38219 Sustainable Business Assistance Program REPORT TO DONORS 2006 Copyright © September 2006 International Finance Corporation 2121 Pennsylvania Avenue, NW Washington, DC 20433, USA www.ifc.org Sustainable Business Assistance Program 2 Table of contents Foreword......................................................................................................................................5 Contributing to the Millennium Development Goals ..............................................................7 Corporate Citizenship Facility ...................................................................................................8 Highlights.......................................................................................................................................8 Environmental Opportunities Facility......................................................................................10 Highlights.....................................................................................................................................10 Sustainable Financial Markets Facility ...................................................................................12 Highlights.....................................................................................................................................12 Monitoring and Evaluation.......................................................................................................14 Sustainability Business Innovator.............................................................................................15 Social Responsibility...................................................................................................................15 Cleaner Technologies...............................................................................................................15 Sustainable Investing.................................................................................................................16 Biodiversity...................................................................................................................................16 Sustainable Energy ....................................................................................................................17 Gender Entrepreneurship Markets..........................................................................................17 Annex 1: Portfolio of projects by region Annex 2: Financial Report Sustainable Business Assistance Program 3 Sustainable Business Assistance Program The Sustainable Business Assistance Program receives funding from IFC and the governments of Austria, Denmark, Italy, Luxembourg, New Zealand, Netherlands, Norway, Switzerland, the United Kingdom, and the United States. SBAP is managed by the International Finance Corporation's Environment and Social Development Department and comprises the three facilities described below. The Corporate Citizenship Facility is a source of funding for environmental and social technical assistance to private companies in emerging markets. The facility's mission is to improve social and environmental performance primarily at the company level, with the aim of demonstrating the business case for corporate social responsibility to the private sector in emerging markets more generally. The Environmental Opportunities Facility helps innovative businesses to overcome market barriers and commercially deliver environmental and social benefits. It supports projects in cleaner technologies with environmental benefits whose financial risks are too high or that need to mature before being considered for traditional financing. The Sustainable Financial Markets Facility assists financial institutions in emerging markets to move towards sustainability by demonstrating the sound business case for doing so. The facility aims to improve lending practices and understanding of environmental and social sustainability through training and capacity building, market research, and technical assistance and advisory projects. Sustainable Business Assistance Program 4 Foreword It is my pleasure to deliver the fourth annual report of the Sustainable Business Assistance Program. It demonstrates how your partnership with IFC makes a difference in helping us to bring innovative approaches to sustainable, private-sector-led development. We appreciate your recognition of IFC as a center of excellence in sustainability innovation. Our environmental, social, and corporate governance expertise is similarly mentioned by our client companies as among the top 5 reasons why they choose IFC over other financial institutions as a source of financing and advice. Thanks to your support, IFC projects initiate market transformation with new models, products, and business lines in environmental and social sustainability. In this report, for example, you will find that this year our partnership has created hundreds of jobs in Vietnam based on sustainable techniques of farming bamboo has trained more than a hundred senior bank officials in a single event in Shanghai is on track to reduce carbon dioxide emissions by one million tons annually in India is moving the Brazilian stock market towards greater recognition of the value of sustainable investing has been instrumental in serving clean drinking water to more than 250,000 people in Asia. A measure of the program's success is the uptake, by IFC and other mainstream investors, of the innovations it promotes. For instance, we are happy to report that IFC is incorporating the competitive business advantage training developed by SBAP into its regular training programs for financial institutions, and that we are close to launching a cleaner development pilot across all IFC's manufacturing investments. By coordinating different actors in development, the program enhances the coherence and efficiency of project implementation. Your input also goes well beyond funding, thanks to our regular interactions with you, our donors, which contribute to our strategy and guide our interventions. To better meet our common objectives as partners in development, IFC is constantly improving its activities based on the lessons from experience. This coming year, SBAP will become part of IFC's Sustainability Business Innovator. The Innovator will improve administrative efficiency, maximize opportunities for synergies between teams, leverage newly committed funds from IFC, and expand the scope of our interventions with the addition of two new practice areas: biodiversity and sustainable energy. The Gender Entrepreneurship Markets program was created with similar objectives described in detail in this report. Going forward, your contributions will remain crucial to the success of these projects. Thank you again for your support. Best regards, Rachel Kyte Director Environment and Social Development Department Sustainable Business Assistance Program 5 Sustainable Business Assistance Program 6 INTRODUCTION Contributing to the Millennium Development Goals With four years of operation behind us, the Sustainable Business Assistance Program is a well-established program with a track record that demonstrates its success. The repeated endorsement of donors is also a sign of the relevance of private sector innovation in environmental and social sustainability. This program is part of a coordinated effort of the development community to reach the Millennium Development Goals by 2015. Each initiative makes multiple contributions to improving people's lives and ensuring environmental sustainability in emerging markets. Several projects contribute in one way or another to poverty alleviation, the very first Millennium Development Goal, by being based on commercial viability. Examples include bamboo farmers who will earn three times the average income in their region thanks to learning sustainable harvesting techniques; and women who have received training in fisheries, seafood handling, and marketing, who are not only offered a way to enter the job market but are also empowered by their knowledge. The link between the environment and health is highlighted by the delivery of clean drinking water to more than a quarter of a million people in South Asia, where disease-free water can contribute to reducing child mortality. The health issue is also addressed by helping microfinance institutions in Africa to raise awareness on HIV/AIDS to prevent spreading, but also improving access to microfinance for people with HIV/AIDS. Finally, SBAP contributes directly to ensuring environmental sustainability by helping the private sector to increase its energy efficiency and incorporate cleaner technologies. In countries like India where electricity is generally produced from polluting sources such as coal, a single SBAP project, once completed in 2010, could reduce emissions of carbon dioxide and sulfur by one million tons every year. The range of action of the Sustainable Business Assistance Program is a good example of the far-reaching effect of environmental and social interventions. Its results show that the Millennium Development Goals are linked and can be tackled by partnerships such as this one. Sustainable Business Assistance Program 7 Corporate Citizenship Facility The mission of the Corporate Citizenship Facility is to improve social and environmental performance of private companies in emerging markets, with the aim of demonstrating the business case for corporate social responsibility to the private sector in emerging markets more generally. The facility focuses on helping companies exceed IFC's requirements on environment and social development. It is particularly active in the areas of stakeholder consultation--ensuring local communities are well-placed and empowered to participate in the public consultation process around local investments--and community development planning. With donor funds, IFC helps companies take a strategic approach to local community development and reap the business benefits of their investment. This means bringing in partners from local government and civil society and identifying those community investments that are best-tailored to company competencies and potential benefits. The Corporate Citizenship Facility has helped smaller national-level companies implement measures of corporate social responsibility. It has become a business imperative in many sectors--garments, extractives, agribusiness--as multi-national corporations, business partners, investors, and consumers are all paying increasing attention to the social impact of investment operations on local stakeholders. Current private sector initiatives tend to be tailored to multi-national corporations, and often are ill-fitted to the needs of smaller firms or national firms operating in emerging markets. The facility has called upon IFC's global experience and expertise in environmental and social issues to assist emerging markets companies in areas such as sustainability reporting, best agricultural practices, and corporate social responsibility strategy development. Highlights Helping create a sustainable bamboo supply in Vietnam An agricultural training program supported by IFC aims to increase the income of farmers in Thanh Hoa, one of the poorest provinces in Vietnam, through improvements to the sustainability of bamboo cultivation and enhancements to the supply chain. Through provision of training and technical assistance, 533 ha of new bamboo plantations will be ready for harvest by 2010 and are expected to be operational for 20-30 years, generating roughly $159,000 in local income over this period. The project has been instrumental in creating over 200 new jobs in planting and cultivation of bamboo. The project also established two village-based preprocessing units, employing nearly 100 people. The number of people employed