Vanuatu _ + + * Venezuela, Republica Bolivariana de 53 17 70 0.38 Vietnam 89 + 89 0.48 Yemen, Republic of 46 1 47 0.25 Zambia 34 + 34 0.19 Zimbabwe 18 6 24 0.13 Total 9,013 735 9,748 52.67 - Zero, + less than $0.5 million, * less than 0.05 percent. Note: Amounts may not add to totals because of rounding a. Countries eligible to borrow from IBRD and IDA are listed in Appendix 6. In addition, payments under disbursing loans to Barbados and Cyprus, which are no longer eligible borrowing countries (having graduated), are included. Amounts exclude disbursements for debt reduction, net advance disbursements, and disbursements under simplified procedures for structural and sectoral adjustment loans and disbursements under HIPC Initiative grants. b. Refers to the share of all IBRD and IDA payments forfiscal 2000, which totaled $18,508 million. c Includes supplies from Hong Kong, China. 134 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 8: IBRD AND IDA PAYMENTS TO SUPPLYING COUNTRIES FOR FOREIGN PROCUREMENT (amounts in millions of US. dollars) IBRD cumulative IDA cumulative to June 30, 2000 IBRD fiscal 2000 to June 30, 2000 IDA fiscal 2000 Supplying Country Amount % Amount % Amount % Amount % Algeria 45 * 3 0.13 14 + Angola 10 * I * 7 1 0.05 Antigua and Barbuda 4 2 0.11 1 Argentina 897 0.74 33 1.5 137 0.29 6 0.47 Armenia + + * 2 ' 1 0.05 Australia 1,239 1.03 24 1.09 742 1.58 22 1.81 Austria 1,895 1.57 77 3.52 278 0.59 6 0.45 Bahamas, The 101 0.08 2 0.07 8 * Bahrain 68 0.06 + 132 0.28 1 0.11 Bangladesh 18 + 50 0.11 2 0.12 Barbados 15 5 + Belarus 55 0.05 + * 2 * Belgium 1,608 1.33 9 0.42 1,084 2.3 8 0.68 Belize 2 * + * 7 * +* Benin 5 1 0.06 23 0.05 6 0.46 Bolivia 29 I * 3 * + * Bosnia and Herzegovina + - * + + Botswana 6 - * 8 + Brazil 1,970 1.63 9 0.43 356 0.76 9 0.74 Bulgaria 54 4 0.2 55 0.12 + Burkina Faso I - 13 + * Burundi I - 12 * Cameroon 5 - 27 0.06 + * Canada 2,833 2.35 73 3.32 872 1.85 22 1.78 Central African Republic 4 - 6 * + * Chile 398 0.33 12 0.54 41 0.09 2 0.13 China 1,640 1.36 69 3.14 1,530 3.25 110 8.97 Colombia 254 0.21 3 0.13 28 0.06 2 0.18 Congo, Democratic Republic of 6 * 41 0.09 + Costa Rica 67 0.06 4 0.18 45 0.1 + * C6te d'lvoire 50 - 259 0.55 1 0.05 Croatia 18 * + 14 5 0.37 Cyprus 109 0.09 15 0.7 38 0.08 1 * Czech Republic 106 0.09 7 0.3 11 * I 0.11 Denmark 816 0.68 21 0.97 371 0.79 12 1.02 Dominica 5 - 2+ Dominican Republic 6 + 8 1 0.05 Ecuador 198 0.16 1 0.05 12 i 1 0.06 Egypt, Arab Republic of 62 0.05 1 49 0.11 6 0.5 El Salvador 18 +- 10 * 1 0.07 Estonia 4 * + * 5 * + Ethiopia 2 * - * 7 * + Fiji I * - 4 * + Finland 611 0.51 22 1.01 155 0.33 4 0.29 France 8,607 7.14 133 6.07 5,008 10.64 104 8.48 Gabon 18 * 1 0.06 11 * Gambia, The 4 - * I *+ Georgia 13 1 0.05 8 * 1 0.06 Germany 13,668 11.34 241 11.03 3,805 8.09 47 3.79 Ghana 11 + 19 2 0.15 Greece 223 0.19 3 0.16 96 0.2 2 0.15 (continued next page) IBRD AND IDA PAYMENTS TO SUPPLYING COUNTRIES FOR FOREIGN PROCUREMENT 135 A P P E N D I X 8 (continued) IBRD cumulative IDA cumulative to June 30, 2000 IBRD fiscal 2000 to June 30, 2000 IDA fiscal 2000 Supplying Country Amount % Amount % Amount % Amount % Guatemala 20 1 * 29 0.06 3 0.25 Guinea 5 ' - 41 0.09 + * Guyana 9 + I 1 ' * Haiti 6 ' + 4 ' Honduras 15 + ' 8 * + Hungary 350 0.29 7 0.3 28 0.06 1 0.05 Iceland 12 * - 2 + * India 465 0.39 2 0.07 1,040 2.21 30 2.41 Indonesia 179 0.15 + 137 0.29 + Iran, Islamic Republic of 148 0.12 2 0.09 205 0.44 5 0.39 Ireland 207 0.17 25 1.16 139 0.29 6 0.52 Israel 277 0.23 7 0.31 136 0.29 3 0.28 Italy 7,403 6.14 188 8.61 2,172 4.62 120 9.79 Jamaica 17 + * 2 1 0.06 Japan 15,295 12.69 134 6.14 4,423 9.4 50 4.05 Jordan 50 ' - 164 0.35 11 0.9 Kazakhstan 82 0.07 7 0.31 33 0.07 + Kenya 28 * + 305 0.65 9 0.74 Korea, Republic of 1,822 1.51 44 2 1,023 2.18 32 2.61 Kyrgyz Republic 11 - + + Latvia 15 ' + I 1 * + Lebanon 100 0.08 1 0.05 26 0.05 + Lesotho + * - ' + ' + Liberia 26 + ' 21 0.05 - Lithuania 24 ' + ' 2 * Luxembourg 74 0.06 + ' 37 0.08 + Macedonia, FYR of + - 5 2 0.19 Madagascar 8 - 2 + Malawi 2 * 11 * + Malaysia 347 0.29 + ' 263 0.56 2 0.19 Mali + - 14 * + Malta 21 * + + Mauritius I ' - * 23 0.05 1 0.09 Mexico 583 0.48 6 0.26 115 0.25 6 0.51 Moldova 3 ' + I I ' - Morocco 178 0.15 - * 64 0.14 1 Mozambique 4 ' + ' 7 + * Namibia + I 1 Nepal 2 I 1 7 * + * Netherlands 2,269 1.88 31 1.44 1,361 2.89 50 4.06 New Zealand 194 0.16 4 0.17 122 0.26 9 0.72 Nicaragua 10 ' + 7 Niger 7 I 1 17 3 0.22 Nigeria 391 0.32 1 ' 408 0.87 + Norway 547 0.45 11 0.49 178 0.38 4 0.36 Oman 38 - 15 * + Pakistan 127 0.11 1 0.07 186 0.39 1 0.05 Panama 405 0.34 7 0.34 60 0.13 4 0.34 Paraguay 120 0.1 1 0.05 15 I 0.08 Peru 129 0.11 + 22 0.05 1 0.08 Philippines 76 0.06 + 85 0.18 + (continued next page) 136 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 8 (continued) IBRD cumulative IDA cumulative to June 30, 2000 IBRD fiscal 2000 to June 30, 2000 IDA fiscal 2000 Supplying Country Amount % Amount % Amount % Amount % Poland 321 0.27 20 0.93 54 0.12 1 0.12 Portugal 78 0.06 1 * 398 0.85 30 2.43 Romania 327 0.27 3 0.13 76 0.16 +- Russian Federation 756 0.63 27 1.26 101 0.21 14 1.11 Rwanda 3 * - * 3 * +* Saudi Arabia 589 0.49 1 250 0.53 5 0.43 Senegal 28 * I 118 0.25 9 0.76 Sierra Leone 5 * - * 3 + Singapore 1,202 1 32 1.46 750 1.59 5 0.42 Slovak Republic 19 * I 2 I Slovcnia 56 0.05 3 0.15 13 * 8 0.66 SouthAfrica 469 0.39 16 0.73 1,095 2.33 35 2.82 Spain 1,486 1.23 35 1.59 347 0.74 18 1.5 Sri Lanka 27 + 19 1 0.06 Sudan 9 * 22 0.05 + Swaziland 36 * 2 0.09 32 0.07 1 Sweden 1,762 1.46 57 2.59 499 1.06 9 0.73 Switzerland 4,665 3.87 40 1.85 1,234 2.62 13 1.02 Syrian Arab Republic 38 - 17 * 1 0.07 Tanzania 7 - 36 0.08 1 0.05 Thailand 148 0.12 + * 397 0.84 5 0.43 'Togo 31 - * 30 0.06 + Tonga + I * I * + * Trinidad and Tobago 21 * + * 24 0.05 + Tunisia 92 0.08 - 44 0.09 2 0.16 Turkey 598 0.5 14 0.63 136 0.29 8 0.64 Turkmenistan 5 - _ * 51 0.11 + Uganda 3 - 10 * 2 0.18 Ukraine 169 0.14 1 0.07 55 0.12 3 0.21 United Arab Emirates 571 0.47 - 379 0.81 4 0.29 United Kingdom 8,975 7.45 140 6.41 6,001 12.76 112 9.09 United States 23,067 19.14 288 13.16 4,625 9.83 93 7.54 Uruguay 114 0.09 + * 6 * +* Uzbekistan 5 * 1 0.06 14 -+ Vanuatu 5 * * + + + Venezuela, Republica Bolivariana de 587 0.49 14 0.63 212 0.45 3 0.26 Vietnam 46 * + 55 0.12 + * Yemen, Rcpublic of + - I 1 + Zambia 52 * - 115 0.24 + Zimbabwe 34 * + 123 0.26 6 0.48 Others 4,216 3.5 229 10.46 1,305 2.77 94 7.65 Total 120,503 100 2,186 100 47,044 100 1,228 100 - Zero, + less thao $0.5 millioni, * less than 0.05 percent. Note:Amounts exclude disbursements for debt reduction, net advance disbursements, and disbursements undersimplified procedures for structural and sectoral adjustment loans and disbursements under HIPC initiative grants. Amounts may not add to totals because of rounding IBRD AND IDA PAYMENTS TO SUPPLYING COUNTRIES FOR FOREIGN PROCtJREMENT 137 APPENDIX 9: IBRD AND IDA PAYMENTS TO SUPPLYING COUNTRIES FOR FOREIGN PROCUREMENT, By DESCRIPTION OF GoODS, FiSCAL 2000 (amounts in millions of US. dollars) Total Equipment Civil works Consultants All other goods disbursements Supplying Country Amount % Amnount % Amount % Amount % Amount % Algeria 3 0.15 -* + 0.05 - * 3 0.09 Angola __ * 1 0.23 - 1I Antigua and Barbuda 2 0.13 - * -* - 2 0.07 Argentina 6 0.3 30 4.09 3 0.42 - * 38 1.13 Armenia __ I 0.1 - I Australia I11 0.61 + * 35 5.46 + * 46 1.35 Austria 64 3.48 15 2.07 3 0.45 -i 0.17 83 2.42 Bahamas, The 2 0.08 - * - -* 2 * Bahrain 1 0.07 - * + I Bangladesh + * 1 0.13 1 0.14 -2 0.06 Barbados + * -* + Belarus _ * + -* +* Belgium I11 0.59 1 0.1 6 0.94 + 1 8 0.52 Belize + * -* + 0.06 - 1I Benin + * 5 0.72 1 0.22 - * 7 0.21 Bolivia + * - 1 0.16 - 1 Boania and Herzegovina -+ * -+ Botswana -- * + -+ Brazil I11 0.6 6 0.85 1 0.17 -19 0.54 Bulgaria 3 0.14 2 0.27 + * -5 0.14 Burkina Faao - * + S + -+ * Burundi-- _-- Cameroon __ * + * + * +* Canada 53 2.89 3 0.36 38 5.97 1 0.32 94 2.77 Central African Republic - - * + -* + Chile 12 0.66 - 1 0.2 - * 13 0.39 China 60 3.28 113 15.22 5 0.76 1 0.35 179 5.24 Colombia 4 0.2 + * 1 0.19 - * 5 0.15 Congo, Democratic Republic of - * - + * - +* Coata Rica 1 * - 3 0.43 1 0.51 5 0.13 C6te d'lvoire - * + * 1 0.09 -I Croatia 2 0.13 2 0.32 + -5 0.14 Cyprus 15 0.8 - * 1 0.17 + * 16 0.47 Czech Republic 8 0.43 - S + * - 8 0.23 Denmark 16 0.86 9 1.19 8 1.3 1 0.36 34 0.99 Dominica __- + -* +* Dom-inican Republic + I 0.1 + I Ecuador + * -2 0.26 - * 2 0.05 Egypt, Arab Republic of 1 * 5 0.71 1 0.15 - * 7 0.2 El Salvador 1 0.05 - * + * -* 1 Estonia + * + * + * + * * Ethiopia * -* + -+ Fiji + * - * + * - + Finland 23 1.24 + 0.05 2 0.37 + 0.09 26 0.75 France 136 7.37 52 6.95 49 7.64 1 0.53 237 6.94 Gabon 1 0.07 - I Gambia, The + * - -* -* +* Georgia 1 0.06 - 1 0.1 - 2 0.05 Germnany 201 10.9 54 7.24 28 4.36 6 2.93 288 8.43 Ghana - * 2 0.2 + * + 0.05 2 0.05 (continued next page) 138 THE WORLD BANK ANNUAL REPoRT 2000 APPENDIX 9 (continued) Total Equipment Civil works Consultants All other goods disbursements Supplying Country Amount % Amount % Amount % Amount % Amount % Greece 5 0.28 + + + * 5 0.16 Guatemala 3 0.17 1 0.14 - 4 0.12 Guinea - + * * + Guyana - - * + - + Haiti * _ . + 0.07 - + Honduras + * _ * _ . - . + Hungary 4 0.24 2 0.23 + 0.07 1 0.37 7 0.21 Iceland - + * - * - * + * India 21 1.16 5 0.65 5 0.79 + 31 0.92 Indonesia I ' - * + + * I Iran, Islamic Republic of 5 0.26 2 0.25 + * - * 7 0.2 Ireland 23 1.27 + 8 1.28 + 0.06 32 0.93 Israel 7 0.38 1 0.08 3 0.42 - * 10 0.3 Italy 80 4.34 208 28.04 18 2.86 2 1.12 308 9.04 Jamaica - 1 0.09 + * I * I * Japan 163 8.83 16 2.15 5 0.86 + * 184 5.39 Jordan 11 0.6 - * + - * 11 0.32 Kazakhstan 7 0.37 - * + * * 7 0.2 Kenya 4 0.23 3 0.44 2 0.24 + * 9 0.27 Korea, Republic of 30 1.65 44 5.87 + 0.07 1 0.69 76 2.22 Kyrgyz Republic + * - ' - * - * + Latvia 1 - ' + 0.05 - 1 1 Lebanon * + 1 0.17 - I Lesotho * + * + * + * Liberia * _ . + . + Lithuania + * _ + * Luxembourg + ' - * + 0.06 + + * Macedonia, FYR of - 2 0.32 - * - 2 0.07 Madagascar * - * + - * + Malawi * - * + * - * + * Malaysia I * 1 0.16 1 0.1 - * 3 0.07 Mali * - * + * - * + Malta + * - * - * - * + Mauritius I - 1 0.08 - * I Mexico 5 0.28 4 0.5 3 0.48 - * 12 0.35 Moldova - * - - * + * + Morocco - * - * 1 0.08 - * 1 Mozambique - * - * + 0.07 - * + Namibia -* * * Nepal 1 * + 0.05 + * I 1 Netherlands 56 3.02 2 0.25 24 3.74 + 81 2.38 New Zealand + ' 1 0.17 11 1.74 - 12 0.36 Nicaragua + * - + * - + Niger I * + * 3 0.47 4 0.11 Nigeria - 1 0.09 + * I * I Norway 10 0.57 3 0.44 1 0.22 - * 15 0.44 Oman + * - * - * - ' + * Pakistan 1 0.08 + 0.05 + * - 2 0.06 Panama 9 0.49 1 0.08 2 0.29 - 12 0.34 Paraguay - 2 0.27 - * - * 2 0.06 (continued next page) IBRD AND IDA PAYMENTS TO SUPPLYING COUNTRIES FOR FOREIGN PROCUREMENT, BY DESCRIPTION OF GOODs, FISCAL 2000 139 A P P E N D I X 9 (continued) Total Equipment Civil works Consultants All other goods disbursements Supplying Country Amount % Amount % Amount % Amount % Amount % Peru 1 - 1 0.13 - 1 * Philippines + * - 1 0.11 - 1 * Poland 5 0.27 2 0.25 13 2.11 1 0.76 22 0.64 Portugal 3 0.16 20 2.66 8 1.24 + 31 0.9 Romania 3 0.14 1 0.11 + * + 3 0.1 Russian Federation 40 2.18 - * 1 0.15 + 0.05 41 1.21 Rwanda + * - - - + Saudi Arabia 1 * 5 0.71 + * - * 6 0.18 Senegal + * 9 1.15 1 0.19 - * 10 0.29 Sierra Leone + * - + ' - + * Singapore 35 1.88 + 2 0.35 + 0.11 37 1.09 Slovak Republic 1 0.05 + * * + 1 * Slovenia 11 0.61 - * + * - 11 0.33 South Africa 18 0.97 25 3.43 7 1.09 + 0.13 51 1.48 Spain 14 0.78 22 2.93 12 1.85 5 2.62 53 1.56 Sri Lanka I - + 0.05 - 1 I Sudan + * - * - + * Swaziland 2 0.13 - * + * - * 2 0.07 Sweden 60 3.27 + 5 0.83 + * 66 1.92 Switzerland 40 2.2 5 0.61 5 0.86 3 1.29 53 1.55 Syrian Arab Republic + I- 1 0.11 - * I Tanzania - * + 0.06 + I - * I * Thailand 5 0.27 - * 1 0.11 - * 6 0.17 Togo + + Tonga - + - + Trinidad and Tobago + * - * + * - + Tunisia + * 1 0.16 + 0.07 - * 2 0.06 Turkey 16 0.86 5 0.71 1 0.11 + * 22 0.63 Turkmenistan + * * - * - * + Uganda + * 2 0.29 + * - 2 0.06 Ukraine 4 0.22 - - + * - * 4 0.12 United Arab Emirates 2 0.09 2 0.24 - * - - 4 0.1 United Kingdom 148 8.06 17 2.28 85 13.45 1 0.52 252 7.37 United States 257 13.96 6 0.81 116 18.26 2 0.78 380 11.14 Uruguay + * - * + * - * + * Uzbekistan 1 0.08 - * + I - 1 * Vanuatu - ' - + * - * + Venezuela, Republica Bolivariana de 3 0.18 + * 14 2.15 - * 17 0.5 Vietnam + - * + * - + Yemen, Republic of - * - * + - + Zambia + * + * + * - + * Zimbabwe + * 4 0.5 2 0.31 + 6 0.17 Others 68 3.72 16 2.17 69 10.94 169 85.9 322 9.45 Total 1,840 100 742 100 635 100 196 100 3,414 100 - Zero, + less than $0.5 million, * less than 0.05 percent. Note: Amounts exclude disbursements for debt reduction, net advance disbursements, and disbursements under simplified procedures for structural and sectoral adjustment loans. Amounts may not add to totals because of rounding 140 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 10: IBRD AND IDA DISBURSEMENTS FOR FOREIGN EXPENDITURES, BY DESCRIPTION OF GOODS (FOR INVESTMENT LENDING), FISCAL 1998-00' Fiscal 1998 Fiscal 1999 Fiscal 2000 Countries Countries Countries Countries Countries Countries not eligible eligible not eligible eligible not eligible eligible Item to borrow to borrow Total to borrow to borrow Total to borrow to borroNv Total Millions of US. dollars Civil works 652 227 880 586 286 871 456 286 742 Consultants 795 84 879 615 87 702 541 91 632 Goods 2,124 504 2 628 1,977 441 2,417 1,504 336 1,840 Allother 131 18 149 107 3 110 133 6 139 Total 3,702 833 4,536 3,285 817 4,100 2,634 719 3,353 Percent" Civil works 74 26 19 67 33 21 61 39 22 Consultants 90 10 19 88 12 17 86 14 19 Goods 81 19 58 82 18 59 82 18 55 All other 88 12 3 98 2 3 96 4 4 Total 82 18 100 80 20 100 79 21 100 Note: Countries eligible to borrow from IBRD and IDA are listed in Appendix 6. For consistenevy of comparison, the Republic of Korea is included as a country eligible to borrow for all periods covered by this table. The Republic of Korea (a fonner graduate) again became eligible to borrow in December 1997. Amounts may not add to totals because of rounding. a. Amounts exclude disbursements for debt-reduction and net advance disbursements. Amounts also exclude disbursements for structural and sectoral adjustment loans and hybrids (loans that support policv and institutional reforms in a specific sector by financing both a police component disbursed against imports and investment component), and disbursements under HIPC Initiative grants. b. Percentages are based on the dollar amounts shown under the total disbursements section. These percentages show both the breakdown between countries eligible to borrow from the IBRD and/or IDA, and countries not eligible to borrow, for individual goods categories and the share of each goods category compared with total disbursements. IBRD AND IDA DISBURSEMENTS FOR FOREIGN EXPENDITURES, BY DESC. OF GOODS (FOR INVESTMENT LENDING), FISCAL 1998-00 141 APPENDIX 11: ESTIMATES OF IBRD AND IDA PAYMENTS TO SUPPLYING COUNTRIES FOR FOREIGN PROCUREMENT UNDER ADJUSTMENT LENDING, FISCAL 2000O (amounts in millions of US. dollars) Supplying Countries Amount Percent Supplying Countries Amount Percent Albania + 0.0% Kuwait 0.1 0.0% Algeria 15.2 0.3% Latvia 3.6 0.1% Argentina 171.5 3.2% Libya 1.4 0.0% Armenia 0.3 0.0% Lithuania 16.3 0.3% Aruba + 0.0% Macau 0.1 0.0% Australia 67.8 1.3% Macedonia, FYR of 0.3 0.0% Austria 49.6 0.9% Madagascar 0.0 0.0% Barbados + 0.0% Malaysia 51.9 1.0% Belgium 110.1 2.1% Malta 0.3 0.0% Bolivia 7.2 0.1% Mauritius 0.5 0.0% Bangladesh 0.7 0.0% Mexico 37.3 0.7% Belarus 2.9 0.1% Moldova 1.7 0.0% Brazil 247.5 4.6% Morocco 2.9 0.1% Bulgaria 12.0 0.2% Nepal 0.0 0.0% Canada 54.0 1.0% Netherlands 95.1 1.8% Chile 47.7 0.9% New Zealand 10.4 0.2% China 110.0 2.1% Nicaragua 0.2 0.0% Colombia 6.7 0.1% Nigeria 9.0 0.2% Costa Rica 1.4 0.0% Norway 12.7 0.2% Croatia 18.6 0.3% Oman 5.3 0.1% Cyprus 0.6 0.0% Pakistan 11.3 0.2% Czech Rep. 20.7 0.4% Panama 0.1 0.0% Denmark 26.7 0.5% Paraguay 11.9 0.2% Dominican 0.1 0.0% Peru 9.7 0.2% Ecuador 5.1 0.1% Philippines 3.6 0.1% Egypt 5.1 0.1% Poland 38.9 0.7% El Salvador 0.2 0.0% Portugal 17.6 0.3% Estonia 8.8 0.2% Romania 13.1 0.2% Finland 49.9 0.9% Russian Federation 278.0 5.2% France 231.8 4.3% SaudiArabia 6.4 0.1% Germany 518.9 9.7% South Africa 85.4 1.6% Greece 41.5 0.8% Singapore 63.0 1.2% Grenada + 0.0% Slovak Republic 9.9 0.2% Guatemala 0.8 0.0% Slovenia 14.9 0.3% Honduras + 0.0% Spain 109.1 2.0% Hong Kong 4.9 0.1% Suriname 0.6 0.0% Hungary 33.7 0.6% Sweden 63.2 1.2% Iceland 0.5 0.0% Switzerland 54.9 1.0% India 34.7 0.7% Syrian Arab Republic 4.1 0.1% Indonesia 26.0 0.5% Taiwan 13.1 0.2% Ireland 15.5 0.3% Thailand 31.3 0.6% Israel 24.8 0.5% Trinidad and Tobago 1.1 0.0% Italy 341.0 6.4% Tunisia 3.3 0. 1% Jamaica 0.3 0.0% Turkey 63.9 1.2% Japan 256.4 4.8% United Kingdom 200.2 3.8% Jordan 2.3 0.0% Uruguay 28.1 0.5% Kazakhstan 1.3 0.0% United States 1,148.1 21.5% Kenya 21.2 0.4% Venezuela, Republica Bolivariana de 29.8 0.6% Korea, Republic of 150.4 2.8% Zimbabwe 18.6 0.3% TOTAL 5,328.5 100% + Amount below $0.5 million. Note: Amounts exclude disbursements under investment lending. See Appendix 8 for payments to supplying countries for foreign procure- ment under investment lending, fiscal 2000. Details may not add to total because of rounding. a. Based on import data drawn from the latest information available on borrowers' trade statistics compiled by the United Nations trade system COMTRADE. 142 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 12: IBRD AND IDA CUMULATIVE LENDING SINCE FISCAL 1990 BY MAJOR PURPOSE AND REGION, JUNE 30, 2000 (amounts in millions of US. dollars) IBRD loans to borrowers, by region' Europe Latin Middle East Asia and America East and and Central and the North South Purposeb Africa Pacific Asia Caribbean Africa Asia Total Agriculture 183.5 5,839.2 2,434.0 4,591.8 2,119.0 533.0 15,700.4 Economic policy 155.0 3,865.0 8,574.6 5,066.8 1,465.0 900.0 20,026.4 Education 161.0 3,193.5 965.3 5,466.6 965.6 10,752.0 Electric power and energy 105.0 8,600.8 3,291.2 1,022.8 644.0 3,490.0 17,153.8 Environment 2,072.5 384.0 1,783.2 244.5 290.0 4,774.2 Finance 154.8 7,083.8 2,461.3 7,032.9 959.0 1,366.0 19,057.8 Health, nutrition, and population 95.0 646.9 1,203.0 3,502.4 585.1 10.0 6,042.5 Industry 235.0 365.0 56.4 656.4 Mining 10.0 1,985.3 533.5 530.0 3,058.8 Multisector 375.0 1,378.5 1,270.4 383.5 3,407.4 Oil and gas 310.9 843.0 1,630.8 484.2 264.0 1,093.0 4,625.9 Private sector development 17.7 256.5 2,485.3 1,530.5 264.7 26.0 4,580.7 Public sector management 75.0 1,877.2 1,334.7 3,913.8 115.2 276.3 7,592.2 Social protection 51.4 1,427.5 1,860.8 3,888.5 183.0 301.3 7,712.5 Telecommunications 1,218.5 465.0 15.9 129.0 97.0 1,925.4 Transportation 93.7 8,923.9 3,635.1 6,939.9 498.1 1,305.9 21,396.5 Urban development 46.4 2,166.4 1,854.0 1,861.8 1,553.2 105.0 7,586.8 Water supply and sanitation 423.4 1,268.1 1,109.8 2,615.8 820.1 502.4 6,739.6 Total 1,872.8 49,902.8 37,052.8 51,520.8 11,557.9 10,882.3 162,789.3 Note: Figures are cumulative since fiscal 1990, the first year for which reclassified sector data is available (see Table 1.I, page 33 in the World Bank Annual Report 2000: Annual Review and Summary Financial Information). Details may not add to totals because of rounding. a. No account is taken of cancellations subsequent to original commitment. IBRD loans to the IFC are excluded. b. Operations have been classified by the major purpose they finance. Many projects include activity in more than one sector or subsector (continued next page) IBRD AND IDA CUMULATIVE LENDING SINCE FISCAL 1990 BY MAJOR PURPOSE AND REGION, JUNE 30, 2000 143 APPENDIX 1 2 (continued) (amounts in millions of US. dollars) IDA credits to borrowers, by region, Europe Latin Middle East Asia and America East and and Central and the North South Purposeb Africa Pacific Asia Caribbean Africa Asia Total Agriculture 2,775.8 3,399.1 552.3 272.1 459.9 3,844.1 11,303.4 Economic policy 4,495.7 414.0 1,221.3 379.3 80.0 325.2 6,915.5 Education 2,235.9 982.4 83.2 335.5 310.8 2,951.6 6,899.5 Electric power and energy 1,584.2 842.7 242.1 86.5 54.0 539.2 3,348.7 Environment 402.3 514.9 42.3 157.0 15.0 726.6 1,858.1 Finance 1,336.2 197.9 136.9 142.6 80.0 391.8 2,285.4 Health, nutrition and population 1,626.9 974.8 124.2 99.4 160.6 3,763.5 6,749.4 Mining 105.4 35.0 11.0 77.0 228.4 Multisector 1,105.8 62.7 50.0 310.0 407.5 1,936.0 Oil and gas 300.0 52.4 61.2 15.0 188.0 616.6 Private sector development 1,553.2 77.0 176.3 181.2 10.9 474.5 2,473.0 Public sector management 1,107.4 100.0 274.3 205.6 93.0 618.5 2,398.9 Social protection 1,127.5 289.7 309.0 349.8 473.0 929.9 3,478.9 Telecommunications 122.8 18.0 18.3 112.0 271.1 Transportation 3,245.0 943.2 263.1 426.4 89.8 1,658.6 6,626.2 Urban development 1,006.4 607.2 190.8 84.8 50.0 317.3 2,256.5 Water supply and sanitation 853.6 617.9 124.6 72.5 35.2 670.8 2,374.6 Total 24,984.2 10,058.6 3,860.7 3,193.2 1,927.2 17,996.1 62,020.1 Note: Figures are cumulative since fiscal 1990, thefirstyearfor which reclassified sector data is available (see Table 1.1, page 33 in the World Bank Annual Report 2000: Annual Review and Summary Financial Information). Details may not add to totals because of rounding a. No account is taken of cancellations subsequent to original commitment. IBRD loans to the IFC are excluded. b. Operations have been classified 1by the major purpose they finance. Many projects include activity in more than one sector or subsector 144 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 13: IBRD AND IDA CUMULATIVE LENDING BY COUNTRY, JUNE 30, 2000 (amounts in millions of US dollars) IBRD loans IDA credits Total Country Number Amount Number Amount Number Amount Afghanistan 20 230.1 20 230.1 Africa 11 259.8 1 45.5 12 305.3 Albania 39 541.4 39 541.4 Algeria 65 5,656.0 65 5,656.0 Angola 11 310.8 11 310.8 Argentina 106 17,771.8 106 17,771.8 Armenia 1 12.0 21 583.4 22 595.4 Australia 7 417.7 7 417.7 Austria 9 106.4 9 106.4 Azerbaijan 13 411.2 13 411.2 Bahamas, The 5 42.8 5 42.8 Bangladesh 1 46.1 163 9,262.8 164 9,308.9 Barbados 11 103.2 11 103.2 Belarus 3 170.2 3 170.2 Belgium 4 76.0 4 76.0 Belize 8 71.8 8 71.8 Benii 50 733.5 50 733.5 Bhutan 9 64.3 9 64.3 Bolivia 14 299.3 61 1,569.2 75 1,868.5 Bosnia and Herzegovina 28 585.2 28 585.2 Botswana 19 280.7 6 15.8 25 296.5 Brazil 256 28,702.8 256 28,702.8 Bulgaria 22 1,430.8 22 1,430.8 Burkina Faso 1.9 51 927.2 51 929.1 Burundi 1 4.8 48 741.0 49 745.8 Cambodia 15 385.1 15 385.1 Cameroon 45 1,347.8 26 1,062.7 71 2,410.5 Cape Verde 15 149.4 15 149.4 Caribbean 4 83.0 2 43.0 6 126.0 Central African Republic 26 431.5 26 431.5 Chad 1 39.5 38 704.9 39 744.4 Chile 61 3,585.9 19.0 61 3,604.9 China 156 24,778.8 71 9,946.7 227 34,725.5 Colombia 158 9,831.6 19.5 158 9,851.1 Comoros 16 101.7 16 101.7 Congo, Democratic Republic of 7 330.0 59 1,151.5 66 1,481.5 Congo, Republic of 10 216.7 10 183.6 20 400.3 Costa Rica 39 921.5 5.5 39 927.0 Cote d'lvoire 62 2,887.9 24 1,830.5 86 4,718.4 Croatia 15 762.7 15 762.7 Cyprus 30 418.8 30 418.8 Czech Republic 3 776.0 3 776.0 Denmark 3 85.0 3 85.0 Djibouti 12 90.6 12 90.6 Dominica 1 3.1 3 14.1 4 17.1 Dominican Republic 29 868.3 3 22.0 32 890.3 Eastern Africa 1 45.0 1 45.0 Ecuador 68 2,624.3 5 36.9 73 2,661.2 Egypt, Arab Republic of 63 4,497.5 41 1,984.0 104 6,481.5 El Salvador 32 820.6 2 25.6 34 846.2 Equatorial Guinea 9 45.0 9 45.0 Eritrea 6 150.4 6 150.4 (continued next page) IBRD AND IDA CUMULATIVE LENDING BY COUNTRY, JUNE 30, 2000 145 APPENDIX 1 3 (continued) (amounts in millions of US. dollars) IBRD loans IDA credits Total Country Number Amount Number Amount Number Amount Estonia 8 150.7 8 150.7 Ethiopia 12 108.6 60 2,902.7 72 3,011.3 Fiji 12 152.9 12 152.9 Finland 18 316.8 18 316.8 France 1 250.0 1 250.0 Gabon 14 227.0 14 227.0 Gambia, The 25 213.2 25 213.2 Georgia 24 557.2 24 557.2 Ghana 9 207.0 97 3,544.9 106 3,751.9 Greece 17 490.8 17 490.8 Grenada 1 3.8 1 8.8 2 12.7 Guatemala 33 1,058.1 33 1,058.1 Guinea 3 75.2 54 1,148.2 57 1,223.4 Guinea-Bissau 22 259.9 22 259.9 Guyana 12 80.0 17 307.6 29 387.6 Haiti 1 2.6 36 626.5 37 629.1 Honduras 33 717.3 23 1,011.9 56 1,729.2 Hungary 40 4,333.6 40 4,333.6 Iceland 10 47.1 10 47.1 India 177 26,762.4 235 27,027.8 412 53,790.2 Indonesia 242 27,056.3 48 1,188.2 290 28,244.5 Iran, Islamic Republic of 41 2,290.1 41 2,290.1 Iraq 6 156.2 6 156.2 Ireland 8 152.5 8 152.5 Israel 11 284.5 11 284.5 Italy 8 399.6 8 399.6 Jamaica 62 1,326.0 62 1,326.0 Japan 31 862.9 31 862.9 Jordan 51 1,916.7 15 85.3 66 2,002.0 Kazakhstan 21 1,819.1 21 1,819.1 Kenya 46 1,200.7 73 2,870.8 119 4,071.5 Korea, Republic of 114 15,647.0 6 110.8 120 15,757.8 Kyrgyz Republic 21 534.4 21 534.4 Lao People's Democratic Republic 27 576.0 27 576.0 Latvia 15 355.4 15 355.4 Lebanon 17 920.1 17 920.1 Lesotho 2 155.0 28 303.2 30 458.2 Liberia 19 156.0 14 114.5 33 270.5 Lithuania 14 349.9 14 349.9 Luxembourg 1 12.0 1 12.0 Macedonia, FYR of 8 205.5 9 293.8 17 499.3 Madagascar 5 32.9 77 1,853.0 82 1,885.9 Malawi 9 124.1 66 1,874.5 75 1,998.6 Malaysia 87 4,150.6 87 4,150.6 Maldives 7 64.9 7 64.9 Mali 1.9 62 1,381.4 62 1,383.3 Malta 1 7.5 1 7.5 Mauritania 3 146.0 46 595.9 49 741.9 Mauritius 31 417.8 4 20.2 35 438.0 Mexico 173 31,178.8 173 31,178.8 Moldova 9 302.8 6 146.0 15 448.8 Mongolia 12 207.7 12 207.7 Morocco 125 8,442.8 3 50.8 128 8,493.6 (continued next page) 146 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 1 3 (continued) (amounts in millions of US. dollars) IBRD loans IDA credits Total Country Number Amount Number Amount Number Amount Mozambique 37 1,973.6 37 1,973.6 Myanmar 3 33.4 30 804.0 33 837.4 Nepal 71 1,612.0 71 1,612.0 Netherlands 8 244.0 8 244.0 New Zealand 6 126.8 6 126.8 Nicaragua 27 233.6 25 875.4 52 1,109.0 Niger 46 826.9 46 826.9 Nigeria 84 6,248.2 17 982.9 101 7,231.1 Norway 6 145.0 6 145.0 OECS Countries 3 24.5 12.6 3 37.1 Oman 11 157.1 11 157.1 Pakistan 84 6,614.2 107 5,468.1 191 12,082.3 Panama 42 1,179.8 42 1,179.8 Papua New Guinea 33 729.3 9 113.2 42 842.5 Paraguay 36 807.9 6 45.5 42 853.4 Peru 85 5,148.2 85 5,148.2 Philippines 154 10,993.9 5 294.2 159 11,288.1 Poland 33 5,130.2 33 5,130.2 Portugal 32 1,338.8 32 1,338.8 Romania 62 5,308.4 62 5,308.4 Russian Federation 44 11,811.5 44 11,811.5 Rwanda 50 929.4 50 929.4 Samoa 9 61.0 9 61.0 Sao Tome and Principe 8 58.9 8 58.9 Senegal 19 164.9 76 1,863.1 95 2,028.1 Seychelles 2 10.7 2 10.7 Sierra Leone 4 18.7 23 458.7 27 477.4 Singapore 14 181.3 14 181.3 Slovak Republic 2 135.0 2 135.0 Slovenia 5 177.7 5 177.7 Solomon Islands 8 49.9 8 49.9 Somalia 39 492.1 39 492.1 South Africa 12 287.8 12 287.8 Spain 12 478.7 12 478.7 Sri Lanka 12 210.7 73 2,316.4 85 2,527.1 St. Kitts and Nevis 1 1.5 1.5 1 3.0 St. Lucia 4 10.0 12.7 4 22.7 St. Vincent and the Grenadines 1 1.4 1 6.4 2 7.8 Sudan 8 166.0 47 1,352.9 55 1,518.9 Swaziland 12 104.8 2 7.8 14 112.6 Syrian Arab Republic 17 613.2 3 47.3 20 660.5 Taiwan, China 14 329.4 4 15.3 18 344.7 Tajikistan 13 208.2 13 208.2 Tanzania 17 318.9 97 3,467.8 114 3,786.7 Thailand 118 7,979.1 6 125.1 124 8,104.2 Togo 1 20.0 41 733.5 42 753.5 Tonga 2 5.0 2 5.0 Trinidad andTobago 21 313.6 21 313.6 Tunisia 111 4,625.7 5 74.6 116 4,700.3 Turkey 129 15,540.2 10 178.5 139 15,718.7 Turkmenistan 3 89.5 3 89.5 Uganda 1 9.1 72 2,862.3 73 2,871.4 Ukraine 17 2,840.1 17 2,840.1 (continued next page) IBRD AND IDA CUMULATIVE LENDING BY COUNTRY, JUNE 30, 2000 147 APPENDIX 1 3 (continued) (amounts in millions of US. dollars) IBRD loans IDA credits Total Country Number Amount Number Amount Number Amount Uruguay 46 1,748.6 46 1,748.6 Uzbekistan 10 463.0 10 463.0 Vanuatu 4 15.4 4 15.4 Venezuela, Republica Bolivariana de 39 3,298.1 39 3,298.1 Vietnam 27 2,640.3 27 2,640.3 WesternAfrica 1 6.1 3 52.5 4 58.6 Yemen, Republic of 118 1,775.8 118 1,775.8 Yugoslavia, Federated Republic of 90 6,114.7 90 6,114.7 Zambia 27 679.1 48 2,386.1 75 3,065.2 Zimbabwe 24 983.2 12 661.9 36 1,645.1 Total 4,438 349,583.1 3,177 120,218.7 7,615 469,801.8 Note: Joint lBRD/IDA operations are counted only once, as IBRD operations. When more than one loan is made for a single project, the operation is counted only once. Details may not add to totals because of rounding. 148 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 14: PROJECTS APPROVED FOR IBRD AND IDA ASSISTANCE IN FISCAL 2000, BY REGION, JULY 1, 1999-JUNE 30, 2000 (amounts in millions of US. dollars) IBRD loans IDA credits Total Country Number Amount Number Amount Number Amount Africa Angola 1 33.0 1 33.0 Benin 3 37.2 3 37.2 Burkina Faso 1 25.0 1 25.0 Burundi 2 47.0 2 47.0 Cameroon 1 53.4 2 37.7 3 91.1 Cape Verde 1 3.0 1 3.0 Central African Republic 2 28.0 2 28.0 Chad 1 39.5 3 82.7 4 122.2 Cote d'lvoire 2 28.2 2 28.2 Ghana 3 42.1 3 42.1 Guinea 1 19.0 1 19.0 Guinea-Bissau 1 25.0 1 25.0 I.esotho 2 11.2 2 11.2 Madagascar 3 109.6 3 109.6 Malawi 1 28.9 1 28.9 Mali 3 139.9 3 139.9 Mauritania 4 83.1 4 83.1 Mauritius 1 4.8 1 4.8 Mozambique 4 161.6 4 161.6 Niger 1 10.4 1 10.4 Nigeria 3 80.0 3 80.0 Rwanda 3 60.0 3 60.0 Senegal 5 160.8 5 160.8 Sierra Leone 2 55.0 2 55.0 Tanzania 6 329.7 6 329.7 Uganda 2 147.9 2 147.9 Zambia 4 270.4 4 270.4 Zimbabwe 1 5.0 1 5.0 Total 3 97.6 66 2,061.4 69 2,159.1' East Asia Cambodia 4 41.7 4 41.7 China 8 1,672.5 8 1,672.5 Indonesia 1 13.0 2 120.4 3 133.4 Mongolia 1 32.0 1 32.0 Papua New Guinea 4 132.3 4 132.3 Philippines 3 277.5 3 277.5 Solomon Islands 1 4.0 1 4.0 Thailand 1 400.0 1 400.0 Vietnam 3 285.7 3 285.7 Total 17 2,495.3 11 483.8 28 2,979.1 Europe and Central Asia Albania 6 59.6 6 59.6 Armenia 2 60.0 2 60.0 Azcrbaijan 1 42.0 1 42.0 Bosnia and Herzegovina 3 37.6 3 37.6 Bulgaria 4 220.7 4 220.7 Croatia 1 29.0 1 29.0 Estonia 1 25.0 1 25.0 Georgia 2 47.6 2 47.6 Hungary 1 31.6 1 31.6 Kazakhstan 1 140.0 1 140.0 Kyrgyz Republic 3 34.4 3 34.4 (continued next page) PROJECTS APPROVED FOR IBRD AND IDA ASSISTANCE IN FISCAL 2000, BY REGION, JULY 1, 1999-JUNE 30, 2000 149 APPENDIX 1 4 (continued) (amounts in millions of US. dollars) EBRD loans IDA credits Total Country Number Amount Number Amount Number Amount Latvia 1 40.4 1 40.4 Lithuania 2 56.6 2 56.6 Poland 3 160.7 3 160.7 Romania 4 112.6 4 112.6 Russian Federation 2 90.0 2 90.0 Slovenia 1 9.5 1 9.5 Tajikistan 3 27.9 3 27.9 Turkey 4 1,769.6 4 1,769.6 Ukraine 1 18.3 1 18.3 Uzbekistan 1 29.0 1 29.0 Total 27 2,733.1 20 309.1 47 3,042.1 Latin America and the Caribbean Argentina 2 57.4 2 57.4 Bolivia 1 4.8 1 4.8 Brazil 8 1,290.0 8 1,290.0 Colombia 6 941.0 6 941.0 Costa Rica 1 32.6 1 32.6 Dominican Republic 2 17.3 2 17.3 Ecuador 2 181.7 2 181.7 Guyana 1 4.8 1 4.8 Honduras 1 33.3 1 33.3 Mexico 4 1,169.3 4 1,169.3 Nicaragua 5 120.9 5 120.9 Peru 3 94.6 3 94.6 St. Lucia 1 1.5 1.5 1 3.0 Uruguay 2 107.9 2 107.9 Venezuela, Republica Bolivariana de 1 5.0 1 5.0 Total 32 3,898.1 8 165.3 40 4,063.5 Middle East and North Africa Algeria 3 97.5 3 97.5 Djibouti 1 15.0 1 15.0 Egypt, Arab Republic of 1 50.0 1 50.0 Iran, Islamic Republic of 2 232.0 2 232.0 Jordan 1 34.7 1 34.7 Lebanon 2 136.6 2 136.6 Morocco 2 7.5 2 7.5 Tunisia 2 202.0 2 202.0 Yemen, Republic of 4 144.8 4 144.8 Total 13 760.2 5 159.8 18 920.0 South Asia Bangladesh 4 171.9 4 171.9 Bhutan 2 22.4 2 22.4 India 5 934.2 6 866.5 11 1,800.7 Maldives 1 17.6 1 17.6 Nepal 1 54.5 1 54.5 Sri Lanka 2 45.2 2 45.2 Total 5 934.2 16 1,178.1 21 2,112.4 Bankwide Total 97 10,918.6 126 4,357.6 223 15,276.2 Note: Supplements are included in the amount but are not counted as separate lending operations. Joint IBRD/IDA operations are counted only once, as IBRD operations Details may not add to totals because of rounding a. Excludes an IDA HIPC amount of $154 million to Mozambique. 150 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 15: PROJECTS APPROVED FOR IBRD AND IDA ASSISTANCE IN FISCAL 2000, BY PURPOSE, JULY 1, 1999-JUNE 30, 2000 (amounts in millions of US. dollars) Sector Group/Country IBRD IDA Total Agriculture Azerbaijan 42.0 42.0 Bangladesh 33.0 33.0 Brazil 136.0 136.0 Cambodia 4.8 4.8 China 303.5 303.5 Egypt, Arab Republic of 50.0 50.0 Georgia 7.6 7.6 Indonesia 13.0 5.0 18.0 Kyrgyz Republic 20.0 20.0 Mali 115.1 115.1 Mauritania 38.1 38.1 Mexico 55.0 55.0 Nicaragua 23.6 23.6 Niger 10.4 10.4 Peru 9.6 9.6 Philippines 27.5 27.5 Romania 11.0 11.0 Russian Federation 60.0 60.0 Rwanda 5.0 5.0 Sri Lanka 27.0 27.0 Tajikistan 20.0 20.0 Tunisia 103.0 103.0 Zimbabwe 5.0 5.0 Total 768.6 356.6 1,125.2 Economic policy Cambodia 30.0 30.0 Cameroon 11.0 11.0 Central African Republic 8.0 8.0 Ghana 1.2 1.2 Guinea-Bissau 25.0 25.0 India 45.0 45.0 Kyrgyz Republic 5.0 5.0 Nicaragua 20.9 20.9 Nigeria 20.0 20.0 Sierra Leone 30.0 30.0 Tanzania 191.1 191.1 Turkey 759.6 759.6 Zambia 140.0 140.0 Total 759.6 527.2 1,286.8 Education Albania 12.0 12.0 Benin 6.8 6.8 Bosnia and Herzegovina 10.6 10.6 Cambodia 5.0 5.0 Colombia 20.0 20.0 C6te d'lvoire 7.0 7.0 India 182.4 182.4 Jordan 34.7 34.7 Lebanon 56.6 56.6 Maldives 17.6 17.6 Mali 3.8 3.8 Nicaragua 52.5 52.5 (continued next page) PROJECTS APPROVED FOR IBRD AND IDA ASSISTANCE IN FISCAL 2000, BY PURPOSE, JULY 1, 1999-JUNE 30, 2000 151 A P P E N D I X 1 5 (continued) (amounts in millions of US. dollars) Sector Group/Country IBRD IDA Total Nigeria 55.0 55.0 Rwanda 35.0 35.0 Senegal 52.1 52.1 Tunisia 99.0 99.0 Venezuela, Republica Bolivariana de 5.0 5.0 Yemen, Republic of 28.9 28.9 Total 215.3 468.7 684.0 Electric power and energy Bolivia 4.8 4.8 China 320.0 320.0 India 230.0 50.0 280.0 Kazakhstan 140.0 140.0 Mauritania 9.9 9.9 Poland 38.2 38.2 Uganda 33.0 33.0 Ukraine 18.3 18.3 Vietnam 150.0 150.0 Total 746.5 247.7 994.2 Environment Brazil 15.0 15.0 Bulgaria 50.0 50.0 Cambodia 1.9 1.9 Cameroon 5.8 5.8 China 349.0 349.0 Colombia 5.0 5.0 Costa Rica 32.6 32.6 Kyrgyz Republic 9.4 9.4 Mauritania 5.0 5.0 Mozambique 5.6 5.6 Poland 2.5 2.5 Tajikistan 0.5 0.5 Vietnam 31.8 31.8 Total 454.1 60.0 514.1 Finance Albania 6.5 6.5 Bangladesh 46.9 46.9 Brazil 50.0 50.0 Bulgaria 100.0 100.0 Colombia 506.0 506.0 Ecuador 161.5 161.5 Ghana 5.1 5.1 Mali 21.0 21.0 Mauritius 4.8 4.8 Mexico 505.1 505.1 Mongolia 32.0 32.0 Nicaragua 8.0 8.0 Sri Lanka 18.2 18.2 Tanzania 29.5 29.5 Turkey 252.5 252.5 Uruguay 80.9 80.9 Total 1,660.8 167.2 1,828.0 (continued next page) 152 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 1 5 (continued) (amounts in millions of US. dollars) Sector Grouip/Country IBRD IDA Total Hlealth, nutrition, and popuLlation Argentina 57.4 57.4 Bangladesh 92.0 92.0 Bulgaria 63.3 63.3 Chad 41.5 41.5 Croatia 29.0 29.0 Ecuador 20.2 20.2 India 252.6 252.6 Indonesia 115.4 115.4 Iran, Islamic Republic of 87.0 87.0 ILesotho 6.5 6.5 Lithuania 21.2 21.2 Madagascar 40.0 40.0 Peru 80.0 80.0 Romania 40.0 40.0 Slovenia 9.5 9.5 Solomon Islands 4.0 4.0 Tajikistan 5.4 5.4 Tanzania 22.0 22.0 'rotal 407.6 579.4 987.0 Mining Papua New Guinea 10.0 10.0 Romania 44.5 44.5 ilbtal 54.5 54.5 Multisector Algeria 83.5 83.5 Burunidi 35.0 35.0 Colombia 225.0 225.0 India 100.5 100.5 iMozambicque 30.0 30.0 Turkev 252.5 252.5 Total 561.0 165.5 726.5 Oil and gas Brazil 43.4 43.4 Cameroon 53.4 53.4 Chad 39.5 23.7 63.2 Paptua New Guinea 7.0 7. 'iotal 143.3 23.7 167.0 P'rivate sector development Algeria 5.0 5.0 Benin 30.4 30.4 Calneroon 20.9 20.9 Central African Republic 20.0 20.0 GuLvana 4.8 4.8 Malawi 28.9 28.9 Mozambique 26.0 26.0 Senegal 28.5 28.5 7anzania 45.9 45.9 Yemen, Republic of 10.9 10.9 Total 5.0 216.3 221.3 (contitined next page) PROJECTS APPROVED FOR IBRD AND IDA ASSISTANCE IN FISCAL 2000, BY PURPOSE, JULY 1, 1999-JUNE 30, 200(0 1.53 APPENDIX 1 5 (continued) (amounts in millions of US. dollars) Sector Group/Country IBRD IDA Total Public sector management Albania 17.5 17.5 Brazil 505.1 505.1 Burkina Faso 25.0 25.0 Cape Verde 3.0 3.0 Chad 17.5 17.5 Guinea 19.0 19.0 India 126.2 125.0 251.2 Latvia 40.4 40.4 Madagascar 4.6 4.6 Mauritania 30.0 30.0 Mexico 609.2 609.2 Morocco 5.3 5.3 Papua New Guinea 90.0 90.0 Russian Federation 30.0 30.0 Tanzania 41.2 41.2 Thailand 400.0 400.0 Uganda 114.9 114.9 Yemen, Republic of 30.0 30.0 Zambia 28.0 28.0 Total 1,806.2 455.9 2,262.1 Social protection Angola 33.0 33.0 Armenia 20.0 20.0 Bosnia and Herzegovina 15.0 15.0 Brazil 510.1 510.1 Burundi 12.0 12.0 Colombia 100.0 100.0 Honduras 22.5 22.5 India 111.0 111.0 Lesotho 4.7 4.7 Peru 5.0 5.0 Philippines 100.0 100.0 Sierra Leone 25.0 25.0 St. Lucia 1.5 1.5 3.0 Yemen, Republic of 75.0 75.0 Zambia 64.7 64.7 Total 716.6 384.4 1,101.0 Telecommunications Algeria 9.0 9.0 Dominican Republic 12.3 12.3 India 62.0 62.0 Nicaragua 15.9 15.9 Senegal 10.2 10.2 Total 83.3 26.0 109.3 Transportation Albania 13.6 13.6 Armenia 40.0 40.0 Bhutan 11.6 11.6 Bulgaria 7.4 7.4 China 350.0 350.0 (continued next page) 154 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 1 5 (continued) (amounts in millions of US. dollars) Sector Group/Country IBRD IDA Total C6te d'lvoire 21.2 21.2 Djibouti 15.0 15.0 Estonia 25.0 25.0 Georgia 40.0 40.0 India 516.0 516.0 Lithuania 35.4 35.4 Madagascar 65.0 65.0 Mozambique 100.0 100.0 Nepal 54.5 54.5 Papua New Guinea 25.3 25.3 Philippines 150.0 150.0 Romania 17.1 17.1 Senegal 70.0 70.0 Uzbekistan 29.0 29.0 Vietnam 103.9 103.9 Total 1,155.1 534.9 1,690.0 Urban development Bhutan 10.8 10.8 Ghana 10.8 10.8 Honduras 10.8 10.8 Lebanon 80.0 80.0 Morocco 2.2 2.2 Tajikistan 2.0 2.0 Turkey 505.0 505.0 Total 587.2 34.4 621.6 Water supply and sanitation Albania 10.0 10.0 Bosnia and Herzegovina 12.0 12.0 Brazil 30.3 30.3 China 350.0 350.0 Colombia 85.0 85.0 Dominican Republic 5.0 5.0 Ghana 25.0 25.0 Hungary 31.6 31.6 Iran, Islamic Republic of 145.0 145.0 Nigeria 5.0 5.0 Poland 120.0 120.0 Rwanda 20.0 20.0 Uruguay 27.0 27.0 Zambia 37.7 37.7 Total 793.9 109.7 903.6 Bankwide Total 10,918.6 4,357.6 15,276.2 Note: Supplements are included in the amount but are not counted as separate lending operations Joint IBRD/IDA operations are counted only once, as IBRD operations. Details may not add to totals because of rounding. PROJECTS APPROVED FOR IBRD AND IDA ASSISTANCE IN FISCAL 2000, BY PURPOSE, JULY 1, 1999-JUNE 30, 2000 155 APPENDIX 16: DEVELOPMENT COMMITTEE COMMUNIQUES, FISCAL 2000 1. The 60th meeting of the Development Commit- programs, and to strengthen collaboration tee was held in Washington, D. C, on September between the two institutions. The Committee 27, 1999 under the chairmanship of Mr Tarnin emphasized that the strategies set out in the new Nimmanahaeminda, Minister of Finance of Poverty Papers should be country-driven; be Thailand. developed transparently with broad participation 2. Heavily Indebted Poor Countries Debt Initiative of elected institutions, stakeholders including (HIPC) and Enhanced Poverty Focus of IDA and civil society, key donors, and regional develop- ESAF Supported Programs. Ministers expressed ment banks; and have a clear link with the their appreciation to the Bank and the Fund for agreed international development goals- the transparent and participatory manner in principles that are embedded in the Comprehen- which they conducted the 1999 HIPC Initiative sive Development Framework. They stressed, in review. They welcomed the important role particular, the need to develop macroeconomic, played by civil society in the development of structural, and social policies that will contribute proposals designed to make the debt relief under to long-term poverty reduction, and the need to the HIPC Initiative deeper, broader, and faster. develop measurable intermediate and outcome 3. Ministers endorsed-subject to the availabil- indicators to monitor progress. Ministers stressed ity of funding-the enhancements to the HIPC the crucial role good governance plays for HIPC Initiative framework for countries pursuing implementation in establishing a framework that sound policies and committed to reform. In this discourages corruption and provides more context, they expressed support for: (a) a effective monitoring and quality control over lowering of the debt sustainability thresholds to fiscal expenditures. Ministers called on the Bank provide a greater safety cushion and increased and the Fund, in accordance with their respec- prospects for a permanent exit from unsustain- tive mandates and expertise, to give all possible able debt; (b) the provision of faster debt relief assistance to countries in bringing together the through interim assistance; (c) the introduction necessary social, structural, and macroeconomic of floating completion points that would shift policies required in developing poverty reduc- the focus of assessment toward positive achieve- tion strategies, recognizing the countries' ments and outcomes rather than the length of capacity constraints. The Poverty Reduction track record; and (d) the resulting increase in the Strategy Papers would provide the basis for all number of countries expected to be eligible for IDA and Fund lending to low-income countries. debt relief. Ministers also encouraged regional development 4. Ministers also endorsed the proposed frame- banks and donors to use the Poverty Reduction work for strengthening the link between debt Strategy Papers to guide their support. relief and poverty reduction, while recognizing 6. Ministers welcomed the proposed reform of that debt relief alone would be insufficient to the ESAF aimed at giving greater prominence to achieve this goal. In this context, they welcomed the goal of supporting countries' poverty the proposed Poverty Reduction Strategy Papers, reduction efforts, and the proposed renaming of to be prepared by national authorities in close the facility as the Poverty Reduction and Growth collaboration with Bank and Fund staff They Facility. Recognizing that the new approach will stressed that the Poverty Paper should be in involve substantial changes in Bank and Fund place by the decision point; they recognized, operations to combat poverty, and the need to however, that on a transitional basis the decision tailor the approach to individual country point could be reached without agreement on a circumstances and to learn quickly from experi- Poverty Paper, but in all cases demonstrable ence in early cases, the Committee strongly progress in implementing a poverty reduction welcomed the commitments of the President strategy would be required by the completion and Managing Director to its effective imple- point. mentation. Ministers looked forward to receiving 5. Ministers also welcomed and endorsed the reports on progress achieved. proposals developed by the Bank and the Fund 7. Ministers reaffirmed the importance of to extend the same approach to enhance the implementing the enhanced HIPC Initiative poverty focus of all IDA and ESAF supported framework in accordance with the principles 156 THE WORLD BANK ANNUAL REPORT 2000 A P P E N D I X 1 6 (continued) that have guided the Initiative since its inception, Initiative so that as many countries as possible including (a) additionality of debt relief (b) the qualify for assistance under the Initiative by maintenance of the financial integrity of multi- end-2000. lateral financial institutions, and (c) the impor- 11. IBRD CapitalAdequacy. Ministers reviewed tance of burden-sharing on a fair and equitable a report from the World Bank that reflected basis, including of the costs to multilateral ongoing discussions by the Bank's Executive institutions. They agreed that financing of debt Board and management on options to maintain relief should not compromise the financing and support the IBRD's financial capacity. The made available through concessional windows Committee agreed with the report's finding that such as IDA. Ministers expressed appreciation the Bank's finances remain sound. Ministers also for the many contributions to the HIPC Initia- recognized that the Bank's financial capacity tive made thus far, and for the efforts made by may limit its ability to respond to future de- multilateral development institutions to provide mands, especially when there is a deterioration in funding for the Initiative from their own the global financial environment. Ministers resources. Ministers recognized that most of requested management and the Executive Board these institutions will need bilateral support on to continue their examination of the level of an urgent basis in order to meet the additional financial capacity needed to preserve the IBRD's costs resulting from the proposed enhanced financial integrity while permitting it to help framework, and to enable them to implement meet, within its mandate, the development needs the Initiative rapidly. The Committee welcomes of borrowing member countries. Ministers the agreement on the financing of the Fund's requested that the Bank report regularly to the participation in the HIPC Initiative and contin- Committee on these issues. ued concessional lending by the Fund for growth 12. Developing and Transition Countries and the and poverty reduction in low income member International Trade Agenda. The Committee countries. noted that effective development and trade 8. Ministers also welcomed agreement on the policy have become increasingly intertwined. elements of a financing plan for multilateral They emphasized the importance of trade to development banks that respect the above development, poverty alleviation, and sustained principles. This will permit the enhanced HIPC global economic recovery. Ministers also empha- Initiative framework to be launched and the sized that the next round of trade negotiations delivery of debt relief to begin for those coun- needed to deliver early and substantial benefits tries requiring retroactive relief and those for developing and transition countries, in expected to reach their decision points over the particular for the least developed countries. This near term. They asked the World Bank to work would require improved market access and actively and closely with the whole group of further reduce barriers to trade. They stressed donors and other MDBs to ensure that financing that if developing and transition countries are to is mobilized to fully fund HIPC debt relief over use the international trading system effectively the longer term. to promote growth and reduce poverty, they will 9. Ministers also welcomed the agreement by need to become active partners in the next the Paris Club to increase its debt relief under round of trade negotiations. Ministers welcomed the enhanced framework by providing increased the commitment of the new Director-General of debt reduction in NPV terms up to 90 percent the World Trade Organization (WTO), Mr. Mike or more, if needed, on commercial loans as well Moore, to achieve this goal and urged the World as additional relief on ODA claims-up to full Bank, the Fund, WTO, UNCTAD, and other cancellation-on a bilateral basis. agencies to help developing and transition 10. Ministers welcomed the continuing progress countries build their capacity to participate in in the implementation of the Initiative, noting further rounds of negotiations. The Committee that, to date, 14 countries have been considered called on the Bank, the Fund, and WTO to under the Initiative-with four brought to their cooperate with other parties in developing completion points. The Committee urged the effective programs of capacity building for trade, speedy implementation of the enhanced including through the Integrated Framework for DEVELOPMENT COMMITTEE COMMUNIQUES, FISCAL 2000 157 APPENDIX 1 6 (continued) Trade Related Technical Assistance for the Least countries' poverty reduction efforts. The Bank Developed Countries. The Bank, in particular, should accumulate and disseminate knowledge could provide financial and technical support to of good practices to help guide countries improve trade-related infrastructure and institu- seeking to create institutions and implement tions, helping to build capacity in domestic policies that will forestall and mitigate the institutions involved in trade policy and negotia- social costs of economic shocks and protect the tions, and undertaking research on trade barriers most vulnerable. to developing countries' exports. 15. Ministers welcomed the steps being taken to 13. World Bank Support for Strengthening strengthen the work of the Development and International Financial Architecture. Interim Committees, both to better reflect the Ministers welcomed the role the World Bank enhanced level of cooperation between the Bank Group is playing to help strengthen the global and the Fund and to reduce duplication in the financial architecture to reduce the risk and committees' agendas. They encouraged the Bank severity of financial crises, and to reduce the and Fund to continue to review experience in vulnerability of developing countries to crises this area. when they occur. The Committee stressed that at 16. Next Meeting. The Committee's next the country level, the Bank's primary focus, given meeting is scheduled for April 17, 2000 in the objective of preventing crises, should be on Washington, D.C. assisting developing countries to strengthen their domestic financial markets and their integration with the global financial system. This should be done through helping countries to overcome COMMUNIQUE structural and social sources of vulnerability and build the needed policy and institutional capac- 1. The 61st meeting of the Development Committee ity. Given the breadth and complexity of the was held in Washington, D.C., on April 17, 2000 agenda, Ministers encouraged the Bank and the under the chairmanship of Mr Tarrin Fund to focus on their areas of comparative Nimmanahaeminda, Minister of Finance of strength while developing partnerships with Thailand. The Committee's deliberations took place other international institutions. Ministers against the background of growing public debate welcomed progress in the joint Bank/Fund about the appropriate roles of international program of financial sector assessments and the institutions at a time when governments and people Bank's program of Social and Structural Reviews. throughout the world confront the opportunities They also welcomed the proposed enhanced and rapid changes brought about by globalization. collaboration with the Fund in assisting inter- In their discussions of how to strengthen efforts to ested countries to assess their progress in reduce poverty, to intensify the attack on HIV/ implementing a range of international norms and AIDS, and to expand the benefits of trade to all good practices, with due consideration to countries, Ministers emphasized the importance differing country conditions. The Committee they attach to preserving and further strengthening encouraged the Bank to continue to bring the family of multilateral institutions as a powerful developing country experience and perspectives force for global progress, equity, and stability. to the international debate. In this context, they 2. Intensifying action against HIV/AIDS. Minis- noted the establishment of a global forum on ters emphasized that the HIV/AIDS epidemic, corporate governance, launched in collaboration which has already infected about 50 million with the OECD, and the Bank's supportive role people, is not only a very serious public health for work on insolvency, accounting, and auditing. concern and the cause of great human suffering, 14. Ministers welcomed the Bank's help to but a severe danger to development progress developing countries on social issues, as well as itself. Ministers recognized that HIV/AIDS its report on managing the social dimensions of weakens economic growth, govemance, human crises and good practices in social policies. They capital, labor productivity, and the investment encouraged the Bank to continue to develop climate, thereby undermining the foundations of this work and to draw on it in supporting development and poverty reduction. Ministers 158 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 1 6 (continued) noted that the epidemic now poses not only an 5. Trade, Development and Poverty Reduction. acute danger to development in Sub-Saharan Ministers emphasized the critical importance of Africa, but is a rapidly growing threat in Asia and trade for development and poverty reduction. the Caribbean, and a probable threat in many They noted that accelerated and sustainable Eastern European countries and elsewhere as growth is a necessary condition for reducing well. As HIV/AIDS spreads quickly, even poverty, and that more open economies tend to countries with currently low infection rates grow faster than closed ones; evidence suggests cannot afford to delay strengthening anti-HIV/ that substantial benefits could be gained from AIDS programs. further liberalization of trade regimes in both 3. In view of this alarming situation, the Com- developed and developing (including transition) mittee called for rapid intensification of interna- countries. Ministers recognized that developed tional action on the global HIV/AIDS crisis. countries have much to do to improve market Given the urgency of prevention and the vast access for developing countries' exports (e.g. needs for care and treatment, the Committee agriculture, textiles). Developing countries need stressed the importance of effective partnerships to implement appropriately sequenced outward- to encourage each actor in the international oriented reforms that will permit trade expan- system to focus on its comparative strength. sion to promote development and poverty Ministers urged governments, intemational reduction. Ministers noted that the majority of agencies, civil society, the media and the private the poorest countries lag behind in their integra- sector, including the pharmaceutical industry, to tion into the world trading system. Additional step up their efforts, building on experience domestic and international reforms are needed, gained in on-going activities. They urged devel- including special consideration of enhanced oping and transition countries to increase their market access for these countries (e.g., by political and economic commitment to combat- extending comprehensive and predictable duty- ing HIV/AIDS, to address the epidemic on a and quota-free market access). Ministers also multisectoral basis, to scale up programs to noted the potential of regional integration to nationwide- and in some cases regional - scope, help developing countries increase their share in to strengthen the primary health care systems global markets. Ministers strongly endorsed a needed for effective delivery of services, and to timely initiation of WTO multilateral trade provide more resources directly to local commu- negotiations that address, inter alia, issues of nities. The Committee encouraged industrialized most concern to developing countries. countries and international organizations to 6. Ministers emphasized that countries should mainstream HIV/AIDS in their development ensure that their efforts to expand trade are programs and to devote increased financial and integrated into a comprehensive framework for institutional resources on a scale commensurate development that includes the necessary with the scope of the crisis. Ministers recognized complementary reforms and investment in that support for capacity building is particularly institutions, infrastructure, and social programs. important in addressing this long-lasting devel- Ministers endorsed the commitment of the opment problem. World Bank and the Fund to use their programs 4. Ministers welcomed the World Bank's to support these efforts, which are increasingly expanded efforts against HIV/AIDS, in particu- reflected in countries' poverty reduction strate- lar its active participation in the UNAIDS gies. Ministers reiterated their call on the Bank, partnership, its new HIV/AIDS strategy for the Fund, and WTO to cooperate with other Africa, and its work with the Global Alliance for parties in developing effective programs of Vaccines and Immunizations (GAVI). They capacity building for trade, including through an urged the Bank to intensify its HIV/AIDS work improved Integrated Framework for Trade on a global basis, focusing on its areas of exper- Related Assistance for the Least Developed tise, and called on the Bank and the Fund to take Countries. The Committee urged the Bank to full account of HIV/AIDS in their support for mainstream trade in its country assistance poverty reduction strategies and the HIPC programs by providing greater financial and Initiative. technical support to improve trade-related DEVELOPMENT COMMITTEE COMMUNIQUES, FISCAL 2000 159 APPENDIX 16 (continued) infrastructure and institutions, including building funded. Donors that had not yet done so were domestic capacity for trade policy and negotia- urged to make generous contributions to the tions. The committee also urged the Bank to HIPC Trust Fund. Ministers reiterated the need undertake a strengthened research program on, to ensure that debt relief does not compromise inter alia, trade barriers to developing country the financing from concessional facilities such as exports, the issues developing countries face in IDA. Ministers also reiterated the importance of implementing the Uruguay Round Agreement, the principle that all bilateral creditors should and the complex links between trade and participate fully in the provision of relief under poverty. the enhanced Initiative, while recognizing the 7. Heavily Indebted Poor Countries Debt Initiative need for flexibility in exceptional cases. (HIPC). Ministers noted the progress made in 9. Poverty Reduction Strategies. Ministers wel- implementing the enhanced HIPC Initiative comed the progress in the implementation of the framework endorsed by the Committee at its last Poverty Reduction Strategy approach. The meeting. Five countries-Bolivia, Mauritania, Committee had endorsed this approach at its last Mozambique, Tanzania and Uganda-have thus meeting as a means to strengthen the link far reached their decision points under this new between debt relief (and external assistance framework, bringing total committed debt relief more generally) and poverty reduction, and to under the HIPC Initiative to more than $14 enhance the poverty focus of all Bank and Fund billion; moreover, up to 15 additional country concessional lending. Ministers noted that many cases could be considered by the Bank and Fund governments in developing countries had begun Executive Boards this year. Ministers encouraged to develop, through transparent and participa- the governments of HIPC-eligible countries to tory processes, country-owned, comprehensive continue to work closely with the Bank and strategies that addressed key issues in tackling Fund and other partners in pursuing sound poverty, such as equitable growth, governance policies and delivering effective reform programs and corruption, and institution and capacity so that the delivery of HIPC debt relief, and the building. Ministers welcomed the steps taken by related poverty reduction strategies, can move governments to develop and implement interim forward as swiftly as possible. The Committee strategies that permit HIPC debt relief and welcomed the establishment by the Bank and concessional lending to be provided while the Fund of a joint implementation committee governments prepare more comprehensive (JIC) to facilitate effective implementation of poverty reduction strategies. the enhanced HIPC Initiative and the new 10. Recognizing that this approach involves new poverty reduction strategy approach. ways of assisting developing countries, Ministers 8. Ministers appreciated that participation in the urged the Fund and the Bank to allocate ad- enhanced framework had now been approved by equate resources to support the PRSP process. the governing bodies of a majority of multilateral The institutions were urged to continue to work institutions, although they recognized that collaboratively with member countries and other successful implementation of the Initiative will development partners to develop full poverty depend upon the timely availability of adequate reduction strategies, integrated with macroeco- financing to meet their full debt relief costs. nomic and fiscal policies. These strategies should While these institutions were encouraged to incorporate lessons learned as implementation utilize their own resources for this purpose to proceeds, including concentration on a limited the greatest extent possible, Ministers recognized number of clear, realistic, and measurable that many multilateral institutions needed performance targets and including those related additional bilateral support on an urgent basis. to the International Development Goals. As Ministers welcomed donor pledges and commit- poverty reduction strategies need to be ments of resources, including those announced mainstreamed, Ministers emphasized they since September, and urged that these pledges be should be fully integrated into countries' budget turned into actual commitments as soon as cycles. They also emphasized the importance of possible. They also recognized that even with increased efforts, including both technical these pledges, the Initiative remains under- assistance and funding, to improve statistics and 160 THE WORLD BANK ANNUAL REPORT 2000 APPENDIX 1 6 (continued) other data and the analytical skills at the country set out in the report, and agreed that these steps level needed to make the approach a success. could make a valuable contribution in helping Moreover, they encouraged bilateral and multi- small states face their development challenges. lateral agencies to support governments in the 12. International FinancialArchitecture: the Role preparation of their strategies. These agencies of the World Bank. Ministers welcomed the were also encouraged to participate in the Bank's continuing contribution to global efforts discussion of the design of these strategies with to reduce the risk-and mitigate the impact-of the objective of increasingly aligning their future financial crises, noting that actions and assistance programs to these strategies as they policies that reduce vulnerability to crises also are put in place, thereby strengthening donor support successful development. The Committee coordination and reducing excessive burdens on welcomed the close collaboration that had developing country governments. developed between the Bank and the Fund on 11. Report of the Commonwealth Secretariatl the program of financial sector assessments, the World Bank Joint Task Force on Small States. reports on the observance of standards and Ministers welcomed the report to the Develop- codes, and the work on debt management. ment Committee and its analysis of the special Ministers encouraged the Bank to make system- characteristics of small states that make them atic use of these assessments in designing, particularly vulnerable, while noting that a delivering, and mobilizing support for capacity number of larger states shared some or all of the building. same characteristics. They noted the report's 13. IBRD Financial Capacity. Ministers reviewed conclusions that tackling small states' develop- an updated report on this subject from the ment challenges will take a combination of World Bank and confirmed that the Bank's correct domestic policy action, continued finances remain sound. At the same time, external assistance, and where achievable, Ministers recognized that the Bank's financial improvements in the external environment. They capacity may at some point limit its ability to also noted the report's recommendation that the respond to future demands. Ministers requested circumstances of small states should be taken management and the Executive Board to keep into account in the policies and programs of the this subject under review and to continue to multilateral trade, finance, and development report regularly to the Committee. organizations. The Committee supported World 14. Next Meeting. The Committee's next Bank and the Fund proposals for their future meeting is scheduled for September 25, 2000 in work programs on the issues of small states, as Prague, Czech Republic. DEVELOPMENT COMMITTEE COMMUNIQUES, FISCAL 2000 161 SUMMARIES OF PROJECTS APPROVED FOR IBRD, IDA, IDA INTERIM TRUST FUND, AND TRUST FUND FOR THE WEST BANK AND GAZA ASSISTANCE IN FISCAL 2000 The following section contains projects approved by the Board in fiscal 2000. Projects are listed according to their primary sector classification. Lending totals obtained by adding up loan amounts for projects listed correspond to sector data classified on a loan-by-loan basis, rather than a loan compo- nent basis (see Table 1.1, p. 33 and Annex Tables pp. 150 to 161 of the World Bank Annual Report 2000: Annual Review and Summary Financial Information). § denotes projects included in the Program of Targeted Interven- tions (PTI). A project is included in the PTI if it has a specific mechanism for targeting poor people and/or if the proportion of poor people among its beneficiaries is significantly larger than the proportion of poor in the total population. t denotes adjustment operations categorized as poverty-focused. An operation is considered poverty-focused if it eliminates distortions that disadvantage poor people, reorients public expenditures toward them, and/or supports programs that provide safety nets or target specific groups of poor people. 0 denotes various levels of civil society involvement in Bank- supported projects from design to monitoring and evaluation of results. AGRICULTURE 0 Azerbaijan IDA-$42 million. This credit will prevent the decline of water supply to Baku and areas along the Samur-Apsheron Canal, and improve drainage and reduce waterlogging along the Main Mill-Mugan Collector. Total cost: $46.9 million. 0 Bangladesh IDA-$5 million. This learning and innovation credit supports further testing and development of improved technology transfer programs to increase responsiveness to local requirements and to improve cooperation with nongovernmental organizations. Total cost: $14.4 million. 0 § Bangladesh IDA-$28 million. Approximately 12 million fishermen, including poor people and women, will benefit from this program to create about 440,000 jobs and to increase fish production for domestic and intema- tional consumption. Total cost: $60.8 million. 0 Brazil IBRD-$136 million. This loan will increase the sustainable water supply for multiple uses, improve Ceara's integrated water resource manage- ment system efficiency, and decrease poor people's vulnerability to cyclical drought. Total cost: $247.2 million. Cambodia IDA-$4.8 million. This leaming and innovation credit will benefit government revenues, the environment, and poor communities in or near forests through strengthened management, concession operations control, and improved forest-law enforcement. Total cost: $5.4 million. 0 § China IBRD-$93.5 million. A total of about 140,000 participating rural house- holds in four provinces will benefit from this project to improve cattle production and marketing in existing crop farming areas. Total cost: $180.8 million. SUMMARIES OF PROJECTS APPROVED 163 0 China IBRD-$210 million. Two provinces will benefit from this project to protect riverbanks against erosion and floods. Critical sections of existing main dikes along the Yangtze River will be improved. Total cost: $545.5 million. 0 Egypt, Arab IBRD-$50 million. This project supports the second phase of Egypt's Republic of national drainage program through subsurface drainage development, open agricultural drains remodeling, and support of Egyptian Public Authority for Drainage Projects. Total cost: $278.4 million. 0 Georgia IDA-$7.6 million. This project will help initiate the development of an agricultural knowledge system that will increase sustainable agricultural production and reduce pollution of natural resources in Georgia. Total cost: $12.4 million. 0 § Indonesia IBRD-$13 million; IDA-$5 million. This project will help farmers to participate in the district-level integrated agricultural and forestry extension systems, to improve farming practices and increase income. Total cost: $23.6 million. 0 Kyrgyz Republic IDA-$20 million. This project will increase crop production through reliable and sustainable water distribution on about 160,000 hectares of irrigated land across seven oblasts in the Kyrgyz Republic. Total cost: $29 million. 0 § Mali IDA-$ 115.1 million. This adaptable program credit will help the govem- ment improve irrigation and rural transport infrastructure, and supply water and sanitation services to some of Mali's poorest rural areas. Total cost: $139.3 million. 0 § Mauritania IDA-$38.1 million. This project will help establish appropriate policies, provide public infrastructures, and supply necessary services to develop a private sector-driven agriculture sector in the Senegal Valley. Total cost: $46.0 million. 0 § Mexico IBRD-$55 million. This second adaptable program loan will improve the well-being and income of smallholders in the poorest areas through sustainable increases in productivity, and better food security. Total cost: $73 million. 0 Nicaragua IDA-$23.6 million. This project supports the first phase of a competitive grant program to share technology, knowledge, and innovations among small and medium-scale farmers to improve farming practices. Total cost: $38.3 million. 0 Niger IDA-$10.4 million. This specific investment credit will help the govern- ment boost agricultural and livestock exports by giving private sector enterprises and producers the tools for increased production and profit- ability. Total cost: $12.1 million. 0 Peru IBRD-$9.6 million. This adaptable program loan establishes a private sector-led agricultural technology innovation system to increase environ- mentally sound technology by permitting farmers to perform research and obtain technical advice. Total cost: $13.8 million. 0 § Philippines IBRD-$27.5 million. Approximately 600,000 poor rural people will benefit from the first phase of this adaptable program loan through rehabilitation of rural infrastructure, small community-based subprojects, and strengthened local governments. Total cost: $41 million. 0 Romania IBRD-$ 11 million. This project will benefit private farmers and agroprocessors by providing technology, information, and training, as well as by improving the management of research and extension. Total cost: $17.8 million. 164 THE WORLD BANK ANNUAL REPORT 2000 0 Russian Federation IBRD-$60 million. This project will: improve public sector management of forests through policy reform and land-use management; regenerate forested areas; and develop a favorable environment for private invest- ment in forestry. Total cost: $74.5 million. 0 § Rwanda IDA-$5 million. This learning and innovation credit will help farmers, private traders, local communities, and consumers benefit from a revital- ized agricultural and rural economy resulting from improved policies and institutional mechanisms. Total cost: $5.6 million. 0 § Sri Lanka IDA-$27 million. Communities affected by ethnic conflict in the north- east region will benefit from this project to increase agricultural produc- tion, irrigation schemes, rural roads, access to drinking water, and community capacity-building activities. Total cost: $32.4 million. 0 Tajikistan IDA-$20 million. The project will increase water supply to irrigation channels that service farms, develop institutional capability in managing water resources, and increase the quality of water in selected villages. Total cost: $24 million. 0 Tunisia IBRD-$103 million. This project will promote integrated water resource development and demand management, including physical water storage works, groundwater exploration and monitoring, small-scale irrigation, ground water management, and water studies. Total cost: $258 million. 0 § Zimbabwe IDA-$5 million. About 1,000 poor rural families will benefit from this learning and innovation credit to sustain increases in income and stan- dards of living through acquisition of farm land. Total cost: $7 million. ECONOMIC POLICY 0 t Cambodia IDA-$30 million. This structural adjustment credit will support govern- ment reforms in improving public resource management, enhancing public sector management, and formulating a strategy for enhancing governance and fighting corruption. Total cost: $30 million. 0 Central African IDA-$8 million. Within a fragile post-conflict context this project will Republic help the Central African Republic government implement its reform program, in particular the privatization program and poverty reduction strategy. Total cost: $8.5 million. India IDA-$45 million. This technical assistance credit will provide the government of Uttar Pradesh with technical expertise to implement fiscal and public sector restructuring and to improve the monitoring of poverty trends. Total cost: $55 million. Kyrgyz Republic IDA-$5 million. This technical assistance credit will provide consulting, audits, training, materials, and equipment to strengthen the government's capacity to improve the business environment, mobilize revenue, and reform the energy sector. Total cost: $5.5 million. Nicaragua IDA-$20.9 million. This technical assistance credit will support efforts to improve transparency and efficiency in public sector management through information systems, data and voice telecommunications net- works, computer technology, and training. Total cost: $28.2 million. 0 Nigeria IDA-$20 million. The project will promote good governance and will address the needs of the population regarding the efficient use of public sector resources and optimal delivery of services. Total cost: $45.7 million. t Sierra Leone IDA-$30 million. This economic rehabilitation and recovery credit will assist the transition from war to peace, and will help revive basic public services and restore credibility to public sector performance. Total cost: $30 million. SUMMARIES OF PROJECTS APPROVED 165 t Tanzania IDA-$190 million. The programmatic structural adjustment credit is part of a two-phase program to help create conditions for sustained private sector development. This is key to accelerate poverty reduction. Total cost: $190 million. t Turkey IBRD-$759.6 million. This economic reform loan will support Turkey's reforms in public expenditure management, social security, agriculture, telecommunications, and energy. The project also supports the disinflation program and acceleration of privatization. Total cost: $759.6 million. t Zambia IDA-$140 million. This fiscal sustainability credit will support Zambia's reform program to reduce poverty by restoring macroeconomic stability, promoting sustained diversified growth, improving govemance, and enhancing vital social services' delivery. Total cost: $140 million. EDUCATION 0 Albania IDA-$12 million. This project will support the ministry of education and sciences in the planning and management of educational services delivery and it will strengthen its accountability to stakeholders. Total cost: $14.9 million. 0 Benin IDA-$ 1.8 million. This learning and innovation credit will help civil servants, the private sector, and community leaders design economic and social development policies through distance learning, training, and state- of-the-art communications. Total cost: $3 million. 0 § Benin IDA-$5 million. This learning and innovation credit will help the govern- ment test a pilot program aimed at increasing the availability, quality, and cost effectiveness of labor force training. Total cost: $6.2 million. 0 Bosnia and IDA-$10.6 million. This project will enhance the professional capacity of Herzegovina teachers, promote efficient and equitable use of scarce public resources for education, and promote cooperation and coordination within the sector. Total cost: $14.6 million. 0 Cambodia IDA-$5 million. This learning and innovation credit will help develop a participatory model for improvement of school quality and performance- based resource management to benefit educators and students in three provinces. Total cost: $5.5 million. 0 § Colombia IBRD-$20 million. This adaptable program loan will improve access to quality education in rural areas by supporting primary education, decen- tralization, and teacher training, which will benefit 176,000 students in the poorest areas. Total cost: $40 million. 0 § C6te d'Ivoire IDA-$5 million. This learning and innovation credit will help about 30,000 women and girls in the north-where school enrollments are the lowest-to develop literacy skills. Total cost: $5.7 million. 0 C6te d'Ivoire IDA-$2 million. This leaming and innovation credit will test the viability of distance learning to increase decisionmakers' access to cost-effective training and improve their capacity to design and manage policies. Total cost: $3.6 million. 0 § India IDA-$182.4 million. About 10.8 million children in 42 disadvantaged districts will benefit from this project to construct new school facilities, improve quality of instruction, and increase teacher training and reten- tion. Total cost: $214.7 million. 0 Jordan IBRD-$34.7 million. Improvements to Jordan's higher education system will be achieved by this project to establish a countrywide modern information technology, management information system, and library infrastructure. Total cost: $65.8 million. 166 THE WORLD BANK ANNUAL REPORT 2000 0§ Lebanon IBRD-$56.6 million. This project will benefit over 100,000 primary and secondary students through school construction and the introduction of new technologies, and 20,000 teachers through in-service training. Total cost: $70.9 million. § Maldives IDA-$17.6 million. About 2,200 children will benefit from this project to improve education quality and efficiency, increase equitable access, strengthen institutional capacity, and improve in-country and overseas teacher training. Total cost: $19.7 million. 0 § Mali IDA-$3.8 million. This learning and innovation credit will assist the government to further develop and assess the merits of bilingual educa- tion in Mali, in terms of its financial and educational sustainability. Total cost: $5.5 million. 0 § Nicaragua IDA-$52.5 million. This project will expand on the Basic Education I Project to improve the quality of preschool and primary education, targeting rural areas, including those with predominantly indigenous populations. Total cost: $58.4 million. 0 Nigeria IDA-$55 million. The project will support one of the government's top priorities: to improve and make basic education universal by providing resources to 740 focus primary schools and 900 self-help schools. Total cost: $61.1 million. 0 Rwanda IDA-$35 million. This credit will help Rwanda develop and implement a sustained capacity-building program promoting education and skills development, by addressing human resource deficiencies and training professionals. Total cost: $37.1 million. 0 Senegal IDA-$2.1 million. This learning and innovation credit will build public and private sector capacity by increasing access to training for decisionmakers and implementers of education projects and establishing a center for distance learning. Total cost: $3.5 million. 