39543 ProgramUpdate Private enterPrise PartnershiP Partnership E H P E R S P E C T I V E T F a L L / w i n t e r 2 0 0 6 s TheInternationalFinance in this issue Corporationisamemberof theWorldBankGroup. 2 TurningProjectsintoProducts: IFCworkstoreducepoverty InterviewwithPEP'sGeneral andimprovepeople'slives Manager inemergingeconomies byenablingandpromoting 3 IFCBridgestheGap: sustainableprivatesector InspectionsReformLaw investmentatthefrontiers inTajikistan ofeconomicdevelopment. IFCistheworld'slargest 5 BarkingUptheRightTree: multilateralinvestor RussianForestryProject inemergingmarkets. Closes 6 ProgramLaunches: CentralAsiaandGeorgia s 7 ImprovedCorporate WhoWeAre GovernanceKey ToRussian IFC'sPrivateEnterprise BankExpansion Partnershipworksto developstrong,self- 8 UncommonSense sustainingeconomies inEasternEurope andCentralAsiathat servealllevelsofsociety. Togetherwithour donorpartners,we assistprivatecompanies andgovernmentsto: ·Attractprivatedirect investmenttoallareas oftheeconomies, · Stimulatethegrowth ofsmallandmedium- sizedenterprises,and ·Improvethebusiness enablingenvironment. Countriesweserve: Azerbaijan Belarus Georgia Kazakhstan KyrgyzRepublic Russia Tajikistan Ukraine Uzbekistan Wethankourdonor partnersformakingour programspossible. Partnership Perspectives Rev FIN1 1 12/14/06 8:53:51 AM Insider'sPerspective Turning Projects into Products Looking ahead venting ourselves in response to opportuni- the delivery model to maximize develop- with PEP's ties in the marketplace in a flexible and cost ment impact, we can be fairly certain that a new General effective manner. PEP's funding model allows real "product" has been developed. us to leverage IFC's ongoing contribution to Manager. a core management team with the capacity to Housing finance is a good example of one launch targeted initiatives to address specific of PEP's new technical assistance products, market issues with support from our part- as the industry is still in a nascent stage of ners. Our partners appreciate this model as development in our region. It is also well it allows them to better align their strategic aligned with our strengths as an interna- tional financial institution. Even in a coun- tania Lozansky hasbeenwithIFC'sPrivate interests with IFC comparative advantages. try like Russia, there are regulatory and Enterprise Partnership (PEP) since its launch in The other key strength of PEP is that we now institutional barriers that prevent this finan- 2000. As a Senior Operations Manager for have a history of real development impact in cial instrument from taking off. PEP's Rus- the Business Enabling Environment and En- the region. Since PEP started in 2000, we sia Primary Mortgage Market Development ergy Efficiency business lines, she developed, have accomplished much that we are proud Program, with funding from the Swiss State launched and oversaw a number of projects of: Our programs have directly enabled over Secretariat for Economic Affairs (SECO), from streamlining the inspections process for $1 billion in new investment in our countries the Dutch Agency for International Busi- small businesses in Central Asia to promot- from both foreign and local sources. We have ness and Cooperation (EVP) and IFC has ing sustainable energy finance in Russia. Prior contributed to the creation of almost 150 adopted a comprehensive and participatory to joining IFC, she worked as a management new companies and over 30,000 new jobs. approach to addressing some of the key bar- consultant at the Boston Consulting Group, And we've successfully amended or passed riers. PEP is now in the process of design- 159 new legislative acts in the region stream- ing and rolling out similar housing finance focusing on its European clients. A native of lining the business enabling environment. programs in Central Asia, Ukraine and the Russia, she emigrated to the US at the age Caucasus. In each of the countries, once the of 11 and holds a BA from Brown University PEP programs are successful because of our regulatory and institutional barriers are ad- and an MBA from Stanford's Graduate School focus on implementation. This is achieved dressed, IFC investment professionals can of Business. She was appointed PEP General through having largely local project teams offer housing finance credit lines to local Manager in September 2006. who work together with our project counter- financial institutions. parts to address a specific issue. We sit down to discuss some of her thoughts As we roll out the more mature products, about the organization and her vision going BuildingonPEP'shistory our challenge is to continue designing and forward. ofaccomplishments testing new ideas that will both have a mean- Continuing to be successful involves moving ingful impact on private sector develop- ThemainstrengthsofPEP away from engaging in one-off initiatives and ment in our region and become new prod- PEP continues to be on the cutting edge instead focusing on developing effective tech- ucts for IFC. Some of the new initiatives we of innovation in developing technical as- nical assistance