in preprocessing activities is increasing rapidly through the replication of this village-based model in six other locations, bringing the total number of units to 8. The average wage in these preprocessing units is $45 per month--three times the local average. Furthermore, it is estimated that over 80% of workers in preprocessing units come from ethnic minorities and over 60% are women. Beyond direct employment, the knock-on effects of an enhanced bamboo market are significant for the region--roughly 4,000 farmers are supplying these preprocessing centers. By providing information on bamboo pricing, the local bamboo factory's quality requirements, as well as organizing farmer groups, the project has significantly strengthened local people's position in the bamboo value chain. This, coupled with rising demand has already resulted in a 20% increase in bamboo prices bringing benefits to the entire region. Enhancing community and local enterprise development in Rajasthan IFC has enhanced the ability of Cairn Energy India Ltd. to develop the communities in Rajasthan near its project sites. IFC used donor funds to pay for an additional community development specialist in Cairn's office in Barmer, and organize a mapping study of the local business environment for small enterprises. The community development specialist has been instrumental in design and implementation of projects locally. Cairn has installed or repaired rainwater harvesting tanks in 600 villages throughout the Barmer District in Rajasthan. The company has also improved infrastructure at 9 local schools, leading in one case to an increase in attendance of 40%. The mapping study identified barriers to entrepreneurship as well as a variety of opportunities for local income generation. The company intends to commit $1.8 million of its own funds to Sustainable Business Assistance Program 8 train local entrepreneurs on basic business skills, as part of a partnership with IFC to increase business opportunities and access to finance for local small businesses. Building capacity of local people to participate in consultations in the DRC The Kolwezi Tailings Project is based on the reclamation and treatment of stockpiled copper-cobalt tailings produced since 1952 by a mineral concentrator facility in Kolwezi, Democratic Republic of Congo. As the reclamation process is environmentally intensive, consultation with local people is key to the project's success. The Social Responsibility team has been called upon to work with local people to ensure they are well- prepared to participate in the consultation process and better able to understand the project's purpose and local impacts, and their opportunities to benefit from its presence. Two multi-stakeholder capacity building workshops were held in 2006 with co-funding from donors through IFC and the company. Both workshops were well attended and regulators in DRC intend to replicate the process and format with other key mining projects in Katanga, with the advice of IFC. Several key stakeholders, including local NGOs have indicated that they would begin placing pressure on existing projects to demonstrate adherence to good environmental and social practices. Sustainable Business Assistance Program 9 Environmental Opportunities Facility The Environmental Opportunities Facility helps innovative businesses to overcome market barriers and commercially deliver environmental and social benefits. It supports projects in cleaner technologies whose financial risks are too high or that need to mature before being considered for traditional financing. To identify and make these demonstration projects happen, the facility leverages IFC staff expertise in cleaner technologies and local knowledge with its emerging markets project structure expertise. The facility helps businesses to overcome market barriers that are the result of the uncertainty associated with new markets, new technologies, and new ways of doing business. It operates in the fields of cleaner production, sustainable energy (efficiency, renewable and cleaner energy), water (access to clean water, waste water management), waste (minimization, solid or hazardous waste management), and air quality management. It is also active in the area of environmental management systems and the sustainable use of natural resources. EOF promotes both demand for and supply of cleaner technologies. Demand is stimulated mainly through technical assistance offered to potential buyers and supply is promoted mainly through investments in providers of cleaner technologies. The facility uses grants and risk capital, such as debt and equity. It chooses the instruments that deliver the least subsidy necessary to catalyze action by the private sector. It also seeks to demonstrate the financial viability of an innovation at the earliest opportunity. Highlights Stimulating demand for cleaner technologies This year, the Environmental Opportunities Facility focused its technical assistance on raising awareness about cleaner production opportunities among IFC clients. The first new project is an energy efficiency audit for Pronaca, an Ecuadorian food processor. Preliminary estimates point at $1.1 million per year of potential energy savings. For the other project, IFC used donor funds to provide a cleaner production audit for the Chaîne Azalai Hôtels, an African group with four hotel operations in Mali and Burkina Faso. Now that they are available, the results of this audit are expected to improve the operational procedures leading to important savings in energy and water as a result of implementing the recommendations of the audit through a number of investments over the next two years. The cleaner production recommendations could increase the net income of the hotel group by over 50%, while reducing water and energy use. This is an example of how cleaner production strongly aligns environmental and financial benefits. Promoting supply of cleaner technologies IFC has invested in four cleaner technology businesses to date. Cogeneration technology brings environmental benefits to India In 2006, IFC used donor funds to invest $600,000 of equity in Turbotech, a designer and manufacturer of small turbines for cogeneration applications, based in Bangalore, India. The engagement of the facility has catalyzed a similar investment in equity by a local investor of up to $600,000 and the extension of a loan from a bank of up to $421,000. This has provided Turbotech with the funding it needs to potentially triple its sales to $5.7 million in three years by expanding its manufacturing capacities and launching a new line of gas turbines. Sustainable Business Assistance Program 10 Turbotech uses aerospace technology to bring cogeneration applications to Indian industries at an attractive scale and price. Customers have recouped the cost of Turbotech's energy conservation steam turbines in as little as 12 months by reducing the purchase of electricity. At the same time, these turbines are reducing carbon dioxide and sulfur dioxide emissions by an estimated 90% compared to grid-supplied electricity, which is mostly generated by low sulfur coal-fired plants. If Turbotech achieves its 2010 sales target, its turbines will have reduced carbon emissions by 1 million tons of CO2 per year. MBA Polymers Incorporated IFC invested its second and final investment tranche of $600,000 in MBA Polymers, the world's first commercial recycler of the high value plastics used in electronic and white goods. IFC's total investment of $1,200,000 supported the establishment of MBA Polymer's first plant, in Nansha, China. The plant was commissioned in October 2005 and a second plant was commissioned in the first quarter of 2006 in Austria. For the first time, recycled resin from mixed streams of plastic waste is being produced in China and incorporated into a variety of new electronic and other plastic goods. So far, MBA Polymer has produced 200 tons of recycled resin in China. The technology delivers substantial environmental benefits. It is estimated that for every ton of recycled resin produced, two tons of carbon dioxide emissions are avoided. The technology also avoids ground soil contamination and NO2 and SO2 air pollutants by using scrap plastic that would otherwise be destined for landfills and incineration. Creating businesses to bring clean drinking water This year, IFC invested a final $340,000 in WaterHealth International (WHI), bringing its investment to a total of $1.2 million. WHI helps supply affordable drinking water to some of the poorest communities in the world, with operations now in the Phillipines, Sri Lanka, and India. Over the period of IFC's engagement, WHI has transformed from an equipment supplier to a franchiser of water stores and systems. It is estimated that WHI now serves 266,000 clients through over 40 small and medium enterprises and company-owned water stores. Notably, WHI is serving 52,000 people in regions of Sri Lanka that were hit by the tsunami of 2004, thanks to a grant of $250,000 from the US Trade and Development Agency trust fund at IFC and $946,000 in contributions from Global Giving, Acumen Fund, and in-kind contributions from the company. This water purification infrastructure is expected to serve 100,000 people adversely impacted by the tsunami for the next 5 years, at which time the local communities will take over the operation, giving a long-term impact to an emergency intervention. Conox Limited IFC made an initial investment in Conox, a company with a new wastewater treatment technology, focusing on the black liquor waste stream from non-wood pulp plants, a major source of river pollution in several developing countries. The project is undergoing a fundamental restructuring since Conox has sold its technology to investors in the paper and chemical industries. Given the technological and economic advantages of the Conox technology over the alternatives, IFC is reviewing a potential follow-on investment in this new entity. Sustainable Business Assistance Program 11 Sustainable Financial Markets Facility The Sustainable Financial Markets Facility assists financial institutions in emerging markets to incorporate sustainability risk management and new product opportunities into their business models by demonstrating the sound business case for doing so. The facility aims to improve lending and investment practices and understanding of environmental and social sustainability through training and capacity building, market research, and technical assistance and advisory projects. The facility targets the sectors of banking, private equity, and asset management/institutional investing. It aims to increase the interest and ability of financial institutions to adopt sustainable policies and practices, thereby helping to mitigate environmental and social risks. It also increases the availability of new financial products that benefit the financial institutions themselves and encourage sustainable, profitable practices in companies. The facility acts as a catalyst and provides targeted market interventions to support the development of sustainable capital markets. It has provided support for the start up of regional networks for sustainable investment professionals in Asia, Latin America, and Africa to support the local development of expertise. Examples of where IFC is raising awareness among investors and companies, both in the domestic markets and internationally, are the establishment of the Sustainability Index on the Bovespa Stock Exchange and the research grant competition for equity research on the sustainability performance of emerging market companies. The Sustainable Financial Markets Facility also provides information and a range of training programs for top-level managers of financial institutions banks. One example is the competitive business advantage training program. This training is frequently adapted to respond to new issues--such as HIV/AIDS, small and medium enterprises and microfinance, energy efficiency, and women entrepreneurs--and to provide up-to- date case studies relevant for each region and country. By working with local institutions, it also helps to build local capacity for ongoing support and local delivery of expertise. Finally, the facility also develops and supports research reports, case studies, guidebooks and other publications to demonstrate the business case for sustainable finance. Highlights Helping microfinance institutions to cope with HIV/AIDS IFC worked with AfriCap, the leading African microfinance investment fund, in collaboration with the African Microfinance Network to develop tools for microfinance institutions to manage the risks presented by HIV/AIDS across the continent of Africa. Non-governmental organizations, donors, microfinance institutions, and health specialists contributed to developing a guidebook outlining risks and steps for mitigation. An international workshop in Cape Town, South Africa in April 2006 was held to discuss the guidebook and to identify risk mitigation strategies of the HIV/AIDS Pandemic in small-scale financial institutions. The conference attracted 60 participants from private consulting firms, donor agencies, NGOs, and 9 African microfinance institutions. 