EFP Chairman's Statement

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					                     E U R O P E A N F I N A N C I N G PA R T N E R S
R      E         P        O          R         T

    EFP Chairman’s Statement

        on the 14th May 2004 as a joint venture between the
    European Investment Bank (EIB) and ten members of the
                                                                       EDFI Members have a mandate to promote good corporate
                                                                       governance and best practice on environmental and social
                                                                       issues. Despite these commitments, as well as financial
    Association of European Development Finance Institutions           objectives, EDFI members have generally achieved excellent
    (EDFI). It is a Special Purpose Vehicle, incorporated in           returns, thereby demonstrating the viability of the sustainable
    Luxembourg, designed for the financing of private sector enter-    development approach in the emerging markets.
    prises in the Africa, the Caribbean and the Pacific (ACP)
    region.                                                            As of 31 December 2005, 12 projects totaling €139 million
                                                                       have been approved for financing by EFP’s Investment
    EFP operates as a co-financing facility providing up to 75% of     Committee. An internal evaluation took place in late 2005
    the financing to projects sponsored by a Promoting Partner,        and was the basis for the shareholders’ decision to provide
    any one of the ten EDFI Members which is a shareholder             additional capital, which will enable EFP to continue its
    of EFP. The European Investment Bank (EIB) has allocated           investment activities beyond 2006.
    €90 million and 6 EDFI Members (Committing Partners) €50
    million for the financing of projects through EFP. The total       EFP is an excellent example of the increasingly strong
    funding capacity of EFP in the first commitment period of 2        partnership which the EDFIs and the EIB are forging in order
    years is thus €140 million. The Committing Partners are:           to play a leading role in the private sector development
    BIO, CDC, DEG, FINNFUND, FMO and PROPARCO.                         process on the global stage. It is my privilege to serve as the
                                                                       second Chairman of this facility.
    The participation by the EIB of EUR 90 million originates from
    the Cotonou Investment Facility, a �2 billion revolving fund set
    up under the Cotonou Agreement, which the European Union
    has mandated the Bank to manage. The Cotonou Agreement
    is the successor to the four ACP-EU Lomé Conventions. It
    spans the 2003-2008 period and aims to reduce poverty
    in the ACP States through political, economic and social
    approaches. Under the Cotonou Investment Facility the Bank
    can finance private sector projects in the ACP States or
    public sector projects operated along commercial principles.

    In addition the Bank can make available up to �1.7 billion of
    its own resources for operations in the ACP States.
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    EDFI Members are bilateral development finance institutions
    (DFIs) focused on the development of private sector
    enterprises in developing and transition economies. Although
    public institutions, they operate under private sector rules,
    and are expected to be profitable. In recognition of their
    strong financials and solid business expertise, they often
    facilitate the involvement of private institutional investors,                                                       Innes Meek
    commercial banks and private equity funds.                                                                      Chairman of EFP
                                                                                                   Portfolio Director, CDC Group Plc
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                                                           EFP Shareholders                                                  PROPARCO - Société de Promotion et de Participation pour
                                                           European Financing Partners S.A. is a private limited liability   la Coopération Économique S.A., 5 rue Roland Barthes,
                                                           company established under the laws of the Grand Duchy of          75598 Paris Cedex 12, France.
                                                           Luxembourg. Its subscribed share capital is €44,400 with          SBI - Société Belge d’Investissement International, S.A. /
                                                           an authorised capital of €60,000.                                 Belgische Maatschappij voor Internationale Investering N.V.,
                                                                                                                             168 Avenue de Tervuren, B-1150 Brussels, Belgium.
                                                           The shareholders are as follows:
                                                                                                                             SWEDFUND - SWEDFUND International Aktiebolag, Sveavägen
                                                           BIO - Belgische Investeringsmaatschappij voor Ontwikkelings-
                                                                                                                             24-26, 103 65 Stockholm, Sweden.
                                                           landen N.V. / Société Belge D'investissement pour les
                                                           Pays en Développement S.A. 188 A, Avenue de Tervuren,
                                                           B-1150 Brussels, Belgium.
                                                           CDC - CDC Group, 6 Duke Street, SW1Y 6BN, United
                                                                                                                             EFP Board of Directors
                                                                                                                             The seven members of the EFP Board of Directors are
                                                                                                                             elected by the shareholders at the Annual General Meeting.
                                                           COFIDES - Compañía Española de Financiación del Desarrollo
                                                                                                                             With the exception of EIB, the Board members are legal
                                                           S.A., Principe de Vergara n° 132, 28002 Madrid, Spain.
                                                                                                                             persons. In May 2005, Innes Meek of CDC took over as
                                                           DEG - Deutsche Investitions- und Entwicklungsgesellschaft
                                                                                                                             Chairman from Hugo Bosmans of BIO.
                                                           mbH, Belvederestrasse 40, 50933 Köln, Germany.
                                                           EIB - European Investment Bank , 100 Boulevard Konrad             BIO represented by Mr. Hugo Bosmans, CEO
                                                           Adenauer, Luxembourg-Kirchberg, Grand Duchy of                    EIB, Mrs. Flavia Palanza, Division Chief Portfolio Management
                                                           Luxembourg.                                                       and Strategy
                                                           FINNFUND - Finnish Fund for Industrial Cooperation Ltd.,          CDC represented by Mr. Innes Meek (Chairman), Portfolio
                                                           Ratakatu 27, 00120 Helsinki, Finland.                             Director
                                                           FMO - Nederlandse Financierings-Maatschappij voor                 DEG represented by Mr. Lothar Lammers, Director Corporate
                                                           Ontwikkelingslanden N.V., Anna van Saksenlaan 71, 2593            Strategy and External Relations
                                                           HW The Hague, The Netherlands.                                    FINNFUND represented by Mr. Jukka Ahmala, General Counsel
                                                           IFU - Danish International Investment Funds, self-governing       FMO represented by Mr. Joost M. Zuidberg, Product Manager,
                                                           funds, Bremerholm 4, 1069 Copenhagen K, Denmark.                  Financial Markets
                                                                                                                             PROPARCO represented by Claude Periou, Director General