products and product lines are currently developing are in the area of sistance programs that have a positive and that leverage the unique features of IFC as cleaner production and insurance. Promot- measurable impact on private sector devel- an international financial institution. Once ing cleaner production is an opportunity to opment in our region. Among our main we have done something two or three times, address a major issue in the region due to strengths is our ability to continue rein- achieved results, learned lessons and adjusted the Soviet legacy of environmental neglect. We are also soon launching an agricultural insurance reform program in Ukraine and DESIGN PILOT REPLICATE DISSEMINATE Lozansky has taken a standard will work with key regulatory, institutional · Cleaner · Housing · Agricultural · Leasing product life-cycle curve and Production Finance Supply Chain modified it to illustrate the and commercial partners to provide much · Corporate growth of PEP's product lines. needed reforms in this sector. · Agricultural · Energy Development Governance "Some of our long-lived Insurance Efficiency · Improving products started in the mid- Inspections to-late '90s in areas such as Measuringimpact G and Reducing andsharinglessons Permits leasing development and R corporate governance. We've The basis for every project we undertake is since rolled out these products O meaningful and measurable development throughout the region. We are impact. PEP considers monitoring and W also sharing our models with evaluation an essential component of our T other IFC facilities so that these products can be adapted work, and for the past four years we have H for other parts of the world." had in place a good system that has enabled T I M E THEPartnershiPPERSPECTIVE FALL /WINTER2006 Partnership Perspectives Rev FIN2 2 12/14/06 8:53:53 AM ImpactOntheGround TAJIkISTAN us to track and attribute results across all our projects. We will continue to improve this. To me this also comes back to why a product focus is so essential to techni- cal assistance. If you've tried a menu of tools in various circumstances, you can be more certain about what your target re- sults should be in the given environment. We will also pay more attention to knowledge management. PEP has just created a new position of Knowledge Management Officer, whose responsibil- ity is to drive the process of continuous IFC Bridges the Gap learning across our organization as well as spearhead select analytical efforts. PEP'srelationshipwithits donorpartners tajikistan's new inspections law was drafted with the help of small Since September I have already had a business owners and inspection agencies. chance to meet many of our donor part- ners and discuss our plans for the next 2-3 years. It is encouraging to see many new InspectionsataGlance opportunities for us to continue work- ing together towards common strategic Average number of Total days spent Share of inspected firms objectives in this region. In the coming inspections per business on inspections per year openly admitting months, I look forward to meeting all our per year per inspected firm unofficial payments partners who share a strategic focus on the development of the private sector in Belarus 15 24 7% Eastern Europe and Central Asia. Tajikistan 1 7 54% PEPRESULTS Ukraine 9 13 21% MEASUREDACCORDING TOMISSION (July 2000 June 2006) ­ Uzbekistan 1 3 22% IncreasingInvestment Georgia 1 8 4% Investment/financing enabled $ 1,014 mln All data IFC SME surveys, 2006 except Ukraine, 2005. New businesses created 147 StrengtheningPrivateSector Malika Kalandarova is a small-business owner in Dushanbe. Since opening up her mini-mar- Clients reached with ket in the Tajik capital a year ago, she has experienced numerous inspections from various training/consultations 18,948 authorities. Almost all inspections ended with unofficial payments, for, as she says herself: Clients reporting improvements "It was easier for me just to pay, because of my own lack of legal knowledge.... None of the in operations 2,246 inspectors provided me with information about the inspection procedure or my rights." New jobs created 30,925 In Tajikistan, Malika Kalandarova's story is not unusual. Entrepreneurs averaged over a dozen ImprovingBusinessEnabling inspections in 2005, costing them around 7 business days and an estimated $154 (or 9% Environment of annual profits) in fines and unofficial payments. Sectoral laws gave sweeping rights and Legislative acts drafted/ powers to inspecting bodies, who often conducted inspections of the same business multiple amendments proposed 316 times a year.The lack of a unified inspection law meant that each inspection (for fire, sanitary- Legislative acts adopted 159 epidemiologic, etc.) could have different rules. Entrepreneurs, therefore, had no idea what to expect from an inspection, or even which authorities were allowed to conduct them. "In Partnership Perspectives Rev FIN3 3 12/14/06 8:53:56 AM 4 ImpactOntheGround TAJIkISTAN practice, it was impossible to fulfill most of the requirements," said Muslima, the owner IFC Signs MOU with the Government of Tajikistan of a small hairdressing salon in Dushanbe. On November 14, Prime Minister of Tajikistan, To reform the inspection practice, IFC's Akil Akilov, signed a Memorandum of Un- Tajikistan SME Policy Project, funded by derstanding with IFC aimed at improving the regulatory environment for Tajikistan's SMEs. the Swiss Secretariat for Economic Affairs "With the signing of this memorandum we (SECO), took a participatory approach confirm our government's commitment to from the start. The project team organized working with IFC to support the growth of a series of round table discussions among small and medium enterprises in Tajikistan," entrepreneurs, business associations, in- said Prime Minister Akilov. specting agencies, government officials and donors, giving a platform for all stakehold- "Continued improvements in private sector and duration of inspections based on the ers to voice their views about the inspection development in Tajikistan are a top priority for risk a firm's activities pose to public health, process. The dialogue resulted in widespread the government of Switzerland," according to Irene Leibundgut, program manager for safety, and the environment. It establishes an agreement on the need for reform, and de- SECO. "The signing of this memorandum will official list of inspecting bodies and requires fined the key areas to be addressed. improve the regulatory environment for Tajik- inspectorates to create and abide by check- istan's SMEs...I am very impressed by the Tajik lists, which will be distributed to the public The project team combined this bottom- government's commitment to this objective." through the official sources. The Inspections up approach with a top-down one, helping Registration Book (IRB) is another powerful the World Bank include inspections re- tool to keep the inspections under control by form conditionality in its loan to the Tajik the entrepreneurs themselves. It will allow government. entrepreneurs to comply with requirements and prevent violations by providing advance The result? A new law on inspections. This notice of inspections and a clear record of in- participatory approach takes longer in the spection activities. beginning, "but we minimized the opposi- tion later in the process," says IFC's Floren- In July 2006, the Inspections Law and pro- tin Blanc. posed amendments to the Tax Code were ad- IFC's Antoine Courcelle Labrousse (left) with Prime opted by Parliament and signed into force by The new inspection law limits the frequency Minister Akil Akilov (right). the President. SampleofWorkingGroupParticipants InspectionsLaw:FromIdeaToImplementation Governmentagencies · Executive Office of the President, Economic Reforms Department · General Prosecutor Office Recommendations Round tables Draft revised by Government · State Sanitary-Epidemiological presented with mass media, Working Group Inspection to government SMEs · Medicine and Equipment Production Draft passed to Department, Ministry of Health International Consultations Parliament · Agency of Standardization, Metrology, experience with government Certification and Trade Inspection analysis officials July 2006: Law adopted by Organizationsrepresenting Working Group 1st Draft sent Parliament, SMEinterests approved to Government signed by President · National SME Association of Tajikistan · Centre for Entrepreneurship Support and Development of the City of Dushanbe Survey Drafting Adopting Implementation Massmedia Results Law Law beginning · News Agency Hovar September · Businessman newspaper 006 · BBC 004 005 006 THEPartnershiPPERSPECTIVE FALL /WINTER2006 Partnership Perspectives Rev FIN4 4 12/14/06 8:53:59 AM ProgramClose 5 RUSSIA The challenge for IFC's Tajikistan SME Barking up the Right Tree Policy Project now is to address the new law's implementation. "The approval of the law is necessarily only the first step of iFC's northwest russia Forestry project comes to a close after 51/2 years. the change process," says project manager Andrea Dall'Olio. "It is crucial now to make sure to implement it into key inspec- torates' working practices." IFC is coordi- nating a working group to address the key issues, and launched an information cam- paign to raise awareness of officials, entre- preneurs and media on key provision of the law. The project has already succeeded in signing a Memorandum of Understand- ing with the Tajik government, outlining a strategy for collaboration between the government and IFC to 1) improve leg- islation that regulates SME activities, 2) engage state agencies in the development of best practices and training modules for state employees, and 3) provide ongoing information to entrepreneurs and the gen- UPM-kymmene's $62 million investment in the Pestovo Sawmill has strengthened development of the forestry eral public about legislative changes that sector in Northwest Russia. impact business activities of SMEs. After five and a half years and $380 million in investments in Northwest Russia, IFC's NW Russia Forest Investment Project has come to a