3,000 copies of the guidebook will be disseminated throughout Africa and can be used for microfinance institutions in South Asia, the Caribbean, and other regions with growing HIV/AIDS cases. Competitive business advantage in China Through a strategic partnership with the Shanghai International Business Financial Institute, IFC is helping to raise sustainable finance awareness in China. In June 2006, this work was kick started with a one-day awareness raising event in Shanghai. The event was attended by 120 senior bank officials and stakeholders of the financial sector, and included participants from 25 local banks. The event was the first of its type in China and has since spawned requests for follow-up and interest in sustainable finance products. The Institute will be offering the capacity building advantage training program to financial institutions across the country. Sustainable Business Assistance Program 12 "Taking Stock" report This year, IFC provided a grant to the Association for Sustainable and Responsible Investment in Asia (ASrIA) to create a report on the current and potential future market for socially responsible investment in China, India, Indonesia, Malaysia, Philippines, South Korea, and Thailand. This report has been highlighted at a number of conferences and is being circulated to fund management companies, investors, and other financial institutions. Approximately 2,000 reports have been disseminated. Development of the BOVESPA Sustainability Index Following the report "Towards SRI in Emerging Markets" and its dissemination in Brazil, the Sao Paolo stock exchange, Bovespa, sought IFC's assistance to create a Sustainability Index to provide domestic and international investors with information on the corporate social responsibility performance of Brazilian firms. Development of the index began in 2004 and it was successfully launched in December 2005. A key goal of the Index is to provide market-based incentives for more sustainable company behavior, and the initiative includes an awareness­raising program for Brazilian companies. In the short time since its launch, the Index has consistently matched or outperformed its benchmark. "Banking on Sustainability" "Banking on Sustainability" is being prepared by the facility and is currently in its final stages. The report is designed as a guide for financial institutions that want to improve their competitive advantage by integrating social and environmental sustainability concepts, management systems, products, and services into their businesses. It features practical examples and case studies of commercial banks, leasing companies, and microfinance institutions that have taken concrete steps to integrate environmental and social sustainability into their policies, practices, products, and services. 14 case studies from 12 countries are presented, clearly highlighting the business case. The report is based on the results of the `IFC Sustainability Survey of Financial Institutions (2005)' that surveyed over 500 banking professionals who attended the various trainings, and contains data from more than 120 financial institutions in 43 emerging market countries. 3000 copies of "Banking on Sustainability" will soon be widely distributed to senior banking officials in emerging markets. Sustainable Business Assistance Program 13 Monitoring and Evaluation The monitoring and evaluation of our projects have been improved over the years to strengthen reporting to donors and management. Last year, IFC introduced more systematic data collection processes to better monitor the performance of projects, from inception through completion. It has also upgraded the capacity of its staff to plan and collect monitoring information. For each project, senior manager supervision is required every six months and staff prepare a project completion report upon termination. It is expected that these mechanisms will lead to improved supervision and monitoring by indicating to task leaders when adjustments must be made to an initiative to improve the prospects for favorable outcomes. Furthermore, as the systems and the quality of data improve, so will the quality of evaluation reports for donors, management, and other IFC stakeholders. As of July 2006, 38 projects have gone through the project supervision phase. Of these, 97% are judged to be on or near the target to accomplishing their goals. About 68% of the projects were judged to be on schedule, operating within the expected budget and meeting the intended objectives. - A total of nine EOF projects were subject to supervision over the past six months. All of them were on target or close to target on meeting their objectives. Close to 45% of these projects are on schedule, operating within budget and on target or better with respect to meeting their objectives. - CCF has 18 active projects, 17 of which are generally on track to meeting their objectives. About 45% of the projects are on schedule, within expected budget and on target or better. - All of 11 SFMF projects are generally on target to meeting their objectives. Overall, close to 55% of the projects are operating in a manner that is consistent with our initial expectations with regard to budget cost, timeliness, and project objectives. While the completion reporting is yet to be fully operational, a pilot was conducted during the last year, which showed that 78 % of SBAP projects were rated satisfactory or better, indicating that these initiatives have met their objectives and are likely to generate the desired impact. Sustainable Business Assistance Program 14 STRATEGIC ORIENTATIONS Sustainability Business Innovator Building on the success of the Sustainability Business Assistance Program, IFC has established the Sustainability Business Innovator, which will include the activities carried out by the three facilities of SBAP and add three more practice areas. It will create greater synergies between the different practice areas and more efficient management, administration, and fundraising. The Innovator was launched on July 1st, 2006 and will exist in parallel with SBAP until the latter is gradually phased out during fiscal year 2007. You will find a more detailed description of each practice area in the following pages. Social Responsibility The activities of the Corporate Citizenship Facility will be assumed by the Social Responsibility practice area under the Sustainability Business Innovator. This new practice area will strategically focus on enhancing private sector contributions to social development in emerging markets. Other practice areas within the Innovator will absorb the environmental stewardship activities. More and more emerging market companies are seeing the value of committing to responsible business practices. A strong strategy and reputation as a responsible business can help these companies build trust with local stakeholders, thereby ensuring a license to operate, while aspects of corporate social responsibility such as progressive labor relations have been shown to enhance productivity and reduce costs associated with recruitment and turnover. A visible commitment to corporate social responsibility helps emerging market firms attract multinational partners, access international sources of capital, and reach socially-conscious consumers with their products and services. The Social Responsibility practice area will assist companies directly and support the development of innovative products and approaches in three broad areas relevant to corporate social responsibility: 1. Community development and stakeholder engagement 2. Sustainability strategy and communications 3. Labor practices and human rights at work Each area of engagement is designed to improve business performance by addressing key issues of corporate social responsibility. By demonstrating its business and social benefits, the program aims to encourage companies throughout emerging markets to embrace corporate social responsibility as a key strategic business principle. Cleaner Technologies The Environmental Opportunities Facility will become part of the new Sustainability Business Innovator from the end of FY07 under the name of Cleaner Technologies. The range of interventions will remain the same, but the emphasis will change to keep with positive changes in market conditions for cleaner technologies. For instance, because of the recent increase in energy prices, we anticipate greater focus on cleaner production technical assistance to leverage the increased profitability of energy efficiency. We will also explore ways in which Cleaner Technologies may catalyze local venture capital for innovative projects. The team will also work with local fund managers in emerging markets to see how it could increase its activities in cleaner technologies investing. The strong interest of fund managers was notable at IFC's Eighth Annual Private Equity Conference in May 2006, where the facility helped organize a panel on cleaner technologies investing in emerging markets. Sustainable Business Assistance Program 15 Sustainable Investing As the Sustainable Financial Markets Facility transitions to the Sustainability Business Innovator, its activities will focus on sustainable investing. In keeping with our philosophy of using donor funds to incubate new business models and investments, and graduating mature and proven programs to others for wider roll-out and delivery, we will transfer the successful competitive business advantage banking training program to IFC's financial markets department, where it will be managed going forward. The goal of the Sustainable Investing practice area is to generate an increase in the volume and quality of sustainable and responsible investments to emerging markets. Socially responsible investment in public equities currently amount to around $2.7 trillion and has played a key role in developed economies as a mechanism for economically, socially, and environmentally sustainable development. IFC seeks to bring the power of socially responsible investment to emerging and developing country economies. To harness the power of this type of investment, the practice area will be working in partnership with investors, policy makers, regulators, and companies to address market development barriers. These market interventions range from support for increased availability of company performance data to development of frameworks and standards for