0 § Senegal IDA-$50 million. This adaptable program credit will support the goal of increasing Senegal's primary enrollment from 65 percent in 1998-99 to 100 percent in 2008-09, while improving leaming. Total cost: $926 million. 0 Tunisia IBRD-$99 million. This adaptable program loan will support government efforts to ensure universal basic education, provide more students with post-basic education, and modernize the education sector, to improve quality. Total cost: $206.7 million. Venezuela, Republica IBRD-$5 million. This learning and innovation loan will help foster Bolivariana de science and technology research, increase Venezuela's knowledge access, and increase its knowledge base in economic and social development. Total cost: $15 million. 0 § Yemen, Republic of IDA-$28.9 million. About 560,000 children under age 5 and 600 women of childbearing age in low-income districts will have improved access to health care and nutrition through this project's direct interventions. Total cost: $45.3 million. ELECTRIC POWERAND OTHER ENERGY 0 Bolivia IDA-$4.8 million. This learning and innovation credit will strengthen Bolivia's capacity to evaluate the hydrocarbon sector's impact, increase oil companies' compliance, and facilitate flows of transparent, timely information. Total cost: $5.8 million. 0 China IBRD-$320 million. Two provinces will benefit from the increased power supply and the improved investment and operating efficiency through the introduction of a competitive power market and supporting institu- tional and physical infrastructure. Total cost: $904 million. SUMMARIES OF PROJECTS APPROVED 167 0 India IBRD-$80 million; iDA-$50 million. This project will reduce power shortages and greenhouse gas emissions through environmentally sustain- able investments in power generation through hydro resources and will finance energy management. Total cost: $300 million. India IBRD-$ 150 million. This project will support power sector reform processes by establishing new legal, regulatory, and institutional frame- works; creating new power corporations; and launching preparatory work for privatizing distribution. Total cost: $236 million. Kazakhstan T3RD-$ 140 million. This project will improve the reliability of electricity supply, develop competition in electricity markets, and restructure the grid company. Total cost: $258.4 million. Mauritania IDA-$9.9 million. This technical assistance project will help to create an enabling environment for sustainable development of the electricity and water sectors to improve quality and increase access to services. Total cost: $10.9 million. Poland IBRD-$38.2 million. This project, one of the largest renewable energy projects in the Europe and Central Asia region, will help reduce air pollution in the Podhale region. Total cost: $96.7 million. Uganda IDA-$33 million. This supplemental credit will help provide adequate and reliable power that will result in increased economic activity, produc- tivity, and growth. Total cost: $38.6 million. 0 Ukraine IBRD-$ 18.3 million. The project will improve energy efficiency of key public buildings, mainly schools and hospitals, in Kiev through cost- effective measures and sound heat tariff policies. Total cost: $30.4 million. O Vietnam IDA-$ 150 million. About 2.5 million rural poor in 32 provinces in Vietnam will benefit from this program for extension of rural electrifica- tion networks to 671 communes. Total cost: $201.3 million. 0 West Bank and Gaza Trust Fund for the West Bank and Gaza-$ 15 million. Palestinian electric- ity consumers in central and southem regions will benefit from sustain- able improvements in the quality and quantity of utility-grade electrical services. Total cost: $91 million. ENVIRONMENT 0 Brazil IBRD-$ 15 million. This adaptable program loan aims to increase the environmental institutions' effectiveness at local, state, and national levels and to improve the quality of priority environmental assets. Total cost: $30 million. 0 Bulgaria IBRD-$50 million. This structural adjustment loan will support reform of environmental policies, incorporate environmental issues in privatization, and accelerate implementation of the European Union Directive on Pollution Prevention and Control. Total cost: $50 million. 0 Cambodia IDA-$ 1.9 million. This learning and innovation credit will improve the capacity of the Ministry of Environment to develop a national protected areas system, and will promote global conservation projects benefiting Ratanakiri Province. Total cost: $4.9 million. 0 Cameroon IDA-$5.8 million. This technical assistance credit will help the govern- ment develop and establish national capacity in Cameroon for the environmental management and monitoring of the Petroleum Develop- ment and Pipeline Project. Total cost: $11 million. 168 THE WORLD BANK ANNUAL REPORT 2000 0 China IBRD-$349 million. About 5.3 million residents of Beijing will benefit from sustained alleviation of environmental pollution, promotion of energy conservation, and strengthened environmental management institutions. Total project cost: $1.3 billion. 0 Colombia IBRD-$5 million. This learning and innovation loan supports strategies developed by residents and others to conserve the diversity of the Sierra Nevada region and to use its natural resources sustainably. Total cost: $6.3 million. 0 Costa Rica IBRD-$3 2.6 million. This technical assistance loan will provide financial incentives to small and medium-sized landowners to conserve primary forests, encourage sustainable management of secondary forests, and promote reforestation efforts. Total cost: $49.2 million. 0 Kyrgyz Republic IDA-$9.4 million. This project will support the development of markets for land and real estate, and the introduction of a well-functioning registration system. Total cost: $11 .8 million. 0 Mauritania IDA-$5 million. This leaming and innovation credit will assist the government in testing appropriate methods to determine how to safe- guard and enhance the cultural heritage of the country. Total cost: $5.5 million. 0 Mozambique IDA-$5.6 million. This project will help the government achieve sustain- able economic development of coastal zone resources by balancing ecological, social, and physical values with varying interests in the coastal zone. Total cost: $10.6 million. 0 Poland IBRD-$2.5 million. This learning and innovation loan will provide technical assistance, infrastructure, and equipment to help farmers in target areas apply environmentally responsible farming practices. Total cost: $15.8 million. 0 Tajikistan IDA-$.5 million. This project will help prepare vulnerable people for possible disasters associated with the flooding of Lake Sarez, as well as less catastrophic natural disasters. Total cost: $4.3 million. 0 § Vietnam IDA-$31.8 million. Environmental degradation and poverty will be reduced in four southern provinces by replanting mangroves, developing food production technologies, implementing community-based pro- grams, and supporting policy and institutional development. Total cost: $65.6 million. FINANCE Albania IDA-$6.5 million. This technical assistance project strengthens the financial sector, focusing on banking and insurance industries in Albania. Technical assistance will be offered for implementation of a financial sector strategy. Total cost: $7.5 million. Bangladesh IDA-$46.9 million. This project will develop medium- and long-term financing for industrial projects by strengthening nonbank financial institutions and improving the external environment for fund mobiliza- tion. Total cost: $57.7 million. § Brazil IBRD-$50 million. This loan increases access to formal financial services in northeastern Brazil by supporting expansion of a microfinance pro- gram. The program should benefit at least 150,000 low-income informal entrepreneurs. Total cost: $100 million. Bulgaria IBRD-$ 100 million. This sector adjustment loan will support privatization of enterprises, financial discipline, banking reform, and energy restructuring. Total cost: $100 million. SUMMARIES OF PROJECTS APPROVED 169 Colombia IBRD-$506 million. This financial sector adjustment program will support implementation of recent legislation reforms, promote efficient resolution of banks facing solvency problems, and provide funds for bank restructuring and recapitalization. Total cost: $506 million. t Ecuador IBRD-$1 51.5 million. This structural adjustment loan supports economic recovery and social services for the poorest. It supports fiscal reforms and public financial management, while restoring confidence and helping to maintain needed spending. Total cost: $151.5 million. Ecuador l,RD-$ 10 million. This technical assistance loan aims to strengthen the superintendency of banks, increasing the efficiency of its regulation and supervision of the banking industry, and modernizing the Deposit Guarantee Agency. Total cost: $14.09 million. 0 Ghana IDA-$5.1 million. This project will help strengthen financial services for approximately 14 million people by developing an environment for increased rural investment through support of a functional rural financial sector. Total cost: $23 million. 0 Mali IDA-$21 million. The objective of this technical assistance credit is to improve the soundness, performance, and competitiveness of the financial sector and to enable it to support broad-based private sector growth. Total cost: $23.1 million. Mauritius IBRD-$4.8 million. This project will improve government's cash manage- ment by supporting financial system infrastructure and capacity building to enhance debt management and interaction with the financial markets. Total cost: $6.1 million. Mexico IBRD-$505.1 million. This bank restructuring adjustment loan will provide funds to Mexico's bank-deposit insurance agency to finance debt- servicing needs arising from its mandate to restructure, sell, or liquidate five banks. Total cost: $505.1 million. Mongolia IDA-$32 million. This sector adjustment credit will support measures to create a more sound and efficient financial system, and will support macroeconomic stability consolidation, faster growth, and higher living standards. Total cost: $32 million. 0 Nicaragua IDA-$8 million. This technical assistance credit will: help make old-age income security more equitable and sustainable; help develop the capacity to regulate the system; and strengthen financial markets. Total cost: $10.6 million. Sri Lanka IDA-$18.2 million. This project provides technical assistance to improve the efficiency, predictability, and transparency of the Sri Lankan legal and judicial system. Total cost: $21.1 million. § Tanzania IDA-$27.5 million. Through government banking reforms, small savers and microentrepreneurs will have improved access to a sound and competitive financial system. Total cost: $32.1 million. 0 Tanzania IDA-$2 million. This learning and innovation credit will build micro- finance institutions' capacities in rural and urban areas by strengthening their business planning capacity and providing training and access to information. Total cost: $2.5 million. 0 Turkey IBRD-$25 2.5 million. This loan will strengthen financial intermediation by providing short- and medium-term funds to private exporters, as well as technical assistance to the TurkExlm Bank. Total cost: $253 million. Uruguay IBRD-$80.9 million. This structural adjustment loan will help implement policy reforms to increase competition among banks, thereby strengthen- ing the financial system and protecting the country's fiscal balance from external shocks. Total cost: $80.9 million. 170 THE WORLD BANK ANNUAL REPORT 2000 HEALTH, NUTRITION,AND POPULATION 0 § Argentina IBRD-$4.9 million. This learning and innovation loan will pilot the dev- elopment of health insurance for poor people in selected provinces and will help extend a health insurance model regionally. Total cost: $7.1 million. 0 § Argentina IBRD-$52.5 million. This project will strengthen national, provincial, municipal, and local public health surveillance and disease control capacity to protect poor people from tuberculosis, dengue fever, and hospital-acquired infections. Total cost: $75 million. 0 § Bangladesh IDA-$92 million. More than 5 million children and 1 million mothers will benefit from an extension of community services that support children's growth monitoring, counseling, nutrition education, and supplementary food. Total cost: $124.5 million. 0 Bulgaria IBRD-$63.3 million. This project will help the government implement a fundamental reform of its health sector, improve access to quality health services, and ensure financial and operational sustainability. Total cost: $87 million. 0 Chad IDA-$41.5 million. This credit will help the government provide better health care services, for poor women and children, in disease prevention and reproductive health. Total cost: $56.4 million. 0 Croatia IBRD-$29 million. This project will increase the efficiency, effectiveness, and financial sustainability of Croatia's health care system through sector reforms, health promotion, cardiovascular care, and information technol- ogy. Total cost: $40 million. 0 Ecuador IBRD-$20.2 million. Nearly 2 million people, especially mothers and children, will benefit from this supplemental loan that will expand basic health services, nutrition programs, and basic sanitation services. Total cost: $45 million. 0 § India IDA-$142.6 million. Millions of children countrywide will benefit from intensified efforts to eradicate polio and reduce vaccine-preventable diseases through social mobilization activities including training, commu- nication surveys, and evaluations. Total cost: $158.8 million. 0 § India IDA-$ 1 0 million. About 600,000 inpatients will benefit from planned improvements in existing facilities that will strengthen health system performance, accountability, and efficiency, and improve clinical service quality. Total cost: $127.6 million. 0 Indonesia IDA-$38 million. About 10 million people in two provinces, including about 4 million poor people, will benefit from improved curative and public health services through institutional reforms and improved financing. Total cost: $79.1 million. 0 § Indonesia IDA-$77.4 million. About 3.5 million rural poor people will benefit from improved health behavior and services and safe and adequate water supply and sanitation through community participation. Total cost: $106.7 million. § Iran, Islamic IBRD-$87 million. This project will improve primary health care services Republic of and family planning through facilities rehabilitation and equipment replacement. It will improve nutrition services through training, institu- tional strengthening, and strategy development. Total cost: $124 million. 0 Lesotho IDA-$6.5 million. This adaptable program credit will assist the Kingdom of Lesotho to improve access to high-quality preventive, curative, and rehabilitative health care services for its population. Total cost: $20.4 million. SUMMARIES OF PROJECTs APPROVED 171 0 Lithuania IBRD-$21.2 million. This project will improve equity and efficiency of health care financing, restructure hospitals, and improve access to general practitioner services in four pilot regions. Total cost: $34.2 million. 0 § Madagascar IDA-$40 million. This project will help improve living conditions of the rural population, especially women and children, through better health care services in reproductive health, nutrition, and epidemic disease prevention. Total cost: $44.4 million. 0 § Peru IBRD-$80 million. This adaptable program loan will improve maternal and child health, and help reduce morbidity and death from communi- cable diseases and inadequate environmental conditions through health care system improvements. Total cost: $239.3 million. 