close. Malika Kalandarova responded to the an- nouncement of the law enthusiastically. The region of Northwest Russia, with a forest area of 80 million hectares, has an abundant "The unofficial payments which unfortu- supply of raw wood and provides a natural source of material for Finland's forestry sector. nately became standard practice will disap- However, the region was also underutilized, with yearly harvests nowhere near their poten- pear from my financial plan." tials. Unfamiliar with the post-Soviet climate, the major Finnish forestry companies had been hesitant to invest in the region, and thus sought out the help of IFC. HighlightsoftheNewLaw The project, initially funded by Finland's Ministries for Foreign Affairs and Trade and · Limits frequency and duration Industry, hoped to support Finnish partners investing in the forestry sector of NW Russia. of inspections By match-making relationships between investors and Russia n companies, and providing on-site support and advice, the project aimed to generate more than $50 million dollars in · Limits grounds for `unplanned' investment. inspections to officially proclaimed emergencies or specific technical At the project's close, it has driven more than $220 million in investment, with an ad- issues for tax ditional $160 million planned until 2010. The success of the project can be seen in the commitment that its Finnish partners have shown: at its last phase, the NW Russia Forest · Requires inspectorates to plan their Investment Project was funded entirely by the forestry companies. inspections based on risk, prepare annual plans and checklists of With the conclusion of IFC's project, investors will have a solid basis for furthering rela- inspections and send advance notice tionships in the region. Metsa-Botnia has committed to the construction of a $60-$70 mil- of inspections to entrepreneurs lion sawmill, while Koskitiukki Oy has begun plans for a birch processing mill estimated · Gives entrepreneurs the right to at $45 million. "It is apparent that IFC has provided the catalyst for development that was refuse access to documentation needed," says Ian Luyt, IFC's Senior Operations Manager in charge of the Agribusiness and irrelevant to the topic of the inspection Forestry Products technical assistance. · Establishes an official list of inspecting FinnishPartners ProjectFacts bodies Koskitiukki Oy Launched: 2001 · Forbids inspectors to issue sanctions Oy Metsa-Botnia Ab Extended through 4 stages themselves Stora Enso Oyj Initial targeted investment: $50 million · Gives entrepreneurs the right to refuse Stromsdal Oyj Actual investment: $220 million an inspection if any of the conditions Thomesto Oy/Metsälitto Cooperative Planned investments: $160 million are not met UPM-Kymmene Oyj Partnership Perspectives Rev FIN5 5 12/14/06 8:54:00 AM 6 ProgramLaunches kAzAkHSTAN IFC Expands its Corporate Governance "We are glad that {now} Kazakhstan has access to worldwide experience in corporate governance. With Kazakhstan's pending admittance to the WTO and transfer Program to Central Asia to the international business development standards, investment climate and stock market advancement largely depend upon the level of corporate governance in the operations of local companies." SERIkAHANOv, Kazakhstan is often seen as the leading reformer in Central Asia, with a booming economy Head of the Association of that attracts large amounts of foreign direct investment. However, this disguises the fact that sig- Financiers of kazakhstan nificant barriers to a healthy investment climate still remain. The vast majority of this investment has been in the oil and gas sector, resulting in under-investment elsewhere. Consequently, a key "Given Kazakhstan's rapidly growing economy government priority is to diversify the economy and reduce dependence on extractive sectors. and the expanding need for additional sources of financing by local companies, an expansion of IFC's corporate governance program to Kazakhstan is a logical step for IFC, to fulfill its development role. We feel that the time is right for this project in Kazakhstan and we are confident that it will have a positive impact for Kazakhstan's investment climate." MOTRIAONySCHUk-MOROzOv, Senior Operations Manager GEORGIA Improving Corporate Governance Practices in Georgia Building on the successful completion of its first phase, the IFC Georgia Corporate Governance Project launched the second phase of its work. The goal of this three-year project is to im- prove the corporate governance practices of Georgian companies and banks, helping them operate more effectively and facilitating easier access to capital. IFC already has two years of experience working on corporate governance in Georgia under the auspices of the Georgia Business De- However, lack of adequate corporate governance in Kazakhstan and other Central Asian velopment Project. From 2003-2005 IFC's cor- countries is a serious stumbling block to the region's economic growth. Investment capital porate governance team assisted over 400 joint is greatly needed, yet investors are concerned about the high level of corruption and lack of stock companies in improving their corporate transparency in financial and ownership information. governance practices, and developed rules and financial reporting forms that were adopted by the National Securities Commission. To strengthen corporate governance practices of Central Asian joint stock companies and Despite these improvements, results of the attract investment, IFC has initiated a three-year Central Asia Corporate Governance Proj- Doing Business 2007 survey (joint IFC-WB re- ect. In October 2006, the project was launched in Kazakhstan and will be extended into search) showed that investor protection legisla- Tajikistan and Kyrgyzstan. tion in Georgia needs further improvement. The project plans to work closely with Through seminars, consultations and workshops the project will work directly with joint companies and the government to improve investor protection legislation and help com- stock companies to improve their corporate governance practices. It will also provide tai- panies implement best international corporate lored technical assistance to a limited number of companies and banks. governance practices; work with the govern- ment to improve the legislative framework The project will consult the government on addressing inconsistencies and weak- regulating corporate governance in Georgia; nesses in the local legislation, train and advise educational institutions on develop- and increase general public awareness of cor- ing corporate governance-related curriculum, and work with general public to raise porate governance issues. The Georgia Cor- awareness about corporate governance issues. porate Governance Project is funded by the Canadian International Development Agency (CIDA). The project builds upon IFC's extensive experience in implementing corporate governance advisory projects in Azerbaijan, Georgia, Russia and Ukraine. THEPartnershiPPERSPECTIVE FALL /WINTER2006 Partnership Perspectives Rev FIN6 6 12/14/06 8:54:06 AM ProgramUpdate ImpactOntheGround 7 RUSSIA Improved Corporate Governance Key LOCKO-Bank Provides Loan to a Family Business to Russian Bank Expansion Alexander Gavrilyuk and his wife Tatiana are co-founders of a company in Moscow that operates three designer apparel and chil- dren's wear stores. The Gavrilyuks' relation- LOCKO-Bank sought out IFC's expertise to improve its corporate governance and gain better ship with LOCkO-Bank began in October access to finance. 2004, when the couple took out their first loan to help purchase office equipment. During the past two years, the couple has expanded their business through addi- tional loans with LOCkO-Bank, increasing profits fivefold. Plans are currently underway to open a fourth store. The bank's favorable interest rates and high level of customer ser- vice have made borrowing an attractive op- tion for business owners like the Gavrilyuks. "We never had enough resources for developing our business," Tatiana says. "The bank's credits allowed us to run it more effectively." ABroaderview LOCKO-Bank is of one of 21 credit Vice Chair of the LOCkO-Bank Board, Andrei kulikov, meets with bank colleagues. organizations the Russia Banking LOCKO-Bank is a privately owned, commercial medium-sized Russian bank founded in Sector Corporate Governance Moscow in 1994. In 2003, the bank began to focus on lending to small and medium busi- Project has worked closely with. nesses, launching a "Business Credit" program and opening a Moscow branch dedicated to The Project has created role models SME lending. But in order to grow and expand its services, LOCKO-Bank needed to attract like LOCKO-Bank for other Russian investors. The bank's management realized that implementing sound corporate governance banks, encouraging them to expand practices were necessary to achieve this goal. LOCKO-Bank sought out the expertise of IFC's their private sector lending activities Russia Banking Sector Corporate Governance Project (www.ifc.org/rbcg), and began to work and focus on improving corporate with the project on improving transparency and internal control. governance systems and practices. Since December 2004, IFC has worked with Russian banks to improve their corporate gov- Since summer 2004, the project has ernance standards in line with international best practices. IFC's project experts focused on assisted Russian banks in improving the LOCKO-Bank's Charter, various by-laws (e.g. the Executive Board) and its annual report. their corporate governance practices by: While the bank met standard legislative requirements, some of its documents required further improvement in order to meet international standards. IFC gave the bank recommendations · conducting 22 specialized seminars on how to improve its public disclosure policy, solidify the position of its Board of Directors for 914 bankers and providing 86 and clarify procedures for shareholders' meetings. LOCKO-Bank followed these closely and, individual consultations for 21 banks; after a thorough due diligence process, met IFC's own criteria for investment: the Corporation · recommending revisions of 189 awarded the bank an $11 million loan in April 2006 and opened up a $5 million guaranteed internal documents (e.g. Charter, credit line to finance the bank's international foreign trade operations. by-laws); · participating in drafting and Since working with IFC's technical assistance team, LOCKO-Bank has attracted addition- commenting on the Central Bank al outside investors and expanded its network of branches throughout Russia from 3 to of Russia's corporate governance 9. The bank plans to open 5 more branches in 2007. LOCKO-Bank has been able to de- regulations; velop its own SME lending programs, giving more small and medium-sized businesses · advising the Ministry of Economic access to longer-term loans and wider credit services. Development and Trade on new legislation on Related Party The successful initial co-operation between LOCKO-Bank and IFC has developed into a more transactions, Squeeze-Out Law, profound relationship: IFC became a shareholder in LOCKO-Bank in 2006. Mikhail Pav- and Registrars. lov, Deputy Chairman of LOCKO-Bank, attributes the improvement of the bank's corporate governance standards to its participation in IFC's technical assistance project. "As the result of The Russia Banking Sector Corporate our collaboration with IFC," he says, "the level of corporate governance has increased substan- Governance Project is funded by the tially...bank managers are currently continuing corporate governance improvement work set Swiss State Secretariat for Economic forth by the IFC project." Affairs (SECO). Partnership Perspectives Rev FIN7 7 12/14/06 8:54:11 AM Partnership E H P E R S P E C T I V E T introducing...a new regular feature that will focus on innovative approaches to advisory services developed at IFC's Private Enterprise Partnership. Uncommonsense tenor15yearsago,IFCdeliveredadvisoryservicesthrough accessible and acceptable to a local audience. Comprehen- specialistconsultants.Expertsinaparticularfieldwouldflyin sion leads to an increased likelihood of implementation of to a country to advise governments on attracting investment recommendations. or to advise select companies on increasing operational effi- ciency.This approach had the benefit of attracting top-notch Second, local professionals can tailor best practices to country experts to provide advice that local stakeholders would other- context. This makes for recommendations that are a good wise have been unable to afford or attract. But over the years, match with client needs and country practices. Local staff IFC has developed another way of providing advisory also know who to contact in order to get attention. All of services. this leads to advice that stakeholders perceive to be realistic and feasible, and are therefore more likely to take seriously. IFC's Private Enterprise Partnership staffs projects chiefly with local professionals, who are based in-country, full time. Third, local professionals are available for comment. Based Over time, we have discovered many advantages to staffing in-country,allthetime,localteamscanswiftlyreacttochang- up technical assistance locally. Local staffing equips proj- ing circumstances, and provide expertise when required by ects with expert country knowledge, an understanding of the client. This level of responsiveness is simply not possible the local audience, the ability to react quickly to changing with fly-in fly-out consultants. conditions and leads to greater sustainability. While special- ists still provide expertise on an as-needed basis, the focus Building a long-term presence in a country, by creating a is placed on implementing a project through staff based on local implementation team, has another important conse- the ground. quence: sustainable change. Projects with a constant field presence shift the focus of an intervention, away from the First, local professionals understand the language. This process of providing advice and onto hands-on support in means that not only do they communicate with counter- implementation. Fly-in consultants can still tell you what parts in a particular language, but they also know how to to change. Locally-based project teams are there to provide structure the message, positioning information to make it daily assistance in changing it. the Partnership Perspective PeP General Manager: Contributors: Photography: 36/1, Bolshaya Molchanovka Street, 2121 Pennsylvania Avenue, NW is a publication of the IFC's Tania Lozansky Assel Choibekova Danil Nemashev 3rd Floor Washington, DC 20433, USA Private Enterprise Partnership. Dina Nicholas Vyacheslav Silantiev Moscow 121069, Russia Tel.: + 1 (202) 458-0917 editorial staff: Polina Pilyugina Maxim zolotuhin Tel.: +7 (495) 411-7555 Fax.: + 1 (202) 974-4312 Teresa Ha Marina Vorobyova Fax: +7 (495) 411-7556 Currency is given in U.S. dollars Svetlana Pletneva Design: throughout unless otherwise specified. Ilya Sverdlov Gregg Chase www.ifc.org /pep email: ifcpep@ifc.org THEPartnershiPPERSPECTIVE FALL /WINTER2006 Partnership Perspectives Rev FIN8 8 12/14/06 8:54:16 AM