institutional investors. It will disseminate best practice, support research and development for new investment vehicles, and aim to increase market investments to $5 billion by fiscal year 2008. Through this, donor funds will help businesses create durable value and economic growth, and will improve job creation, labor standards, environmental protection, eco-efficiency, and corporate citizenship. Practice areas added to the Innovator Biodiversity Biological diversity supports life and the possibility to adapt to change. As the basis for many development sectors (e.g. agriculture, forestry, fisheries, tourism, and water resources), biodiversity yields several goods and services, such as food products, clean air, and medicine. Numerous companies depend on these products, either through their core business or supply chain. Even if it does not represent a central concern to their operations, many responsible companies are also getting involved in the active protection of biodiversity and thus making a positive contribution to their corporate image. IFC's work in biodiversity combines conservation, risk mitigation, and business opportunity. It is directed at supporting companies interested in the sustainable use of biodiversity resources, developing business models that are based on nature, and moving markets to more sustainable practices. Each approach emphasizes environmental benefits as well as commercial viability and benefits to people. How it works: - IFC helps businesses to seamlessly blend biodiversity protection with better overall business management, bringing them improved performance and reputation, reduction in supply chain risks and production costs, access to new markets, and increased company value. - IFC will also help businesses to develop new revenue streams from nature. Bio-businesses, such as ecotourism, derive value from nature by applying a practice or technology that maintains nature. IFC does this mostly through financial intermediaries which, in turn, support micro, small and medium-sized enterprises. - In addition, IFC works closely with several partners to provoke large-scale changes in given industry sectors that have a high impact on natural habitats. It will seek to transform markets by promoting the use of sustainable practices. IFC is applying this approach in the ornamental fish market, as well as in high impact commodities, including palm oil, sugar, soy beans, cocoa, and others. - IFC works with financial institutions, think tanks, non-governmental organizations and other research institutions to develop new financial products beneficial to biodiversity. Sustainable Business Assistance Program 16 Sustainable Energy The Sustainable Energy practice area promotes the development of markets for renewable energy and energy efficiency. It does so by removing market barriers that deter private investments in sustainable energy, such as lack of information on opportunities or technologies, perception of excessive commercial or technical risks, or high market development costs. These interventions are targeted and limited in duration to create a self- sustaining market that will promote renewable energy and energy efficiency. The Sustainable Energy team currently oversees a project portfolio of $200 million across all regions. Importantly, this provides IFC with expertise in frontier or high impact segments of renewable energy and energy efficiency markets, thus positioning IFC to mobilize commercial finance through its complementary mainstream operations. By developing these new markets, often in partnership with private companies, IFC also catalyzes a broader private sector engagement in promoting renewable energy and energy efficiency businesses. How it works: - The practice area funds the development of commercial pilots of sustainable energy technologies with high economic and social impact. The aim is to promote understanding of the technical and market challenges, as well as opportunities for the private sector. - IFC establishes partnerships with private companies, such as financial intermediaries or industrial and commercial entities, to provide them with a combination of credit lines, risk sharing product, and/or technical assistance that reduces the initial risks and costs of investing in this sector. - Finally, we support innovative financing solutions with high demonstration value and development impact by helping to mitigate the risks associated with investment in frontier markets. Gender Entrepreneurship Markets The Gender Entrepreneurship Markets program complements the Innovator by addressing gender issues in sustainable private sector development. Gender inequalities in national legislation, policy, or practice inevitably prevent the equal participation of men and women in the private sector. Women lack formal property rights in many countries and are often not recognized as valuable customers by financial institutions, limiting their ability to start or grow their own businesses. Specific legal impediments or cultural norms mean that women are also more likely to be stuck in the informal sector. These realities represent a significant, lost opportunity for women as well as the wider private sector. Gender Entrepreneurship Markets (GEM) helps to better leverage the untapped potential of women in emerging markets while at the same time integrating gender issues into IFC's approach to its investments. The program was launched in 2004 to introduce a systematic focus on gender as a comparative advantage for clients, and has developed a mix of tools to facilitate replication and scaling up of a gender focus across regions and departments. How it works: - The team's work involves advisory services to governments on removing discriminatory laws and regulations through gender and growth assessments which involve extensive consultation with women's business associations and civil society groups. - It also helps financial intermediaries to reach out to the women's market for both profit and social good. - Finally, it provides a gender dimension to IFC investment projects, for instance by ensuring women's small and medium enterprises benefit from linkages created by the investments. Sustainable Business Assistance Program 17 Annex 1 Portfolio of projects by region Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) Africa Cameroon Indigenous Peoples Community Bakola/Bagyeli Communities 150,000 CCF Pipeline To support the Foundation for Environment and Development Development Plan (FEDEC) in the formulation of a strategic long term development plan for pygmy communities impacted by the construction/operation of an oil pipeline. Nigeria HIV/AIDS in the Workplace Employees and families 63,000 CCF Ongoing To support the development of a complete HIV/AIDS workplace and community program at MTN and become a benchmark for corporate HIV/AIDS programs in Nigeria and West Africa. Congo DRC Stakeholder Capacity Building around Project affected communities 80,000 CCF Ongoing To support stakeholder capacity building so that NGOs and other Copper Mine stakeholders are better able to engage with an IFC sponsor on project and development issues. Kenya Fair Trade Certification for Honey Third party honey gatherers 48,000 CCF Completed To work with a Kenyan cooperative to develop fair trade markets Production in Kenya for honey. The cooperative has already been recognized for its efforts to enhance biodiversity in its operations. Access to price premium fair trade markets in Europe will help to reinforce good practices. Ghana & Gabon Pomoting more Sustainable Third party SME and community 56,000 CCF Completed To work with an international agricultural commodities Agribusiness Commodities forestry operations merchandiser to develop and test timber certification protocols and TA training for third party communities to ensure that sustainable forest management practices are embedded in supply chains. Kenya Community Development Around Communities and company 100,000 CCF Completed To support capacity building and needs assessment/priority Kenyan Mine setting for a community development plan around a Kenyan soda mine. South Africa Sustainable Mining Workshop for the South Africa Mining sector 33,000 CCF Completed To prepare and deliver an executive development course on South Africa Extractive Sector Corporate Social Responsibility and competitiveness for an extractive sector client and subsequently deliver the course to other extractive sector companies in the region. South Africa South Africa Pro-Poor Tourism South Africa Tourism Sector & 122,000 CCF Completed To support the Pro-Poor Tourism Consortium in the development Guidelines Local Communities of four guidelines: partnerships with communities, boosting local input in the tourism supply chain, stimulating local tourism products and SMEs, and addressing pro-poor issues within a company. South Africa Africa Clean Development Mechanism Government, Companies 30,403 CCF Completed To produce a "Clean Development Mechanism" guide to investors (CDM) to enable governments and companies to earn Certified Emissions Reductions (CERs) by investing in climate change mitigation projects in developing countries. Nigeria CCF Eleme CDP Communities and company 150,000 CCF Pipeline To assist the company in building the capacity of the community to engage in a constructive dialog on development needs and expectations, and in designing and implementing a successful community development program, which is expected to have a demonstration impact in the petroleum industry in the Niger Delta. Tanzania Irrigation Foot Pumps for Rural Poor Individual and SME farmers 43,346 EOF Completed Loan and grant to a hand-operated irrigation pump manufacturer in Tanzania. Sustainable Business Assistance Program Portfolio as of June 30, 2006 1 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) South Africa Exploring Non-timber Revenue Streams Major forestry company 146,728 EOF Ongoing Grant to a leading FSC certified forest products company to from Sustainable Forestry develop new revenue streams from its timber and land holdings in South Africa. Ghana Worldwide Distributed Drinking Water New technology company/Low 1,224,641 EOF Ongoing Equity investment in a distributed, potable water service provider Purification income households in rural and targeting emerging markets and using an innovative ultra-violet peri--urban areas (UV) technology platform. This will provide safe drinking water on a sustainable basis to low-income families in emerging markets. Mali and Burkina Faso Technical Assistance grant to African Hotel operator 33,300 EOF Ongoing Technical assistance to undertake an energy audit and design Hotel Group review of SMPH's existing hotel operation in Mali and Burkina Faso. South Africa South Africa Solar Water Heating Fund Solar water heating market in 550,000 EOF Pipeline To catalyze the expansion of the solar water heating market in South Africa South Africa for institutional and residential clients. Fund will focus on both vendor and consumer finance. Tanzania Plastic Recyling Recycling company 2,000,000 EOF Pipeline Investment in establishing commercial and residential plastic recyling facility in Tanzania. Ghana SFMF Africap - Kumasi Iron Workers Iron Workers 55,791 SFMF Completed SFMF provided a grant to AfriCap, which in turn contracted staff of the Kumasi National Science and Technology University (KNUST) to conduct a study of the Environmental, Health and Social risks across a variety of types of iron workers. Kenya SFMF Aureos Safepak II Private Equity fund managers 40,000 SFMF Completed The project consisted of a technical and economic feasibility study of Safepak's outline proposal to create a PET recycling facility in Kenya. This project comes within the Portfolio Company Grant Program established under SFMF for IFC's private equity fund. Kenya SFMF Africap Microfinance HIV/AIDS Microfinance Institutions, people 70,000 SFMF Completed The objective of the project is to raise awareness and develop risk with HIV/AIDS and women management tools for the microfinance (MFI) sector in Africa on HIV/AIDS. A guidebook was developed and will be disseminated continent-wide. Kenya SFMF Women Bankers Association Women entrepeuneurs 60,000 SFMF Pipeline To add value to financial markets deals for financial institutions interested in leveraging the women's market for profit and targeting women entrepeuneurs. Nigeria SFMF Competitive Business Advantage Financial Institutions 50,000 SFMF Pipeline Competitive Business Advantage workshop to be held in Lagos in Nigeria 06 partnership with Lagos Business School, including train-the-trainer and local capacity building South Africa SFMF Competitive Business Advantage Financial Institutions 31,155 SFMF Completed Delivery of the `Competitive Business Advantage' workshop in Workshop Jo'burg 05 Johannesburg, South Africa attracting 25 participants. South Africa SFMF Africa Sustainable Banking Financial Institutions 38,483 SFMF Completed Partial sponsorship of case study-based research study managed by African Institute of Corporate Citizenship (AICC) in conjunction with UNEP Finance Initiative's Africa Task Force, to assess current practice of African banking sector with respect to environmental and social risk management. Sustainable Business Assistance Program Portfolio as of June 30, 2006 2 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) South Africa SFMF Africa Bank-Sustainability Financial Institutions 105,000 SFMF Completed SFMF engaged AICC to provide strategic consulting support to Strategy Africa bank on its sustainability management systems and annual sustainability reporting. The project assisted Africa Bank to use its external reporting process. South Africa SFMF Competitive Business Advantage Financial Institutions 29,800 SFMF Pipeline Follow-up CBA workshop to address market demand. Jo'burg 07 East Asia and the Pacific Indonesia Sustainable Seaweed SME and community seaweed 69,680 CCF Ongoing To work with the Program for Eastern Indonesia SME Assistance businesses (PENSA) to develop environmentally sustainable and socially equitable seaweed businesses with rural communities in Indonesia. Vietnam Thanh Hoa Bamboo Growers Support Farmers and local bamboo 220,830 CCF Ongoing To create a sustainable increase in the income of the farmers in industry Thanh Hoa Province through the development of bamboo cultivation and its supply chain, support the development of a stable, sustainable supply of quality bamboo to a bamboo flooring factory. Cambodia Cambodia Corporate Citizenship Award Private sector companies 121,225 CCF Ongoing To work with Mekong Project Development Facility, the Global Fairness Initiative and others to promote a national award program for exemplary corporate citizenship practices in Cambodia. China China Development Marketplace Civil society organizations 93,100 CCF Ongoing To grant the Corporate Citizenship awards aimed at implementing poverty alleviation projects in rural China via public-private partnerships. The awards are granted in the context of the world Bank Group's Development Marketplace program. Papua New Guinea PNG Fisherwomen II Local communities 68,130 CCF Ongoing To increase women's participation in the seafod industry in Papua New Guinea by equipping them with the skills required to better process, preserve and market fish and other seafood. Lao, Cambodia and Bamboo Lao Supply Chain Study Farmers and local bamboo 74,850 CCF Ongoing To conduct a study that will collect both local data on resources, Vietnam industry supply chain and related socio-economic conditions as well as that on the international market for bamboo products and latest technological developments. Lao, Cambodia and Mekong Bamboo Sector Development Farmers and local bamboo 160,000 CCF Pipeline Phase 2 of the bamboo sector development will include a range of Vietnam Phase 2 industry projects and activities at regional and national levels, based on potential benefits, interests of stakeholders, and the required magnitude to bring about economic benefits. Vietnam Ha Tien Wetland Survey and Land Use Local biodversity and rural 32,300 CCF Completed To work with an IFC client, local government and communities in Management communities the development of an integrated conservation and development program around the Ha Tien wetland in Vietnam. This project later won a World Bank Development Market Place Award and has entered a further phase of implementation (the strengthening of sustainable rural enterprises) which is being undertaken by local and international groups. Sustainable Business Assistance Program Portfolio as of June 30, 2006 3 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) Philippines Sustainability Reporting for Metro Sponsor and stakeholder groups 30,300 CCF Completed To support a private utility's efforts to develop a corporate Manila Utility sustainability strategy and to produce the Philippines' first GRI- based sustainability report. Indonesia Sustainable Wood Export Markets Small scale timber companies 33,185 CCF Completed To work with the Program for Eastern Indonesia SME Assistance (PENSA) wood program to create greater understanding over the needs and market expectations for sustainable forest management in Indonesia. Papua New Guinea Building Women's Fishery Skills for SME Fisherwomen 54,000 CCF Completed To work with the Pacific Enterprise Development Facility to Sustainable Harvest support the capacity of rural fisherwomen to enhance their abilities to process and market fish. China China CSR Program Wider private sector 300,000 CCF Pipeline To develop an integrated Sustainability awareness raising and capacity building program. China CCF China Heath & Safety Local industries, communities 77,000 CCF Completed To conduct a Sustainability and Health and Safety Seminar for the IFC chemical and petrochemical clients of the East Asian region in the city of Hangzhou in China between September 26 and September 28, 2005. The aim is to facilitate a discussion and to exchange experiences about sustainability and health and safety practices (H&S) and to identify actions that can further enhance profitability, reduce risks, and improve the overall development prospects of IFC clients by improving the H&S practices of IFC projects in the region. Malaysia Low-impact Submarine Logging Forestry company 200,000 EOF Pipeline Grant to finance a pilot phase of an underwater logging operation in Malaysia as an alternative to traditional submarine logging which has a destabilizing impact on the lake's ecology. China Plastics Recycling New technology recycling 1,268,765 EOF Ongoing Equity investment to finance a durable goods and electronics company equipment plastics recycling start-up in Nansha, China. The project has been successfully commissioned. China Straw Pulp Waste Water Treatment New technology company focused 735,139 EOF Ongoing Equity investment to help finance pilot project in China of a new Technology I on China's market wastewater treatment technology for straw pulp mills. New financing round under review. (See Straw Pulp Waste Water Treatment Technology II.) Philippines Worldwide Distributed Drinking Water New technology company/Low 1,224,641 EOF Ongoing Equity investment in a distributed, potable water service provider Purification income households in rural and targeting emerging markets and using an innovative ultra-violet peri--urban areas (UV) technology platform. This will provide safe drinking water on a sustainable basis to low-income families in emerging markets. Mongolia Wind Power Generation Private Mongolian project 38,377 EOF Ongoing Technical assistance reimbursable grant to co-finance consultant developer expenses associated with technical review, regulatory, policy and project structuring advisory services to develop a 30-50 MW wind power generation project on a site at Salkhit Mountain near Ulaanbaatar in Mongolia. China Straw Pulp Waste Water Treatment New technology company focused 500,000 EOF Pipeline Follow-on investment for completion of reference project in China. Technology II on China's market Sustainable Business Assistance Program Portfolio as of June 30, 2006 4 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) China Wind Turbine Manufacturer Chinese company going through 1,200,000 EOF Pipeline To support growth of local Chinese wind turbine manufacturer and privatization support its access to financial markets for further capitalization. Cambodia SFMF GVEP Regional Financiers Financial Institutions 45,000 SFMF Completed Joint WB/IFC collaboration on sustainable energy. Workshop held Workshop in Phnom Penh, Cambodia to increase investor awareness of profitable sustainable energy business opportunities in East Asia. China SFMF CDH China Training Private Equity fund managers 24,264 SFMF Completed Sustainable investment training for this $100M private equity fund based in Beijing. The training was delivered by a multidisciplinary team from IFC's Private Equity and Investment Funds Department and Environment & Social Development Department. China SFMF ASRiA Country Profiles SRI investors 36,460 SFMF Completed IFC provided a grant to ASrIA for the research and publication of a report into the current and potential future market for SRI in China, India, Indonesia, Malaysia, Philippines, South Korea and Thailand. The report is publicly available from IFC and ASrIA. China SFMF Reputex SRI investors 82,846 SFMF Completed Grant of $75k to Reputex for consultation with Chinese and international stakeholders on Reputex's methodology for a CSR/SRI rating product aimed at Chinese companies. Ultimately driven by Chinese government. China SFMF ASrIA SRI SECTOR STUDY SRI investors 109,711 SFMF Completed The project has been implemented by the Association for Sustainable & Responsible Investment in Asia (ASrIA). The purpose wass to provide sector specific information that can bridge the gap between available sustainability/SRI information and the needs of the investor industry. The publication "Taking Stock" has been widely released and has had several high profile media launches. China SFMF Private Equity Training course Private Equity fund managers 126,300 SFMF Ongoing Development of a new, highly-customized training course geared design specifically to emerging market private equity funds. Once developed, the course will be delivered by IFC 2-4 times as an `open course' (available to all IFC funds plus non-IFC funds) a year. China SFMF Competitive Business Advantage Financial Institutions 150,000 SFMF Ongoing Competitive Business Advantage workshops in China, and China: Shanghai International Business building local capacity with partnership between SFMF and SIBFI and Finance Institute/ASrIA in Shanghai. Singapore SFMF Competitive Business Advantage Financial Institutions 171,200 SFMF Ongoing Proposed series Competitive Business Advantage workshops and ASEAN Region/ RIET Singapore capacity building in ASEAN region, probably Singapore, Manila. Partnership Development Partnership development with RIET. Vietnam SFMF Bank Training Centre Vietnam Financial Institutions 309,000 SFMF Ongoing The project has been developed jointly by the Bank Training Center, IFC's MPDF and SFMF. In summary, BTC and IFC seek to promote and improve the level of environmental and social commitment through the delivery of a 12 month capacity building program of Sustainable Business Assistance Program Portfolio as of June 30, 2006 5 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) South Asia Maldives Coral Reef Rehabilitation and Tour operators and companies and 125,282 CCF Ongoing To work with IFC sponsors (resort hotels), local