0 § Romania IBRD-$40 million. This adaptable program loan will strengthen capacity for planning and policy development in the fields of public health, health service infrastructure, and human resources by financing investments and training staff Total cost: $69.8 million. 0 Slovenia IBRD-$9.5 million. The first phase of this health sector management program will improve health services through the development of appropriate policies, information standards, and a unified information management system. Total cost: $13.3 million. 0 Solomon Islands IDA-$4 million. This project will benefit rural families through improved management and control of malaria, increased access to trained midwives, increased community participation, and capacity building for health managers. Total cost: $4.4 million. 0 § Tajikistan IDA-$5.4 million. This project will test a model of health care in two pilot regions based on primary health and per capita resource allocation. Total cost: $6.2 million. 0 Tanzania IDA-$22 million. This adaptable program credit is designed to improve access to quality health services, especially for women and children. Total cost: $654 million. 0 West Bank and Gaza Trust Fund for the West Bank and Gaza-$7.9 million. This project will upgrade 40 rural primary health care clinics, provide staff training, and establish a national health information center. Total cost: $8.9 million. MINING 0 Papua New Guinea IBRD-$ 10 million. This technical assistance loan will strengthen the government's capacity to attract private mining investment; improve environmental and social sustainability; and improve fiscal receipts and benefits transfers to communities. Total cost: $11.5 million. 0 Romania IBRD-$44.5 million. About 60,000 unemployed miners and their families will benefit from efforts to close uneconomic mines in a socially and environmentally sustainable manner. Total cost: $61.5 million. MULTISECTOR 0 Algeria IBRD-$83.5 million. This emergency recovery loan will strengthen institutional capacity for emergency management, assist the government in reconstructing permanent housing in earthquake-affected areas, and restore essential infrastructure in damaged municipalities. Total cost: $112.9 million. Burundi IDA-$35 million. This credit will assist the government in preparing an environment for economic recovery and restore essential services to facilitate and support the ongoing negotiations for peace and reconcilia- tion. Total cost: $97.5 million. 172 THE WORLD BANK ANNUAL REPORT 2000 0 Colombia IBRD-$225 million. This project will support the reconstruction of approximately 80,000 dwellings and Colombia's coffee-growing infra- structure, benefiting more than 560,000 individuals who sustained losses in the 1995 earthquake. Total cost: $377 million. t Guinea-Bissau IDA-$25 million. This rehabilitation and recovery credit will provide urgent financing to support the government's program for peace building, promote the economy's revival, and encourage reforms to reduce poverty. Total cost: $25 million. 0 § India IDA-$100.5 million. More than 1.6 million people living in Rajasthan's most economically disadvantaged areas will benefit from improved economic and social opportunities through community-driven participa- tory approaches and demand-based investment decisions. Total cost: $124.8 million. 0 Mozambique IDA-$30 million. This project will help the government maintain macroeconomic stability through the financing of imports to rebuild social and economic infrastructure following the floods that started in early 2000. Total cost: $30 million. Turkey IBRD-$252.5 million. This project will support private sector import requirements and social protection for victims of the Marmara earth- quake as part of an international assistance package of about $3 billion. Total cost: $252.5 million. OILAND GAS 0 Brazil IBRD-$43.4 million. This adaptable program loan will support Brazil's Energy Efficiency Program (EE) to demonstrate EE products, services, and delivery, and to remove barriers to sustainable capture of EE opportuni- ties. Total cost: $125.5 million. 0 Cameroon/ Cameroon: IBRD-$53.4 million; Chad: IBRD-$39.5 million. The project 0 Chad will transform oil wealth into benefits for poor and vulnerable people, and the environment. It includes programs to support the two countries' economic and social development programs. Total cost: $3.7 billion. 0 Chad IDA-$23.7 million. This technical assistance project will help the government strengthen the petroleum resources' management capacity within environmentally and socially sound practices, and establish a framework for private sector petroleum investments. Total cost: $26.2 million. Papua New Guinea IBRD-$7 million. The project will help strengthen institutional capacity for efficient gas sector development, resulting in economic enhancement and supporting poverty alleviation for people below the poverty line. Total cost: $7.5 million. PRIVATE SECTOR DEVELOPMENT O Algeria IBRD-$5 million. This learning and innovation loan will support imple- mentation of a privatization program through a capacity building and transactions assistance, and will also close a set of pilot transactions. Total cost: $5.5 million. 0 Benin IDA-$30.4 million. This technical assistance credit will help the govern- ment create a stable business environment for economic growth and employment opportunities for approximately 200 firms and associations, and the consultancy industry. Total cost: $55.5 million. SUMMARIES OF PROJECTS APPROVED 173 0 Cameroon IDA-$20.9 million. This technical assistance credit will contribute to economic growth and employment creation. Consumers will receive more efficient infrastructure, and services will be extended to areas not previously served. Total cost: $26 million. Central African IDA-$20 million. In a fragile post-conflict situation, this fiscal consolida- Republic tion credit will help to put the country back on the development path and assist with payment of civil servant and military salaries. Total cost: $20 million. 0 Guyana IDA-$4.8 million. This technical assistance credit will consolidate reforms, including privatizing state-owned enterprises, introducing private management of financial institutions, improving the regulatory financial sector framework, and modernizing procurement and auditing. Total cost: $5.6 million. 0 Malawi IDA-$28.9 million. The objective of this technical assistance credit is to help the government improve the quality of-and access to-economic and physical infrastructure for private sector development. Total cost: $32.2 million. Mozambique IDA-$26 million. Approximately 200 small to medium businesses in the manufacturing, agroprocessing, and handicraft sectors will benefit from programs that address a variety of continuing weaknesses in the business environment. Total cost: $47.6 million. 0 § Senegal IDA-$28.5 million. This adaptable program credit will help strengthen local government structures to deliver improved services to about 1.3 million people living in rural areas. Total cost: $42.9 million. 0 Tanzania IDA-$45.9 million. This project will support the government's efforts to create a more stable business environment by improving economic efficiency and expanding private investment and production in the economy. Total cost: $76.8 million. 0 Yemen, Republic of IDA-$10.9 million. This technical assistance credit will help develop institutional capacity to manage and implement a privatization program, and also provide assistance for the pre-privatization work of three large enterprises. Total cost: $16 million. PUBLIC SECTOR MANAGEMENT Albania IDA-$9 million. This project will strengthen governance capacity to enforce laws and regulations through technical assistance and training for legal and judicial reforms. Total cost: $9.5 million. 0 Albania IDA-$8.5 million. This project will strengthen public administration by improving public expenditure and human resource management, policy formulation, and coordination and monitoring capacity. Total cost: $9 million. Brazil IBRD-$505.1 million. This single-tranched sector adjustment loan will support Brazil's program to improve its fiscal performance, with an emphasis on administrative reform. Total cost: $505.1 million. t Burkina Faso IDA-$25 million. This third structural adjustment credit will support economic reforms that will help create an environment conducive to private sector-led economic growth, job creation, and poverty reduction. Total cost: $25 million. Cape Verde IDA-$3 million. The population will benefit from strengthened govern- ment services ranging from water and sewerage to property registration, business licenses, and social services. Total cost: $3.5 million. 174 THE WORLD BANK ANNUAL REPORT 2000 0 Chad IDA-$17.5 million. This credit will significantly strengthen Chad's public financial management system, its poverty information base, and its ability to more efficiently and transparently deploy public resources for poverty reduction. Total cost: $19.4 million. 0 § Guinea IDA-$19 million. This adaptable program credit will help the rural population-about 87 per cent of Guinea's poor-to access improved public services by strengthening local government and communities' structures. Total cost: $21 million. t India IBRD-$126.2 million; IDA-$125 million. This adjustment operation will support comprehensive reforms in public expenditure management-tax policy, administration, civil service, anticorruption, deregulation, decen- tralization, public enterprise and privatization. Total cost: $251.3 million. t Latvia IBRD-$40.4 million. This structural adjustment loan will help modernize governance structures in order to facilitate Latvia's accession to the European Union. Total cost: $40.4 million. Madagascar IDA-$4.6 million. This learning and innovation credit will assist the government and the country's economic regions to develop relevant tools that will promote regional development and facilitate investment opportunities. Total cost: $5.1 million. t Mauritania IDA-$30 million. This fiscal reform credit will help Mauritania maintain macroeconomic stability and improve the private sector environment, while pursuing a vigorous social and poverty reduction agenda. Total cost: $30 million. Mexico IBRD-$606.1 million. This structural adjustment loan will help the government bring market-driven order and accountability to Mexico's decentralization process, focusing on the budget, subnational borrowing and expenditures, and fiscal and financial management. Total cost: $606.1 million. 0 § Mexico IBRD-$3.1 million. This learning and innovation loan will work toward equitable access to poverty alleviation programs by promoting balanced gender roles and developing models to guard against gender discrimina- tion. Total cost: $3.87 million. Morocco IBRD-$5.3 million. This project will support judicial capacity in handling commercial cases through modern court management; management and dissemination of legal, judicial, and regulatory information; and training programs for judges. Total cost: $6.7 million. Papua New Guinea IBRD-$90 million. This governance promotion adjustment loan will redress policy and governance shortcomings through fiscal and debt management, governance and civil service effectiveness, forestry manage- ment, and financial services. Total cost: $90 million. Russian Federation IBRD-$30 million. This project will assist subnational governments by strengthening federal or regional fiscal legislation, debt monitoring, accounting, budgeting, and public expenditure management. Total cost: $36.2 million. 0 Tanzania IDA-$41.2 million. This adaptable program credit will help the govern- ment improve accountability, transparency, and resource management for the delivery of quality services to the general population. Total cost: $91 million. 0 Thailand IBRD-$400 million. This programmatic structural adjustment loan will enhance the efficiency and effectiveness of the public sector by establish- ing performance management frameworks, enhancing service delivery, and promoting accountability and transparency. Total cost: $400 million. SUMMARIES OF PROJECTS APPROVED 175 0 Uganda IDA-$80.9 million. This specific investment credit will support the government's national development strategy to benefit communities, local governments, and the private sector. Total cost: $89.9 million. Uganda IDA-$34 million. This technical assistance credit will improve the effectiveness of public expenditure management, including government planning and budgeting, financial management, and monitoring and evaluation. Total cost: $42.3 million. 0 Yemen, Republic of IDA-$30 million. This technical assistance credit will help the govem- ment create capacity, institutions, and systems for improved and sustained utilization of human and financial resources of the Yemen civil service. Total cost: $33 million. § Zambia IDA-$28 million. This capacity building operation will assist the Zambian government in making public service delivery processes more effective and efficient in order to facilitate economic growth and reduce poverty. Total cost: $45 million. SOCIAL PROTECTION 0 § Angola IDA-$33 million. This project will help the government restore basic social and economic services through demand-driven, community- oriented projects that will target over 1 million poor people. Total cost: $47 million. 0 § Armenia IDA-$20 million. This project will improve living standards and strengthen institutions at the local level by improving basic social and economic infrastructure and local capacity building, and creating short- term employment opportunities. Total cost: $29.3 million. 0 Bosnia and IDA-$15 million. This project will provide ex-soldiers of Bosniac, Croat, Herzegovina and Serb armies with means for self-reliance by helping them find employment and create sustainable jobs and businesses. Total cost: $17.5 million. t Brazil IBRD-$505.l million. This single-tranched sector adjustment loan supports the second phase of Brazil's Social Security Reform Program. Total cost: $505.1 million. Brazil IBRD-$5 million. This learning and innovation loan will support the design and implementation of institutional and legal reforms needed for the second phase of Brazil's Social Security and Pension Reform. Total cost: $10.1 million. 0 § Burundi IDA-$12 million. This project will assist poor communities to plan and realize projects that improve their economic productivity and social development. Total cost: $13.2 million. 0 § Colombia IBRD-$100 million. This project will create about 90,000 temporary jobs in small-scale infrastructure works, and will benefit some 171,000 people by improving basic public services and providing economic recovery opportunities. Total cost: $193 million. Honduras IDA-$22.5 million. This supplemental credit will increase access by poor people to small-scale social and economic infrastructure and basic social services. Total cost: $22.5 million. 0 § India IDA-$1 11 million. Some 620,000 poor will benefit from the creation of grass roots institutions, training in established local institutions, support of investment-promoting economic activity, and improving access to girls' education. Total cost: $134.8 million. 176 THF WORLD BANK ANNUAL REPORT 2000 0 § Lesotho IDA-$4.7 million. This learning and innovation credit will explore how community fund mechanisms can be used to serve about 900,000 poor people living in rural areas. Total cost: $10.4 million. 0 § Peru IBRD-$5 million. This learning and innovation loan will strengthen indigenous and Afro-Peruvian communities and organizations-and participating government agencies-to enhance their ability to design and implement community development subprojects. Total cost: $6.7 million. 