THE WORLD BANK
Mongolia
Korea
Cambodia
Palau
Micronesia
Marshall Islands
Papua
New Guinea
Solomon
Islands
Vanuatu
Samoa
Kiribati
Australia
New Zealand
FISCAL YEAR
2010-2011
ANNUAL REPORT
OFFICE OF THE EXECUTIVE DIRECTOR
Tuvalu
ABBREVIATIONS AND ACRONYMS
ADB Asian Development Bank
AED Alternate Executive Director
CAS Country Assistance Strategy
CIN Constituency Information Notes
CODE Committee on Development Effectiveness
CRW Crisis Response Window
DSA Debt Sustainability Analysis
DWG Development Working Group
FCS Fragile and Conflict-affected States
FIF Financial Intermediary Funds
FSM Federated States of Micronesia
FY Fiscal Year
G8 Group of 8
G20 Group of 20
GAFSP Global Agriculture and Food Security Program
GCF Green Climate Fund
IoC Instrument of Commitment
IBRD International Bank for Reconstruction and Development
IDA International Development Association
IDA16 International Development Association/16
th
Replenishment by IDA Donors
IEG Independent Evaluation Group
IFC International Finance Corporation
IMF International Monetary Fund
IT Information Technology
LLP Loan Loss Provision
MAP Mutual Assessment Process
MDRI Multilateral Debt Relief Initiative
MTSF Medium-Term Strategy and Finance
MTFS Medium-Term Fiscal Strategy
NGO Non-Government Organizations
ODA Official Development Assistance
PACT Partnership & Capacity Building Trust Fund
PICs Pacific Island Countries
RMI Republic of Marshall Islands
SABER System Assessment and Benchmarking for Education Results
SAW Strategy for Agriculture and Water
SDR Statutory Drawing Rights
TFs Trust Funds
UN United Nations
UNFCCC United Nations Framework Convention on Climate Change
VSP Voice Secondment Program
WB World Bank
WBG World Bank Group
WDR World Development Report
All monies expressed in US$ unless indicated otherwise
FY11 – refers to 1 July 2010-30 June 2011
WORLD BANK – EAST ASIA / PACIFIC CONSTITUENCY
OFFICE ANNUAL REPORT FY11
CONTENTS
EXECUTIVE SUMMARY
Issues of Special Interest to our
Constituency Office.......................................................................... i
Bank Group Strategy and Leadership...... ........................................................................................... ii
Operational and Strategy Issues...... ................................................................................................... ii
CONSTITUENCY OFFICE MATTERS
Travel .......................................................................................................................................... .......1
Communications... .............................................................................................................................. 1
Meetings with Government, Parliamentary, and Non-Government Delegations... ............................ 1
New Constituency Member Tuvalu... ................................................................................................. 1
Office Staffing .................................................................................................................................... 2
Constituency Representation Rotational Agreement ..................................................................... .... 2
POLICY ISSUES OF SPECIAL INTEREST TO OUR CONSTITUENCY
Voice Secondment Program........ ....................................................................................................... 3
Small States ........................................................................................................................................ 3
World Development Report 2011: Conflict, Security, and Development .......................................... 4
World Development Report 2012: Gender Equality and Development ............................................. 4
Global Agriculture and Food Security Program (GAFSP) Update .................................................... 5
Donors Official Pledges to GASP Fund ............................................................................................. 6
Individual Executive Directors’ Budget...... ....................................................................................... 8
BANK GROUP STRATEGY AND LEADERSHIP
Climate Change........ .......................................................................................................................... 9
Medium-Term Strategic and Financial Framework....... .................................................................... 9
G20 Update: Seoul Outcome and Next Steps... ................................................................................ 10
OPERATIONAL AND STRATEGY ISSUES
Education Strategy..... ...................................................................................................................... 11
Trade Strategy...... ........................................................................................................................... .11
IFC 2013 Implementation Update.... ................................................................................................ 12
IFC 2013 Change Initiative.. ............................................................................................................ 12
DEVELOPMENT EFFECTIVENESS AND RESULTS
A Focus on Results...... .................................................................................................................... .14
IEG Results and Performance Report 2011...... ................................................................................ 14
FUNDING DEVELOPMENTS
IBRD Finances........ ......................................................................................................................... 16
IDA15 Updates........ ......................................................................................................................... 16
IDA16 Replenishment..... ................................................................................................................. 17
Trust Fund Reform........ ................................................................................................................... 18
Trust Fund Portfolio ......................................................................................................................... 18
Update on Reform of Trust Fund Management ................................................................................ 18
Reform Roadmap........ ..................................................................................................................... 19
ANNEXES
Annex 1. Constituency Country Developments..... .......................................................................... 20
Annex 2. WBG-Financed Projects to June 30, 2011 ........................................................................ 23
Annex 3. Governors’ Resolutions .................................................................................................... 24
Annex 4. FY11 – Office Work Summary Results... ......................................................................... 25
Annex 5. Consultations with Constituents in FY11..... .................................................................... 26
Annex 6. Visits by Official Country Delegations and NGO’s ......................................................... 27
Annex 7. World Bank Constituency Rotational Agreement 2013-2024 .......................................... 28
EXECUTIVE SUMMARY
During the Fiscal Year 2011 (FY11) the constituency office continued work to push for
improvements in the World Bank Group’s (WBG) development effectiveness and overall
operational performance; to represent our members’ interests at the Board and with World Bank
staff; and, to assist our constituency members with their overall relationship with the WBG.
The constituency office experienced high turnover of staff in FY11 from Alternate Executive
Director to Advisors, but remained fully staffed throughout. One of the year’s milestones was the
agreement by constituency Governors to a new agreement covering constituency representation
arrangements (attached as Annex 7), to begin when the existing arrangements expire at the end
of 2013.
Members of the office visited most constituency countries during FY11, supplemented by
consultations by the Executive Director, Dr. Jim Hagan, during the IMF/WB Annual Meetings
and the ADB Annual Meetings. The office has continued its practice of issuing quarterly updates
and ad hoc Constituency Information Notes (CINs) on topics of particular interest.
Issues of Special Interest to our Constituency Office
The constituency office continued its support for the Voice Secondment Program (VSP) for
developing country officials. Unfortunately, due to a diminished funding profile and increased
competition, no constituency country was able to participate in the program this year. The office
is continuing its efforts to seek a more sustainable long-term funding profile for the program, and
hopes that a constituency member will be able to participate in the FY12 program.
The office continued work to raise the profile of Small States Issues and the development
challenges they face at the Board and with World Bank Management. The Bank has undertaken
to develop individual Country Assistance Strategies for the Pacific Island Countries and, in
FY11, developed the first joint IFC and World Bank Country Assistance Strategy for Kiribati.
The office was actively engaged in discussions surrounding the 2011 and 2012 World
Development Reports, on Conflict, Security and Development (2011 WDR), and on Gender
Equality and Development (2012 WDR). This office has emphasized the importance of these
WDRs for the direction and operations for the Bank Group, and has joined other EDs in
encouraging the Bank to fully implement the WDR policy insights within the Bank Group.
Bank Group Strategy and Leadership
The office continued to follow the developments in the World Bank’s strategies for Climate
Change and its implications for constituency member countries.
The World Bank has stepped up its support to the United Nations Framework Convention on
Climate Change (UNFCCC) Secretariat and the UNFCCC itself, and has taken on the role of
Interim Trustee for the new Green Climate Fund (GCF).
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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ii
Within the constituency, climate change is of particular interest to Pacific Island members. This
office was pleased to see the development of the Samoan Strategic Program for Climate Change
Resilience as an important innovation in integrating and co-ordinating efforts to mitigate the
effects of climate change.
Our office has actively supported Korea’s effort to better reflect development issues on the G20
agenda in close collaboration with the WBG. As part of our efforts, we facilitated the successful
hosting of the Korea-WB High Level Development Conference in Busan, Korea in June 2010
which provided the ground work for the development agenda setting for the G20 Seoul Summit.
We also supported various G20 outreach activities to enhance communication with non-G20
countries.
Operational and Strategy Issues
This office has been closely involved in the development of a World Bank Energy Strategy,
which has not been straightforward. At the Committee on Development Effectiveness discussion
of April 11, 2011, there were strong disagreements on a range of issues, including the role of the
World Bank in financing greenfield coal power stations. Management indicated an unwillingness
to proceed to further develop the strategy until there was clearer guidance and consensus at the
Board level on how to proceed. Our office has initiated a series of off-line consultations among
Board members to explore alternative text and identify potential room for a consensus.
The WBG launched its ten-year Education Strategy in April 2011. The strategy focuses on
“learning for all” and investing early, investing smartly, and investing for all. Our office, in
conjunction with other Executive Directors, reemphasized that education - investing in people -
is key to reducing poverty and achieving sustainable growth. We also encouraged Management
to strengthen collaboration with the other development partners in the area of education.
Our office had closely engaged in preparing the World Bank’s Trade Strategy. While we
welcomed the priority areas as relevant to the needs of small states, we emphasized that
improvement of trade corridors should not be restricted only to land corridors and should also
include sea corridors. We cautioned that the Trade Council must not become another
bureaucratic layer of process that could slow down country-driven processes and weaken the
World Bank’s support to countries’ own initiatives and its use of country systems.
The IFC 2013 Strategy continued to be implemented and will enhance the IFC’s development
impact in a financially sustainable way, including through an improved delivery model. This
change process includes responding to an increasing number of local and regional clients;
demand for a greater focus on IDA countries and other frontier markets; moving from a
“transaction-driven” organization to one focused on development impact; and shifting from a
focus on Project Finance to a focus on Corporate Finance products.
In 2011, the WB produced its first Corporate Scorecard and the Independent Evaluation Group
produced its 2011 WBG-wide Results and Performance report. These report on recent
performance of the WBG and are summarized below under Development Effectiveness and
Results.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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1
CONSTITUENCY OFFICE MATTERS
During FY11, the constituency office continued its efforts to push for improvements to the
WBG’s development effectiveness and operational performance; to represent the interests of our
constituency members at the Board and with Bank staff; and, to assist our constituency members
in their overall relationship with the WBG.
Travel
During FY11, most of the constituency countries were visited, and the Executive Director, Dr.
Hagan, had the opportunity to consult with all authorities during the IMF/WBG Annual Meetings
in Washington, DC as well as during the ADB Annual Meetings held in Hanoi, Vietnam. As in
past years, Dr. Hagan, given time constraints and Board commitments in his schedule, asked
Senior Advisors and Advisors to travel on his behalf. This practice continues to be beneficial to
staff as they see firsthand the needs and economic constraints of our developing country
members.
Our office also travelled to other countries to attend various meetings, including IDA 16 in
Belgium and the ADB Annual Meetings in Vietnam. Dr. Hagan joined EDs’ Group Travel
programmes to Morocco, Lebanon, and Israel.
Communications
We continued our efforts to improve communications with our constituency members, especially
our developing country members. We reported electronically on Board matters and posted
regular updates on our office website to facilitate engagement with civil society. We continued to
issue Office Newsletters and Constituency Information Notes (CIN). Produced every quarter, the
Office Newsletter summarizes for government officials the key policy developments at the
World Bank and the use of Bank resources, while CINs supplement this with more detailed
information on topics of particular interest to our member countries.
Meetings with Government, Parliamentary, and Non-Government Delegations
It has been a busy year for hosting visitors from capitals and for meeting with NGOs. Among
those we have met this year were Senator Cormann, Australia’s Shadow Assistant Treasurer;
Australia’s Aid Review delegation; numerous AusAID officials; Oxfam staff from Australia and
America; Bank Information Center; Greenpeace Australia Pacific; Results Australia and many
others. See more detail on country delegations in Annex 6.
New Constituency Member - Tuvalu
In FY11, we welcomed Tuvalu as the newest member of our constituency. Tuvalu has similar
socio-economic issues and cultural traditions to a number of our constituency member countries,
and has close bilateral relations with many. We will endeavor to represent Tuvalu’s interest well
at the Board and in all the work we do with Management.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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2
Office Staffing
Our office was fully staffed during FY11 by 12 staff, including the Executive Director, Alternate
Executive Director, two Senior Advisors, five Advisors and three Administrative Assistants.
The office had many staff changes in FY11, including:
- Mr. Manu Momo, from Papua New Guinea, started as Senior Advisor in August 2010.
He replaced Mr. Rick Houenipwela who had left earlier that year;
- Mr. Sopheap Chan, from Cambodia, filled in a vacant position as Advisor, also in August
2010;
- Dr. Robert Christie, from Australia, finished his term as Advisor and was replaced by Ms.
Beth Delaney, also from Australia, in November 2010;
- Ms. Damba Baasankhuu, from Mongolia, finished her term as Advisor and was replaced
by Mr. Enkhbayar Namjildorj, also from Mongolia, in March 2011;
- Ms. Betty Zinner-Toa, from Vanuatu, finished her term as Advisor and was replaced by
Mr. McKinnie Dentana, from Solomon Islands, in April 2011; and
- Mr. Do-Hyeong Kim, from Korea, Alternate Executive Director, finished his term in late
April 2011 and was replaced by Mr. In-Kang Cho, also from Korea, in early May 2011.
Constituency Representation Rotational Agreement
During the October 2010 Annual Meetings, Executive Director, Dr. Hagan, agreed to develop, in
consultation with our member countries, a new agreement for constituency representation
arrangements for the World Bank’s constituency office up to 2024. The current agreement is
coming to an end in 2013. He had several consultations with capitals, both by correspondence
and in person with some, presenting options for possible rotation arrangements by position and
year. The option unanimously agreed upon earlier this year by the Governors is shown in Annex
7.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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3
POLICY ISSUES OF SPECIAL INTEREST TO OUR CONSTITUENCY
Voice Secondment Program (VSP)
Our office continued its support to the Voice Secondment Program (VSP) for developing country
officials. We informed eligible constituency members about developments in this program and
solicited nominations for the program in financial year 2012.
Funding for the program has been reducing since last year, due to the end of a Trust Fund (PACT
- Africa Partnership and Capacity Building Trust Fund), which had supported the program for
the last five years, and due to reductions in the World Bank Human Resources Administrative
Budget. Our office, through the Executive Director, has initiated and convened a working group
of the Executive Directors to find the Voice Secondment Program more sustainable funding.
The diminished funding resulted in a reduced cohort size for the FY11 program. The number of
participants for the FY11 program was reduced to 12 officials from across the Bank’s developing
country members, down from the usual annual cohort of 25. This resulted in much stiffer
competition and, in the process, no official from the developing member countries of this
constituency was able to participate.
Funding for the FY12 program has not increased and there may well be only 12 participants for
the FY12 program. We have received four nominees from our constituency developing member
countries, from Cambodia, Mongolia, Vanuatu and Papua New Guinea. It is likely that we will
only have one participant from these four for the FY12 program.
Small States
The office continues to advocate on Small States’ issues. We continue to draw Board and
Management’s attention to the development challenges in small states and, in particular, the
small Pacific Island Countries (PICs), most of whom are represented by our constituency office.
We have been actively pushing for the WBG to look at the Pacific from a strategic viewpoint.
The WBG Management is now responding and there has been good progress made, including
expanded IFC engagement in PICs. The IFC is now partnering with the private sector to provide
financial services and business lines to the small businesses in the region.
The World Bank has also started to develop individual Country Assistance Strategies (CASs) for
each of the small PICs. This is a positive development; as such strategies should set out the
WBG’s engagement and dialogue with these countries, and should help to deliver good quality
and timely assistance of the type the countries would most value.
In March 2011, Management developed and presented to the Board the first joint World
Bank/IFC Country Assistance Strategy (CAS) for Kiribati. We will continue to encourage the
Bank to develop individual CASs for the remaining PICs and within a clear, firm timeframe.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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4
Also in FY11, the Bank reclassified the Federated States of Micronesia (FSM) and the Republic
of Marshall Islands (RMI) from IBRD countries to IDA-only borrowers. Both countries will now
have access to IDA resources starting in FY12 as per the framework agreed with donors in the
context of the IDA16 Replenishment. The reclassification was in line with the IDA Eligibility
rules for small island economies.
Our office continues to be very active in the preparation of the Pacific Seminar and the Small
States Forum for the 2011 Annual Meetings of the World Bank.
World Development Report 2011: Conflict, Security, and Development
The office was actively engaged in consultations and discussions surrounding the 2011 World
Development Report (WDR) on Conflict, Security and Development (2011 WDR). The 2011
WDR was launched on April 14, 2011, in the margins of the IMF-World Bank Spring Meetings.
The overall message of the 2011 WDR is that organized violence, which disrupts development,
comes in a number of forms and often occurs in repeated cycles. Strengthening national
institutions and governance to provide security, justice and jobs for citizens is crucial to breaking
these cycles. The process of institution building is iterative, must be locally driven and fitted to
local conditions.
Drawing on the findings of the 2011 WDR, World Bank staff prepared “Operationalizing the
2011 World Development Report Conflict, Security and Development” (DC2011-0003), which
was discussed by Governors during the Development Committee Luncheon. This report focused
on the implications of the findings of the WDR. For the World Bank, the WDR calls for a
paradigm shift in the development community’s work on Fragile and Conflict-affected States
(FCS). It requires the Bank to position fragility, conflict and violence at the core of its
development mandate and to significantly adjust its operating model, while remaining within its
established mandate and focusing on development and poverty reduction.
The office assisted in facilitating subsequent regional launches in Solomon Islands, Australia and
New Zealand during May 2011, for which there was positive local feedback and press coverage.
As a first step in operationalizing the 2011 WDR, the World Bank’s new Global Center for
Conflict, Security, and Development began operations in Nairobi, Kenya. The Global Center
will draw staff from both the operations area and the Africa Region. This represents a change in
World Bank approach and aims to place operations support closer to the country teams for
quicker advice and support.
World Development Report 2012: Gender Equality and Development
The office has also been actively engaged in consultations and discussions surrounding the
forthcoming 2012 WDR on Gender Equality and Development. The Executive Director gathered
the signatures of 18 other Executive Directors and wrote to World Bank Management to
encourage them to use the opportunity of the 2012 WDR to shape the international agenda and to
harness the commitment of leaders with respect to advancing gender equality.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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5
The final draft of the 2012 WDR was presented to the Board on July 12, 2011. Our office was
instrumental in preparing a joint statement with 20 other Executive Directors offices that noted
the contribution of the analysis in the report but sought Management action on improving the
communication of the report’s messages and emphasizing the importance of clear and practical
policy recommendations.
The key message coming out of the 2012 WDR is that gender equality matters for development
outcomes and for development policy making. Gender equality is a core development objective
in its own right. It can enhance productivity and improve other development outcomes, including
the prospects for the next generation and the quality of policies and institutions. Gender equality
matters for policy makers because (i) broad-based economic development closes some but not all
gender disparities, and (ii) bringing a gender perspective to policymaking can make other
policies more effective. Corrective policies are needed that focus on gaps, especially those that
persist even as countries get richer, like access to economic opportunities and societal voice.
The 2012 WDR report is scheduled to be launched at the Annual Meetings in September 2011.
As with the 2011 WDR, World Bank Management has prepared a companion piece looking at
the implications of the WDR for country strategies, lending operations and analytical work
within the Bank. This will be presented to Governors as a background paper to the Development
Committee at the 2011 Annual Meetings.
Global Agriculture and Food Security Program (GAFSP) Update
The Global Agriculture and Food Security Program (GAFSP) is a multilateral mechanism to
assist in the implementation of pledges made by the G8 Summit in July 2009. It was set up in
response to a request from the G20 in Pittsburgh in September 2009. The objective is to address
the underfunding of the country and regional agriculture and food security strategic investment
plans that are being developed by countries in consultation with donors and other stakeholders.
This will make aid contributions toward the achievement of the Millennium Development Goal 1
to cut hunger and poverty by half by 2015 more predictable.
The total amount pledged by donors to the GAFSP, equivalent to $925 million, is allocated
between public and private sector windows. The resources received from the donors as of June
15, 2011 are equivalent to $521 million for the public sector window, representing 56 percent of
the total pledge. The following table presents contributions to the GAFSP Trust Fund as of April
30, 2011.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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6
Donors’ official Pledges to GAFSP fund
(as of April 30, 2011)
In millions
Public
Sector
Private Sector
Donor
Currency
Window
Window
Total
USD equal
Australia
AUD
50.0
-
50.0
46.3
Canada
CAD
180.0
50.0
230.0
229.8
Gates
USD
30.0
-
30.0
30.0
Ireland
EUR
0.5
-
0.5
0.7
Korea
USD
50.0
-
50.0
50.0
Spain
EUR
70.0
-
70.0
93.4
United States
USD
450.0
25.0
475.0
475.0
Total
925.2
The GAFSP Steering Committee met in Washington, DC on June 7-8, 2011, and awarded a total
of $160 million in direct project funding to four program eligible countries including: Cambodia
($39.1 million), Liberia ($46.5 million), Nepal ($46.5 million), and Tajikistan ($27.9 million).
These projects will be implemented within the next few years.
The next call for proposals is expected in the Fall 2011, pending availability of funding. Details
of this will be posted on the website as soon as timing is determined by the Steering Committee.
From our constituency office area, Mongolia was awarded $12.5 million in 2010, and Cambodia
was awarded project financed $39.1 million this year.
Liberia
GAFSP funds will enhance the income of smallholder farmers, particularly women and youth,
through irrigable land expansion, land husbandry improvement, and improvement of market
access. It will also build capacity for adaptive agricultural research and improve agricultural
advisory services.
Nepal
GAFSP funds will enhance household food security in the poorest and most food insecure
regions through increased agricultural productivity, household incomes and awareness about
health and nutrition in the mid-western and far-western development regions.
Tajikistan
GAFSP funds will increase food security through increased crop production resulting from
improved sustainable irrigation and drainage infrastructure and improved water resource
management policies.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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7
Mongolia
The $12.5 million fund will reduce rural poverty and household food insecurity on a sustainable
basis in livestock-based farming systems. There are two components:
• Linking Farmers to Markets: GAFSP financing will increase access to domestic and
international markets on a sustainable basis. The outcomes of the component would be:
(i) market channels for livestock commodities further identified and accessed; (ii)
incomes of farmers increased; (iii) capacity of cooperatives increased to operate as small
agri-business units.
• Raising Livestock Productivity and Quality: GAFSP financing will improve livestock
productivity and quality in order to enhance access to domestic and regional markets, to
protect the environment and to raise the incomes of herders.
Cambodia
The $39.1 million in GAFSP funds will be for agricultural productivity growth and diversity in
selected areas that are deemed to be highly food insecure and economically depressed.
GAFSP funding for Cambodia will support the Royal Government of Cambodia’s Strategy for
Agriculture and Water (SAW), the overall framework of agricultural and water resource
management. The SAW is designed to improve food security and economic growth by enhancing
agricultural productivity and diversification and by improving water resource development and
management. Indirectly, it will create opportunities for further diversification and intensification
of production within various farming systems. The components are:
• Agricultural Productivity: GAFSP support will aim to help local farmers achieve higher
crop yields by providing relevant advisory support, improving resource management
strategies, and enhancing the quality of seeds, use of fertilizers and access to machinery
and appropriate fertilizers. GAFSP funding will allow for the adoption of proven
technologies, and for training that will allow farmers to participate in food processing,
marketing, and trading activities to improve their incomes.
• Agricultural Diversity: Currently 80 percent of the population in Cambodia has a diet
high in carbohydrates and low in both fats and proteins. Diversification of crops will
allow the country to decrease its dependence on imported fruits and vegetables. It will
also expand its high-value crops for export, such as high quality rice and fine herbs and
spices.
GAFSP funding for Cambodia will increase earnings and incomes for the rural poor, which will
in turn allow affected households to access other foods, goods, and services that will improve
nutritional status and general welfare.
For more information on GAFSP, see: www.gafspfund.org
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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8
Individual Executive Directors’ Budget
Executive Directors’ Budgets face increasing pressure due to increased demand combined with
the flat real budget being applied to WBG operational costs. The addition of the 25th Executive
Director to the Board in mid-FY11 has exacerbated these pressures. The overall Budget has been
supplemented for FY11, and some reductions are being applied in 2012. It is expected that a
more substantial cut to the overall budget (around four percent) will be discussed in 2011 and
applied in FY2013. This is likely to include re-assessing the staffing level and composition of
EDs’ offices, as well as their travel budgets.
Subject to protecting our ability effectively to service our constituency members, there are
powerful arguments to constrain the significant overhead represented by the costs of
constituency offices as this funding is no longer available to assist member countries.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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9
BANK GROUP STRATEGY AND LEADERSHIP
Climate Change
The Bank has stepped up its support to the United Nations Framework Convention on Climate
Change (UNFCCC) Secretariat and the UNFCCC itself. The UN climate talks in Cancun,
Mexico, in December 2010 were the latest attempt to make progress towards a new global deal
on tackling climate change after last year's meeting in Copenhagen failed.
The “Cancun Agreements” reached in Mexico included an invitation for the World Bank to
assume the role of Interim Trustee for the new Green Climate Fund (GCF) that governments
decided to establish in the coming months/years.
World Bank Management believes that it will take 2-3 years for the GCF to be established and
become fully operational. The World Bank noted that important issues need to be resolved
including the governance structure of the GCF, defining the funding framework and
mechanisms. In preparing itself going forward, the World Bank has started to engage in
preparatory work on key principles and issues to be considered in the design of the GCF, and has
offered to second a senior staff person to the technical support unit of a transitional committee of
the GCF. The Bank has also provided extensive submissions on substantive issues related to the
establishment of an Adaptation Committee, as well as work programs related to carbon market
reform and mitigation action by developing countries.
At the constituency level and especially for more vulnerable countries like the Pacific Island
countries, Climate Change is an important issue. The strategy of the World Bank in the Pacific
is to rationalize donor support and reduce the burden on client countries’ limited capacity by
addressing the Climate Change Adaptation Strategy in an integrated manner. We are pleased to
report that the Samoan Strategic Program for Climate Change Resilience was the first of its kind
in the region. Jointly prepared with ADB, the program aimed to mitigate the effects of climate
change on Samoa, which include floods, damage resulting from strong winds and high seas,
coral bleaching and droughts.
Medium-Term Strategic and Financial Framework
Continued volatility in the external environment reinforced the pressure on the World Bank to
maintain flexibility and protect its ability to respond to unforeseen events at multiple levels over
many years. Combined with the reality of a tight operating environment, the World Bank
continued its focus on priorities under its modernization agenda endorsed at the 2010 Spring
Meetings of the Governors of the WBG. This agenda was further refocused by the Board of
Executive Directors at the review of the World Bank’s Medium-Term Strategy and Finance
(MTSF) paper in May 2011.
The MTSF 2011 paper reinforced the World Bank’s commitment to: (i) further work program
alignment with the Bank’s post-crisis direction, which provide a strategic framework that ensures
operational focus on institutional priorities and critical client needs such as food security, crisis
preparedness, and disaster risk management; and (ii) targeted implementation of reform efforts to
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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10
modernize the World Bank, making the institution more accountable and effective in achieving
results through improved management of product mix, knowledge management, decentralization,
and support systems and processes.
In terms of financial planning going forward, the World Bank continued to align its strategic
direction with its financial framework. With the Board of Executive Directors’ guidance in its
July 2011 deliberation of the World Bank Budget for FY12, the Bank further committed to focus
on budget flexibility and increasing operational and organizational effectiveness. At the
meeting, the Executive Directors also highlighted that the quality of World Bank operations and
services to clients must remain a high priority. The Executive Directors reinforced their
commitment to work with management to ensure that the Bank has systems to monitor the
quality of operations at the design stage and during implementation.
G20 Update: Seoul Outcome and Next Steps
Our office has actively supported Korea’s effort to better reflect development issues in the G20
agenda, in close collaboration with the WBG. As part of our efforts, we facilitated the successful
hosting of the Korea-WB High Level Development Conference in Busan, Korea in June 2010
which provided the ground work for the development agenda setting for the G20 Seoul Summit.
We also supported various G20 outreach activities to enhance communication with non-G20
countries.
During the last G20 Seoul Summit in November, the G20 leaders endorsed the Seoul
Development Consensus on Shared Growth and its Multi-Year Action Plan covering actions in
nine pillars: infrastructure, human resource development, trade, private investment and job
creation, food security, growth with resilience, domestic resource mobilization, knowledge
sharing, and financial inclusion. France indicated its strong commitment to take forward the
work on development under its presidency. The Global Partnership for Financial Inclusion was
launched in December 2010 and the high-level panel on infrastructure investment has been
established. Our office will continue to encourage the World Bank to strongly engage in the G20
discussion on development issues through the Mutual Assessment Process (MAP) and the
Development Working Group (DWG) that will oversee follow-up to the Seoul Development
Consensus and Action Plan.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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11
OPERATIONAL AND STRATEGY ISSUES
Education Strategy
In April 2011, the WBG launched its Education Strategy for the next ten years. The strategy
focuses on “learning for all” and investing early, investing smartly, and investing for all. The
new strategy will support reforms at the country level that strengthen education systems’
capacity to achieve learning goals through operational, financial and technical assistance. At the
regional and global level, the World Bank will help develop high-quality knowledge products
based on education reform. To inform and guide policies that strengthen education systems and
achieve results, the World Bank will invest more in impact evaluations, learning assessments,
and new initiatives such as the development of the System Assessment and Benchmarking for
Education Results (SABER) program. SABER will provide detailed analysis of countries’
capacities across the education system from early childhood development programs and teacher
policies to tertiary education and skills development to help them use evidence to inform policy-
making.
Our office, in conjunction with other Executive Directors, reemphasized that investing in people
through education is key to reducing poverty and achieving sustainable growth. We encouraged
Management to strengthen collaboration with other development partners in the education area.
As for the SABER, we cautioned that the World Bank should focus more on providing better
policy advice based on the assessment, rather than simply rating or ranking the countries’
education system in the implementation phase.
Trade Strategy
In order to improve the inclusiveness of trade, and to promote its impacts on reducing poverty
and inequality, in June 2011 the WBG prepared its first Trade Strategy (Leveraging Trade for
Development and Inclusive Growth: The World Bank Group Trade Strategy) to guide its work
over the next decade.
The trade strategy focuses on four pillars: (i) Trade competitiveness and diversification to
support countries in developing policy environments conducive to nurturing private sector
development, job creation and sustainable poverty reduction; (ii) Trade facilitation, transport
logistics and trade finance to reduce the costs of moving goods internationally in terms of time,
money and reliability; (iii) Support for market access and international trade cooperation to
create larger integrated markets for goods and services; and (iv) Managing external shocks and
promoting greater inclusion to make globalization more beneficial to poor households and
lagging regions.
The strategy proposes four actions: (i) the development of multi-year trade programs by each of
the Bank’s regional groupings; (ii) establishing several new “communities of practice” to
facilitate the transfer of knowledge and experience (iii) creating an internal WBG-wide Trade
Council to coordinate WBG trade support, and (iv) establishing more regular interactions with
key external partner organizations and trade practitioners. A new World Bank-wide trust fund
will be established to support the strategy.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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12
Our office has closely engaged in preparing the World Bank’s trade strategy. While we
welcomed the priority areas ase relevant to the needs of small states, we emphasized that
improvements of trade corridors should not be restricted only to land corridors but rather also
include sea corridors. We cautioned that the Trade Council must not become another
bureaucratic layer of process that could slow down country-driven process and weaken the
World Bank’s use of country systems and support for countries’ own initiatives.
IFC 2013 Implementation Update
The IFC 2013 was conceived to enhance the IFC’s ability to realize greater development impact
and improved client service in a financially sustainable way, including through an improved
delivery model, taking advantage of the IFC’s decentralized, global nature.
IFC 2013 aims to help realize IFC’s organizational principles, which include being client-
centered and decentralized, with the objectives of: (i) clarifying accountabilities, (ii) improving
efficiency, (iii) investing in talent management, and (iv) enhancing knowledge management.
IFC 2013 Change Initiative
IFC 2013 was undertaken to better enable the IFC to deliver on its vision and strategic
objectives, and is therefore an integral part of its long term strategy. IFC’s Vision remains the
same: “That people should have the opportunity to escape poverty and to improve their lives.”
While this vision is clear, to make it a reality the IFC needs to adapt and respond to an ever-
changing environment. In this respect, during the past decade, four important forces have shaped
the IFC’s business:
i. An ever-increasing number of local and regional clients, which have changed the
composition of IFC’s client portfolio in a significant manner. The latest numbers indicate
that the IFC has over 1,650 clients, located in almost 150 countries. In FY10, new
commitments took place in 103 countries, against 66 countries in FY06.
ii. A stronger demand from IFC stakeholders to focus more in IDA countries and other
frontier markets, and to provide more and better coverage of smaller and poorer
countries, expanding its development impact.
iii. Moving from a “transaction-driven” institution to an institution that is primarily and
fundamentally focused on developmental impact and that, therefore, needs to better
understand and act upon the different key components of development as they impact
each region and country.
iv. Finally, moving from a concentration on Project Finance type of products to more
Corporate Finance products, requiring closer understanding of the local companies’ needs
and operating environments.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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13
In order to respond to these forces, IFC’s management initiated a process to decentralize its
operations. This allowed it to increase its impact and grow substantially its volume and number
of operations, covering a much larger number of countries.
IFC’s growth and extended reach in frontier markets, in particular IDA countries, is a direct
result of such decentralization efforts. The increased diversification has also contributed to IFC’s
ability to continue being financially sustainable in recent turbulent times.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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14
DEVELOPMENT EFFECTIVENESS AND RESULTS
A Focus on Results
Ensuring the WBG is delivering results through its support for client countries is a key objective
for the office. This agenda has been raised regularly in Board and Committee meetings.
IEG Results and Performance Report 2011
The Independent Evaluation Group (IEG) has produced its 2011 WBG-wide Results and
Performance report drawing on recent IEG evaluation evidence and combining it at the WBG-
wide level. It addresses: (i) the recent progress made by developing countries towards core
development goals (economic opportunities, human development, socio-economic and
environmental risks, and governance and public sector effectiveness); (ii) the effectiveness of the
WBG in supporting this progress, including the mitigation of major global events (e.g. financial
crisis); and (iii) institutional effectiveness.
In the report, IEG found that substantial progress was made in reducing poverty in the early
2000s, accompanied by strong economic growth and improvements in key health and education
indicators. Global economic crises and natural disasters contributed to development setbacks
since then and major challenges remain to reduce poverty further.
IEG found that interventions aimed to help expand economic opportunities (85 percent of WBG
operations over the evaluation period 2008-10) had been effective. The WBG helped improve
economic policy frameworks; however, challenges remain in advancing complex, politically
sensitive reforms and in ensuring the sustainability of public infrastructure. There were uneven
results in education and health and shortfalls in achieving key public sector reform objectives
(such as civil service reform and reducing corruption). The WBG’s response to recent disasters
and global economic crisis had been successful – but the IEG report points to a need to focus on
preparedness going forward.
Outcome ratings of World Bank-supported projects were similar to those evaluated in the 2010
report although there was a drop in Bank performance ratings in the Middle East and North
Africa region. In contrast, IEG reports improvements in IFC-supported project outcomes in this
region. MIGA-supported projects were particularly successful in the financial sector where its
guarantees played a small but useful role in supporting economic recovery.
The IEG report states that all three WBG institutions are strengthening monitoring and reporting
of results. Challenges include: (i) ensuring aggregate indicators are not overly influenced by
larger countries and projects, (ii) ensuring the diverse needs of clients are reflected, (iii) ensuring
the costs of getting results are adequately reflected, and (iv) ensuring high-quality data gathering
and reporting are achieved.
The World Bank is now finalizing its first Corporate Scorecard and Results Annual Report for
2011. Next steps in taking forward the results agenda at the World Bank include the
development of an interactive web-based dashboard to provide easy access to information on
results.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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15
FUNDING DEVELOPMENTS
IBRD Finances
The office was comfortable with the overall projections of IBRD finances in terms of allocable
income, loan commitments and transfers to IDA.
FY11 allocable net income is currently projected to be $887 million. For the second year in a
row, the duration extension strategy has resulted in IBRD avoiding a net loss in its allocable
income. The primary components of income that could still cause FY11 income to materially
diverge from the current projection are: (i) Loan Loss Provision (LLP) charge for FY11,
depending upon actual net disbursements in FY11, as well as the potential for further changes in
risk ratings of large and/or high-risk borrowers during the remainder of the fiscal year, and (ii)
significant movement in the mark-to-market value of IBRD’s liquid assets during the remainder
of the fiscal year.
IBRD’s new loan commitments in FY11 are estimated at $28 billion, below the crisis-driven
FY10 record of $44 billion, but well above pre-crisis lending levels. Disbursements for FY11 are
projected to be about $25 billion, bringing the projected Equity/Loan ratio to 27.3 percent at end-
FY11, down from 29.4 percent at end-FY10 and 34.5 percent at end-FY09.
Our chair and the Board endorsed the recommended level of IBRD support to IDA of $595
million this year, which corresponds to maintaining IDA transfers in real terms. While this would
normally be allocated from net income at year-end, with the approval of the Board, $75 million
of this was provided via a transfer from surplus to a Trust Fund for South Sudan in order to
bridge-finance early support to South Sudan, and the amount transferred from net income to IDA
at the end of the year was $520 million.
IDA15 Updates
Our office was satisfied with Management’s report on the current IDA finances. The funding
framework for IDA15, which covers FY09-11, provides some SDR28.5 billion ($43.7 billion) of
resources. The total commitments for the remaining period of FY11 are projected to fully utilize
the remaining IDA15 resources. Any unutilized funding would be carried forward to IDA16 as
was done in previous replenishments.
Most donors and the WBG are on track in providing their financing commitments for IDA15. As
of February 2011, SDR26.5 billion ($40.6 billion) have been made available including donor
contributions to IDA15 and the Multilateral Debt Relief Initiatives (MDRI) of SDR18.7 billion
($28.5 billion), based on receipt of firm commitments from donors. IDA15 funding also includes
fully paid contributions from IBRD and IFC of $1.75 billion each, complemented by projected
investment income of IDA on these transfer payments of about $0.4 billion.
Commitments and disbursements for IDA15 have been characterized by strong performance.
IDA15 commitments through February 2011 amounted to $34.3 billion, of which $12.8 billion
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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16
was committed in FY09, $14.5 billion in FY10, and $7.0 billion in the first eight months of
FY11.
As the IDA15 replenishment period ended on June 30, 2011, Management has been in close
contact with those donors that had not provided or fully unqualified their IDA15 Instruments of
Commitment (IoC). Management will present an update to the Board on IDA15’s commitment
authority status later in 2011, and will request Board authorization for the use of internal
resources to cover any IoC shortfalls to avoid cutting the IDA15 commitment authority.
IDA16 Replenishment
The discussions for the IDA16 replenishment concluded in December 2010 and resulted in a
record-level envelope of SDR 32.8 billion (equivalent to $49.3 billion), an increase of 20 percent
in SDR terms (18 percent in US dollar terms) over IDA15 as originally agreed. IDA16 will
provide new assistance for IDA-eligible countries for the three-year period that runs from mid-
2011 to mid-2014.
The outcome of the IDA16 replenishment was made possible through a global coalition,
including continued strong support from IDA’s traditional donors and increased efforts by
emerging donors, IDA graduates and IDA blends. Funding sources for IDA16 include SDR 21.1
billion ($31.7 billion) provided by donors and SDR 11.7 billion ($17.6 billion) from internal
resources.
IDA16 includes funding for a dedicated Crisis Response Window (CRW) within IDA to help
low income countries deal with the impact of natural disasters and severe economic shocks. The
CRW will include a special allocation for Haiti as it continues to recover from the 2010
earthquake.
In order to facilitate discussion of topics of interest, the IDA Deputies and Borrower
Representatives have formed four working groups on: (1) Results; (2) IDA's long-term financial
sustainability; (3) inclusive growth; and (4) fragile and conflict-affected situations. These
working groups are to have voluntary participation and include donors, borrowers and Bank
representatives and will be of a consultative rather than decision making nature.
Following our past practice, an Asian country should represent our constituency at the next
IDA17 replenishment, given that Samoa represented the constituency during IDA16.
Additionally, given that Mongolia represented the constituency during IDA15, Cambodia is the
appropriate representative. Cambodia has also agreed to participate in the working group on
Long-Term Financial Sustainability. The office anticipates that participation by Cambodia on the
working group would be good preparation for their eventual participation in the IDA17
replenishment discussions.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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17
Trust Fund Reform
Trust Fund (TF) reform continues, reinforced by a 2011 IEG report on TFs which recommended
the WBG adopt a more structured and disciplined approach to the mobilization and deployment
of trust fund resources.
Whilst there has been progress during the year, major issues remain around resources allocation,
transparency, accountability, management of resources, and the need for greater visibility on
results. During discussions, our office has pushed for a more coherent, strategic and disciplined
framework for managing TFs to improve their efficiency and World Bank accountability.
Trust Fund Portfolio
Management of TFs represents an increasingly important element of World Bank business.
According to the latest World Bank Annual Report on Trust Funds, at the end of fiscal year
2010, funds held in trust by the WBG amounted to $26 billion, an eight percent increase on fiscal
year 2009. Cash contributions and annual disbursements also increased, by 33 percent and 37
percent, respectively.
Furthermore, IEG reports that the World Bank currently administers 1,075 active trust funds,
entrusted by about 205 donors (composed of governments, multilateral agencies, NGOs,
foundations, and other private organizations). Globally, TFs account for 11 percent of ODA, and
the WB is trustee for about half of the total contributions. The total TF contribution from donors
over fiscal years 2002-2010 stands at $57.5 billion, surpassing both IDA13 and IDA14, and
potentially IDA15 (data not yet complete).
Update on Reform of Trust Fund Management
Management has made progress in aligning and integrating TFs to support country programs or
co-finance Bank operations. This is particularly true of the larger TFs,(the top 100 TFs account
for 80 percent of the total TF portfolio). However, there remains work to be done on network
(thematic) managed TFs, small TFs and on the simplification/coordination of processes.
In FY06, there was an annual gap of $50 million between central unit costs and fees; the new fee
schedule introduced in April 2011 for new contributions is expected to progressively achieve
central unit full cost recovery by FY15. Pending issues include defining the cost sharing for
World Bank-executed TFs, transparency of fee allocation mechanisms and longer term
simplification of fees.
There has also been some progress on improving Financial Intermediary Funds’ (FIF)
management (e.g., guidelines developed on ongoing Information Technology (IT) system
enhancements to improve transaction efficiency and transparency); however, the World Bank
plans to develop a new FIF Framework addressing selectivity/strategic alignment, management
of reputational risk and enhanced operational procedures. This is likely to be presented to the
Board in mid-FY12.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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18
Reform Roadmap
In addition to reforms associated with the Trust Fund Management Framework, the World Bank
is developing a Reform Roadmap for discussion around the 2011 Annual Meetings. Management
intends to look at opportunities, gaps or limits to the proposed road-map and to work with
stakeholders, including donors, in order to come up with a clearer roadmap. They held a Donor
Forum in Paris on May 17-18, 2011 to consult on key areas such as alignment, planning and
budgeting, operational mainstreaming, as well as cost efficiency and sustainability.
Our office facilitated a June 2011 visit by Axel von Trotsenburg (VP Concessional Finance &
Global Partnerships) to Australia and the Solomon Islands (unfortunately, the New Zealand leg
was cancelled due to the ash cloud). The aim was to discuss how the World Bank might engage
more strategically, with the aim of establishing a holistic approach to concessional finance;
ensure complementarities between IDA and trust funds; and reinforce the effectiveness of the
country-based model.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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19
ANNEX 1 - CONSTITUENCY COUNTRY DEVELOPMENTS
Listed below are the WBG country strategies and operations approved in FY11as well as major
pieces of economic work produced by the WBG for our constituency developing countries.
Country/Document/Project Name
Agency
Amount
($ millions)
Date of
Approval
Cambodia
♦
Higher Education Quality and Capacity Improvement Project will
(a) improve the quality of teaching, management, and research in Project-
supported entities; and (b) pilot the targeting of disadvantaged students for
enhanced retention.
IDA
23.0
8/5/2010
♦
Ketsana Emergency Reconstruction and Rehabilitation Project will
restore the service levels of transport and water and sanitation to affected
people in the project provinces and strengthen RGC's capacity in disaster
preparedness and management.
IDA
40.0
11/2/10
♦ Agribusiness Access to Finance Project will increase the sustainable
flow of credit to agribusinesses by addressing key bottlenecks tofinancing
agribusiness Small and Medium Enterprises (SMEs) in Cambodia by
mitigating banks’ risks related to agriculture and SME lending..
IDA/IFC
5.0
12/16/10
♦ Proposed Investment in ANZ Royal Bank Limited is designed to
increase access to finance for agribusiness through the provision of a credit
support instrument in the form of a risk sharing facility.
IFC
15.0
12/16/10
♦
Financial Sector Assessment. This assessment was conducted under the
joint International Monetary Fund and World Bank financial assessment
program (FSAP), one of the objectives of which was to assist the
Cambodian authorities in their reforms.
Economic
Sector
Work
n/a
1/4/11
♦
Proposed Investment in Acleda Bank Public Limited Company
(ACLEDA)
is projected to generate adequate financial and economic
returns as well as considerable development impact by increasing access to
finance for micro borrowers and SMEs.
IFC
6.0
5/27/11
Kiribati
♦
Kiribati Road Rehabilitation Project will improve the condition of
South Tarawa's main road network and helpstrengthen road financing and
maintenance capacity.
IDA
20.0
3/1/11
♦ Country Assistance Strategy.
This is the first Country Assistance
Strategy (CAS) for Kiribati and reflects a deepening of the World Bank
Group’s engagement. This CAS aims to assist Kiribati in: (i) addressing the
existential threat posed by climate change; and, (ii) mitigating the effects of
geographic isolation. The CAS accompanies Kiribati’s first IDA investment
and heralds an expanded program of World Bank Group support.
IDA/IFC
n/a
3/1/11
♦
Joint Bank-Fund Debt Sustainability Analysis reflects Kiribati’s latest
external financing arrangements, economic
outlook, and revisions of
historical data.
Debt
Analysis
n/a
6/7/11
Mongolia
♦
Investment in Mongolia Opportunities Fund I, L.P. will support
development of industries and infrastructure surrounding the mining
industry, including small scale manufacturing along the mining supply
chain.
IFC
7.5
8/6/10
♦
Development Policy Credit 2
supports the continued efforts of the
government to use the crisis as an opportunity to improve macro and fiscal
sustainability in a mineral-based economy, protect the poor and vulnerable,
IDA
29.7
10/18/10
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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20
restore confidence in the financial sector, and encourage transparent and
prudent mining investments.
♦
Investment in Suu Dairy will support an SME and a leading
Mongolian dairy processor with strong linkages to the rural areas. Further, it
will also help set industry standards in food safety and quality, and create a
demonstration effect for other private agribusiness companies seeking to
improve their operations and overall corporate governance.
IFC
2.0
2/3/11
♦
Joint Bank-Fund Debt Sustainability Analysis update reflects the
latest fiscal developments and new assumptions on the development of the
Tavan Tolgoi mine.
Economic
Sector
Work
n/a
3/15/11
♦ Mining Infrastructure Investment Support Project
will facilitate
investments in infrastructure to support mining and downstream processing
activities, regardless of funding source, and to build local capacity to
prepare and transact infrastructure projects.
IDA
25.0
5/10/11
♦ Investment in Khan Bank LLC (Khan Bank Sub D)
will strengthen
IFC’s partnership with Khan Bank through continued support in the
following areas: (i) enhancing the Bank’s capital base – Khan Bank has
identified retail and SME lending as key growth areas in the next few years.
IFC’s sub-debt, qualifying as Tier II capital, will strengthen the Bank’s
capital base so as to better serve the financing needs of Mongolia’s SMEs
and retail customers; and (ii) helping the Bank to alleviate its US dollar
asset-liability mismatch by providing long-term US dollar financing.
IFC
20.0
5/12/11
♦
Investment in Shangri-La Ulaanbaatar Hotel LLC for the Shangri-
La UB Project will help meet the growing demand
for hotel
accommodation in the underserved five-star hotel segment in Ulaanbaatar
and will improve the standards of hotel facilities and services available to
travelers and the business community
, thereby contributing to the
improvement of the country’s business and tourism infrastructure.
IFC
50.0
5/25/11
♦
Second Sustainable Livelihoods Project will enhance livelihood
security and sustainability by scaling up institutional mechanisms that
reduce the vulnerability of communities throughout Mongolia.
IDA
11.0
6/9/11
♦
Proposed Investment in Newcom LLC fits well with the IFC strategy
for Mongolia because the Project will help: (i) increase the installed power
capacity of the country as well as support the development of its renewable
energy sector through a new wind farm, Mongolia’s first grid-connected
wind farm; (ii) expand much needed capacity in domestic air transport;
(iii) improve quality healthcare services to the local population via the
establishment of a hospital; and (iv) alleviate the pollution and congestion of
the capital city via the development of a residential community in the
outskirts of Ulaanbaatar.
IFC
40.0
6/29/11
Papua New Guinea
♦
Rural Communications Project
will improve access to
telecommunications infrastructure and services in rural and remote areas of
PNG.
IDA
15.0
7/22/10
♦ Flexible and Open Distance Education Project
will
increase the
number of out-of-school youth who complete recognized secondary diploma
and certificate equivalency programs.
IDA
5.0
1/11/11
♦ Urban Youth Employment Project will focus on marginalized urban
youth in Port Moresby between the ages of 16 and 25 with limited social and
economic opportunities, including a) those that have not completed the
formal school system; and b) those that have completed their formal
education but have still not been integrated into the labor market.
IDA
15.8
1/11/11
♦
Road Maintenance and Rehabilitation Project II.
The project
development objectives are to: (i) improve road transport to project areas
IDA
43.0
5/3/2011
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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21
through providing satisfactory physical condition and safety of selected
roads; and (ii) strengthen institutional arrangements for road maintenance
including the participation of the private sector and communities.
♦ Small and Medium Enterprise Access to Finance Project will be a
pilot under Phase II of IDA/IFC Pilot Program for RSF which includes a
number of countries globally. The project would demonstrate an effective
method to leverage private sector funding to enhance SME contribution to
the PNG economy.
IDA
21.91
5/3/2011
♦
Proposed Investment in PNG SME Risk Sharing Facility fits well
within the overall WBG strategy and IFC’s financial markets strategy for
PNG and the wider Pacific islands region, as it focuses on addressing
access-to-finance constraints faced by PNG’s SMEs when dealing with the
country’s financial industry.
IFC
29.0
5/16/2011
Samoa
♦
Post Tsunami Reconstruction Project will support the Government of
Samoa in its efforts to support the relocation and rehabilitation of
communities living in the island of Upolu affected by the tsunami of
September 29, 2009, through the provision of improved infrastructure access
to relocation sites, enhanced transport infrastructure, and assistance to local
communities to address future natural disasters.
IDA
10.0
11/2/10
Solomon Islands
♦ Rural Development Program Additional Financing
would enable the
project to expand its geographical coverage at national level, as originally
designed.
IDA
3.0
10/19/10
Vanuatu
♦ Joint World Bank-IMF Debt Sustainability Analysis. This DSA was
prepared jointly with the IMF, in accordance with the Debt Sustainability
Framework for low income countries approved by the Executive Boards of
the IDA and IMF. The debt data underlying this exercise were provided by
the Vanuatu authorities.
Economic
Sector
Work
n/a
5/5/11
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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22
ANNEX 2 - WBG-FINANCED PROJECTS TO JUNE 30, 2011
Fiscal
Year
2007
2008
2009
2010
2011
GRAND
TOTALS
No of
Project
Total
$ M
No of
Projects
Total
$ M
No of
Projects
Total
$ M
No of
Projects
Total
$ M
No of
Project
Total
$ M
No of
Projects
Total
$ M
IDA - INTERNATIONAL DEVELOPMENT ASSOCIATION
Cambodia
- - 4 68.8 1 20.0 1 5 3 68 9 161.8
Kiribati
- - - - - - - - 1 20 1 20
Marshall
Islands.
- - - - - - - - - -
Micronesia
- - - - - - - - - -
Mongolia
1 16.5 3 32.8 2 42.0 3 29.2 3 65.7 12 186.2
Palau
- - - - - - - - - -
Papua New
Guinea
1 27.5 1 17.0 - - 2 25.5 5 100.7 9 170.7
Samoa
1 2.7 1 3.0 - - 2 23.0 1 10 5 38.7
Solomon
Islands
- - - - - - 3 6.5 1 3 4 9.5
Vanuatu
- - - - - - - - - -
Total
3
46.7
9
121.6
3
62
11
89.2
14
267.4
40
586.9
IFC – INTERNATIONAL FINANCE CORPORATION
Year
2007
2008
2009
2010
2011
GRAND
TOTALS
No of
Projects
Total
$ M
No of
Projects
Total
$ M
No of
Projects
Total
$ M
No of
Projects
Total
$ M
No of
Projects
Total
$ M
No of
Projects
Total
$ M
Cambodia
1 17.5 - - 1 2.0 - - 2 21 4 40.5
Kiribati
- - - - 1 1.7
- - 1 1.8
Marshall
Islands
- - - - - - - - - -
Micronesia
- - - - - - - - - -
Mongolia
3 35.0 1 67.0 - - 1 5.0 5 119.5 10 226.5
Palau
- - - - - - - - - -
Papua New
Guinea
1 40.0 - - - - 4 114.0 1 29 6 183.0
Samoa
1 10.4 - - 1 10.4
- - - - 2 10.4
Solomon
Islands
- - - - - - 2 134.0 - - 2 134.0
Vanuatu
-
-
-
-
-
-
1 4.0 - - 1 4.0
Total
6
102.9
1
67.0
3
14.2
8
257.0
8
169.5
26
600.2
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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ANNEX 3 - GOVERNORS’ RESOLUTIONS
# RESOLUTION TITLE
DATE
IBRD
606
Direct Remuneration of Executive Directors and their Alternates
July 30, 2010
607
2010 Regular Election of Executive Directors
August 2, 2010
608
Transfer from Surplus to Replenish the Trust Fund for Gaza and West Bank
August 9, 2010
609
Forthcoming Annual Meetings of the Boards of Governors - Change of
Dates for 2010 and 2011 Annual Meetings in Washington, D.C.
August 16, 2010
610 Financial Statements, Accountants' Report and Administrative Budget October 8, 2010
611 Allocation of FY10 Net Income October 8, 2010
612
2010 Selective Increase in Authorized Capital Stock to Enhance Voice and
Participation of Developing and Transition Countries
March 16, 2011
613
2010 General Capital Increase
March 16, 2011
614
2010 Additional Increase in Authorized Capital Stock for Subscription of
New Members
March 16, 2011
615 Transfer from Surplus to Replenish the Trust Fund for Gaza and West Bank June 8, 2011
IDA
226 Financial Statements, Accountants' Report and Administrative Budget October 8, 2010
227 Additions to Resources: Sixteenth Replenishment April 26, 2011
IFC
252
Financial Statements, Accountants' Report, Administrative Budget and
Designations of Retained Earnings
October 8, 2010
MIGA
87
2010 Regular Election of Directors
August 2, 2010
88
Financial Statements and the Report of the Independent Accountants
October 8, 2010
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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ANNEX 5 - CONSULTATIONS WITH CONSTITUENTS IN FY11
Annual
Meeting
Washington,
DC
Spring
Meeting
DC
Country Visits
FY11
(Dates)
ADB
Annual Meeting
Hanoi
Visit UN Rep./
Embassy Officials
Australia x x
Sept 23-26, ‘10
Mar15-26, ‘11
Cambodia x May 9-14, ‘11 x
Kiribati x Sept 26-30, ‘10 x
Korea x x
Oct 11-25, ‘10
Mar 5-13, ‘11
Dec 1-6, ‘10
Marshall
Islands
x
Nov 30 – Dec 4,
‘11
x
Micronesia (FS) x Dec 4-8, ‘10 June 8, ‘11
Mongolia x x x
New Zealand x x Mar 13-15, ‘11 x
Palau x Dec 6-9, ‘10
Papua New
Guinea
x
Sept 16-17, ‘10
June 8, ‘11
Samoa x x June 8, ‘11
Solomon
Islands
x x
Sept 16-17, ‘10
June 8, ‘11
Tuvalu*
x
Vanuatu X x Sept 16-17, ‘10
*Tuvalu joined Bank in June 2010. Constituency had informal responsibility for Tuvalu until October 2010, when formal
constituency membership was decided.
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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26
ANNEX 6 - VISITS BY OFFICIAL COUNTRY DELEGATIONS AND NGO’s
Month
Official Delegations
NGO Meetings
July
Emma Tiaree, AusAID, Australia
Oxfam Australia;
Oxfam America
First Peoples Worldwide
August
September
Changyong Rhee, G20 Sherpa
Intern’l Agency for the Prevention of
Blindness
October
Bank Information Center
Funded Agency Business Asia
November
Changyong Rhee, G20 Sherpa
December
January
Senator Mathias Cormann, Shadow Assistant Treasurer
and Shadow Minister for Financial Services and
Superannuation
Prof. Ross Garnaut,
Air Review Delegation, Australia
Publish What You Fund
Greenpeace Australia Pacific
February
Marcus Howard and Felicity Miller, AusAID
The Bretton Woods Project
Law & Communities Program, Center
for International Environmental Law
Bridges Across Boarders (Cambodia)
Water & Environment, SMEC
March
Deputy Secretary (Policy), PNG Treasury
Australian Prime Minister
April
Hon. Murray McCully, Minister of Foreign Affairs,
New Zealand
Dr. Il Sakong, Senior Economic Advisor to the
President. Chairman of the G20 Summit Korea
Coordination Committee in the President’s Office
Bank Information Center
May
June
Paul Lehmann and Louisa Cass, AusAID
Claire Young, ONA, Australia
Kwang-Yeol Yoo, Deputy Director General,
International Finance Bureau, Ministry of Strategy and
Finance
Avoidable Blindness
Results Australia
2011 ANNUAL REPORT FOR THE YEAR ENDING JUNE 30, 2011
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27
ANNEX 7 - WORLD BANK – CONSTITUENCY ROTATIONAL AGREEMENTS 2013-2024
Year
ED
AED
(1)
SADV I
(2)
ADV I
(3)
ADV II
(4)
SADV II
(5)
ADV III
(6)
ADV IV
(7)
ADV V
(8)
TEMP
ADV
2010 Australia Korea NZ Australia Korea Sol Is/PNG Mongolia Vanuatu -/Cambodia
2011
Aust/ NZ
Kor/Korea
NZ/Aust
Australia
Korea
PNG
Mongolia
Sol Islands
Cambodia
-/NZ
2012
NZealand
Korea
Australia
Australia
Korea
PNG/Samoa
Mongolia
Sol Islands
Camb/FSM
NZ
2013 NZ/ Aust Korea / -- Aust/NZ Australia Korea Samoa PNG Tuvalu FSM NZ/-
2014
Aust
Korea
NZealand
Australia
Korea
Samoa
PNG
Tuvalu
FSM
2015 Korea Aust NZealand Australia Korea FSM Cambodia Marshall Is Kiribati
2016
Korea
Aust
NZealand
Australia
Korea
FSM
Cambodia
Marshall Is
Kiribati
2017
Aust
Korea
NZealand
Australia
Korea
Kiribati
PNG
Samoa
Palau
2018
Aust
Korea
NZealand
Australia
Korea
Kiribati
PNG
Samoa
Palau
2019
Korea
Aust
NZealand
Australia
Korea
Marshall ls
Mongolia
Sol Islands
Vanuatu
2020
Korea
Aust
NZealand
Australia
Korea
Marshall Is
Mongolia
Sol Islands
Vanuatu
2021
Aust
Korea
NZealand
Australia
Korea
Palau
Cambodia
Tuvalu
FSM
2022
Aust
Korea
NZealand
Australia
Korea
Palau
Cambodia
Tuvalu
FSM
2023
Korea
Aust
NZealand
Australia
Korea
Vanuatu
PNG
Marshall Is
Kiribati
2024
Korea
Aust
NZealand
Australia
Korea
Vanuatu
PNG
Marshall
Kiribati
(1) SADV I – to be filled on a recurring basis by NZ from 2013
(2) ADV I – to be filled by Australia on a recurring basis
(3) ADV II – to be filled by Korea on a recurring basis
(4) SADVII– Mongolia/Solomon Islands/Papua New Guinea/Samoa/FS Micronesia/Kiribati/Marshall
Islands/Palau/Vanuatu/Cambodia/Tuvalu
(5) ADV III – Mongolia/PNG/Cambodia
(6) ADV IV– Solomon Islands, Tuvalu, Marshall Islands, Samoa
(7) ADV V – FSM, Kiribati, Palau, Vanuatu
(8) Proposed temporary Adviser – to be filled by NZ for duration of NZ ED
The World Bank
Office of the Executive Director for Australia, Cambodia , Kiribati, Korea, Marshall Islands, Micronesia FS,
Mongolia, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Tuvalu, Vanuatu
Web site: www.worldbank.org/eds09