NGOs, specialists Protection the marine environment and tour operators to test methods of rehabilitating coral reefs that have been affected by human activity (sediment, building materials extraction, etc.). India Community Development around an Oil Surrounding community 105,086 CCF Ongoing To help sponsor develop community development program and Gas Project (including expectation management) for their operations in remote rural areas in Rajastan. India OHS Training for Powerlinks Stakeholder and Local 78,079 CCF Ongoing To increase awareness of contractors and employees of Communities workplace health and safety issues and good practice, reduce the incidence of job-related accidents, and raise general health awareness among T-line workers, their families and communities, and (d) establish a model for OHS training for infrastructure projects that can be applied to other IFC-financed projects. India Enhancing the Capacity of IFC Clients Companies, Employees and Local 163,269 CCF Ongoing To improve the ability of corporations to proactively address to face HIV/AIDS in India Communities HIV/AIDS in three possible spheres of action: (a) the workplace (b) at companies' clinical facilities, and (c) in the community. India Lead Battery Certification Public Health 56,576 CCF Ongoing To develop, test, and ultimately implement a protocol for conducting environmental audits in lead battery plants globally. India CCF Tourism E & S Hotels, IFC tourism clients 18,000 CCF Completed To develop and deliver a 1-2 day business to business workshop on specific aspects of Environmental, Social and Health & Safety best practice for selected key players in the Tourism and Hospitality sector, probably in Delhi, in the second quarter of FY06 (currently target dates are between 12 October and 1 November). The workshop likely will showcase work of IFC clients, raise awareness levels among key actors in the industry, and promote IFC to others in the sector. India HIV AIDS BILT Companies, Employees and Local 75,220 CCF Ongoing To improve the ability of the client to proactively address HIV/AIDS Communities in three possible spheres of action: (a) the workplace (b) at companies' clinical facilities, and (c) in the community. India CCF North Delhi Power Limited Local business, communities 110,000 CCF Ongoing To organize a study tour to Manila Water Company for an IFC private utility client - North Delhi Power Limited (NDPL, India). This project aims to build management capacities of NDPL so that it can better design and implement its corporate strategies in relation to management of rights-of-way in urban areas and community engagements thus increasing sustainability and quality of its services. Sustainable Business Assistance Program Portfolio as of June 30, 2006 6 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) India CCF India Report IFC partners, Local business, 90,000 CCF Ongoing The objective of this project is to design and carry out a two-day communities training programme for managers of Indian firms, on sustainability reporting. Participants in the training will be drawn from members of TERI- BCSD (Indian CSR business association) and selected IFC clients. India KGVK Women's Enterprise Local communities 26,300 CCF Completed To support community development and capacity building Development amongst rural poor populations near the cities of Ranchi and Jamshedpur. Training services will be provided by the Indian NGO SEWA. India Small-scale Cogeneration Turbine Small engineering company 791,347 EOF Ongoing Equity investment to partially finance the beta-testing of a new low Manufacturing cost gas turbine and the expansion of production of mini-steam turbines to thereby introduce cogeneration to Indian industries which have been until now unable to harness the efficiencies of distributed electricity generation via combined heat and power applications. India Electric Car Manufacturing New technology company serving 1,127,701 EOF Ongoing Equity investment in first electric car vehicle manufacturer in India. Indian and world market India Worldwide Distributed Drinking Water New technology company/Low 1,224,641 EOF Ongoing Equity investment in a distributed, potable water service provider Purification income households in rural and targeting emerging markets and using an innovative ultra-violet peri--urban areas (UV) technology platform. This will provide safe drinking water on a sustainable basis to low-income families in emerging markets. Sri Lanka Worldwide Distributed Drinking Water New technology company/Low 0 EOF Ongoing Technical assistance to provide safe drinking water on a Purification - Tsunami Relief income households in rural and sustainable basis for at least 100,000 Sri Lankan tsunami peri--urban areas survivors in temporary shelters and private institutions, such as schools and orphanages, where temporary water provision measures are inadequate or cannot be sustained. EOF helped obtain $250,00 from the US Trade and Development Agency (USTDA) to complete the funding package. India SFMF Competitive Business Advantage Financial Institutions 91,744 SFMF Ongoing The objective of the project is to establish a local partnership in India Partnership Development India to deliver the Competitive Business Advantage workshops. Pakistan SFMF Competitive Business Advantage Financial Institutions 50,000 SFMF Pipeline Competitive Business Advantage workshop to be held in Lahore Lahore using external consultants Europe and Central Asia Georgia, Caucasus, BTC Capacity Building for Local NGO NGOs , civil society and the public 291,115 CCF Ongoing To build the capacity of local NGOs and other civil society groups Azerbaijan Monitoring so they can (i) provide better and more effective monitoring of the BTC pipeline construction (ii) work with the sponsor to deliver broader developmental benefits from the project Sustainable Business Assistance Program Portfolio as of June 30, 2006 7 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) Kyrgyzstan Kumtor Snow Leopard Conservation Local communities 153,816 CCF Ongoing To improve the management of the protected area via capacity and Biodiversity Project building activities and community-based activities intended to promote linkages between the sustainable development of surrounding local communities and the conservation of the area's biodiversity. Russia Capacity Building for civil society and Communities, NGOs and local 36,000 CCF Completed To support a series of capacity building workshops and a government around an Aluminum government stakeholders stakeholder forum so that NGOs and other stakeholders are better Project able to engage with an IFC sponsor on project and development issues. Russia Sustainable Forest Management (SFM) Local community 29,115 CCF Completed To demonstrate the value that SFM could bring to the Russian forestry sector, both through enhanced supply chain quality and fidelity and improved access to increasingly discriminating buyer markets. Serbia, Bosnia Herbal Development Initiative Herbal sector, collectors and rural 49,000 CCF Completed To work with IFC Southeast Europe Enterprise Development Herzegovina poor (SEED) office to develop an environmentally and socially sustainable herbal sector in the Balkans. Georgia, Caucasus, BTC Multistakeholder Forum (MSF) BTC stakeholders 72,500 CCF Completed To support a series of meetings that will address macro Azerbaijan development issues (revenue management, economic development, regional protected areas, etc.) for the BTC pipeline. Serbia, Bosnia Herbal Development Initiative 2 Herbal sector, collectors and rural 92,500 CCF Completed To develop herbal associations that aim to promote environmental Herzegovina poor and social sustainability -as well as economic development opportunities- for rural SMEs and herbal collectors, and identify opportunities to create specific value added markets for organic or fair trade product lines. Turkey Turkey Market Assessment of Waste Several IFC clients based in 95,457 EOF Ongoing Market assessment to identify business opportunities for IFC/EOF Recycling Sector Turkey and the wider private sector in the waste recycling sector in Turkey. Bosnia-Herzegovina Producer of MedicinalHherbs and Small Bosnian company with 71,750 EOF Ongoing Reimbursable grant to a Bosnian producer of organic, fair trade Health Products innovative organic agriculture medicinal herbs and health products derived from traditional products recipes. Serbia Tyre and Rubber Waste Recycling Recycling company 32,040 EOF Ongoing Technical assistance to assess market for recycled rubber Project products. Turkey Industrial used oil recycling Oil recycling start-up company 2,000,000 EOF Pipeline Project consists of an investment in the first used oil recycling facility in Turkey. Georgia SFMF Competitive Business Advantage Financial Institutions 45,603 SFMF Pipeline Following the succesful CBA workshop in Russia, there is a Russia and Georgia 07 demand for a workshop in Tblisi, Georgia. Global SFMF Business Drivers Central Europe Financial Institutions 72,324 SFMF Completed IFC commissioned Pricewaterhouse Coopers to research and prepare a report on the key sustainability drivers affecting business and industry in a number of EU accession countries. The report included analysis and discussion of the corresponding risks/opportunities for the financial sector. Sustainable Business Assistance Program Portfolio as of June 30, 2006 8 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) Hungary SFMF Erste Bank Financial Institutions 8,500 SFMF Completed SFMF's grant assisted Erste Bank to successfully develop and market new energy efficiency financing products in Hungary. The project was managed by IFC's Hungary Energy Efficiency Co- financing Program project office in Budapest. Hungary SFMF Competitive Business Advantage Financial Institutions 48,603 SFMF Pipeline Competitive Business Advantage Workshop planned and early Workshop Hungary/INEM 07 discussions with potential partner; INEM. Latin America and Caribbean Guatemala Community Development Around Gold Local community 98,920 CCF Ongoing To work with company's foundation to establish community-run Mine tree nurseries to supply mine reforestation needs. Bolivia Sustainable Electricity Local community 40,000 CCF Ongoing To enhance stakeholder engagement efforts by a privatized utility in Bolivia. Brazil Better Management Practices - Amaggi Amaggi, Fundacao Mato Grosso, 77,126 CCF Ongoing To build and strengthen the foundations for a sustainable soy II local communities certification system in Brazil, through a private sector-NGO initiative to disseminate a preliminary set of soy Better Management Practices and environmental education in the state of Mato Grosso. Colombia CCF Petrotesting Local community, IFC clients 70,000 CCF Ongoing The overall goal is to support Petrotesting, a local Colombian oil and gas company, in achieving environmental and social best practice. The project objective is to assist the company in writing and publishing its first sustainability / CSR report. Regional LAC Business to Business general manufacturing companies 24,113 CCF Completed To finance a workshop for IFC's general manufacturing clients in Sustainability Workshop Latin and Central America. The partnering of "enthusiastic" sponsors with those who have already adopted some sustainable practices in their operations has proved a significant and powerful agent for change in IFC's client base. Ecuador Environmental and Labor Aspects of Small bana suppliers 77,174 CCF Completed To work with an IFC client in Ecuador to improve social equity and Supply Chains in the Banana Industry environmental sustainability throughout the company's supply chains. Reducing poverty and ensuring continued access to international markets for many rural communities. Mexico Enhancing Environmental Performance Municipality and end users 47,181 CCF Completed To strengthen the environmental and social development in the Mexican Waste Sector components of the waste water management program for a Mexican municipality. Particular attention will be paid to the development of a sustainable waste management plan for the region. Peru ICMM/IUCN Forum Mining company 4,245 CCF Completed To sponsor mining junior's participation in ICMM/IUCN conference on biodiversity best practices. Brazil Soy Stakeholder Dialog and Soy farmers and the environment 24,150 CCF Completed To support the development of consultation and dialogue between Development of Better Management an IFC soy sponsor and NGOs in relation to soy production in the Practices Cerrado. Sustainable Business Assistance Program Portfolio as of June 30, 2006 9 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) El Salvador CSR and Business Development Retailers & Students 25,210 CCF Completed 'To work with the SME dept and a El Salvadorean business school Support for Retailers in El Salvador to enhance the ability of the school to deliver training in the business case for sustainability with students and to support intern and business mentoring placements that address gender, equity and base of the pyramid type opportunities Brazil Aracruz Aracruz, local communities 16,062 CCF Completed To strengthen the Brazilian forest certification program to the point where it is fully international best practice with respect to forest certification standards. Ecuador Facilitating Labor Relations Field workers 6,860 CCF Completed To facilitate a meeting between trade union organizers and management, to discuss possibility of unions on plantations. Regional Indigenous Peoples Business Summit Indigenous Peoples 14,658 CCF Completed To support a Canadian indigenous leader in laying the groundwork for an indigenous Business Conference associated with the Fourth Summit of the Americas. Colombia CP TA for Sugar Company Major sugar company/Sugar 16,898 EOF Completed Cleaner Production grant for external wastewater treatment industry cluster specialists to execute a holistic review of the existing wastewater system to identify cost-effective design improvements for two sugar mills in Colombia. Jamaica Extending Marketing Reach of Mariculture farm 50,949 EOF Completed Grant to cover the costs of a market feasibility study for an early Sustainable Mariculture Conch Farm stage mariculture company in the Caribbean that has developed a proprietary technology to commercially raise Queen Conch. Mexico Grant to Install New Water Recovery Lime manufacturer 41,404 EOF Completed Grant to pilot a new water recovery technology in a leading Technology mineral lime producer facility in Mexico which is an IFC client. Brazil Exploring Non-timber Revenue Streams Major forestry company 136,984 EOF Ongoing Grant to an FSC certified forest products company to develop new from Sustainable Forestry revenue streams from its timber and land holdings in Brazil. Mexico CP Grant to trial-test Compressed Gas company 61,520 EOF Ongoing Grant to support trial operation of two CNG buses to reduce Natural Gas Commuter Buses in the emissions of pollutants and greenhouse gases from buses in the City of Mexico City of Mexico. Ecuador Cleaner Production Project with Pork Fully integrated poultry and pork 133,831 EOF Ongoing Reimbursable grant to partially finance comprehensive energy and Poultry Processor processor audit. Peru Cleaner Production Project with Agro- Agribusiness client of IFC 300,000 EOF Pipeline Reimbursable grant to partially finance an agro-industry's Cleaner industrial Company Production Program with the objective to minimize water consumption and wastewater effluents. Brazil SFMF FGV Competitive Business Financial Institutions 17,000 SFMF Completed Competitive Business Advantage workshops in Brazil, and building Advantage local capacity with FGV. Brazil SFMF FGV Conference Financial Institutions 39,665 SFMF Completed Sustainable finance conference in Sao Paulo organized in association with FGV Sustainable Business Assistance Program Portfolio as of June 30, 2006 10 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) Brazil SFMF Bovespa Sustainability Index SRI investors 87,500 SFMF Completed SFMF, in conjunction with FGV, assisted the Sao Paolo stock exchange, Bovespa, to design and launch a new 'Sustainability Index' of publicy-listed Brazilian companies that meet high standards of corporate governance and environmental and social performance. The index was launched in 2006 and early results are promising with the sustainability index gains greater than those on the main bourse. Brazil SFMF FGV Competitive Business Financial Institutions 231,000 SFMF Ongoing The objective of this partnership with Fundacao Getulio Vargas will Advantage Conference Forum promote and develop an international network of sustainable finance players in developing countries and create a forum that will bring together regional institutions to examine sustainabl Colombia SFMF Competitive Business Advantage Financial Institutions 50,746 SFMF Ongoing The objective of the project is to deliver the Competitive Business Medellin SECO Cleaner Production Advantage workshop in Medellin, Colombia to support the Green Credit Line from the Swiss State Secretariat for Economic Affairs (SECO). Costa Rica SFMF Competitive Business Financial Institutions 93,000 SFMF Pipeline Roll-out of Competitive Business Advantage course in LAC (apart Advantage LAC from Brazil) in association with INCAE business school, Costa Rica. Global SFMF LAC SRI Association 07 SRI investors 100,000 SFMF Pipeline Support for the LAC social investment forum. Peru SFMF ASBANC Awareness raising and Financial Institutions 67,000 SFMF Ongoing Long-term awareness raising and training program with Peruvian long term capacity building Bankers Association Trinidad and Tobago SFMF Competitive Business Advantage Financial Institutions 36,600 SFMF Pipeline Competitive Business Advantage for FIs in Trinidad. Trinidad 07 United States SFMF Competitive Business Advantage Financial Institutions 39,000 SFMF Completed Competitive Business Advantage workshop for LAC region. Miami May 2005 Middle East and North Africa United Arab Emirates CCF Dana Gas IFC client, local community 62,000 CCF Ongoing To provide advisory services on CSR to a natural gas company in UAE as part of a Corporate Advisory Services project. Pakistan CP TA for Textile Company Textile company/Textile 26,219 EOF Completed Cleaner Production grant to pay for a comprehensive review of a manufacturing cluster textile factory's water use in Pakistan in order to identify cost- effective improvements and novel implementation options, such as out-sourcing wastewater treatment to a reputable service provider. Jordan Water Recycling for Industrial Park Owner of industrial park and its 1,000,000 EOF Pipeline Investment in a pilot water recycling facility in a qualified industrial tenants zone in Jordan. Egypt, Arab Rep SFMF Egyptian FI Training Financial Institutions 0 SFMF Completed SFMF delivered a week-long training course to Egyptian FIs and other organizations involved in a US AID environmental financing project in Egypt, on behalf of US AID. Egypt, Arab Rep SFMF Union of Arab Bankers Support Financial Institutions 32,625 SFMF Ongoing Financial and technical support to UAB, to disseminate information in Arabic on sustainable finance to the large membership. Sustainable Business Assistance Program Portfolio as of June 30, 2006 11 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) Egypt, Arab Rep SFMF METAP Financial Institutions 198,295 SFMF Ongoing Collaboration with World Bank METAP program concerning banker training on sustainability related issues, and the development of financial sector environmental/social guidelines for Egypt and Morocco. Jordan SFMF Competitive Business Financial Institutions 80,000 SFMF Ongoing Through the development of a partnership with the Arab Academy Advantage: Arab Academy Business for Banking and Financial Sciences, SFMF plans to hold Finance Sciences sustainable finance awareness raising events across the Middle East, to be followed by CBA workshops. Global Global Biodiversity Good Practice Guide Private sector companies and 292,448 CCF Ongoing To work with IFC clients to develop a practical guide for natural resources businesses in emerging markets who wish to understand and incorporate biodiversity in their operations. This guide will be the fourth publication in the "good practice" series. Global Better Management Practices 2 Agribusiness commodity 74,720 CCF Ongoing To work with WWF and other stakeholders to identify production producers, processors, retailers and processing practices for cotton, sugar, soy, and other and financiers commodities that enhance the environmental, social and labor impacts and generate better busines prospects through enhanced acces to markest and capital Global Human Rights Impact Assessment Private sector companies 135,562 CCF Ongoing To develop an introductory guide to human rights impact assessment for use across sectors by companies in the field. Global CCF Better Work Communities, local businesses 350,000 CCF Ongoing The objective of the Better Work Program is to improve, in partnership with the International Labor Organization (ILO), the working conditions in global supply chains in various industries including garment/footwear, plantations, electronic equipment and light manufacturing. Global Tourism and Poverty Reduction 'How Tourism industry and local 150,000 CCF Pipeline To develop a manual of good practice that a typical hotel can put To' Manual communities into action, including measures for systematic networking with the local economy and for inclusion of the local population that is beneficial for the hotel and the local community. Global Better Management Practices Agribusiness commodity buyers, 238,032 CCF Completed To work with agribusiness commodity buyer/producers and banks producers, end users that invest in agribusiness commodities to develop better management practices (BMPs) which can be used as investment screens. Global Humane Treatment of Livestock Agribusiness livestock companies 36,700 CCF Completed To work with IFC's agribusiness department to develop and test principles and good practice materials that would guide IFC livestock sponsors in the implementation of livestock welfare guidelines. Global Animal Welfare Good Practices Note Livestock Sponsors and Wider 15,000 CCF Completed To draft and produce a Good Practice Note on animal welfare for (GPN) Livestock Sector IFC livestock clients and the private sector generally. Sustainable Business Assistance Program Portfolio as of June 30, 2006 12 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) Global OLAM - SFM Sustainable Commodities Stakeholder, Local Communities 4,026 CCF Completed The project will build on work already undertaken between CCF and Olam to engage more broadly with the company on ways in which their trading systems and contracts globally can be further developed to address sustainability and fair trade opportunities where practical. Global Indigenous Peoples & Impact Indigenous Peoples and 14,384 CCF Completed To provide a technical forum for Indigenous Peoples leaders, Assessment Communities practitioners of impact assessment and other stakeholders to discuss, exchange and share successes and failures of experiences with Indigenous Peoples and impact assessment. Global Worldwide Distributed Drinking Water New technology company/Low 74,717 EOF Completed Initial technical assistance grant (convertible into equity) in order Purification income households in rural and to refine business plan prior to an equity investment in a peri--urban areas distributed, potable water service provider targeting emerging markets and using an innovative ultra-violet (UV) technology platform. Global Cleaner Production Initiative to promote Various industries 300,000 EOF Ongoing Reimbursable grants to IFC clients to undertake energy, water and CP uptake among IFC clients raw material audits to promote cleaner production initiatives. EOF has obtained US$200,000 from Bavaria to help execute this program. Global SFMF/SII/SRI in the Rockies SRI investors 21,189 SFMF Completed SFMF funded an emerging markets panel discussion at North Conference America's foremost annual SRI conference. Project was successful in raising awareness of key SRI investors and fund managers, and will feed into SFMF's broader SRI strategy. Global SFMF Webside Financial Institutions 25,705 SFMF Completed Development of a web-based information portal on sustainability Development/Newsletter issues and resources for emerging market FIs. Global SFMF Emerging Market SRI Inventory SRI investors 69,650 SFMF Completed Research into current market and future potential for socially responsible investment (SRI) in developing country listed equities, assessing investor appetite, key barriers/incentives, existing research infrastructure. Report has been widely distributed and well received in the market. Global SFMF Aureos Private Equity fund managers 594 SFMF Completed 1-day sustainability training course at the annual conference of Aureos fund management subsidiaries and investors. Global SFMF Global Compact Coordination Global Knowledge building 73,180 SFMF Ongoing The project comprises an investor summit to be co-hosted by IFC, the Swiss Government and the UN Global Compact in Zurich on August 25th, 2005. The purpose of the summit is plan new action within the international investment community on mainstreaming SRI. Global SFMF Emerging Market Sustainable Financial Institutions 100,000 SFMF Ongoing The project consists of a sustainable finance awareness-raising Finance Summit 2006 and engagement program with leading members of the 'mainstream' international and emerging market investment community, consistent with the "SRI White Paper" presented to IFC senior management. Sustainable Business Assistance Program Portfolio as of June 30, 2006 13 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) Global SFMF Financial Institution Market Financial Institutions 120,000 SFMF Ongoing An evaluation of the Competitive Business Advantage workshop Research participants' sustainability experiences, together with other research leading to the production of a best practice publication. The book; "Banking on Sustainability", to be released in October 2006, will not only showcase best practice, but highlight sustainability related products and services of highest priority to emerging market FIs. Global SFMF Building a Network of Regional Financial Institutions 137,335 SFMF Ongoing The creation and development of the network of regional providers Service Providers will strengthen the capacity building process and increase the efficiency of the regional partners to deliver sustainability related products and services in order to further integrate sustainable practices in FIs Global SFMF DFID Eco-securities Research SRI investors 175,000 SFMF Ongoing Market research and product development focusing on the and Development potential to use asset-backed securitization to promote sustainable & responsible institutional investment in the emerging market forest resources Global SFMF EHSS CD-ROM Financial Institutions 206,235 SFMF Completed Following on from initial market research undertaken in FY03, SFMF has developed a multi-media training aide and reference tool for use by emerging market Fis, "ESAT". The product will supply FIs with a high quality, comprehensive and user-friendly reference to assess risk and identify opportunity while assessing SMEs. Copies are being distributed to all participants in the CBA workshop program Global SFMF Sustainable Private Equity Private Equity fund managers 207,360 SFMF Ongoing Case studies on the role of social and environmental performance in adding shareholder value to companies in the portfolios of IFC's private equity funds were developed. The aim is to illustrate how fund managers can incorporate sustainability into their portfolio companies. The reprots will be distributed in September 2006. Global SFMF Aureos Private Equity Private Equity fund managers 250,000 SFMF Ongoing This highly innovative project will work with Aureos fund managers to channel technical and financial assistance to Aureos investee SMEs, to carry out environmental and social improvement projects. This will improve the business operations of the SME and assist in promoting and facilitating E&S improvements, by demonstrating the business case. The program will be focussed initially in Africa. Global SFMF Sustainability Research Initiative SRI investors 527,220 SFMF Ongoing SFMF will provide a grant to support organizations that provide (on Emerging Market Public Listed sustainable investment equity research, rating and other relevant Companies) professional services in the emerging markets. The aim is to stimulate more sustainable investment in emerging market listed companies. Global SFMF Competitive Business Advantage Financial Institutions 50,000 SFMF Pipeline To ensure Competitive Business Advantage material is Update II '07 responding to market demands, the modules will be reviewed and updated. Global SFMF Competitive Business Advantage Financial Institutions 54,600 SFMF Pipeline Create an alumni network for past Competitive Business Alumni 07 Advantage participants to enhance best practices and communication. Sustainable Business Assistance Program Portfolio as of June 30, 2006 14 Country Project Name Beneficiary/Target audience Net funding Facility Status Project Description (USD) Global SFMF Private Equity fund manager Private Equity fund managers 100,000 SFMF Pipeline Roll out of new training program for Fis and fund managers. training roll out Global SFMF investment innovation SRI investors 200,000 SFMF Pipeline Testing investment strategies for performance using historical stock data. Research into asset backed securities, credit deriviatives, market research, etc. Global SFMF Micro Training Financial Institutions 50,000 SFMF Pipeline Environmental and social management training for microfinance institutions Sustainable Business Assistance Program Portfolio as of June 30, 2006 15 Annex 2 Financial Report Sustainable Business Assistance Program As of June 30, 2006 Donor Funding Status - Consolidated (USD) Cycle Plan Committed Received Other Donors 45,000,000 22,177,991 18,989,989 IFC 10,000,000 10,000,000 6,655,428 Total 55,000,000 32,177,991 25,645,417 Donor Contributions Receipts: FY03 FY04 FY05 FY06 FY07 Cycle Netherlands 2,656,411 2,841,666 3,167,780 2,438,660 - 11,104,517 Norway 400,000 550,000 550,000 400,000 - 1,900,000 Switzerland 750,000 - 750,000 - - 1,500,000 Italy - 1,500,000 - - - 1,500,000 Austria - 1,184,300 - - - 1,184,300 Luxembourg - - 394,800 250,000 - 644,800 New Zealand - - 197,700 - - 197,700 Denmark - - 784,782 - - 784,782 UK - - - 173,890 - 173,890 IFC 1,786,292 - 3,120,000 1,749,136 - 6,655,428 Total 5,592,703 6,075,966 8,965,062 5,011,686 - 25,645,417 Donors Commitments: FY03 FY04 FY05 FY06 FY07 Cycle Netherlands 2,656,411 2,841,666 3,167,782 2,438,660 1,640,000 12,744,519 Norway 400,000 550,000 550,000 800,000 800,000 3,100,000 Switzerland 750,000 - 750,000 - - 1,500,000 Italy - 1,500,000 - - - 1,500,000 Austria - 1,184,300 - - - 1,184,300 Luxembourg - - 394,800 250,000 - 644,800 New Zealand - - 197,700 - - 197,700 Denmark - - 784,782 - - 784,782 UK 173,890 348,000 521,890 IFC 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000 Total 5,806,411 8,075,966 7,845,064 5,662,550 4,788,000 32,177,991 Donor Funding Status - By Facility (USD) As of 30-Jun-06 CCF Expected Committed Received Other Donors 12,500,000 5,736,877 4,869,876 IFC 2,500,000 2,500,000 1,731,626 Total 15,000,000 8,236,877 6,601,502 Donor Receipts: FY03 FY04 FY05 FY06 FY07 Cycle Netherlands 774,875 824,083 918,656 708,482 - 3,226,096 Norway 100,000 150,000 150,000 125,000 525,000 Italy - 500,000 - - - 500,000 Luxembourg - - 171,080 250,000 - 421,080 New Zealand - - 197,700 - - 197,700 IFC 286,292 - 920,000 525,334 - 1,731,626 1,161,167 1,474,083 2,357,436 1,608,816 - 6,601,502 Donor Commitments: FY03 FY04 FY05 FY06 FY07 Cycle Netherlands 774,875 824,083 918,657 708,482 492,000 3,718,097 Norway 100,000 150,000 150,000 250,000 250,000 900,000 Italy - 500,000 - - - 500,000 Luxembourg - - 171,080 250,000 421,080 New Zealand - - 197,700 - - 197,700 IFC 500,000 500,000 500,000 500,000 500,000 2,500,000 1,374,875 1,974,083 1,937,437 1,708,482 1,242,000 8,236,877 SFMF Expected Committed Received Other Donors 12,500,000 7,463,707 6,323,706 IFC FMTAAS 2,500,000 2,500,000 2,000,000 Total 15,000,000 9,963,707 8,323,706 Donors Receipts: FY03 FY04 FY05 FY06 FY07 Cycle Netherlands 774,875 824,083 918,656 708,482 - 3,226,096 Norway 200,000 200,000 200,000 100,000 700,000 Switzerland 750,000 - 750,000 - - 1,500,000 Italy - 500,000 - - - 500,000 Luxembourg - - 223,720 - - 223,720 UK 173,890 173,890 IFC 500,000 - 1,000,000 500,000 - 2,000,000 2,224,875 1,524,083 3,092,376 1,482,372 - 8,323,706 Donors Commitments: FY03 FY04 FY05 FY06 FY07 Cycle Netherlands 774,875 824,083 918,657 708,482 492,000 3,718,097 Norway 200,000 200,000 200,000 200,000 200,000 1,000,000 Switzerland 750,000 - 750,000 - - 1,500,000 Italy - 500,000 - - - 500,000 Luxembourg - - 223,720 - - 223,720 UK 173,890 348,000 521,890 IFC 500,000 500,000 500,000 500,000 500,000 2,500,000 Total 2,224,875 2,024,083 2,592,377 1,582,372 1,540,000 9,963,707 EOF Expected Committed Received Other Donors 20,000,000 8,977,407 7,796,407 IFC FMTAAS 5,000,000 5,000,000 2,923,802 Total 25,000,000 13,977,407 10,720,209 Donors Receipts: FY03 FY04 FY05 FY06 FY07 Cycle Netherlands 1,106,661 1,193,500 1,330,468 1,021,696 - 4,652,325 Norway 100,000 200,000 200,000 175,000 675,000 Italy - 500,000 - - - 500,000 Austria - 1,184,300 - - - 1,184,300 Denmark - - 784,782 - - 784,782 IFC FMTAAS 1,000,000 - 1,200,000 723,802 - 2,923,802 2,206,661 3,077,800 3,515,250 1,920,498 - 10,720,209 Donors Commitments: FY03 FY04 FY05 FY06 FY07 Cycle Netherlands 1,106,661 1,193,500 1,330,468 1,021,696 656,000 5,308,325 Norway 100,000 200,000 200,000 350,000 350,000 1,200,000 Italy - 500,000 - - - 500,000 Austria - 1,184,300 - - - 1,184,300 Denmark - - 784,782 - - 784,782 IFC 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 2,206,661 4,077,800 3,315,250 2,371,696 2,006,000 13,977,407 Note: EOF also manages a $250,000 TA project funded by the United States Trade and Development Agency. These funds are not reflected in the above statements as they do not transit through SBAP trust fund accounts. Cumulative Funding and Expenditures (FY03-FY06) (USD) Donor Funds Trust Fund Funding Carried Received Interest Income Cost Recovery Total Expenses Forward to FY07 CCF FY03 1,161,167 19,190 7,437 (477,275) FY04 1,474,083 15,307 - (895,407) FY05 2,357,436 47,826 (1,237,126) FY06 1,608,816 66,498 7,480 (1,802,741) Cumulative 6,601,502 148,821 14,917 (4,412,549) 2,352,691 SFMF FY03 2,224,875 32,402 43,520 (673,131) FY04 1,524,083 32,156 76,124 (1,464,625) FY05 3,092,376 62,243 81,398 (2,241,372) FY06 1,482,372 66,344 18,039 (2,347,608) Cumulative 8,323,706 193,145 219,081 (6,726,736) 2,009,197 EOF FY03 2,206,661 47,458 - (472,450) FY04 3,077,800 40,354 - (1,201,629) FY05 3,515,250 96,572 20,000 (2,483,379) FY06 1,920,498 136,409 30,000 (2,613,319) Cumulative 10,720,209 320,793 50,000 (6,770,777) 4,320,225 SBAP FY03 5,592,703 99,050 50,957 (1,622,856) FY04 6,075,966 87,817 76,124 (3,561,661) FY05 8,965,062 206,641 101,398 (5,961,877) FY06 5,011,686 269,251 55,519 (6,763,669) Cumulative 25,645,417 662,759 283,998 (17,910,063) 8,682,112