0 § Philippines IBRD-$ 100 million. About 5 million poor people dependent on public social services will benefit from the streamlining of inputs for basic education and social programs, and improved social expenditure manage- ment. Total cost: $107.7 million. 0 § Sierra Leone IDA-$25 million. This project will support the government's strategy to help reintegrate approximately 45,000 ex-combatants and rebuild the social and economic infrastructure destroyed by more than eight years of conflict. Total cost: $25 million. 0 § St. Lucia IBRD-$1.5 million; IDA-$1.5 million. This learning and innovation loan will pilot a social fund model to improve basic social services among vulnerable populations by building capacity for community-led develop- ment. Total cost: $6.5 million. 0 § Yemen, Republic of IDA-$75 million. This second operation will improve services for poor people through community development, capacity building, and microfinance programs, and will expand the scope of the Yemen Social Fund for Development. Total cost: $175 million. 0 § Zambia IDA-$64.7 million. This adaptable program credit will help the govern- ment provide basic quality services to poor communities. Total cost: $74.2 million. TELECOMMUNICATIONS Algeria IBRD-$9 million. This technical assistance loan will help to improve access to communications services by opening the telecommunications and postal sectors to competition, and by privatizing the telecommunica- tions operator. Total cost: $10 million. 0 Dominican Republic IBRD-$12.3 million. This project will improve telecommunications services in underserved rural areas for pricing services, obtaining and issuing licenses, resolving disputes between telecommunications compa- nies, and clarifying interconnection agreements. Total cost: $21.7 million. India IBRD-$62 million. This technical assistance loan will help the govern- ment improve the management of the frequency for radio stations, cellular phones, satellite communications, and long-distance telephone and data traffic. Total cost: $72 million. Nicaragua IDA-$15.9 million. This project will improve the regulatory environment of telecommunications, promote commercially sustainable expansion of services, and finance the upgrading of all nonY2K compliant software in the telephone system. Total cost: $18 million. Senegal IDA-$10.2 million. This project will assist the government in its efforts to prevent disruptions in the country's economic and financial sectors as a result of the Y2K bug. Total cost: $15.2 million. SUMMARIES OF PROJECTS APPROVED 177 TRANSPORTATION Albania IDA-$ 13.6 million. Through this emergency recovery credit, Albanian rural poor and the population of Kosovo will benefit from the rehabilita- tion of critical roads damaged during the Kosovo crisis. Total cost: $14.5 million. Armenia IDA-$40 million. This project will improve the main road network in Armenia, strengthen road and railway management organizations, and improve rail service between the capital-Yerevan-and Georgia. Total cost: $47 million. O Bhutan IDA-$11.6 million. This project will improve rural access for four rural districts, and will also provide the first major model in Bhutan for environmentally friendly rural road construction methods. Total cost: $14.9 million. O Bulgaria IBRD-$7.4 million. This sector investment loan will foster trade by promoting more efficient and less costly trade flows across borders in South East Europe and provide European Union-compatible customs standards. Total cost: $12.5 million. O China IBRD-$150 million. Henan, China's largest province, will benefit from a more efficient transport infrastructure through completion of the trunk highway system, enhanced rural road access, and improved provincial road management. Total cost: $360 million. O China IBRD-$200 million. About 4 million people in landlocked provinces in southwestem China will benefit from safe and cost effective interprovin- cial transport links and a program to improve road networks. Total cost: $567 million. C6te d'Ivoire IDA-$21.2 million. This project will help improve the condition and efficiency of the transport sector; improve its capacity for planning, programming, and mobilizing funding; and strengthen its legal and regulatory framework. Total cost: $21.2 million. O Djibouti IDA-$15 million. This project will support road rehabilitation, mainte- nance, and technical assistance to aid institutional development in the transport sector and trade-related economic development between Djibouti Port and Ethiopia. Total cost: $18 million. Estonia IBRD-$25 million. This project will benefit the country with more efficient, safer, and improved administration of road transport, and more cost-effective trade that will support infrastructure and services. Total cost: $49.5 million. O Georgia IDA-$40 million. This project will reduce road transport costs, improve access to major traffic corridors, help establish funding for road mainte- nance, and improve management of the entire road network. Total cost: $55 million. O India IBRD-$516 million. The project will finance civil works for widening and strengthening 475 kilometers of national highway in support of the National Highway Authority of India (NHAI). Total cost: $650 million. Lithuania IBRD-$3 5.4 million. This project will increase the competitiveness of Klaipeda's port facilities and improve environmental conditions by preventing spills, improving waste reception facilities, and facilitating monitoring of environmental conditions. Total cost: $56.9 million. O Madagascar IDA-$65 million. This adaptable program credit will support the government's comprehensive eight-year program of reforms and develop- ment of the country's transport sector, benefiting both urban and rural dwellers. Total cost: $67.5 million. 178 THE WORLD BANK ANNUAL REPORT 2000 0 Mozambique IDA-$100 million. This specific investment credit to restructure Mozambique's port and railway systems should lead to an increase in the operating efficiency and quality of services delivered in the region. Total cost: $120 million. 0 § Nepal IDA-$54.5 million. The poorest regions of westem Nepal will benefit from improved mobility and access, as well as sustainable funding and management of road assets. Total cost: $65.9 million. 0 § Papua New Guinea IBRD-$25.3 million. This adaptable program loan will restore livelihoods and enhance economic opportunities for the people who were left homeless following the 1994 eruption of the Rabaul volcano. Total cost: $39.5 million. 0 Philippines IBRD-$150 million. This adaptable program loan will establish manage- ment systems to improve the national roads system by enhancing access and reliability of transport to poor areas, thus increasing economic efficiency and generating revenues. Total cost: $305.4 million. 0 Romania IBRD-$17.1 million. This project will foster trade by promoting more efficient and less costly trade flows across the borders in South East Europe and provide European Union-compatible customs standards. Total cost: $27.2 million. 0 Senegal IDA-$70 million. This adaptable program credit will help improve road safety, efficiency, and environmental quality of urban mobility in Senegal. Total cost: $103.0 million. 0 Uzbekistan IBRD-$29 million. This project will improve quality, reliability, and sustainability of urban transport services in five cities in Uzbekistan, home to 1.4 million residents. Total cost: $31.5 million. 0 § Vietnam IDA-$103.9 million. Through this credit about 5 million rural people will have improved access to social and economic services located in the district centers, as well as to off-farm opportunities. Total cost: $145 million. URBAN DEVELOPMENT 0 Bhutan IDA-$10.8 million. Ten district towns will benefit from effective urban planning and sustainable investments in essential services, including safe drinking water, sanitation facilities, solid waste-management, and trans- port systems. Total cost: $12.2 million. 0 § Ghana IDA-$10.8 million. This adaptable program credit will help approxi- mately 964,000 people in the poorest regions access improved municipal services such as roads, drainage, sanitation, solid waste-management, and water supply Total cost: $22.3 million. 0 § Honduras IDA-$10.8 million. This technical assistance credit will strengthen Honduras' capacity to respond to natural disasters and reduce the loss of life and property through mapping, monitoring, and planning appropriate land use. Total cost: $12 million. Lebanon IBRD-$80 million. This project will address urgent municipal works while preparing for local assumption of municipal services. It will restore basic municipal infrastructure and address infrastructure maintenance and rehabilitation needs. Total cost: $ 100 million. 0 Morocco IBRD-$2.2 million. This learning and innovation loan will propose, test, and evaluate institutional frameworks and contractual procedures for managing public-private partnerships to promote sustained development of coastal sites in Morocco. Total cost: $2.64 million. SUMMARIES OF PROJECTS APPROVED 179 Tajikistan IDA-$2 million. Rural residents of flood-stricken areas will benefit from this supplementary emergency flood assistance to restore access and better flood protection through rehabilitation of flood-damaged infra- structure. Total cost: $2.2 million. t Turkey IBRD-$505 million. This emergency recovery loan supports earthquake survivors by reconstructing areas affected by the Marmara earthquake through financing for housing and physical infrastructure. Total cost: $737.1 million. WATER SUPPLYAND SANITATION Albania IDA-$ 10 million. This project will help to improve health conditions and water system efficiency in four cities. Total cost: $14.6 million. 0 Bosnia and IDA-$12 million. This project will establish a modem planning and Herzegovina management system, carry out major improvements in financial manage- ment and bill collection, and rehabilitate water and sewerage networks. Total cost: $13.4 million. 0 § Brazil IBRD-$30.3 million. Under the framework of the PROSANEAR national low-income project, this technical assistance loan will achieve integrated and demand-driven water supply and sanitation service delivery to urban poor. Total cost: $49.3 million. 0 China IBRD-$200 million. About 6 million urban residents will benefit from improved wastewater and solid waste management, expanded water supply, enhanced administrative capacity, stronger financial viability, and service providers' institutional autonomy. Total cost: $535.9 million. 0 China IBRD-$150 million. This program will benefit about 1.6 million people by recovery from past degradation through the provision of a safe water supply, control of pollution, and strengthening of institutions. Total project cost: $293 million. 0 § Colombia IBRD-$85 million. This project will expand water supply and sewerage services, improve living standards for over 750,000 poor residents, reduce urban pollution, and facilitate environmental cleanup of urban water bodies. Total cost: $117.2 million. 0 Dominican Republic IBRD-$5 million. This learning and innovation loan will pilot technology for environmentally safe disposal of wastewater from coastal towns, enabling the private sector to provide disposal services in tourist centers. Total cost: $7.6 million. 0 § Ghana IDA-$25 million. This adaptable program credit will assist the govern- ment to provide basic drinking water facilities for about 550,000 rural people, and will promote household sanitation and hygiene practices. Total cost: $28 million. 0 Hungary IBRD-$31.6 million. The urban population will benefit from reduced pollution in the Danube River, increased compliance with national and European Union environmental standards, and more efficient wastewater operations. Total cost: $88.9 million. 0 § Iran, Islamic IBRD-$145 million. This loan will support the extension of wastewater Republic of collection and disposal facilities for Tehran, serving an area of 16,500 hectares and 2.1 million people. Total cost: $340 million. 0 § Nigeria IDA-$5 million. This leaming and innovation credit will help improve delivery of community water and sanitation facilities to small towns that lack access to potable water and safe sanitation. Total cost: $9 million. 180 THE WORLD BANK ANNUAL REPORT 2000 0 § Poland IBRD-$ 120 million. This project wvill provide medium-term support to development of the rural sector in Poland and will assist in building institutional capacity to absorb European Union preaccession and structural funds. Total cost: $301 million. 0 Rwanda IDA-$20 million. This specific investment credit will provide basic drinking water facilities to about 370,000 people in rural areas, and will also improve household sanitation and hygiene practices. Total cost: $21.4 million. 0 § Uruguay IBRD-$27 million. This adaptable program loan will help expand water and sanitation services, help improve the efficiency and sustainability of these services, and upgrade and rehabilitate water and sewerage plants. Total cost: $48.1 million. 0 Zambia IDA-$37.7 million. Through this credit approximately 320,000 people will have access to more reliable and better water services through repair and rehabilitation, as well as cost recovery and cost containment mecha- nisms. Total cost: $38 million. SUMMARIES OF PROJECTS APPROVED 181 Editor Manorama Gotur, Office of the Vice President, External Affairs, World Bank Assistant to the Editor Nisha Chatani, Office of the Vice President, External Affairs, World Bank Production Philip A. Birkelbach, Central and Operational Accounting Division, World Bank Mark Ingebretsen, Office of the Publisher, External Affairs, World Bank Robert O'Leary, Central and Operational Accounting Division, World Bank Raymond Traugott, Office of the Publisher, External Affairs, World Bank Heather Worley, Office of the Publisher, External Affairs, World Bank Cover design and art direction W Drew Fasick, ULTRAdesigns Cover photo Lucia Chiriboga Vega Typesetting Cynthia Stock, Electronic Quill Publishing Services Book design Joyce Petruzelli, Graphic Design Unit, World Bank Editorial consultants Susan Graham Alison Pehia COVER ART Animas Andnimas [Anonymous Souls], 1994. Double exposure. Lucia Chiribwja Vega (Ecuador). Lucia Chiriboga Vega was horn in Quito, Ecuador, in 1954. Chiriboga is a sociologist, a photographer, and a researcher on the history of photogra- phy. She has exhibited her photographic work and collections of historical images in several Latin American countries, China, and Denmark. Her publications include Retrato de la Amazonia, Ecuador and Identidades Desnudas: La Temprana Fotografta del Indio de los Andes. Chiriboga's work is included in the collection of the World Bank Art Program. which makes particular efforts to identify artists from developing nations and to make their work avail- able to a wider audience. THE WORLD BANK MISSION To fight poverty with passion and professionalism for lasting results. To help people help themselves and their environment by providing resources, sharing knowledge, building capacity, and forging partnerships in the public and private sectors. To be an excellent institution able to attract, excite, and nurture diverse and committed staff with exceptional skills who know how to listen and learn. w R L The World Bank A 1818 HiStreet N.W.142 N Washington, 0.0. 20433 USA K R TELEPHONE: 202-477-1234 I u FACSIMILE: 202-477-6391 9 7802 348215 p ^ ^2 TELEX: MCI 64145 WORLDBANK MCI 248423 WORLBANK N 0-21348213 Our dream isa INTERNET: www.worldbankorg world free of poverty E-MAIL: books@worldbank.org