72865       FROM: Vice President and Corporate Secretary     Minutes of Meeting of the Executive Directors of the Bank and IDA,   held in the Board Room on Tuesday, August 28, 2012, at 10:05 a.m.     1. There were present:   CHAIR:   C.D. Anstey, Managing Director   EXECUTIVE DIRECTORS AND ALTERNATES ACTING AS EXECUTIVE DIRECTORS:   Z. Allawi (Temporary Alternate) H. Manao I. Alturki (Alternate) R. Mokate   G. Balcytyte (Alternate) M.-L. Morin J.J. Bravo (Alternate) N. Mota Pinto (Alternate)   I.-K. Cho (Alternate) S. Nanu (Alternate) G. Ferrari (Temporary Alternate) M.N. Prasad   J. Frieden I. Solomon L. Gordon (Temporary Alternate) R. Studart   I. Hoven H. Suzuki K. Huber H.A. Taha   M.S.Kayad (Alternate) J. Talat G. Letilly (Temporary Alternate) V. Tamozhnikov (Temporary Alternate)   W. Liu (Temporary Alternate)   ALTERNATES NOT ACTING AS EXECUTIVE DIRECTORS:   G. Alzetta   M. Muhtar S. Aviel W. Szczuka V. Dhanpaul Y. Takamura D. Kalyalya M. Tareque This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization.    -2-   OFFICERS AND STAFF PARTICIPATING:   J. Familiar, Vice President and M. Tembon, AFMBF* Corporate Secretary J.-P. Nganou, AFTP5   A. Toft, Deputy General Counsel, LEGVP J. Panzer, AFTP1 M. Diop, Vice President, AFRVP I. Velev, AFCZA   P. Dongier, Director, AFCE1* A. Zeufack, AFTP5 K. Kadiresan, Director, AFCS3* O.S. Adedeji, IMF   A. Beko, AFTP5 M. Ghazanchyan, IMF S. Bloemenkamp, AFMMW* O. Williams, IMF   A. Mbowe, AFTP1* T. Duson, Corporate Secretariat J. Morriset, AFTP5*   *Via Videoconference   Welcome to New Executive Director and Alternate Executive Director   2. The Chair welcomed Mr. Hideaki Suzuki who was attending his first meeting as Executive   Director, and Mr. Mohammad Tareque who was attending his first meeting as Alternate Executive Director.   Burundi - Second Poverty Reduction Strategy Paper (PRSP II) and Joint IDA-IMF Staff Advisory   Note   3. The Executive Directors discussed the Second Poverty Reduction Strategy Paper (PRSP II) for Burundi for the period 2012-2015 and a Joint IDA-IMF Staff Advisory Note on the PRSP II   (IDA/SecM2012-0381, dated July 18, 2012). (The Chair’s Summing Up of the discussion was subsequently distributed as IDA/SU2012-0023, dated September 6, 2012.)   Malawi - Second Poverty Reduction Strategy Paper —Second Malawi Growth and Development   Strategy (MGDS II) —and Joint IDA-IMF Staff Advisory Note   4. The Executive Directors discussed the Second Poverty Reduction Strategy Paper for Malawi entitled "Second Malawi Growth and Development Strategy (MGDS II)" for the period 2011-2016 and a   Joint IDA-IMF Staff Advisory Note on the MDGS II (IDA/SecM2012-0386, dated July 16, 2012). (The Chair’s Summing Up of the discussion was subsequently distributed as IDA/SU2012-0024, dated   September 12, 2012.)   Recovery and Restructuring Project - Proposal to Restructure   Madagascar - Power and Water 5. The Executive Directors recorded their approval on August 8, 2012 of the recommendation contained in paragraph 4 of the President's Memorandum entitled "Madagascar - Power and Water Recovery and Restructuring Project - Proposal to Restructure" (IDA/R2012-0197, dated July 30, 2012). Mr. Solomon (via email dated August 8, 2012) wished to be recorded as opposed. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization.    -3-   Allocation of FY12 Net Income—Final   6. The Executive Directors recorded their approval on August 9, 2012 of the recommendations contained in paragraphs 10, 11, 12, and 13 of the President's Memorandum entitled "Allocation of FY12   Net Income—Final" (R2012-0160; /1, dated July 30 and August 6, 2012, respectively), namely, that the adjustments and allocations for purposes of establishing the FY12 allocable net income be made as   follows:   i) the Cumulative Fair Value Adjustments Account be decreased by US$809 million;   ii) Board of Governors-approved transfers in the amount of US$650 million, which   reflect transfers of income earned in prior fiscal years, be added to FY12 reported net income to arrive at allocable net income;   iii) the pension reserve be reduced by US$3 million, representing a US$15 million   reduction to the pension reserve to reflect the excess of the SRP, RSBP and PEBP accounting expense over cash contribution, as well as a US$12 million   increase to the pension reserve to reflect the IBRD share of the PEBP investment income in FY12;   iv) the Restricted Retained Earnings be increased by US$13 million, representing   the US$3 million net inflow of temporarily restricted funds and the US$10 million relating to financial remedies for FY12; and   v) the LTIP Reserve be reduced by US$225 million.   