                                                                                                       European Investment Bank
                                                               The European Investment Bank (EIB), based in                  The EIB’s principal task is the financing of regional
                                                               Luxembourg, was set up in 1958 under the auspices of          development projects to enhance economic and social

2                                                              the Treaty of Rome. The Bank is the financing and invest-
                                                               ment arm of the European Union. It raises funds on the
                                                                                                                             cohesion within the European Union. However, it is
                                                                                                                             also tasked with the financing of EU development aid
                                                               international capital markets in order to finance projects    and cooperation policy in the non-EU Partner Countries.
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                                                               both inside and outside the European Union, across both       These countries include those in the southern and
                                                               the public and private sectors, while keeping with strict     eastern Mediterranean region, the Balkans, Asia and
                                                               banking practice. Because of its unique position, the         Latin America (ALA) and the Africa, Caribbean and Pacific
                                                               Bank has huge financing capabilities, and it is one of the    (ACP) States. In 2005, EIB approved over €6.3 billion in
                                                               world’s largest institutional lenders.                        loans to around 150 partner countries.

                                                                                                               European Investment Bank
                                                                                                           Boulevard Konrad Adenauer, 100
                                                                                                  Luxembourg-Kirchberg •Grand Duchy of Luxembourg
                                                                                                  Tel: +352 43 79 31 22 • Fax: +352 43 79 31 91
                                                                                                        Email: info@eib.org • http://www.eib.org
                                                                                                                   E   F   P      R     E   P   O   R   T

                                             European Development Finance Institutions

   EDFI is the Association of European Development                           is actively encouraging other EU and EFTA Member
   Finance Institutions (DFIs), founded in Brussels in 1992,                 States to establish EDFI-type institutions.
   and aims to bring together public bilateral DFIs from
   EU and EFTA member states, which provide long term                        The consolidated EDFI portfolio was €10.5 billion at the
   finance to private sector projects in developing countries                end of 2005, with €3.2 billion in new investments com-
   and reforming economies.                                                  mitted during 2005. EDFI Members employ 1226 staff
                                                                             of which 41 work in 24 overseas offices.
   In 2005 EDFI had 15 members from Austria, Belgium,
   the United Kingdom of Great Britain, Hungary, Spain,                      EDFI is solidly committed to the principle that private
   Germany, Finland, the Netherlands, Denmark, Norway,                       sector finance is the main engine for economic growth
   France, Switzerland, Italy and Sweden. The Association                    and sustainable development.

                                     European Development Finance Institutions a.s.b.l.
                                      Rue de la Loi, 81A • B-1040 Brussels • Belgium
                    Tel: +32 2 230 2369 • Fax: +32 2 230 0405 • Email: edfi@edfi.be • http://www.edfi.be

EFP Operations
Operationally, EFP is regulated by a Master Investment Agreement             The Committee Members are:
which delegates financing decisions to the Investment Committee,             BIO        Carole Maman, Senior Investment Officer
composed of representatives of EIB and the six Committing                    CDC        Innes Meek, Portfolio Director
Partners. A Promoting Partner – any one of ten EDFI members                  DEG        Winfried Nau, First Vice-President Africa
which are shareholders – may present funding proposals to EFP.               EIB        Thomas Schmidt, Corporate Planner
Financial instruments authorised under EFP are: Senior Loans,                FINNFUND Helena Arlander, Investment Director
Mezzanine Debt, Equity and Quasi-Equity. The funding portion                 FMO        Joost M. Zuidberg, Product Manager Financial
borne by EFP amounts up to 75 percent of the total finance                              Markets
proposal, and must range between €750,000 and €18.75 mil-                    PROPARCO Etienne Viard, Head of Operations
lion. If a proposal is accepted, the Promoting Partner contracts
directly with the project company. No additional legal agreements            EFP Commitments
between the project company and EFP are required. This results               Projects presented to the Investment Committee are appro-
in an efficient and transparent investment process, where all                ved in a two-step process before disbursement can take
proceeds from the projects are shared between EFP and the                    place, first the Clearance in Principle (CIP) stage and secon-
Promoting Partners pro-rata on their original participation.                 dly the Final Approval stage.

EFP Investment Committee                                                     As of 31 December 2005, 13 projects for a total amount of
The Investment Committee has convened 10 times during                        €138.8 million had been granted CIP or Final Approval, with
2005 to consider project proposals.                                          disbursements to three projects:                                                                                                      3
                                                                              Promoting Partner    Project Country    Million €       Status
                                                                                                                                                        E U R O P E A N F I N A N C I N G PA R T N E R S 2 0 0 5

                                                                             IFU                   Angola                 7.4         CIP
                                                                             IFU                   DRC                    7.9         CIP
                                                                             PROPARCO              Mauritius            14.0          CIP
                                                                             DEG                   Kenya                18.8          CIP
                                                                             FMO                   Zambia                 6.6         CIP
                                                                             DEG                   Kenya                  4.2         CIP
                                                                             COFIDES               Senegal                4.2         CIP
                                                                             PROPARCO              Haïti                14.0          Final approval
                                                                             DEG                   Dominican Republic     3.7         Final approval
                                                                             DEG                   Nigeria              18.8          Final approval
                                                                             FMO                   Nigeria                9.0         Disbursed
                                                                             FMO                   St. Lucia            11.5          Disbursed
The EFP Investment Committee. Left to right: Etienne Viard, Carole Maman,    FMO                   Nigeria              18.8          Disbursed
Murray Grant (observer), Winfried Nau, Helena Arlander, Joost M. Zuidberg,
Flavia Palanza, Innes Meek                                                    Total of approvals                       138.9
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                                                               The business sectors of the projects granted either approval
                                                               stage by the Investment Committee are as follows:

                                                                Sector                           # of projects Million €   in %
                                                               Communication                            3         39.5      28%
                                                               Financial                                2         27.8      20%
                                                               Power generation and distribution        2         25.4      18%
                                                               Manufacturing                            1         18.8      14%
                                                               Hotel                                    2         12.1       9%
                                                               Port terminal                            1           7.4      5%
                                                               Agribusiness                             1           4.2      3%
                                                               Education                                1           3.7      3%
                                                                Total                                 13        138.9      100%        The host country of the projects are as follows:

                                                               The funding of approved projects will be provided by the                 Country               # of projects    in €          in %
                                                               Financing Partners as follows:                                          Nigeria                       3         46.6          34%
                                                                                                                                       Kenya                         2         23.0          17%
                                                                                                                       Million €       Mauritius                     1         14.0          10%
                                                               EIB                                                        92.6         Haiti                         1         14.0          10%
                                                               CDC                                                        11.2         St. Lucia                     1         11.5            8%
                                                               PROPARCO                                                     8.9        DRC                           1          7.9            6%
                                                               DEG                                                          7.5        Angola                        1          7.4            5%
                                                               FMO                                                          7.5        Zambia                        1          6.6            5%
                                                               BIO                                                          5.6        Senegal                       1          4.2            3%
                                                               FINNFUND                                                     5.6        Dominican Republic            1          3.7            2%
                                                                Total                                                   138.9           Total                      13         138.9         100%

                                                               External Auditors:

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                                                                   Full annual accounts for EFP for 2005 including Auditors' report can be downloaded from the EFP website: http://www.edfi.be/efp.htm

                                                                                                               EFP Secretariat
                                                                                                               c/o EDFI a.s.b.l.
                                                                                                               rue de la Loi 81A • B-1040 Brussels, Belgium
                                                                                                               Tel: + • Fax: +
                                                                                                               E-mail: edfi@edfi.be • Website: www.edfi.be