7. The Executive Directors ratified their June 20, 2012 decisions [see paragraphs 31 and 32 of the   President's Memorandum entitled Allocation of FY12 Net Income and Waivers of Loan Charges for FY13 (R2012-0121; /1, dated May 25 and June 12, 2012, respectively), as recorded (paragraph 20) in the   Minutes of Meeting of the Executive Directors of the Bank and IDA, held on June 26, 2012 (M2013-0050 [IDAM2012/0050]), dated August 29, 2012] and approved the Report of the Executive Directors (Annex   II). Accordingly, the Directors recommended that the Executive Directors' Report be transmitted to the Board of Governors and that the accompanying draft Resolution (Annex II, Attachment A) be adopted by   the Governors at its next annual meeting, namely:   i) the addition to the General Reserve of US$390 million, plus or minus any rounding amount less than US$1 million, is noted with approval; and     ii) US$608 million be transferred to IDA, to be drawn down immediately. 8. The Executive Directors also adopted the resolutions contained in Annex I and Annex III of the President's Memorandum for submission to the Board of Governors, as set out below: This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization.    -4-   Resolution No. 2012-0005   ADDITION OF FY12 NET INCOME TO RESERVES   RESOLVED:   THAT US$390 million of the net income of the IBRD for the fiscal year   ended June 30, 2012 (FY12), plus or minus any rounding amount less than US$1 million, be added to the General Reserve.     Resolution No. 2012-0006 Resolution No. IDA 2012-0004   TRANSFER BY THE IBRD TO THE ASSOCIATION;   ACCEPTANCE OF TRANSFER BY THE ASSOCIATION   WHEREAS the Executive Directors of the IBRD are proposing to the Board of Governors to adopt a resolution authorizing the transfer by the IBRD to the   International Development Association a total of US$608 million out of the net income of the IBRD for the fiscal year ended June 30, 2012, which amount would be   usable by the Association to provide financing in the form of grants in addition to loans;   NOW THEREFORE it is hereby resolved, subject to adoption by the Board of   Governors of the IBRD of the proposed resolution:   1. THAT the transfer of US$608 million shall be drawn down by the Association immediately upon approval by the Board of Governors of the IBRD; and   2. THAT the Association accepts the transfer on the basis set forth above.   Inspection Panel - India - Improving Rural Livelihoods through Carbon Sequestration Project   (TF058308) - Request for Postponement of Management Response   8. The Executive Directors recorded their approval on August 9, 2012 of the recommendation contained in paragraph 3 of the Memorandum from the Vice President and Corporate Secretary entitled     "Inspection Panel - India - Improving Rural Livelihoods through Carbon Sequestration Project (TF058308) - Request for Postponement of the Management Response (R2012-0161, dated July 31, 2012), namely, that the deadline for completion of the Management Response will be extended until September 18, 2012. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization.    -5-   Direct Remuneration of Executive Directors and their Alternates   9. The Executive Directors recorded their approval on August 9, 2012 of the report from the Vice President and Corporate Secretary and the record of voting attached thereto entitled "Direct Remuneration   of Executive Directors and their Alternates (Tally of Voting)" (R2012-0163, dated July 31, 2012).   Moldova - National Water Supply and Sanitation Project - Proposal to Restructure   10. The Executive Directors recorded their approval on August 10, 2012 of the recommendation contained in paragraph 3 of the President's Memorandum entitled "Moldova - National Water Supply and   Sanitation Project - Proposal to Restructure" (IDA/R2012-0199, dated August 1, 2012).   2012 Regular Election of Bank Executive Directors (Adoption of Resolution and Tally of Voting)   11. The Executive Directors recorded their approval on August 10, 2012 of the report from the Vice President and Corporate Secretary and the record of voting attached thereto entitled "2012 Regular   Election of Bank Executive Directors (Adoption of Resolution and Tally of Voting)" (R2012-0168, dated August 6, 2012).   Adjournment   12. The meeting adjourned at 11:43 a.m.                     This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization.