ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA [email protected] www.badea.org

ANNUAL REPORT

2011

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

The Headquarters of the Arab Bank for Economic Development in Africa Khartoum - Republic of the Sudan

Annual Report 2011

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Infrastructure projects, such as roads, airports, ports, bridges, water supply and sanitation projects are critical for development. BADEA has contributed about $ 1791 million for investment in the infrastructure sector, the equivalent of 55% of its net commitments. The photo shows the airport of Kays city in Mali.

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Contents Page

Basic Information: Establishment, definition, lending activities

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• The Board of Governors

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• The Board of Directors

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• Letter of the Chairman of the Board of Directors

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The most important Performance Indicators of the Bank 2010-20011

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Overview of International Economic Development

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Part One: Lending Operations

16

• Commitments during 2011

16

• Loan Commitments and their Sectoral Distribution

21

• Technical Assistance Commitments and their Sectoral Distribution

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• Regional Operations

26

• Foreign Trade Between Arab and African Countries (Export Financing)

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• Evolution of Commitments and Disbursements During the Period (1975- 2011)

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• Sectoral Distribution of Loans and Grants Commitments (1975-2011)

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• Projects and Technical Assistance Operations completed in 2011

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• Signature of Loan Agreements

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• BADEA’s Contribution Towards Debt Relief

30

• BADEA’s Financing and Poverty Reduction

31

• Co-financing

31

• Coordination

33

• Cooperation with Regional Arab and African organizations

34

Part Two: Detailed Description of Loans and Technical Assistance Operations During 2011

36

• Loans

36

• Technical Assistance

61

Part Three: Financial Resources

78

• Financial Position

78

• Incomes

78

• Expenditures

80

• Net income

80

• Financial Commitments

80

• Disbursements and Repayments

81

• Conclusion

82

• Financial Statements

83

• Annual Report Summary

106

Annexes

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

BASIC INFORMATION Establishment The Arab Bank for Economic Development in Africa (BADEA) was established pursuant to the resolution of the 6th Arab Summit Conference at Algiers (28th November 1973). The Bank began its operations in March 1975. Its headquarters is located in Khartoum, the capital of the Republic of the Sudan.. Definition BADEA is a financial institution owned by eighteen Arab countries members of the League of Arab States (LAS) which signed its Establishing Agreement in 18th February 1974. The Bank is an independent international institution enjoying full international legal status and complete autonomy in administrative and financial matters. It is governed by the provisions of its Establishing Agreement and the principles of international law. The Bank was created for strengthening economic, financial and technical cooperation between the Arab and African regions and for the embodiment of Arab-African solidarity on foundations of equality and friendship. To achieve this end, the Bank was given a mandate to: z Participate in financing economic development in African countries, z Stimulate the contribution of Arab capital to African development, z Help provide the technical assistance required for the development of Africa.

Lending Activities The projects financed by the Bank are priority projects of the beneficiary countries and usually form part of their development plans. In some instances, these projects are of a regional character, benefiting several countries simultaneously and helping in their economic integration. BADEA‛s contribution to the financing of any given project can reach 60% of the total cost of the said project provided that the amount of financing for the said project may not exceed $ 20 million*. However, for small projects with total cost not exceeding $ 15 million, financing may be increased to 90% of the total cost of such projects; BADEA can grant two loans to a country in one year provided that the amount of such loans may not exceed $ 20 million. BADEA also provides technical assistance in the form of non-refundable grants and provide finance for exports from Arab countries to African Countries eligible for BADEA‛s assistance. Board of Governors The Board of Governors is the highest authority in the Bank .It consists of a Governor and a deputy Governor for each member state. The Governors are usually the Ministers of Finance of the member states. The Board of Governors is entrusted with all the * In this report Dollar Means U.S Dollar ($)

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authorities of the Bank. It has the authority to delegate all or some of its powers to the Board of Directors except those expressly stated in the Establishing Agreement including increasing the Bank‛s capital appointing the Director General, appointing external auditors for the audit of its accounts approval of the Bank‛s Financial Accounts, the allocation of net profit, and interpretation and amendment of the Establishing Agreement. It holds one annual meeting in ordinary session.

Board of Directors The Board of Directors is composed of 11 members and has the authorities necessary for the management of the Bank except those vested in the Board of Governors. These include the following: z Making of the Bank‛s general policies and follow-up of their implementation in line

with the Establishing Agreement and the directives of the Board of Governors,

z Setting rules and regulations and taking the measures necessary for the management of z z z z

the Bank on the basis of economy in running expenses and operational efficiency, Determining the Bank‛s programmes of operations and approval of loans and grants, Making decisions concerning borrowing and issuing of bonds, Preparing for the meetings of the Board of Governors, Establishing agencies, branches and offices for the Bank as they may be necessitated operationally.

The nine members holding the largest number of share shall be permanent members of the Board; countries fulfilling this criteria at present are: the United Arab Emirates, the People‛s Democratic Republic of Algeria, the Kingdom of Saudi Arabia, Republic of Iraq, Sultanate of Oman, State of Qatar, State of Kuwait, Libya and the Kingdom of Morocco. The other members of the Bank jointly select the remaining tow non- permanent members of the Board in accordance with their voting power in the Board of Governors; for this term the remaining two members are the Republic of Tunisia and the Arab Republic of Egypt. Membership in the Board of Directors is for a four-year renewable term. The Board of Directors elects a Chairman, from amongst its members, for a two-year renewable term. The Board meets every four months or whenever the activities of the Bank may so require.

The Director General The Board of Governors shall appoint a Director General, from non – members of the Board for a three year term renewable twice. The Director General is the chief executive officer of the Bank and is responsible for the management of the business of the Bank under the supervision of the Board of Directors in accordance with the Bank‛s rules and regulations and in line with the directives of the Board of Governors and the Board of Directors. He is the legal representative of the Bank.

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The Board of Governors

The Thirty Six Meeting of The Board of Governors Within The Framework of The Joint Annual Meeting of The Arab Financial Institutions Damascus (Arab Republic Of Syria), 6 - 7 April 2011

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Hon. Dr. Umayya Toukan*

Hon. Ustaz Derweesh Ben Ismaeil Ben Ali Al-Baloshi*

Minister of Finance Hashemite Kingdom of Jordan

Minister Responsible for Financial Affairs Sultanate of Oman

Hon. Ustaz Ebaid Hameed Al- Tayer

Hon. Dr. Salam Fayad

Minister of State for Financial affairs State of the United Arab Emirates

Prime minister and Minister of Finance Palestinian National Authority State of Palestine

Hon. Skeikh Ahmed Ben Mohamed Al-Khalifa

Hon. Ustaz Yousif Hussein Kamal

Minister of Finance and National Economy Kingdom of Bahrain

Minister of Economy and Finance State of Qatar

Hon. Ustaz Riyad Baltayeib*

Hon. Ustaz Mustafa Jasim Al- Shamaly

Minister of Investment and International Cooperation** Republic of Tunisia

Minister of Finance State of Kuwait

Hon. Ustaz Karim Djoudi

Hon. Ustaz Mohammed A. Al-Safadi*

Minister of Finance People’s Democratic Republic of Algeria

Minister of Finance Republic of Lebanon

Hon. Dr. Ibrahim Ibn Abdel Aziz Al-Assaf

Hon. Ustaz Hassan Mukhtar Zaglam*

Minister of Finance Kingdom of Saudi Arabia

Minister of Finance Libya

Hon. M. Ali Mahmoud Abdel-Rassoul

Hon. Mumtaz Al-Saieed*

Minister of Finance and National Economy Republic of the Sudan

Minister of Finance Arab Republic of Egypt

Hon. Dr. Mohammed Al -Jalilaty*

Hon. Ustaz Nizar Baraka *

Minister of Finance Arab Republic of Syria

Minister of Economy and Finance Kingdom of Morocco

Hon. Dr. Rafii Alessawy*

Hon. Ustaz Thiam Gioumbar*

Minister of Finance Republic of Iraq

Minister of Finance Islamic Republic of Mauritania

* Representation has been modified during 2011: Hashemite Kingdom of Jordan was represented by Hon. Ustaz Tarig Abu Hamour (Until October 2011), the Republic of Tunisia by Hon. Ustaz Mohamed Nouri Jouini (Until Dec. 2011), Syrian Arab Republic by Hon. Dr. Mohammed Al-Hussein (Until April 2011), the Republic of Iraq by Hon. Ustaz Bagir Gabr Soulag Al-Zebeedi (Until Dec 2010), the Sultanate of Oman by Hon. Ustaz Ahmed Ben Nabi Macki (Until March 2011), the Republic of Lebanon by Hon. Ustaza Raya Mohamed Ali Al Hafar (Until June 2011), Libya by Hon. Dr. Ustaz Abdul hafeez Al-Zelethny ( Until September 2011), the Arab Republic of Egypt by Hon. Ustaza Fayza Abu Alnaja (Until December 2011), the Kingdom of Morocco by Hon. Ustaz Salah Aldeen Al-Mizwar ( Until December 2011), and the Islamic Republic of Mauritania by Hon. Ustaz Ahmed Ould Moulay Ahmed ( Until February 2011). ** The name of Ministry changed as of December to assume the name shown above.

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

The Board of Directors

The Third Meeting of BADEA’s Board of Directors Khartoum (Republic of Sudan), 19-21 October 2011

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Chairman H.E. M. Yousef Ibn Ibrahim Al- Bassam

Kingdom of Saudi Arabia

Members H. E. Ustaz Mohamed Ebaid Al Mazroui

H.E. Ustaz Ahmed Saleh B. Al - Muhanadi

State of the United Arab Emirates

State of Qatar

H. E. Ustaz Mohamed Ali Al-Molahi

H.E. Ustaz Fawzi Yousef Al-Hannef

Republic of Tunisia

State of Kuwait

H.E. Ustaz Miloud Botaba

H.E. Ustaz Alhadi Ahmed Mansor

People’s Democratic Republic of Algeria

Libya

H.E. Dr. Hudaa Hadi Selman

H.E. M.Murawan Zaki Badr

Republic of Iraq

Arab Republic of Egypt

H.E. Ustaz Hamoud Ben Abdallah Al-Alawi

H.E. Dr. Idriss El Azamy El-Idrissy

Sultanate of Oman

Kingdom of Morocco

Director General H.E. Ustaz Abdelaziz Khelef

Poeple’s Democratic Republic of Algeria

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Hon. The Chairman, Board of Governors Arab Bank for Economic Development in Africa

Hon. Chairman, Pursuant to Articles 25/6, 34/2 and 35 of the Establishing Agreement of the Arab Bank for Economic Development in Africa I have the honour to submit to the esteemed Board of Governors on behalf of the Board of Directors, the Annual Report of the Arab Bank for Economic Development in Africa for the year 2011 which contains a review of the most important activities and new operations in the African countries that benefited from its financing during the year, a description of the funded operations, in addition to the audited accounts of the year 2011.

Please accept the assurance of my highest consideration.

Yousouf Ibn Ibrahim Al- Bassam Chairman of the Board of Directors

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The most important performance Indicators of the Bank 2010-2011 Particulars

2011

2010

Total Financial Allocations ($ million )

200

200

Projects loans ($ million )

192

192

Technical Assistance Grants ($ million )

8

8

Total Number of Operations

55

53

Projects

24

23

Technical Assistance: Feasibility studies Institutional Support

31 7 24

30 9 21

43.18

49.52

Total Project Costs ($ million )

689.835

774.438

BADEA’s Contribution to HIPC Initiative ($ million)

42.361

13.91

Foreign Trade Finance

-

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Total Assets ($ million )

3,519.5

3,499.4

Net Assets ($ million )

3,480.1

3,418.8

Total Revenue ($ million )

92.7

153.1

Net Income ($ million )

74.9

136.4

Average Grant Element for Projects Loans

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

OVERVIEW OF INTERNATIONAL ECONOMIC DEVELOPMENT

1/ Growth of the International Economy The international economy(1) in 2011 has been going through a phase of significant contraction in growth, though of varying levels across different countries and regions, as a result of the effect of the many variables that negatively impacted its development. Natural phenomena such as earth quakes and floods, political instability in the Middle East, in oil producing and exporting countries and financial challenges in the Eurozone countries reflected in the sovereign debts and financial sector problems and the decline in demand in the US economy are among some of the developments which lead to uncertainty in the Newly Emerging Markets Economies (NEMEs). None the less, the growth expectations in the economies(2) of these countries remained strong. World output, as a result of the above-mentioned host of factors, declined from 5.2% in 2010 to 3.8% in 2011. Real growth in the Euro-zone area has deteriorated tremendously from 1.9 in 2010 to 1.6% in 2011, while GDP growth in the US declined from 3% in 2010 to 1.8 in 2011 due the negative impact of the financial crisis. The Asian economies(2) witnessed a remarkable decline in GDP growth from 8.4% in 2010 to 4.2% in 2011. The economies of the developing countries and those of NEMEs(3) have recorded a decline in their growth rates from 7.3% in 2010 to 6.2% in 2011 due to the constraining economic policies and the shrinkage of international demand; with GDP Growth in China declining from 10.4% in 2010 to 9.2% in 2011, while GDP growth of India declined from 9.9% in 2010 to 7.4% in 2011. As for sub-Saharan African countries, they have witnessed a mild decline in their GDP growth rate from 5.3% in 2010 to 4.4% in 2011as a

result of the international financial crisis and the concomitant decline in global demand. The IMF reports indicate a variation in the performance of the oil exporting countries on the one hand and that of the economies of middle income and low income countries, on the other. Whereas the GDP growth of the middle income countries in sub-Saharan Africa (11 countries) increased from 3.6% in 2010 to 4.6% in 2011, the low income countries (14 countries) had their growth decline from 5.7% in 2010 to 5% in 2011. The African countries classified as fragile economies (12 countries) saw a remarkable drop in their GDP growth rates from 3.8% in 2010 to 1.2% in 2011. 2/ Inflation, Employment and Unemployment a - Inflation Inflation rate in the developed countries increased from 1.6% in 2010 to 2.6% in 2011 with the inflation rate in the US increasing from 1.6% in 2010 to 2.5% in 2011 and that in the Euro-zone area increasing from 1.6% in 2010 to 2.5% in 2011. In the NEMEs inflation rate increased from 6.1% to 7.5% in 2011 as a result of the expansion of economic activity and decline in the unemployment rate. In Africa South of the Sahara, reports revealed that inflation has increased from 7.5% in 2010 to 8.4% in 2011 due, largely, to the increase of the prices of oil, food and other imported commodities. b- Employment and Unemployment Data made available by UNCTAD indicate that world-wide employment stood at 3.3 billion in 2010. Reports(4) also show that global unemployment rate has been estimated at 6.1% in 2011 as opposed to 6.2% in 2010. The number

(1) World Economic Outlook, IMF 2011. (2) Includes Hong Kong, Korea, Singapore and Taiwan. (3) Consists of the countries of central and East Europe, Russia, India, China, The Five Asian group consisting of Indonesia, Malaysia, Philippines, Thailand and Vietnam. It also includes the states of Latin America, The Caribbean Sea, States of Middle East and North Africa and sub-Saharan African countries. (4) Global Employment Trends 2011, sub-Saharan Africa, ILO.

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of un-employed persons globally has reached $197 million in 2011. It is worthy to mention that the un-employment rate in the advanced economies has declined marginally from 8% in 2010 and 7.9% in 2011; where the rate has declined in the US from 9.6% in 2010 to 9.1% in 2011 and declined marginally, as well, in the Euro zone countries from 10.1% in 2010 to 9.9% in 2011. In the Asian industrialized economies, un-employment remained stable at 3.5% in 2010 and 2011. In African countries South of the Sahara, international reports(1) indicate that the workforce increased from 351.9 million in 2010 to 362.2 million in 2011(2), while the number of un-employed persons has risen from 26.7 million in 2010 to 28 million in 2011. The number of un-employed persons in sub-Saharan Africa, according to ILO(3) reports, has remained at 8.2% both in 2010 and 2011 and that of the number of the poor, earning an income of $ 1.25 per day, has reached 117.4 million in 2010 as opposed to 117.9 in 2011; representing 39% of the total number of employed persons in sub-Saharan Africa. 3/ International Trade The volume of international trade in goods and services stood at $ 43.8 trillion in 2011, of which the volume of global exports stood at $ 22.2 trillion and global imports at $ 21.6 trillion. It is worthy to note that the share of developed economies reached 63.6% of global exports while that of developing and NEMEs reached 36.4%, while the share of the countries of sub-Saharan Africa in global trade represented 2% of global exports. Economic reports also indicate growth in the volume of global trade of goods and services from 12.8% in 2010 to 7.5% in 2010 as a result of the decline in global GDP growth and the decline in demand in developing countries. Accordingly, the growth in imports of goods and services of the developing countries has declined from 11.5% in 2010 to 4.9% in 2011, whereas the growth in imports of goods and services has declined from 13.5% in 2010 to

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6.7% in 2011, while the growth in exports of goods and services has declined from 12.2% in 2010 to 5.5% in 2011 and the growth of exports alone has declined from 14.4% in 2010 to 7.1% in 2010. As for the trade in the Euro zone, the growth of imports of goods and services has declined from 8.9% in 2010 to 5.6% in 2011 while growth of exports of goods and services has declined from 10.8% in 2010 to 6.9% in 2011. As for trade in the emerging Asian economies, the volume of imports of goods and services has declined significantly from 18.7% to 6.6% in 2011 while the volume of exports of goods and services declined from 18.1% in 2010 to 6.7% in 2011. Trade in developing countries and NEMEs indicates that growth in imports of goods and services has declined from 15% in 2010 to 11.3% in 2011, while exports of goods and services declined from 13.8% in 2010 to 9.0% in 2011. The aggregate trade volume declined from 3.0% in 2010 to 2.9% in 2011. Trade in Africa South of the Sahara experienced a decline of imports growth slightly from 5.5% in 2010 to 4.8% in 2011, while exports of goods and services have seen a remarkable expansion from a decline of 2.8% in 2010 to 9.2% in 2011. In this connection the IMF reports(4) that exports of Africa south of the Sahara increased from 34.8% of GDP in 2010 to 37.2% of GDP in 2011. This can be ascribed largely to GDP growth and the recovery of the export sector from the effects of the international financial crisis. This lead to improvement in the balance of trade with an increase in exports from 5.3% of GDP in 2010 to 7.3% of GDP in 2011; and as a result of the increase in exports of goods and services, foreign exchange reserves increased from $ 159.4 billion to in 2010 to $ 193.2 billion in 2011. 4/ Foreign Debt and Debt Service a- Foreign Debt The total foreign debt of developing countries and NEMEs(5) increased from $ 5,414 billion in 2010 to $ 5,935 billion in 2011 however, the rate

(1) African Development Indicators 2011, World Bank. (2) Workforce include persons 15 years of age and above, which includes economically active groups including employed and un-employed persons, hence un-employed represents a percentage of the workforce (3) Global Employment Trends 2012, ILO (4) World Economic Outlook, Sub-saharan Africa, October 2011(IMF). (5)The classification of macro- indicators of countries, groups and regions including debt follows IMF as reported in “World Economic Outlook” September 2011.

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of these debts to GDP has declined from 25.1% in 2010 to 23.6% in 2011 as a result of the high rates of growth realized in these countries; the GDP growth in China and India and many other Asian oil exporting countries has been high. The ratio of these debts to total exports of goods and services has declined from 79.3% in 2010 to 71,41% in 2011. As for the Sub-Saharan African countries, data indicate an increase in total external indebtedness from $ 239.7 billion in 2010 to $ 262.3 billion in 2011. The percentage of debt to GDP for the Sub-Saharan Africa declined from 22.8% in 2010 to 21.5% in 2011; the ratio of debts to the regions exports of goods and services from 65.5% in 2010 to 57.6% in 2011 as a result of the increase in the growth of exports of goods and services. b- Debt service Total debt service of developing and NEMEs increased from $ 1,743 billion in to $ 2,010 billion in 2010 to $ 2010 billion during 2011; which means that the ratio of debts to GDP for these countries stood at 8% during 2010 and 2011. Total debt service to the total exports of goods and services for the same countries stood at 25.6% in 2010 as opposed to 24.2% in 2011. Debt service for countries in sub-Saharan Africa declined from $ 57.2 billion in 2010 to $ 49.8 billion in 2011, which lead to a decline in its percentage of GDP from 5.5% in 2010 to 4.1% in 2011 and as a percentage of exports of goods and services from 15.8% in 2010 to 11% in 2011. c-HIPC Countries These are the poor countries which accumulated foreign debt during the seventies and eighties and for which foreign debt service represents a heavy burden such as to cripple their capacities to service debt unless assisted. This led the donor community to come up with the HIPC(2) Initiative in 1996 and followed it up with the (MDRI)(3) Initiative in 2006. By mid 2011 the countries qualifying for these

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By July 2011 the total debt relief offered within the context of HIPC stood at $ 76.4 billion while the debt relief granted under MDRI was about $ 74 billion. Thus, the debt relief granted under both initiatives totalled $ 123.4 billion. In this regard, BADEA’s contribution to the initiative from 1997 till 2011 reached $ 228 million for the benefit of 24 countries eligible for BADEA’s assistance. 6/ Economic Forecast in 2012 (4)

(1)

(1) World Economic Outlook September 2011 IMF. (2) The Heavily Indebted Poor Countries (3) The Multilateral Debt Relief Initiative (4) Global Economic Prospects,January 2012-WB

initiatives stood at 40, of which 32 countries have reached the completion point, including 25 countries from Sub Sahara Africa; with Guinea and Togo reaching the completion point in December 2010. Four additional countries – all in Sub Saharan Africa – reached the decision point. Of the four remaining countries eligible to benefit from the two initiatives, there is one Sub Saharan African country which is beneficiary of BADEA’s debt relief.

It is forecasted that while the global economy will continue to register positive growth rates in GDP; with GDP growth of 3.8% in 2011 the expectations for 2012 is that it will come down to 3.3% in 2012 with some variation in the growth of different regions and economies. Developed economies are expected to register a decline to 1.2% in 2012 as opposed to the growth realized in 2011 of 1.6%. The US economy is expected to remain stable at a rate of growth of 1.8% in 2011 and 2012, while the Euro zone countries are expected to contract from 1.6% in 2011 to a negative growth of 0.5% in 2012. The emerging and developing economies are expected to experience a decline in growth from 6.2% in 2011 to 5.4% in 2012, while the Asian economies are expected to maintain the high growth rates of 7.9% realized in 2011 as opposed to 7.3% in 2012. China is expected to realize a growth rate of 8.2% in 2012 compared with 9.2% in 2011 and the Indian economy is expected to realize a growth rate of 7.4% as opposed to 7% in 2011. The economies of the Sub Saharan African

B A D E A

countries are expected to recover with the growth rate increasing from 4.9% in 2011 to 5.5% in 2012, with some variations among groups of countries. The World Bank forecasts the GDP of the oil producing and exporting subSaharan African countries(1) to grow by 4.1% in 2012 as opposed to 5.8% in 2011, while the IMF projects the middle income sub-Saharan African countries will realize growth rate of 4.1% in 2012 while that of low income countries to realize 6.7% in 2012 and the African economies with fragile economies is projected to realize a strong growth of 6.6% as opposed to 1.2% in 2011. As to inflation, it is expected to recede in the advanced economies from 2.7% in 2011 to 1.6% in 2012. In the US, the rate of inflation is expected to fall from 3% in 2011 to 1.2% in 2012 due to decline local demand. It is also expected that the Euro zone will experience decline in the inflation rate from 2.5% in 2011 to 1.5% in 2012. In the developing and emerging markets economies inflation is expected to decline from 7.2% in 2011 to 6.2% in 2012, whereas in SubSaharan Africa inflation is expected to decline marginally from 8.4% in 2011 to 8.3% in 2012. As for international trade, it is projected, by the IMF, that the rate of growth in the volume of trade in goods and services will decline from 6.9% in 2011 to 3.8% in 2011 due to the decline in global demand. The imports of developed

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countries are expected to fall from 4.8% in 2011 to 2% in 2012. The growth rate of exports to the developing countries is expected to fall from 5% in 2011 to 2.4% in 2012. The rates of growth of the imports of the the emerging and developing economies are expected to decline from 11.3% in 2011 to 7.1% in 2012 and the rates of growth of their exports are expected to decline from 9.0% in 2011 to 6.1% in 2012. As for Sub Saharan Africa, it is expected that the growth rate of imports of goods and services will increase from 4.8% in 2011 to 8.1% in 2012. It is also expected that the rate of growth of the exports of goods and services of these countries will be increase from 4.8% in 2011 to 8.1% in 2012. As for unemployment, the ILO reports(2) suggest that the total number of un-employed persons will increase from 197 million in 2011 to 204 million in 2012 . In the US the rates of um-employment are are expected to decline marginally from 9.1% in 2011 as opposed to 9% in 2012; while in the Euro zone un-employment is expected to level off at 9.9 in 2011 and 2012. As for subSaharan Africa the ILO reported in January 2012 that the number of unemployed persons is projected to increase in 2011 from 27.6 million to 28.3 million in 2012 while the unemployment rate is expected to remain at 8.2% in 2012.

1. Oil exporting African countries south of the Sahara are: Angola, Cameron, Chad, Republic of Congo, Equatorial Guinea, Gabon and Nigeria. 2. Global Employment Trends, January 2012, ILO.

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PART ONE

LENDING OPERATIONS Introduction The year 2011 was the second year of BADEA’s Sixth Five Year Plan (FFYP - 2010-2014); whose pillars reflect the new orientations and changes in development financing with their impact on the African continent. The Plan takes into consideration the developments in the African economies, the beneficiaries of BADEA’s assistance. It aims at responding to the economic needs of these countries especially by addressing two important constraints to development, namely, the scarcity in resources and the inadequacies of capacities. BADEA continues to be guided by its objectives of contributing to the improvement in living standards, poverty reduction, food security, human resources development,women’s participation in development and environmental protection. As underscored in the Plan and in view of the special circumstances of the beneficiary African countries, BADEA is committed to increasing the grants elements, and flexibility in its lending terms. The FFYP has allocated an amount of $ 1000 million for its five years duration. Priority was given, within the framework of the Plan, to agriculture and rural development, food security, infrastructure, and private sector finance through direct loans, lines of credit, and medium, small and micro credit. The Plan allocates resources at annual equal amounts of $ 200 million. It also offers the following additional concessions: • The maximum amount of a loan for one project is $ 20 million (compared with $ 18 million ceiling in the previous Plan), covering a maximum of 60% of the total cost of the project when that cost is above $ 15 million, and up to 90% when it is below $ 15 million. • The Plan also allows within a year for more than one loan to any single beneficiary country provided that the country does not receive more than $ 20 million that year (as compared to a ceiling of $ 18 million in the previous Plan). • Projects lending will continue to be extended on concessional terms, with annual interest rate varying between 1% and 4%, loan maturity between 18 to 30 years and grace period between 4 to 10 years. In the case of the African IDA’s eligible countries, which are restricted from borrowing at harsher terms, BADEA will apply IDA’s terms. During 2011, BADEA provided assistance to the African countries recipient of its loans in accordance with the Plan’s guidelines. It succeeded in executing its operational program fully, i.e. at 100% of the allocation. Commitments During 2011 Commitments in the year 2011 totaled $ 200 million, the equivalent of 100% of the planned allocations, of which $ 192.00 million were for projects financing and $ 8.00 million for funding technical assistance operations. These were similar to the amounts committed in 2010 consisting of $ 192 million for projects and $ 8 million for technical assistance operations. The total commitments in 2011 were used to finance 55 operations including 24 development projects and 31 technical assistance operations as compared to 53 operations including 23 development projects and 30 technical assistance operations in 2010. Loan Commitments and Their Sectoral Distribution During 2011 The sectoral allocations of BADEA’s loans during 2011 were guided by the Sixth Five Year Plan and the respective recipient African countries’ priorities. The loans were allocated for four (4) sectors namely, infrastructure, agriculture and rural development, the social sector, and the private sector as follows:

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B A D E A

• The infrastructure sector received in 2011 the largest share of the commitments, amounting to $ 122.6 million i.e. 63.85% of the total; distributed to the roads sub-sector (10 projects) at 74.5%, and the water supply and sanitation sub-sectors (4 projects), at 25.5%. • Commitments in the agriculture and rural development sector in 2011 amounted to $ 28.2 million, or about 14.69% of the total, consisting of three (3) projects in the areas of agriculture and rural development and rural electrification. • Commitments in the social sector amounted to $ 35.7 million, i.e. 18.59% of the total commitments, earmarked for five (5) projects, three (3) of which in the high and professional education subsector and two (2) in the health sub-sector. • Commitments to the private sector amounted to $ 5.5 million constituting 2.86% of total commitments consisting of two (2) lines of credit in support of small-scale enterprises and micro-finance (Table III). Table III

Distribution of BADEA’s Loans By Sector (2010 and 2011) Breakdown By Sector

Infrastructure and Environment Agriculture and Rural Development

Energy Social Sector Private Sector Total

Number of Projects

2010 11 6 4 2 23

2011 14 3 5 2 24

Amount ($ Million)

2010 102 47 33 10 192

2011 122.6 28.2 35.7 5.5 192

(%)

2010 53.12 24.48 17.19 5.21 100

2011 63.85 14.69 18.59 2.86 100.00

Lending Terms The Bank continued in 2011 to extend loans in concessionary terms in accordance with the nature of the funded projects and the economic realities of the borrowing countries, mostly in the low income group. These concessional terms enabled the beneficiary countries to obtain loans with high grant elements in consistency with the lending policies of the international organizations towards low-income countries. The weighted-average interest rate charged on BADEA’s loans stood at 1.08 % in 2011 compared to 1.11 % in 2010, while the weighted average of the loan period was 29.60 years in 2011 compared to 29.14 years in 2010. The weighted average for the loans’ grace period marginally decreased to 9.59 years as opposed to 9.69 in 2010 (Tables I and II). Consequently, the grant element, which is a measure of the softness of the loan, was 43.18 % on the basis of 4.43% discount rate, reflecting a slight decrease from 2010 which was 49.52%, based on a discount rate of 5. 30% (*) in 2010( (Table II). The grant element embedded in BADEA’s loans reflects the institution’s support to the African countries and its appreciation of the critical economic and financial circumstances they face. Additionally, BADEA provides debt relief intended to assist these countries meeting their respective debt obligations.

(*)The discount rate was changed from 10% to 5% in 2003 due to reduced interest rates in the world financial markets, which resulted in a lower interest for the dollar. The calculation of the discount rate was based on the commercial Interest Reference Rate CIRR indicating the rate for commercial loans for six months, published by OECD. It is to be noted that the international development finance institutions used this rate, which averaged 5.3% in 2010, for calculating the grant element. It is also worth noting that there are no commitment charges on BADEA’s loans. Moreover, the Bank gives a reduction of 0.25% on interest rate or administrative expenses in order to encourage those countries that honour their commitments within 30 days of maturity. This was not taken into account when calculating the grant element.

17

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Table (I)

Loans & Technical Assistance Approved During 2011 Beneficiary

Date of

Country or

Project

Institution

Board Approval

Amount in ($ million)

Interest Rate (%)

Maturity (Years)

Grace

Grant

Period

Element

(Years)

(%) *

A- Loans: 1. Ethiopia

“Gedo” – “Fincha” - “Lemlem Bereha” Road Phase 1 : Section “ Gedo - Mene Begna “

9/3/2011

10.00

1

30

10

44.1

2.Burkina Faso

“Ouhigouya”-“Thiou”-Border of Mali Road

9/3/2011

10.00

1

30

10

44.1

3.Gambia

University of Gambia

9/3/2011

7.00

1

30

10

44.1

4.Zambia

Water Supply for Six Town (Phase2)

9/3/2011

10.00

1

30

10

44.1

5.Senegal

Water supply in the Delta Region of “Sine Saloum” River

9/3/2011

10.00

1

30

10

44.1

6.Swaziland

Upgrading of “Manzini”- “Mbadlane” Road( Phase 1)

9/3/2011

10.00

2.5

22

4

29.1

7.Sierra Leone

Primary Health Care Support

9/3/2011

5.70

1

30

10

44.1

8.Cameroon

“Sangmalima” – “Bikoula” – “Djoum” – “Mintom” Congo border Road, Section : “Bikoula” – “Djoum”

9/3/2011

10.00

1

30

10

44.1

9.Malawi

“Zomba”-”Jali”-”Chitacali” Road (additional loan)

9/3/2011

4.00

1

30

10

44.1

10.Mozambique

Construction and Equipping of Two Secondary Schools and Technical Institutes in “Cabo Del Gado” and “Niassa” Provinces

9/3/2011

10.0

1

30

10

44.1

11.Uganda

Construction and Equipping of the Technical Institute in “Nakaseke” District

9/3/2011

5.0

1

40

10

49.5

12. Tanzania

“Orkesumet” Township Water Supply

22/6/2011

8.0

1

30

10

44.1

13.Rwanda

Construction of the Regional Road “Rusizi”“Gisenyi”-Section “Rubengera”- “Gasiza”

22/6/2011

11.0

1

30

10

44.1

14.Sao tome and Principe

Water Supply for the City of “ Ribeira Afonso”

22/6/2011

3.20

1

30

10

44.1

15.Congo

Blanche Gomes Hospital (Phase 2)

22/6/2011

8.0

1

30

10

44.1

16.Democratic Congo

Development of Rice Cultivation in the District of “Massina”

22/6/2011

10.0

1

30

10

44.1

17.Kenya

Rural Electrification in 5 Zones

22/6/2011

10.0

1

30

10

44.1

18.Mali

Line of Credit to Mali Solidarity Bank

22/6/2011

4.0

1

22

7

35.7

19.Benin

Construction of a bridge on “Mono” River

19/10/2011

1

30

10

44.1

20.Burkina Faso

Credit facility for Youth Support Fund

19/10/2011

1.50

1

20

5

31.3

21.Chad

Sustainable Development for villages in “Salamat” Region

19/10/2011

8.2

1

30

10

44.1

22.Togo

“Kpalimé”-”Akpatamé” Road (Phase 2)

19/10/2011

10.0

1

30

10

44.1

23. Cote d’Ivoire

“Jacqueville” Bridge (Additional Loan)

19/10/2011

6.0

1

30

10

44.1

24. Niger

“Arlit”-”Assmaka”– Algeria Border Road

19/10/2011

10.0

1

30

10

Total of Loans

*Calculated on the basis of 4.43% discount rate in 2011.

18

10.4

192.00

44.1

B A D E A

11

Annual Report

20

Table (I) cont. B- Technical Assistance

Amoun t (in thousand $)

1.

Regional

Training Program in the field of the Development of the Cotton Textile Industry (English and French Speaking countries)

330

9 /3/ 2011

2.

Regional

Training Program in the Field of Saline Agriculture and its Impact on Climate Changes ( English Speaking countries)

220

9 /3/ 2011

3.

Regional

Training Program in the use of Agriculture wastes for Animal Feed ( English Speaking countries)

170

9 /3/ 2011

4.

Regional

Training Program in Methods of Agriculture Extension Methodology ( English Speaking countries)

180

9 /3/ 2011

5.

Regional

Second Orientation Program for Countries’ Desk Officers in Charge of BADEA’s Operations

330

9 /3/ 2011

6.

Chad

Support to Teaching Arabic Language

355

9 /3/ 2011

7.

United Tanzania

Provision of an Arab Expert to the Ministry of Transport in Zanzibar

250

9 /3/ 2011

8.

Togo

Institutional Support to the National Laboratories for Construction and Public Works

300

9 /3/ 2011

9.

Cape Verde

Feasibility Study for Water Supply to some Areas in the City of “Praia”

300

9 /3/ 2011

10. Democratic Congo

Provision an Arab Expert to Support the Ministry of Finance

250

9 /3/ 2011

11. Regional

Training Program in the Field of the Procurement of Goods and Services ( French Speaking countries)

300

22 /6/ 2011

12. Regional

Training session in the field of Sea Fishing ( French Speaking countries)

170

22 /6/ 2011

13. BDEAC

Provision of An Arab Expert in Support of BDEAC

250

22 /6/ 20111

Institutional Support to the Women Fund for Income Generating Activities

130

22 /6/ 2011

14.

Burkina Faso

380

15. Senegal

Feasibility Study for “ Waounde” Agriculture Project

16. Sierra Leone

Promotion of Arab Investment

300

22 /6/ 2011

17. Guinea

Training Program for Guinea Water Company cadres

225

22 /6/ 2011

18. Mozambique

Feasibility Study for the Rehabilitation of the Fishing Port of the City of “Angoche”

400

22 /6/ 2011

19. Niger

Institutional support to the Ministry of Planning, Land Management and Local Development

300

22 /6/ 2011

20. Ethiopia

Training Program for Arab Language Teachers iin “Addis Ababa”

012

21/7/2011

21. Central Africa

Feasibility Study for Rain Water Drainage Project in the City of “Bangui”

300

19 /10/2011

22. Regional

Provision of an Arab Expert in Support of the Conference for the Great Lakes Region

250

19 /10/2011

23. Cape Verde

Provision of an Arab Expert in Ports Management to the National Ports Corporation

250

19 /10/2011

24. Senegal

Provision of an Arab Expert in Engineering to the Works and Road Management Authority

250

19 /10/2011

Feasibility Study for the Improvement of the Electricity Network in Southern “Mahe” Island.

200

19 /10/2011

26. Guinea

Feasibility Study for Expanding and Developing the Production of Vegetables and Fruits in “Mamo” and “Kindia” Regions.

350

19 /10/2011

27. Cameroon

Institutional Support to the Ministry of Economy and Planning

138

119 /10/2011

28. Liberia

Training Program for the Staffs of the Ministry of Finance

200

19 /10/2011

Provision of an Arab Expert in support to the Ministry of Finance and Economic Development

250

19 /10/2011

30. Mozambique

Institutional support to the Ministry of Finance and Central Bank

260

19 /10/2011

31. Uganda

Feasibility Study for Rural Electrification Project in Five Regions

400

19 /10/2011

25.

29.

Seychelles

Mauritius

Total Technical Assistance

8000

Grand total of loans and Technical Assistance

200.000

22 /6/ 2011

19

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Table II

BADEA’s Financing During The Period 1975-2011 (Loans and Grants) Year

1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Annual Financing ($ Million) (1)

85.500 62.000 66.290 72.870 49.070 71.950 76.026 90.000 83.933 87.960 73.790 58.605 71.423 66.720 72.000 73.682 74.235 73.726 74.654 74.307 79.930 89.938 99.830 109.940 119.520 123.950 129.200 134.390 139.990 144.970 159.939 169.945 179.600 190.000 200.000 200.000 200.000

Net Annual Commitments ($ Million) (2)

68.033 56.823 64.226 48.601 41.916 48.066 41.284 48.180 62.120 43.178 35.948 36.937 28.604 49.145 53.674 35.056 34.613 55.132 49.396 55.998 74.659 78.467 90.527 77.764 112.198 121.068 105637 133.485 123.174 139.036 152.404 156.677 177.552 189.482 199.484 199.372 200.000

Interest Rate (%)*

3.70 2.90 5.00 3.70 4.30 5.60 5.90 6.00 6.50 6.60 5.90 4.20 4.60 4.30 4.20 3.90 3.90 3.40 3.40 3.40 3.15 3.26 3.05 3.10 3.05 2.29 2.03 1.43 1.70 1.36 1.15 1.31 1.28 1.50 1.33 1.11 1.08

Repayment Period (Years)*

23.60 22.80 16.10 18.10 17.20 15.90 14.40 16.00 15.00 14.20 15.90 16.50 16.20 17.00 18.00 18.40 17.80 17.93 17.50 18.00 18.17 18.50 17.80 18.10 18.20 25.95 26.23 27.25 27.45 27.67 29.08 28.78 28.66 27.40 29.06 29.14 29.60

Grace Period (Years)*

5.20 5.00 4.40 5.20 4.40 3.80 4.20 4.70 4.20 3.70 4.30 4.20 4.70 4.30 5.20 4.30 3.80 4.20 4.20 4.10 4.42 4.34 4.36 4.38 4.77 5.62 5.65 7.21 6.73 7.62 8.56 9.20 9.22 8.46 9.12 9.69 9.59

Grant Element % (3)(4)(*)

44.68 49.78 29.91 40.84 35.20 25.44 23.01 23.84 19.72 18.24 24.05 35.02 32.84 34.90 37.61 39.16 37.43 40.97 40.97 42.00 43.45 42.61 43.75 42.70 43.70 58.15 58.80 65.40 36.40 42.72 45.11 54.94 57.94 50.48 46.58 49.52 43.18

(1) Including technical assistance operations. (2) Cancellations have been deducted from the total commitments in the year when the Board of Directors had given its approval. (3) A loan is considered concessionary if the grant element is 25% or more. (4) The discount rate was changed from 10% in 2002 and before to 5% in 2003. The Grant element was calculated for the years 2006, 2007, and 2008 on the basis of a discount rate of 6.5% while for the years 2009, 2010 and 2011, the discount rates used were respectively 4.035%, 5.30% and 4.43%. (*) Interest rate on loans, loan period repayment, and grace period for loans are weighted averages, weighted by the value of the loans authorized in a given year.

20

11

Annual Report

20

B A D E A

Loan Commitments and Sectoral Distribution During the Period 1975-2011 The total cumulative commitments made by BADEA during the period 1975-2011 stood at $ 3929.883 million; of which $ 3803.170 million was allocated to finance 521 development projects (Table VII). Net loan commitments amounted to $ 3183.817 million, out of which the infrastructure and the environment sectors received $ 1795.691 million, i.e. 56.40% of the total, the agriculture and rural development sector received $ 797.419 million (25.05%), energy received $ 184.995 million (5.81%), industry received $ 51.529 million (1.62%), the social sector received $ 241.848 million (7.59%), the private sector received $ 99.700 million (3.13%), and the Urgent Aid Programme received $ 12.635 million (0.40 %) (Table IV). As for the loans of the Special Arab Aid for Africa (SAAFA)* totaling 59 loans provided to African countries in support of their balance of payments, the total commitments under this Programme amounted to $ 214.244 million. Thus, the grand total cumulative commitments of SAAFA and those of project loans amounted to $ 3398.061 million net of cancellations. Table IV Sectoral Distribution of Loans 1975-2011 Sector Infrastructure

In $ Million

%

1795.691

56.40

Agriculture and rural development

797.419

25.05

Energy

184.995

5.81

Industry

51.529

1.62

Social

241.848

7.59

Private

99.700

3.13

Urgent Aid Programme

12.635

0.40

3183.817

100.00

Total

Technical Assistance Commitments and their Sectoral Distribution for 2011 In accordance with the guidelines of the current Fifth Five Year Plan, BADEA has continued to provide technical assistance to the African countries beneficiaries of its aid through financing feasibility studies for development projects and institutional support operations. The latter involve training courses for the benefit of African cadres, the provision of experts, equipment, tools and instruments and organising forums for active economic players in Africa and the Arab countries. The beneficiaries of this assistance are from government departments or agencies, private sector firms or regional African organizations. The technical assistance operations approved, during 2011, consisted of 31 operations for which $ 8.00 million was allocated (i.e. 100% of total allocation for 2011). The sum approved for technical and economic feasibility studies amounted to $ 2.330 million, which was used to finance 7 studies including, two studies in the water supply and sanitation sector, one study for rehabilitation of a port two studies in the agriculture and rural development sector, and two studies in the energy sector. In addition, 24 institutional support operations were approved at a total cost of $ 5.670 million. These operations consisted of eight regional training operations which included 14 training courses in the (*) The Special Arab Aid for Africa ( SAAFA) was established in November 1973 and started its operations in 1974 to provide loans to African countries to help them overcome difficulties in obtaining foreign financing and in support of their balance of payments. It was administered by the League of Arab States up to 1976 when BADEA took over the management of its operations. In 1977 its resources were merged into BADEA’s capital and its basic operations of non- project lending came to an end.

21

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

fields of the cotton industry, agricultural extension, sea fishing, saline agriculture, water, and the procurement of goods and services at a total cost of $ 2.067 million. The number of trainees in 2011 grew considerably reaching 3355 African trainees in both regional and country training operations. The institutional support operations included financing the services of nine Arab experts in the fields of planning, roads, finance, ports and economics. The technical assistance operations during the year included six operations for the acquisition of equipments and instruments and training of national cadres and in Arabic teaching. It also included financing an orientation workshop about the activities and procedures of BADEA for its focal points in the African countries at a total cost of $ 0.330 million. The sectoral distribution of the technical assistance commitments during the year continued to reflect the priorities of African beneficiary countries. Accordingly, $ 2.630 million were allocated to the infrastructure sector, $ 1.812 million to the agriculture and rural development sector, $ 2.031 million to the financial sector, $ 0.500 million to the energy sector, $ 0.330 million for the industrial sector, and $ 0.697 million for financing meetings, forums and teaching the arabic language. Technical Assistance Commitments And Sectoral Distribution 1975-2011 Since its commencement in 1975 up to 2011, the total technical assistance commitments of BADEA amounted to $126.713 million covering the cost of 526 operations consisting of feasibility studies and institutional support operations. All 43 countries eligible for BADEA’s aid benefited from these operations, along with five (5) regional groups and 17 regional institutions. Total allocation for the technical and economic feasibility studies, amounted to $ 62.190 million (i.e. 49.1 %of the total) and $ 64.523 million (i.e. 50.9%of the total) for institutional support (Table V). Table V

Technical Assistance Extended by BADEA during 1975-2011 Feasibility studies Date

1975-2004

Number

Amount ($ Million)

Institutional support Number

Amount ($ Million)

Total Number

Amount ($ Million)

155

42.622

169

35.627

324

78.249

2005

7

2000.

21

3989.

28

5989.

2006

8

2.740

16

3.485

24

6.225

2007

8

2.910

23

3.590

31

6.500

2008

8

2.770

23

3.980

31

6.750

2009

9

3.605

18

3.395

27

7.000

2010

9

3.285

21

4.715

30

8.000

2011

7

2.330

24*

5.670

31

8.000

Total

211

62.190

315

64.523

526

126.713**

Percentage %

40.1

49.1

59.9

50.9

100

100

(*) Including the following three operations: financing the Orientation workshop of the Desk Officers of the Beneficiary Countries, Teaching Arabic in Chad and the Training Program for Teachers of Arabic in Ethiopia, within the decisions’ power delegated to the Director General. (**) The net commitments for technical assistance amounted to $102.099 million after deducting $ 24.614 million, which constituted a sum of $ 22.959 million resulting from cancellations of grants and unused balances of completed operations during the period 1975 – 2011 and a sum of $ 2.019 million allocated to eight feasibility studies. The studies resulted in projects co-financed by BADEA and consequently the sum of $ 2.019 million was converted into loans as parts of the loans to those projects.

22

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Annual Report

20

B A D E A

Graph 1 Breakdown of Technical Assistance into Feasibility Studies and Institutional Support (1975 - 2011) $ million

Institutional Support 315 Operations 59.9%

64.523 $ Million 50.9 %

62.190 $ Million 49.1 %

Feasibility Studies 211 Operations 40.1 %

Total Operations 526

During 1975-2011, the agriculture and rural development sector received a sum of $ 49.841 million representing 39.3%, the highest of the total technical assistance allocations, followed by the infrastructure sector at $ 47.138 million representing 37.2% of the total; and in support of the financial management in the African countries, BADEA extended around $ 19.864 million representing 15.7% of technical assistance allocations, while industry received $ 5.273 million (4.2%), and energy $ 4.597 million (3.6%) (Table VI). Table VI

Distribution of Technical Assistance Operations By Sector 1975-2011 ($ Million) Infrastructure

Agriculture

Industry

Energy

Finance

Total

Amount

%

Amount

%

Amount

%

Amount

%

Amount

%

Amount

%

30.047

48.3

25.712

41.3

2.343

3.8

3.740

6

0.348

00.6

62.190

100.0

Experts

6.481

33.1

6.613

35.3

0.310

1.6

0.235

1.2

5.919

30.3

19.558

100.0

Training

2.245

9.6

10.930

46.9

2.105

9

0.280

1.2

7.770

33.3

23.330

100.0

Other Operations

8.365

38.7

6.586

29.7

0.515

2.4

0.342

1.6

5.827

26.9

21.635

100.0

Sub-Total

17.091

26.5

24.129

37.4

2.930

4.5

0.857

1.3

19.516

30.3

64.523

100.0

Grand total

47.138

37.2

49.841

39.3

5.273

4.2

4.597

3.6

19.864

15.7

126.713

100.0

Feasibility Studies Institutional Support

23

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Graph 2 Sectoral Distribution of Technical Assistance (1975 - 2011)

35 30

30.047 25.712 24.129

$ million

25

19.516

20 17.091

15 10 5

2.343

2.930

0 Infrastructure 37.2%

Agriculture Industry 39.3 % 4.2 % Feasibility studies

3.740 0.857

0.348

Energy Finance 3.6% 15.7 % Institutional support

Feasibility Studies BADEA accords importance to the preparation of feasibility studies, which are assigned to Arab African or Arab/African consulting firms and institutions. Studies related to the infrastructure sector agriculture and rural development were allocated the biggest share of the total budgeted technical assistance absorbing 48.3% and 41.3 % respectively, whereas the industrial and energy sectors received 3.8% and 6.0 % respectively of the total allocations to feasibility studies, which amounted to $ 62.190 million during the period 1975-2011. Institutional Support The allocation for institutional support amounted to $ 64.523 million and covered training courses provision of Arab experts and other operations. The following is a brief description of BADEA’s operations in this area. Training sessions BADEA’s support to training programs has increased in number and coverage, in response to the rising needs for human resources development and institutional capacity building in both the private and public sectors. This increased support was intended to assist the beneficiary African countries in the implementation of their socio-economic programs. During the period 1975-2011, 198 training programs were sponsored by BADEA covering all the sectors and benefiting 7876 trainees at a total cost of $ 23.330 million. In 2011, the number of trainees was 3355 representing about 42.6% of the cumulative number of trainees. BADEA continued to make use of Arab and African training organizations, which would further strengthen the Arab-African cooperation and lead to achieving the Bank’s objectives. Provision of Services of Experts The provision of the services of Arab experts to African countries has been an important component of BADEA’s Technical Assistance Programme. It has been playing a key role in transmitting knowledge and expertise and training local cadres, thus having positive impact on Arab-African cooperation. The total number of experts approved for African countries during the period 1991-2011 stood at 103 at a total cost of $ 19.558 million including 7 experts who were in service in 2011

24

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Annual Report

20

B A D E A

Graph 3 African Trainees (1975 - 2011) Total : 7876 Trainees -198 Training Sessions 4000 3355

Number of Trainees

3500 3000 2500

2092

2000 1500 810

1000 500 0

1975-2004

2005

467

260

300

257

335

2006

2007

2008

2009

2010

2011

Supporting Joint Arab-African Trade Fairs BADEA has been keen to contribute to the establishment of Arab-African trade fairs, especially in cooperation with the secretariats of the League of Arab States and the African Union. In order to support the economic cooperation between Africa and the Arab world, the Bank’s contribution in this regard included funding the cost of preparing stands for shows and covering the expenses of the logistics of the exhibitor’s displays and transport. The Bank had also previously contributed to the establishment and support of all Arab-African joint trade fairs and to the organization of Arab-African Business-men weeks held so far. Other Operations In addition to training and the services of experts, the technical assistance operations included the provision of such equipments as computers and their accessories, and medical, schools and colleges laboratories. They also included the organization of forums for Arab and African consulting firms, meeting of the chambers of commerce and industry in Africa and the Arab world, meeting of high level experts in food security and meeting of high level experts to exchange views on the prospects for investments in Africa and the Arab World. The total cost of such operations stood at $ 21.635 million. Social Projects The Bank allocated $ 35.7 million in 2011 for financing five projects in the social sector, three in support of the education sub-sector in each of the Gambia, Mozambique and Uganda with a total amount of $ 22 million, two projects in the health sub-sector with a total amount of $ 13.70 million in Sierra Leone and Congo. Thus, during the period 1995-2011, the cumulative commitments to this sector amounted to $ 241.848 million for 52 projects in the fields of health, education and the social components of other projects. BADEA’s interventions in the social sector have been guided by the Third Five Year Plan, which views poverty reduction and human resources development as the cornerstones of the development process. Private sector BADEA accords in its programs great importance to the private sector in view of its role in the

25

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

economic development of the African countries. Thus, it extends lines of credit to national and regional development institutions and banks in eligible countries to be on-lent to the private sector for projects financing. BADEA’s contribution to the development of the private sector also takes the form of lending to governments for on-lending to the private sector and finances components that support private sector development. During the period 1975-2011, the total number of loans extended to the private sector stood at 39 (including 28 lines of credit). The rest was extended through governments to the private sector. The total net cumulative commitments amounted to $ 99.7 million, directed towards small projects in industry, agriculture and rural development and the transport sector. BADEA also financed a number of feasibility studies, which resulted in viable projects suitable for private sector financing. Additionally, the private sector benefited from training courses and fairs funded by BADEA. Regional Operations The Bank has continued to give special attention to projects and technical assistance operations of regional nature which have positive impacts on more than one African country including in some neighbouring Arab countries. Such projects create opportunities for cooperation between countries through facilitating transport and improving the standards of services as well as contributing to poverty reduction. In this regard, the Bank contributed during 2011 by funding six regional projects all in the road and bridges sector with a total finance of $ 61.4 million representing 32% of the total lending to development projects. These include the “Ouhigouya”- “Thiou”-Border of Mali Road in Burkina Faso connecting it with Mali; “Sangmalima” – “Bikoula” – “Djoum” –Congo borders Road Project linking Cameroon with the Congo, as an extension to the regional highway connecting Yaoundé and “Brazzaville” within the Central Africa region; the “Manzini” - “Mbadlane” Road, the first section, connecting Swaziland, South Africa and Mozambique thus facilitating the increasing regional traffic and the “Rusizi Gasiza” Road in Rwanda which is part of the joint plan for the countries of the Grand Lakes. The latter is expected to promote regional cooperation, and facilitate the access of each of Rwanda and Burundi to the ocean, thus ending their isolation. A fifth regional project was the construction of a bridge on “Mono” River in Benin which facilitates transport between Benin and Togo and trade within ECOWAS supporting the traffic between Nigeria in the East and Benin, Togo and Ghana in the West. Another approved regional project was the “Arlit”- “Assmaka”– Algeria Border Road project in Niger which as a trans-Saharan NEPAD project aims at assisting the landlocked Niger, Chad and Mali end their isolation while facilitating trade with North Africa and Nigeria. Additionally, BADEA approved a loan in support of the “Kpalime”- “Akpatama” Road in Togo, which is expected to contribute to the improvement in the national transport network as well as connecting Togo to neighboring Ghana. Foreign Trade Between Arab and African Countries (Export Financing) Promoting Arab African trade is an important objective for BADEA in view of the importance of trade in reinforcing the integration of the Arab and the African economies. Towards that objective, BADEA contributed $ 10 million to the capital of AFREXIM BANK and initiated a programme for providing trade financing for Arab exports to African countries eligible for its aid. A sum of $ 100 million was allocated to BADEA Foreign Export Financing Scheme (BEFS) to finance Arab exports to African countries ($ 75 million is managed by the Islamic Development Bank in accordance with an agreement signed with BADEA). Additionally, BADEA is exploring other means through which the remaining $ 25 million and any additional funds will be utilized. Since the start of the programme and up to 2011, total approvals

26

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Graph 4 Countries Beneficiary from Foreign trade programme till 31/12/2011 Kenya (4 operations) 34.637

The Gambia (4 operations) 11.358

($ Million)

Zambia (1 operation) 13.000 Zamb Côte D’Ivoire (1 operation) 7.964 Cô Senegal (4 operations) 24.879

Tanzania (1 operation) 9.654 Ta Guinea (1 operation) 4.395 Gu

Mauritius auritius s (5 operations)34,.100 34,.100

Seychelles (4 operation)19.376 Seych Se Zimbabwe 9.615 Zi Zimb mbabwe (2 operations) o

amounted to $ 232 million to finance Arab countries’ export to African countries. Out of this amount, $ 169 million were utilized to finance 28 operations to the benefit of 10 countries of which some benefited from more than one operation. The countries were Tanzania Guinea, Mauritius, Zimbabwe, Seychelles, Zambia, Cote D’Ivoire, Kenya, Senegal and Gambia. The allocation to the trade finance programme during the last five years is depicted graphically below: The funds were used to import fuel oil products, chemicals, sugar, electrical cables, fertilizers and other agricultural inputs. These operations had a positive impact on supplying the beneficiary countries with basic commodities necessary for food security such as sugar and agricultural inputs and chemical and petroleum products which have contributed to the needs of industry, power and transport sectors thereby contributing to the development of the recipient countries. It is expected that the Program will experience significant expansion in 2012 in view of the completion of the assessments of operations which were under consideration totalling $ 125 million and the implementation of practical measures which will result in improvement in the performance of the program. It is to be noted up to 31 December 2011 there were no arrears in the reimbursement of any finance extended through the Program. Evolution of Commitments and Disbursements of Loans and Grants (1975-2011) During the period 1975-2011, total gross commitments of loans and grants amounted to $ 3929.883 million, of which $ 3803.170 million for project loans and $ 126.713 million for technical assistance operations. Net commitments stood at $ 3285.916 million of which $ 3183.817 million were for loans and $102.099 million for technical assistance operations, excluding loans granted by SAAFA (which were 59 totalling $ 214.244 million). The difference between the total gross and net commitments is $ 643.967 million, which reflects the amounts cancelled during the period 1975–2011, whereas these cancellations represented unused balances of loans and grants of completed operations. The total cumulative disbursements reached $ 2360.060 million by the end of 2011 of which $ 2280.233 million for project loans and $ 79.827 million for technical assistance operations compared

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

to $ 2223.603 million for projects loans and $ 74.508 million for technical assistance operations at the end of 2010 including disbursements out of SAAFA. The ratio of cumulative disbursements to cumulative net commitments of both BADEA and SAAFA net of cancellation stood at 67% by the end of 2011 (Table VII). It is worth noting that disbursements during the last 11 years (from 2001 to 2011) exceeded the repayments of loan principals by $ 655.557 million, with disbursements amounting to $ 1134.824 million, whereas repayments stood at $ 479.267 million reflecting better loan management and follow-ups and an increase in BADEA’s loans during the same period. As for the year 2011, disbursements and repayments reached $ 131.138 million and $ 49.526 million respectively.

Graph 5 Evolution of Net Commitments and Disbursements (1974-2011) $ million mill 1974-2011 1 3.500.160

2.360.060

01 1974-2001 1.829.494

1.238.822

92 1974-1992 1.063.780

810.739

Commitments Disbursements

83 1974-1983 693.493 492.894

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B A D E A

Table VII

Evolution of BADEA’s Commitments and Disbursements (1974-2011) ($ Million ) Year

Annual Financing

1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total

‫ـ‬ 85.500 62.000 66.290 72.870 49.070 71.950 76.026 90.000 83.933 87.960 73.790 58.605 71.423 66.720 72.000 73.682 74.235 73.726 74.654 74.307 79.930 89.938 99.830 109.940 119.520 123.950 129.200 134.390 139.990 144.970 159.939 169.945 179.600 190.000 200.000 200.000 200.000 3.929.883(1)

BADEA SAAFA Net Annual Commitments (3) Commitments (2) ‫ـ‬

68.033 56.823 64.226 48.601 41.916 48.066 41.284 48.180 62.120 43.178 35.948 36.937 28.604 49.145 53.674 33.056 34.613 55.132 49.396 55.998 74.659 78.467 90.527 77.764 112.198 121.068 105.637 133.485 123.174 139.036 152.404 156.677 177.552 189.482 199.484 199.372 200.000 3.285.916

79.850 64.650 56.500 13.244 ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ ‫ـ‬ 214.244

BADEA & SAAFA Cumulative Net Commitments (4)

79.850 212.533 325.856 403.326 451.927 493.843 541.909 583.193 631.373 693.493 736.671 772.619 809.556 838.160 887.311 940.985 974.041 1.008.648 1.063.780 1.113.176 1.169.174 1.243.833 1.322.300 1.412.827 1.490.591 1.602.789 1.723.857 1.829.494 1.962.979 2.086.153 2.225.189 2.377.593 2.534.270 2.711.822 2.901.304 3.100.788 3.300.160 3.500.160 3.500.160

Total Cumulative Disbursements (4)

79.850 144.500 203.097 223.959 279.635 331.591 379.446 416.428 453.240 492.894 534.798 576.362 625.576 660.747 685.596 709.227 732.516 775.346 810.739 833.536 868.811 907.690 950.177 992.886 1042.612 1113.937 1170.766 1238.822 1309.097 1386.819 1477.208 1567.890 1677.291 1.825.125 1.965.984 2.098.924 2.223.603 2.380.060 2.360.060

Disbursements as Percentage of Commitments (%)

100.00 68.00 62.00 56.00 62.00 67.00 70.00 71.00 71.00 71.00 72.00 74.00 77.00 79.00 77.00 75.00 75.00 76.00 76.00 74.00 74.00 72.00 71.00 70.00 69.00 68.00 67.00 66.00 65.00 65.00 65.00 65.00 65.00 66.00 67.00 68.00 67.00 67.00 -

(1) This sum is the total cumulative loan and grants commitments without cancellations of which $ 3,803.17 million for loans and $ 126.713 million for grants. The net cumulative commitments is 3,285.916 $million ($ 3,183.170 million for loans and $ 102.099 million for grants). (2) Includes $ 79.827 million for grant deducted against income (3) The table includes SAAFA commitments, which started in 1974. (4) Includes sums deducted against income totaling $ 79.827 million.

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Sectoral Distribution of Projects and Technical Assistance Commitments (1975-2011) Total net commitments for projects and technical assistance operations during the period 1975-2011 amounted to $ 3,285.916 million, distributed over the following sectors: infrastructure $ 1,795.691 million (54.65%), agriculture and rural development $ 797.419 million (24.27%), energy sector $ 184.995 million (5.63%), industrial sector $ 51.529 million (1.57%), the social sector $ 241.848 million (7.36%), the private sector $ 99.700 million (3.03%), and lastly the Urgent Aid Programme $ 12.635 million (0.38%). As for technical assistance, its net commitments amounted to $102.099 million (3.11%). (Annexes IV and V).

Graph 6 Sectoral Distribution of Commitments of project Lending and Technical Assistance (1975 - 2011) Emergency Aid: 12.635 (0.38% 0.38% ) Technical Assistance: 102.099 (3.11 1 %)

$ million

Social Sector: 241.848(7.36%)) Industry: 51.529 (1.57%) Private Sector: 99.700 (3.03%)

Infrastructure: 1795.691 (54.65%)

Energy: 184.995 (5.63 %)

Agricultture and Rural Development: ment: 797.419 (24.27 7 %)

Projects and Technical Assistance Operations Completed During 2011 During 2011, 30 projects were completed in the infrastructure sector (roads, airports), water supply and sewage and the social sector (education and health) with a total financing of $ 237.82 million. These operations were earmarked to the benefit of 19 countries contributing to the improvement of the standards of living and quality of life of their populations. During this year, 31 technical assistance operations were completed including 16 feasibility studies, 7 institutional support operations including 8 training sessions with a total cost of $ 8.00 million. Signature of Loan Agreements During 2011, 22 Loan Agreements were signed with 21 African countries and one regional institution. The total value of the loans extended by virtue of these Agreements amounted to $ 178.9 million. Also during the year 23 loans totalling $ 197.25 million were declared effective with 21 countries. BADEA’s Contribution Towards Debt Relief Within the framework of its Five Year Plan and even before the International Monetary Fund and the World Bank adopted the HIPC initiative, BADEA contributed to the debt relief of some African countries through facilitating the repayment of arrears to address the problem of indebtedness. After the commencement in 1997 of the HIPC initiative, BADEA joined other international financial

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institutions in applying HIPC terms. Later BADEA started working within the Enhanced HIPC initiative in close coordination with other partners bearing its agreed share of debt relief of eligible countries on a case by case basis. In 2011, BADEA provided debt relief to the Republic of Guinea Bissau amounting to $ 7.158 million, the Democratic Republic of Congo amounting to $ 17.906 million and to the Republic of Liberia amounting to $ 17.27 million. Thus by the end of 2011, BADEA’s total debt relief under the HIPC amounted to $ 228.679 million allocated among 24 African countries as shown in the following table: The Country

The Amount ($ million )

The Country

The Amount ($ million )

Uganda

7.2

Niger

19.6

Mozambique

11.3

Benin

2.6

Ethiopia

6.0

Mali

4.041

Senegal

5.1

Ghana

8.3

Tanzania

14.7

Zambia

11.847

Rwanda

24.3

Malawi

4.216

Madagascar

1.506

Cameroon

1.904

Sierra Leone

9.766

Sao Tome & Principe

7.011

Burkina Faso

16.3

Burundi

15.808

The Gambia

0.817

Central Africa

8.726

Congo

5.180

Democratic R. Congo

17.906

Guinea Bissau

7.185

Liberia

17.27

Total

228.679

BADEA provides assistance to all eligible African countries that reached the Completion Point. Thus, in addition to supporting the Continent’s development, BADEA also contributes to debt relief through its lending policy which is characterized by high degree of concessionality. Such debt relief to eligible countries will assist these countries to meet their debt repayments obligations. BADEA’s Financing and Poverty Reduction A major objective of BADEA’s interventions in all sectors is to contribute to poverty reduction. To that end, priority is given to development projects leading directly or indirectly to poverty reduction in the rural farming sector. BADEA in particular focuses on financing projects in the infrastructure sector, which are expected to create an enabling environment for investment and improve access to health and education services, rural electricity, water supply and sanitation increasing, thus leading to agricultural development, improved social conditions, and increased employment for the rural community. The Bank also aims at reinforcing women’s role in general and rural women in particular because of the impact such thrust shall create on poverty reduction. BADEA seeks to contribute to the conservation of the environment to avoid the deterioration of the natural resources. The loans for projects earmarked for poverty alleviation are provided on soft terms and are flexible enough to enable financing of the components of projects in local currency.

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Co- financing BADEA assigns great importance to co-financing development projects with other development finance institutions (particularly the Arab ones), thus allowing for financing large projects. During 2011, BADEA co-financed 16 out of the 24 approved projects with Arab and non-Arab financing institutions and beneficiary governments. The percentage of BADEA’s financing in relation to the total cost of these projects, amounting to $ 689.835 million, stood at 20.62%. The contribution of other Arab funds (Saudi Fund, Kuwait Fund, and Abu Dhabi Fund for Development), the Islamic Development Bank and the OPEC Fund for International Development (OFID) amounted to about 52.97%. BADEA’s financing when added to that of the Arab funds, the Islamic Development Bank and the OFID Fund stood at about 73.59%, with the rest provided by non-Arab institutions contributing 6.49% and the respective beneficiary governments and local entities contributing 19.92%. As for the other 8 projects, with a total cost of $ 53.320 million, BADEA provided $ 44.300 million, constituting 83.08% of the total cost. BADEA also provided full finance to the two (2) remaining projects (Lines of Credit) at $ 5.50 million each (Table VIII). Table VIII

Co-financing During 2010-2011 2010

Cofinanciers

$ Million

2011 %

$ Million

%

BADEA

165.000

21.90

142.200

20.62

Arab Funds, Islamic Development Bank & OPEC Fund for International Development

414.800

55.05

365.400

52.97

Non-Arab Financing Institutions

75.690

10.05

44.800

6.49

Beneficiary Countries & Local Entities

97.948

13.00

137.435

19.92

753.438

100.00

689.835

100.00

Total

The total cost of projects co-financed by BADEA, with all institutions during the period 1975 – 2011, amounted to $ 17,163.872 million (Table IX). The contribution of BADEA represented about 16.27%, while the contribution of Arab Funds, the Islamic Development Bank and the OFID Fund

Graph 7 Co-financing During (2010 - 2011) 800.000 700.000

753.438 689.835

2011 2010

600.000

$ million

500.000 365.400

400.000

414.800

300.000 200.000

165.000 142.200

100.000

44.800

75.690

137.435 97.948

0 BADEA

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Arab Funds, Non-Arab Beneficiary Countries Development Islamic Financial and Bank and OFID Institutions Local Entities

Total

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for International Development jointly stood at 25.74%, hence Arab financing institution, the Islamic Development Bank and OFID fund amounted to 42.01%. Other sources of external financing, which include the World Bank Group, the African Development Bank Group, governments of industrialized countries, the European Union, the International Fund for Agricultural Development (IFAD), the West African Development Bank, the Central Africa Development Bank, the Bank for Investment and Development of the West African Economic Group jointly contributed about 33.47%. The contribution of beneficiary governments and local entities stood at 24.52%. Table IX

Co-financing During the Period 1975-2011 Total Financing $ Million

Total cost of projects

%

17,163.872

100.00

Finance

1. BADEA 2. Arab Funds, Islamic Development International Development

Bank & OPEC Fund for

3. World Bank Group

2,792.580

16.27

4,417.381

25.74

1,584.090*

4. African Development Bank & Regional African Institutions

1,749.880**

5. European Group 6. Industrial Countries 7. Beneficiary Countries and Local Entities

9.23 10.20

744.960

4.34

1,666.080

9.70

4,208.901

24.52

Graph 8 Co-Financing (1975 - 2011) Total projects Cost: $ 17163.872 million 4.417.381

4.500.000

4.208.901

4.000.000 3.000.000

2.792.580

2.500.000 1.749.880

BADEA

Arab Funds, Islamic Bank and OFID

World bank African Group Development Bank Group

European Union

Industrial Countries .

% 24.52

744.960 % 4.34

% 10.20

0

% 25.74

500.000

% 16.27

1.500.000 1.000.000

1.666.080

1.584.900

% 9.70

2.000.000

% 9.23

$ million

3.500.000

Beneficiary Countries and local entities

* Including $ 33.79 million by the International Fund for Agricultural Development (IFAD). **Including $ 6.2 million contribution made by ECOWAS Bank for Investment and Development and $ 33.6 million made by the West African Development Bank, of which $ 17.2 million for the “Ouhigouya”-”Thiou”-Border of Mali Road Project in Burkina Faso, $ 7.78 million for “Jacqueville” Bridge in Côte d’Ivoire in 2011 and another project in 2010.

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Coordination with Development Financing Institutions BADEA accords great importance to coordinating with sister financial institutions particularly the Arab ones in view of the synergy from coordination reflected in enhanced projects effectiveness and increased development impact. BADEA has, therefore, continued to participate in various coordination meetings, which provide opportunities for exchanging views on development assistance issues. In January 2011, BADEA participated in Egypt at the Arab Summit for Economic and Social Development, the Coordination Group meetings (at the Directors of Operations level), and the 16th Session of the Summit of the African Union held in Ethiopia. In February 2011، it was represented at the Annual Meeting of IFAD, while in March it participated in each of the Annual Meetings of the African Ministers of Economy and Finance and the 5th Meeting of the Working Party on External Trade held in Vienna. Furthermore, in June 2011, it participated in both the Annual Meetings of the African Development Bank held in Portugal and the Coordination Group meeting (at the Directors of Operations level). It was also represented at the Annual Meetings of the World Bank and the International Monetary Fund in September 2011 and the High Level Forum on Aid Effectiveness held in Bussan, South Korea in November/December 2011. These meetings and other regular ones attended availed opportunities for BADEA to coordinate activities and programs with other institutions, international organizations and African delegations, agree on co-financing arrangements, exchange views and follow-up on the progress of implementation of joint projects. Additionally, the visits of several delegations to BADEA’s Headquarters provided opportunities to review and agree on the cooperation programs and activities with countries and institutions. BADEA on the other hand sent numerous missions of staff to African countries recipient of its aid. Cooperation with Regional Arab and African Organizations BADEA participated during 2011 in several meetings and workshops within the framework of cooperation with regional Arab and African organizations. It participated during the period from 5 to 9 February 2011 in the 89th Session of the Economic and Social Council of the Arab League held in Cairo (Egypt). It also participated in the Fourth Joint Annual Conference of the African Ministers of Economy and Finance held during 24-29 March 2011 and in the African Union Conference for the Ministers of Industry held in Algiers “Algeria” during 27-31 March 2011. It also attended the preparatory meeting for the Committee in charge of overseeing the implementation of the Arab Plan of Action for Agricultural Development and Food Security held in Khartoum from 30th March to 1st April 2011. Furthermore, it participated in the Annual Meetings of the African Development Bank held in Portugal during 6-10 June 2011. BADEA also participated in the 17th Conference of the African Union held during 26 June - 1st July 2011 in Malabo, Equatorial Guinea. In addition, it attended the Sixth Joint General Meeting of the Arab League and the African Union during 17-18 December 2011 in Addis Ababa followed by the 8th Donor Meeting for the Implementation of the African Program for the Tse Tse and Trypanosomiasis Control held in Nairobi, Kenya on December 19th, 2011.

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Countries that benefited from the financing of projects and technical assistance during 2011

Cape Verde Mali Niger Chad Senegal Burkina Faso Ethiopia

Guinea Central Africa

oo

n m

and

a

Ca

Kenya

o Co

ng

Liberia

Benin

Togo

Sierra Leone

er

Côte d’Ivoire

Ug

Seychelles

Sao Tome & Principe Democratic Republic of Congo

Rwanda Tanzania

biq u

e

Bridges Rural Electrification

Mo zam

Gambia

Agriculture and Rural Development

Zambia

Roads

Malawi

Potable water

Mauritius Education Line of credit Health Feasibility Studies

Swaziland

}

Technical Institutional support Assistance

35

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

PART TWO

Detailed Description of Loans and Technical Assistance Operations During 2011 The Arab Bank for Economic Development in Africa (BADEA) contributed to the financing of 24 projects and 31 technical assistance operations during 2011 The detailed description of these projects and technical assistance operations, written in the order of dates of their approval by BADEA’s Board of Directors is as follows:

“ Gedo” – “Fincha” - “Lemlem Bereha” Road Project, Phase 1 : Section “Gedo” - “Mene Begna”

Sector: Infrastructure Ethiopia PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

50

10.00

9/3/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project aims to contribute to the development of the national road network and the expansion and integration, linking the territory of “Oromiya” located in the western part of the country with different regions and the capital of Ethiopia, “Addis Ababa”. The project also aims to improve the efficiency of traffic, and facilitate access for agricultural products for other regions and to support economic and social development of the territory of “Oromiya”. Project description The project lies in “Oromiya” region which is considered to be the most populated and highest agriculture production in the western part of Ethiopia. The project includes the construction of the paved road of 80.5 km length, 7.0 m width, and with two shoulders, each of width of 1.5 m in villages and 2.5 m in cities. This is according to design speed of 40-80 kilometer per hour and consultancy services, which include preparation of detail design, tender document, and tendering and construction supervision. Project Financing Plan BADEA contributes $ 10 million to the project financing (about 20% of the total project cost). Saudi Fund contributes $ 25 million (about 50%), Abu Dhabi Fund contributes $ 10 million (about 20%), and Government contributes $ 5.0 million( about 10%).

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“Ouhigouya”- “Thiou”-Border of Mali Road Project

Sector: Infrastructure Burkina Faso PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

37.03

10.00

9/3/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project aims to intensify the bilateral trade between the project area rich wealth of agricultural, livestock and other areas of the country and the development of commercial exchanges between Burkina Faso and Mali, neighbors, and facilitate the movement of passengers and agricultural inputs and products, and reduce the cost of transport in general, as well as to contribute to poverty alleviation.

Project description The project lies in the northern part of the country, 180 km north west of the capital “Ouagadougou” and 222 km from “Mobti” in Mali. The proposed project connect the town of “Ouhigouya” with the village of “Thiou” on the borders with Mali and is a continuation to the road “Babhiagara”- “Bankas”- “Koro”- Burkina Faso border which is financed by BADEA . The project consists on civil works and ancillaries for the construction of an asphalt road about 63 km long with a width of 7 m and two shoulders each 1.5 m in width, support to the Project Implementation Unit: Provision of two pick up vehicles, two computers, office equipment and office furniture, support the capabilities of “Ouhigouya” Municipality and General Administration for Roads, support the protection of environment and social infrastructures, consultancy services and review of project accounts. Project Financing Plan BADEA contributes $ 10.00 million to the project financing (about 27.01% of the total project cost), BOAD contributes $ 17.02 million (about 45.96%), and Government contributes $ 10.01 million (27.03%).

Roads paving and construction boost economic activities, link various parts of the country and assist in overcoming their isolation and seclusion. BADEA has contributed a cumulative total of $ 1102 million in financing the construction of 134 roads in Africa.

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

University of Gambia Project

Sector: Social (Education) THE GAMBIA PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

52.80

7.00

9/3/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project aims to develop and improve the level of university education in the country, with the establishment of buildings and modern facilities in the University of Gambia, and secure extra seats study to meet the growing demand for university education in the country, and contribute to meeting the needs of Gambia of cadres specialized in different areas. Project description The project is located about 45 km south of the capital, “Banjul” The total area allocated to the University about 0.90 km2. The project includes civil engineering works and ancillaries, including the construction of buildings with total area of about 40 thousand m2, and includes buildings, new faculties is equipped with rooms for lectures and laboratories to accommodate about 3640 students, and administrative facilities and halls for student activities, library, clinic and boarding for teachers, students and facilities services. It also includes external works for the processing of online networks of water supply and sanitation, electricity, communications, internal roads, sidewalks and walkways, plazas and parking lots, lighting, fences, and the provision and installation of furniture and educational equipment and laboratory, and curriculum development and teacher training, support and project implementation unit and include the salaries of the unit for 36 months and the provision of computers and accessories, copier, and consultancy services. Project Financing Plan BADEA contributes $ 7.00 million to the project financing (about 13.26% of the total project cost), Islamic Development Bank contributes $ 15.00 million ( about 28.41%), Saudi Fund contributes $ 10.00 million ( about 18.94%), Kuwait Fund contributes $ 14.00 million (about 26.51%), OFID contributes $ 5.00 million (about 9.47%), and Government contributes $ 1.80 million (about 3.41%).

BADEA attaches significant importance to the education sector.

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Water Supply for six Towns Project (phase II)

Sector: Infrastructure ZAMBIA

PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

13.31

10.00

9/3/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

ANNNUAL INTEREST RATE

10

1%

Project Objectives The project (Phase II) aims to develop and improve services, supply of drinking water in cities, “Mbika”,“Kasama” and “Mbala”, to meet current and future demand until the year 2035, and the project will contribute to improve the health of the population and reduce the spread of water-related diseases by providing water drinking also contribute to the promotion of economic activities as well as to the achievement of the Millennium development Goals. Project description The Project comprises in total 6 towns namely “Mansa”, “Kwamba”, “Chilila Bombwe”, “Mpika”, “Kasama”, and “Mbala”. To ease financing the project was divided in two phases: - Phase 1: includes the towns “Mansa” and “Kwamba”, BADEA contributed with 6.8 millions - Phase II: includes the towns “Mpika”, “Kasama” and “Mbala”. Noting that the “Chilila Bombwe” town will be financed by the government. The towns “Mpika”, “Kasama” and “Mbala” lies in the northern province of the country neighbouring Tanzania and Malawi. The total population is currently estimated at 158,000 and is expected to reach 360,000 in the year 2035. The project consists of civil works and ancillaries which include rehabilitation of the water intakes in the three cities, rehabilitation of the treatment plants and conveyance and distribution pipelines, supply and installation of house connections and consultancy services. Project Financing Plan BADEA contributes $ 10.00 million to the project financing (about 75.1% of the total project cost), and Government contributes $ 3.31 million (about 24.9%).

BADEA assigns great importance to financing water supply and sewerage projects, in view of their role in improving the health of the African population.

39

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Water supply in the Delta region of “ Sine Saloum” River Project

Sector: Infrastructure SENEGAL

PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

12.50

10.00

9/3/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project aims to meet the needs of the population of drinking water in Delta region,of “Sine Saloum” River and to improve the health of the population and to fight against poverty by encouraging economic activities, which helps to raise the income level of citizens and their stability. Project description The project includes the establishment of 6 water supply systems to provide 25 villages in the area of the River “Sine - Salom” on the Atlantic coast, about 200 km south of the capital Dakar. The project includes civil works and accessories, which include drilling and equipping wells, pumps and accessories, and connecting pumping stations to the electricity grid and supply and installation of two generators working with diesel, and others working with solar energy, and construction of 15 elevated reservoirs with a capacity ranging between 25 and 250 m3, and the extension of transmission and distribution networks with a total length about 195 km and diameters ranging between 75 and 400 mm, and the supply and installation of about 120 points for the distribution of public water. The project also includes support and project implementation unit to provide office supplies and office furniture and provide a four wheel drive vehicle and secure salaries and wages to the staff of the project and operating costs, and support the capacity to train the beneficiaries to manage, operate and protect the facilities of the project, as well as consultancy services. Project Financing Plan BADEA contributes $ 10.00 million to the project financing (about 80% of the total project cost), and Government contributes $ 2.5 million (about 20 %).

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B A D E A

Upgrading of “Manzini”- “Mbadlane” Road Project (Phase I)

Sector: Infrastructure SWAZILAND

PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

55.00

10.00

9/3/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

22

18

4

ANNNUAL INTEREST RATE

2.5%

Project Objectives The proposed project aims to develop the current path to meet the increasing regional traffic between the Kingdom of Swaziland and the Republics of South Africa and Mozambique, and to facilitate the movement of goods and passengers, and reduce the cost of transportation, support trade relations with neighboring countries, and contribute to the social and economic development in the country. Project description The road has a total length of 29.5 km and it is a part of the regional road connecting Swaziland with South Africa and Mozambique. The first phase of the project include civil works and ancillaries: which include the development of the existing main road with a length of 29.5 km through the widening of about 15.5 km to be four lanes with a two meter median and two meter shoulders in addition to service road on each side 8 meter width and pedestrian walkway 1-1.5 m width. Widening 14 km of the road to 10.5 m including 3 lanes and two shoulders two meter width. Construction of storm water and safety structures provision of light, land acquisition and consultancy services. Project Financing Plan BADEA contributes $ 10.00 million to the project financing (about 18.18% of the total project cost), Abu Dhabi Fund contributes $ 18 million (about 32.73%) and Government contributes $ 27.00 million ( about 49.09%).

Expanding the roads networks facilitates the movement of people and goods connecting and linking isolated production regions.

41

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Primary Health Care Support Project

Sector: Social (Health) SIERRA LEONE PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

6.39

5.70

9/3/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project aims to contribute to support and improve health care for citizens, particularly pregnant women and children under the age of five years to reduce the mortality rate in two tranches. The project also aims to reduce the incidence of malaria, which tops the list of diseases that afflict the lives of people, especially among the two tranches, as they slide more susceptible to this disease. The project also aims to contribute to the achievement of the Millennium Development Goals.

Project description Construction of 8 community centres of the same norm from cement blocks and zinc sheets which stand humidity. The area of one centre is about 470 m² and composed of X-Ray room, operation theatre, two wards, one for males and the other for females, laboratory, delivery room, recovery room, office for environmentalist, vaccination room, diagnosis room for pregnant women and children, room for the community health officer, treatment room, dispensary, drugs store, waiting hall, nurses office, in addition to the construction of one house with an area of 200 m² at each health centre and provision of the health centre and the residential buildings with electricity from solar energy installation under the project. Supply of medical equipment and medical and non-medical furniture. Supply of drugs which include inter-alia, medicine for malaria treatment, anti biotic, vitamins, vaccines, etc. for one year. Supply of two ambulances. Support of the PIU and consultancy services. Project Financing Plan BADEA contributes $ 5.7 million to the project financing (about 89.2% of the total project cost), and Government contributes $ 0.69 million (about 10.08%).

BADEA assigns great importance to the provision of health services in the rural areas through financing modern rural health centers which assist controlling diseases, reducing poverty and improving the standards of living.

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B A D E A

“Sangmalima” – “Bikoula” - “Djoum” – Congo Border Road Project

Sector: “Bikoula” – “Djoum” CAMEROON PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

44.67

10.00

9/3/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project aims to contribute to the development of regional cooperation, and intensify trade between the Republics of Cameroon and Congo, and to facilitate the movement of goods and passengers in the southern region of the country and reduce the cost of transportation, lifting the isolation of the villages on the route and contribute to the economic and social development in the country.

Project description The total length of the road is 308 km and to ease financing of the project was divided to three sections: - First Section, “Sangmalima”- “Djoum” with a length of 108 km was divided to two lots, first lot, “Sangmalima- Bikoula with a length of 63 km to be financed by IsDB. Second lot, “Bikoula”- “Djoum” with a length of 38 km to be financed by BADEA, OFID, Kuwait Fund and Saudi Fund. - Second Section, “Djoum”- “Mintoum”, with a length of 80 km, AFD is contributing in financing. - Third Section, “Mintoum” - Congo border, with a length of 125 km, the government is looking for financing. The road project, “Bikoula”- “Djoum”, is composed of civil works and ancillaries for the construction of an asphalt road with a length of 38 km and width of 7.5 m along with two shoulders each of 2 m in urban areas and 1.5 outside urban areas and consultancy services.

Project Financing Plan BADEA contributes $ 10.00 million to the project financing (about 22.4% of the total project cost), Saudi Fund contributes $ 10.00 million ( about 22.4%), Kuwait Fund contributes $ 10.04 million (about 23.3%), OFID contributes $ 10.00 million (about 22.4%), and Government contributes $ 4.27 million (about 9.5%).

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

“Zoma”- “Jali”- “Chitakale” Road Project (Additional Loan)

Sector: Infrastructure MALAWI PROJECT COST ($ Million) Additional Loan:

44.30 Original Loan:

60.00 104.30

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

4.00

9/3/2011

30

20

10

1%

10.00

17/3/2006

30

20

10

1%

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

ANNNUAL INTEREST RATE

14.00

Project Objectives The project aims to contribute to the development of the project area, which includes the provinces of “Zomba” “Phalombe” and “Mulanje” and through the development of transport services for passengers and goods to those regions that define their potential large areas of agricultural production (plant and animal), natural resources and tourism. The project will contribute to the development of the area socially, economically and reduce poverty. Also contribute to facilitate citizens’ access to educational institutions, health and management. Project description The project includes civil works and ancillaries for construction of an asphalt road between the towns of “Zoma”, “Chitakale” and “Mulanje” for an average length of 102 km and about 6.7 m width with two paved shoulders of 1.5 m width along the road outside towns and 2 m within the towns that the road passes them, provision of traffic safety measures and drainage structures and construction of 20 bridges over the crossing rivers, land acquisition needed for the project and consultancy services for construction supervision. Project Financing Plan BADEA contributes $ 14.00 million( $ 10.00 million original loan and $ 4.00 million additional loan) to the project financing (about 13.42%) , Kuwait Fund contributes $ 30.00 million( $ 20.00 million original loan and $ 10.00 million additional loan) (about 28.76%), OFID contributes $ 12.00 million( $ 7.00 million original loan and $ 5.00 million additional loan) (about 11.51%), and Government contributes $ 48.30 million($ 23.00 million original loan and $ 25.30 million additional loan) (about 46.31%).

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Construction and Equipping of Two Secondary Schools and Technical Institutes in “Cabo Del Gado” and “Niassa” Provinces

Sector: Social (Education) MOZAMBIQUE PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

24.00

10.00

9/3/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project aims to contribute to the development of human resources by providing opportunities for secondary education and technical support in the northern areas of the country where there are no institutions of adequate education, which will help rehabilitate and provide the staff required to meet the needs of economic and social development at the national level and in the project areas, especially in the field of development of agricultural and natural resources enjoyed by those regions. Project description The project includes the civil works which include construction of a technical institute agricultural average in each of the “Balama” province “Cabo Delgado” Province and in “Majun” in “Niassa” province with an area of about 5223 m2 to accommodate about 600 students and provide housing for about 200 students and 12 teachers, administration building and classrooms, laboratories, workshops, and an experimental farm and boarding and public utilities, construction of gravel road in the village of “Majun” and the construction of a secondary school in the village of “Namuno” with an area of about 2390 m2 to accommodate about 600 students and the construction of a secondary school in the city of “ Lichinga” in “Niassa” province with an area of about 1970 m2 to accommodate about 600 students. and accommodation for about 200 students and 12 teachers. The project also includes the provision of office equipment and laboratory and the generators for each of the two institutes and the school in the village of “Namuno” and the supply of 3 agricultural tractors and truck each Institute and institutional support to the Project Implementation Unit to provide salaries for the staff of the unit, furniture and office equipment and the provision of double cabin car as well as consultancy services Project Financing Plan BADEA contributes $ 10.00 million to the project financing (about 41.67% of the total project cost), Saudi Fund contributes $ 12 million (about 50%) and Government contributes $ 2.00 million (about 8.33%).

There is evident rise in global interest in improving the access of the poor to education and health services and in fighting illiteracy and ignorance. Since 1995, BADEA has provided about $ 242 million in support of social sector projects.

45

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Construction and Equipping of Technical Institute in “Nakaseke” District Project

Sector: Social (Education) UGANDA PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

5.56

5.00

9/3/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

40

30

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project aims to contribute to the development of human resources by providing opportunities for technical education and vocational training in the central regions of the country where there are no adequate institutions for technical education, which will help to train and provide technical staff to meet the needs of the labor market. Project description The Project lies in town of “Butalangue” in the district of “Nakaeseke”, 80 km north west of the capital “Kampala”. The project includes the construction and equipping of a technical institute in the fields of brick/ block laying and concrete practice, carpentry, electrical installations, metal fabrication and welding, agriculture mechanization, motor vehicle mechanics and plumbing. The project is composed of civil works and ancillaries: construction of buildings with a total area of 5074 m2, provision of equipment, furniture of a bus for 30 students, and double cabin 4wd vehicle for the institute administration, support to the Project Implementation Unit which includes provision of 2 computers along with their accessories and one double cabin vehicle and consultancy services. Project Financing Plan BADEA contributes $ 5.00 million to the project financing (about 89.9% of the total project cost) and Government contributes $ 0.56 million (about 10.1%).

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B A D E A

“Orkesumet” Township Water Supply Project

Sector: Infrastructure TANZANIA PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

18.42

8.00

22/6/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project aims to contribute to the improvement of health conditions, social and economic development through the provision of drinking water for the city of “Orkesumet” and villages affiliated to meet the current demand for water and the future until the year 2034, so as to contribute to alleviate the burden of fetching water and reduce the spread of diseases and epidemics resulting from the uses of contaminated water. The project will also develop the rural economy and improve the local livestock and rural industries especially dairy products, leading to job creation and improving the income of citizens . Project description “Orkesumet” Township and the surrounding 8 village in “ Manyara” region , 620 km to the north west of “Dar- es- Salam”. The population is currently estimated at 20,000 and is expected to reach 48,000 in the year 2034. The project is composed of the civil works and ancillaries for construction of water intake on “Bagane” river, and 3 booster stations: and of 11 tanks with capacities ranging from 50 to 1600 m3, supply and layout of distribution network with a total length of about 57 km and diameters ranging from 25 to 110 mm, construction of buildings and a gravel road with a total length of about 33.6 km to connect the water intake and the balancing tank, construction of 10 public points for water sales, 10 troughs for livestock, about 1500 household connections and 10 kiosks for water sales, in addition to consultancy services: and support of the PIU. Project Financing Plan BADEA contributes $ 8.00 million to the project financing (about 43.43% of the total project cost),), OFID contributes $ 8.00 million (about 43.43%), and Government contributes $ 2.42 million (about 13.14%).

Supply of potable water participates in fighting of diseases, reduction of poverty and improving the standard of living for the population.

47

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

” Rusizi”- “Gisenyi“ Regional Road Project-Section “Rubengera”- “Gasiza”

Sector: Infrastructure RWANDA PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

52.70

11.00

22/6/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project aims to contribute to the development of regional cooperation and open access to the sea to both Burundi and Rwanda, and the intensification of trade exchanges between the neighboring countries and to assist the integration of their economies, and facilitate the movement of goods and passengers along the western region of Rwanda and reduce the cost of transportation, lifting the isolation of the villages on the route and contribute to the economic and social development in the region. Project description The length of the part that has not been built out of the regional road of Rwanda, about 185 km, and to facilitate the financing and construction, it has been split into five parts, four of which are being implemented from regional and international financial institutions and Part V, “Rubengera”- “Gasiza” is financed by BADEA and includes civil works and ancillaries for the construction of paved road length of about 23.6 km and width of 7 m, and includes two tracks each 3.5 m, and shoulders each 1.50 m outside the residential areas and 2.0 m inside, in addition to consultancy services Project Financing Plan BADEA contributes $ 11.00 million to the project financing (about 20.87% of the total project cost),), Saudi Fund contributes $ 13.00 million ( about 24.67%), Kuwait Fund contributes $ 13.00 million (about 24.67%), OFID contributes $ 10.00 million (about 18.97%), and Government contributes $ 5.70 million (about 10.82%).

The Constraction of roads aims at facilitating transportation, encouraging commercial exchange and connection of the country with the neighbouring countries.

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B A D E A

Water Supply for the City of “ Ribeira Afonso”Project

Sector: Infrastructure SAO TOME AND PRINCIPE PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

3.56

3.20

22/6/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project aims to provide safe drinking water to the residents of the city of “ Ribeira Afonso “ and some nearby villages to meet the current and future demand until the year 2035, and to improve the health of the population and alleviate the suffering of citizens in collecting water, especially women and children. The project will encourage economic activity which helps to raise the income level of citizens and their stability. Project description The project is located on the eastern cost of the island Sao Tome, around 20 km south of the capital Sao Tome. The project includes the city of “ Ribeira Afonso” and the village “Rocka Altodros”. The project includes the civil works and ancillaries for construction of two water intakes on the tributaries of “Afonso” river, water treatment plant, rehabilitation of the existing water treatment plant and construction of gravel road to connect between the intake and the treatment plant for a length of 3.5 km, construction of ground reservoir with capacity of 200 m3 and rehabilitation for the existing reservoir of 50 m3 capacity. Construction of water main from the intake to the treatment plant and to the two reservoirs and construction of distribution network with a total length of 8.5 km with diameters ranging from 50 to 150 ml. Supply and installation of 300 house connections in addition to 10 public water points, consultancy services and support to the project implementation unit. Project Financing Plan BADEA contributes $ 3.20 million to the project financing (about 89.9% of the total project cost) and Government contributes $ 0.36 million (about 10.1%).

49

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Blanche Gomes Hospital Project (Phase II)

Sector: Social (Health) CONGO PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

26.20

8.00

22/6/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project objectives The project aims to support the general policy of the Government’s efforts to expand health service coverage and upgraded, and meet the basic needs to improve the health status of citizens. The project also aims in particular to reduce the effects of the problems of maternal and child health and reducing child and maternal mortality, through the provision of health services to residents of the capital, “Brazzaville” and the surrounding areas. The project will also train medical and technical cadres in order to raise their efficiency. Project description The project is located in the town of “Brazzaville”. BADEA contributed in 2005 in financing the first phase of the project of which 90% of the civil works are completed. The second phase includes civil works and ancillaries for additional building with capacity of 100 beds, provision, equipment and furniture, consultancy services, Institutional Support, and project administrative costs. Project Financing Plan BADEA contributes $ 8.0 million to the project financing (about 30.5% of the total project cost), OFID contributes $ 5 million (about 19.1%), and Government contributes $ 13.2 million (about 50.4%).

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B A D E A

Development of Rice Cultivation in “Massina” Project

Sector: Agriculture and Rural Development D.R. CONGO PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

17.00

10.00

22/6/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project objectives The project aims at the development of rice cultivation in “Massina” close to the capital “Kinshasa” to contribute to the achievement of food security and improve living standards in the project area and the alleviation of poverty, by promoting the production of irrigated rice and the expansion of irrigated agricultural land, water management and agriculture more efficiently and effectively to ensure sustainability of the use of available natural resources such as water and land to support the production of rice. Project description The project lies in the district of “ Massina”, 25 km from the capital “ Kinshasa” with population of 168,000. The project includes civil works and ancillaries for reclamation of 725 ha of agriculture land and rehabilitation of the existing earth dam and construction of irrigation network with a length of 30 km, drainage network of 35 km, and pumping station to be connected to the grid and construction of 30 km of earth roads, support the agriculture production, construction of 4 rice storage facilities and 4 sites for drying. supply of equipment and agriculture tools, project administration cost, institutional support to the coordination office (BCECO) and to the Project Implementation unit and consultancy services. Project Financing Plan BADEA contributes $ 10.0 million to the project financing (about 58.8% of the total project cost), OFID contributes $ 5.0 million (about 29.4% of the total project cost) and Government contributes $ 2.00 million (about 11.8%).

BADEA assigns great importance to the financing of agricultural and rural development projects intended for boosting food security, creating jobs, fighting poverty and reducing rural-urban migration. BADEA’s cumulative total contribution to this sector stands at $ 797.4 million dollars, representing about 24.3% of the net commitments.

51

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Rural Electrification in 5 Areas Project

Sector: Agriculture and Rural Development KENYA PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

63.465

10.00

22/6/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project aims to improve living standards, alleviate poverty and reduce the rates of migration from the countryside to the cities to provide electricity for homes, schools, health services, government centers commercial and industrial activities and agricultural areas of the project which contributes to advancing the economic and social development. It also aims to develop small-scale industries, which is engaged in the production and processing of agricultural products, especially tea and coffee, as well as to achieve a positive environmental impact to reduce over-use of timber as the main source of energy. Project description The project envisages electrification of about 591 centers (i.e. local centers for marketing of tea and coffee, health centers, educational institutions, and Governmental Centers) and 35 460 households in 66 constituencies in five regions in Kenya: 18 constituencies in Rift Valley region, 17 constituencies in Eastern region, 14 constituencies in Central region, 8 constituencies in Western region and 9 constituencies in coast region. The project consists of construction of distribution networks through supply and construction of 1991 km of 33 kV Medium Voltage distribution lines and 591 units of 33/0.415 kVA distribution transformers and 709 km of 415 V Low Voltage distribution lines and consultancy service Project Financing Plan BADEA contributes $ 10.00 million to the project financing (about 15.76% of the total project cost),), Saudi Fund contributes $ 10.00 million ( about 15.76%), Abu Dhabi Fund contributes $ 10.00 million (about 15.76%), OFID contributes $ 15.00 million (about 23.63%), and Government contributes $ 18.465 million (about 29.09%).

The provision of electric power is one of the important means for economic and social development. Rural electrification, in particular, has a direct role in enhancing productivity, contributing to social stability and raising living standards.

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B A D E A

Line of Credit to Mali Solidarity Bank

Sector: Private MALI PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

-

4.00

22/6/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

22

15

7

ANNNUAL INTEREST RATE

1%

Project objectives The project aims to alleviate poverty by strengthening the financial activity of the solidarity Bank to provide capital resources for the segments of the target to its operations (contractors, young unemployed and owners of small craft and craftsmen and women and small farmers) to help them to implement small projects, and realize opportunities work leading to poverty reduction and sustainable development in the country. Project description The project includes the small private sector projects, income generation and strengthening the productive base in the Republic of Mali. Project Financing Plan BADEA contributes $ 4.0 million to the project financing (100% of the total project cost).

BADEA extends lines of credit to financial intermediaries in support of small loans and micro-credit, which target women, and those with special needs. The small loans and micro-credit are expected to create job opportunities and raise the standards of living.

53

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Construction of a bridge on “Mono” River Project

Sector: Infrastructure BENIN PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

12

10.4

19/10/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project objectives The project aims to reduce the use of ferries and boats to move between both sides of the river, between the Republics of Benin and Togo, which contributes to gain time for users of the bridge, and improve traffic. The project also aims to support trade and economic integration between the Republics of Benin and Togo, and to improve and revitalize the transit traffic between the Republic of Nigeria to the east through the Republic of Benin to each of the Republics of Togo and Ghana to the west. Project description The project envisages construction of a bridge on the River “Mono” between the towns of “Athieme” in the Republic of Benin and “Agome Glozoo” in the Republic of Togo. The project comprises the following main components: Civil Works: includes construction of reinforced concrete bridge of 153 m long and 7.5 m wide including two sidewalks of 2.5 m wide and 250 m long each, and construction of vehicles weighing station and transit center,consultancy services: consisting of preparation of supplementary hydrological studies on floods in the project area and review the detailed designs and tender documents and construction supervision. Institutional support to the Project Implementation Unit includes provision of two four-wheel drive vehicles, two computers with accessories, audio-visual tools, photocopier and office equipment audit of project accounts. Project Financing Plan BADEA contributes $ 10.40 million to the project financing (about 86.67% of the additional project cost) and Government contributes $ 1.60 million (about 13.33% of the additional project cost).

Bridges facilitate the movement of people and goods, promote tourism and reduce pauverty.

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B A D E A

Credit facility for Youth Support Fund

Sector: Private BURKINA FASO PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

-

1.50

19/10/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

20

15

5

ANNNUAL INTEREST RATE

1%

Project objectives The project aims to support efforts by the government to reduce poverty and improve living conditions for the youth that are the poorest segment in the country, and by strengthening the financial activity of the Fund to provide additional financial resources to help young people to implement small projects and micro enterprises and employment opportunities for them to get out of the circle of unemployment and poverty, which contributes to stability, human and economic development for young people. Project description The project includes financing of small and micro-projects for young people who were able to pass the training sessions in the areas of institution building and project management in various parts of the country. Project Financing Plan BADEA contributes $ 1.50 million to the project financing (100% of the total project cost).

55

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Sustainable Development for Villages in “Salamat” Area Project

Sector: Agriculture and Rural Development CHAD PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

20.20

8.20

19/10/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project is within the strategy of the country to reduce poverty and support food security and enable the poor to benefit from social services. The project aims to contribute to reducing poverty and improving the lives of the population in the project area, through improved agricultural production and development of livestock production, to raise the income of residents of the target villages. It also aims to enable the largest number of boys and girls of primary school enrollment, reducing child mortality, improve maternal health, and resistance to endemic diseases in the project area Project description The project covers 79 villages and an estimated number of beneficiaries of the project by about 45 thousand people. The project includes the local development and includes support for village organizations and guide farmers to the use of production inputs, and agriculture, which include the intensification of maize cultivation in the area of 1000 ha and the construction of grain silos and improved seeds, fertilizers, and construction of local markets, the construction of units for the manufacture of peanuts, and livestock production the establishment of 15 cattle pond to drink and 5 places for the provision of veterinary medicine, and education, which includes construction and equipping of 22 schools to accommodate the elementary students and some 5,400 trained, 150 teachers in primary education. The project also includes the development of health construction and equipping of 18 health units and the provision of medicines and vaccines and awareness campaigns for the prevention of health, and infrastructure include the drilling and equipping 15 wells and 18 deep wells and the construction of 75 km of rural tracks to break the isolation of the villages, and the development of income-generating activities and the development of conversion agricultural products, support and project implementation unit by means of transport and office equipment and cover operating expenses, and advisory services. Project Financing Plan BADEA contributes $ 8.20 million to the project financing (about 40.6% of the total project cost),), ISDB contributes $ 10.00 million (about 49.5%), and Government contributes $ 2.00 million (about 9.9%).

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“Kpalimé”- “Atakpamé” Road Project

Sector: Infrastructure TOGO PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

63.00

10.00

19/10/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project Objectives The project is among the priorities of the transport sector in Togo and the regional programs at the level of the Economic Community of West African States “CEDEAO” and the Economic and Monetary Union of West Africa, “UEMOA. The project aims to contribute to the economic and social development of Togo, raising the level of the national road network and linking to neighboring Ghana. It aims also to improve the traffic efficiency and reduce the cost of transport and the development of economic and commercial activity of the region, which is the largest one in the country in terms of area and population density and it is the most productive areas for coffee, cocoa and cotton. Project description The road “Kpalimé” - “Adajala”- “Atakpamé” is 102 km long. The project includes Civil works and ancillaries to construct an asphalt road about 80 km long and 7.4 m wide including two shoulders each 1.5 m outside residential areas, Institutional support to the Project Implementation Unit: includes provision of a 4-wheel-drive (Pick-up) and computer with accessories, copier, fax machine and running expenses of the PIU and consultancy services. Project Financing Plan BADEA contributes $ 10.00 million to the project financing (about 15.87% of the total project cost),), Saudi Fund contributes $ 12.00 million ( about 19.05%), Kuwait Fund contributes $ 12.00 million (about 19.5%), ISDB contributes $ 12.00 million (about 19.05%), OFID contributes $ 10.00 million (about 15.87%), and Government contributes $ 7.00 million (about 11.11%)

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“Jacqueville” bridge Project (Additional Loan)

Sector: Infrastructure COTE D’IVOIRE PROJECT COST ($ Million) Additional Loan:

19.05 Original Loan:

21.00 40.05

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

6.00

19/10/2011

30

20

10

1%

7.00

21/3/2007

30

20

10

1%

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

ANNNUAL INTEREST RATE

13.00

Project bjectives The project aims to reduce the use of ferries and other means to move between both sides of the Lake “Ebrie”, also aims to save time and development of industrial units and tourism in coastal areas, and improve the traffic of the city “Jacqueville” to the center and north, east and west of the country. Project description The project is located on the Lake “Ebrie” in “Jacqueville” Area near the city of “Grand Bassam” east of the capital, “Abidjan” and to the west of the city “ Jacqueville “ The project includes civil works and ancillaries, which include the construction of the bridge length of 608.4 m and width 7.5 m paving the linkage road of 476 m and width of 7.5 m and paving the linkage road of 476 m and width of 7 m and shoulders view, each 1.3 m, also includes the project on institutional support for the body and the roads Department to follow up the implementation of the project and land acquisition, audit and consultancy services. Project Financing Plan BADEA contributes $ 6.00 million to the project financing (about 31.5% of the additional project cost), OFID contributes $ 4.00 million (about 21% of the total project cost), BOAD contributes $ 7.78 million (about 40.8% of the total project cost) and Government contributes $ 1.27 million (about 6.7% of the additional project cost).

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Construction of “Arlet”- “Assamaka” Algeria Border Road Project

Sector: Infrastructure NIGER PROJECT COST ($ Million)

BADEA’S LOAN AMOUNT ($ Million)

APPROVAL DATE

102.00

10.00

19/10/2011

LOAN DURATION LOAN REPAYMENT GRACE PERIOD (YEAR) PERIOD (YEAR)

30

20

10

ANNNUAL INTEREST RATE

1%

Project objectives The project falls under NEPAD’s projects and it is part of the desert road that links the countries of North Africa to countries of West Africa. The project aims to break the isolation of the landlocked countries of Niger, Chad and Mali. The project will improve and secure traffic, link production centers and contribute to the economic development of Niger. It also aims to contribute to the support of trade exchanges between the countries of the Maghreb and sub-Saharan African countries (Mali, Niger, Chad and Nigeria). Project description The project is located in the northern part of the country and extends from the village of “Arlet” to the village of “Assamaka” and to the border of Algeria with a length of about 223 km. The project comprises construction of asphalt road about 223 km long and 7 m wide with two shoulders, each one meter wide, consultancy services, institutional support and audit of project accounts. Project Financing Plan BADEA contributes $ 10.00 million to the project financing (about 9.8% of the additional project cost), AfDB contributes $ 20 million (about 19.6% of the total project cost), Kuwait Fund contributes $ 17.00 million (about 16.7% of the total project cost), IsDB contributes $ 15.00 million (about 14.8% of the total project cost), Saudi Fund contributes $ 12.00 million (about 11.7% of the total project cost) OFID contributes $ 10.0 million (about 9.8% of the total project cost), Abu Dhabi Fund contributes $ 10.0 million (about 9.8% of the total project cost) and Government contributes $ 8.0 million (about 7.8% of the additional project cost).

The road project falls under NEPAD’s projects and form part of the desert road that link the countries of North Africa to the countries of West Africa

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Women play an important role in rural areas, participating in farming, fetching water and raising children, thus contributing to improving living standards and the provision of food.

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B- Detailed Description of Technical Assistance Operations in 2011

Training Programme in the field of Improvement of Cotton Fibers Industry

Training Course in the Field of Saline Agriculture Technologies and its Role in the Metigation of the changes of Climatic Factors in Africa

REGIONAL

REGIONAL

Objective Realizing the importance of training the African cadres engaged in the field of cotton textile, a training Programme was designed in two courses. 20 trainees participated in each course for a period of 3 weeks conducted by: “ Vocational Training Complex for textile and Clothes” in Casablanca (Morocco) for the benefit of the francophone countries and the “Fund for the Support of Spinning and Textile Industry” in Cairo (Egypt) for the benefit of the anglo phone African Countries. This is in the field of the improvement of the cotton fibres industry due to its impact on the economic development in the African countries producing cotton. The Arab Organization for Industry and Mining Development is supervising the execution of the training programme. The training Programme aims at: - Development and improvement of the trainees capabilities in the field of improvement of cotton fibres industry, and knowledge of the technology of this industry. - The latest and most modern developments in this field and exchange of experiences among participants. BADEA Funding: A non- refundable grant of $ 330,000. Date of Board of Directors’ Approval: 9/03/2011 Fields of Training: The training Programme consists of the theoretical and practical aspects of the following components: - Methods of textile fibres and cords investigations. - Monitoring of quality in the textile and spinning factories. - Textile technology and textile fabrication and analysis of samples. - Mechanics of the textiles machines and the technology of non- textile Cloths. - Cotton treatment by “RIE TER” system and principles of Treco- Technology.

Objective The training course aims at providing the African technicians and those engaged in national agricultural research programmes with the knowledge of the role of the saline agriculture in the reduction of the negative impacts of climatic changes , increase of the agricultural products in the African countries to participates in achieving food security, in addition to the methods of applying these technologies to be compatible with the available facilities and natural resources in the African Countries. 20 trainees from Anglophone African countries recipient to BADEA’s aid participate in this course conducted by the International Center for Saline Agriculture in Dubai- United Arab Emirates. BADEA Funding : A non- refundable grant of $ 220,000 Date of Board of Directors’ Approval: 9/03/2011 Fields of Training: The training course extends for a period of two weeks where the theoretical and practical aspects of the following issues were tackled: - The factors of climate changes and their impact on water and food security, especially in the African Countries. - The Impact of climate change on the biodiversity. - The environmental characteristics in the arid and salt affected regions in Africa. - The sustainable agricultural production system under climatic change. - The Integrated Management systems for the water resources in the African countries. - The modern irrigation and drainage systems and underground waters in arid and salts affected environments in African Countries. - The Sustainable management of soil and water resources under the climatic change in Africa. - The climate change and its impact on the bioagricultural diversification in Africa. - Building of national capacities for metigation of the factors of climate changes.

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Training Course in the field of Making Use of Agricultural Remains in Animal Nutrition

Training Course in the field of Agricultural Extension Methodology

REGIONAL

REGIONAL

Objective: The training course aims at the development of the theoretical and practical capacities of the African cadres working in the fields of agriculture and animal resources by making use of the agricultural remains in animal feeding through the following: the conservation of the natural agricultural resources and the best use of these resources, achievement of agricultural development and food security in Africa, conservation of the environmental balance, conservation of animal resource and improvement of its productivity, evolution and modernization of the agricultural technology suitable to the local conditions, acquaintance with the field of fodders industry, reduction of fodder prices which has a positive impact on the availability of food materials. 20 trainees from English speaking countries participate in this training course which was executed by National Centre for Agricultural Researches and Transfer of Technology of the Ministry of Agriculture- Jordan. BADEA Funding: A non-refundable grant of $ 170,000

Objective: The training course aims at the improvement of the efficiency of the experts of the agricultural extension and development of their skills to provide a distinguished agricultural extension services aiming at the increase and profitability of the agricultural products. This will be achieved through training in: - Knowledge of methods of the agricultural extension, development and planning the management of information system. - Upgrading the efficiency and effectiveness of the use of the methods of agricultural extension. - Enhancing of woman role and participation in the agricultural extension activities. - In addition to the exchange of experiences and field research. 25 trainees from English Speaking African countries benefit from this course which continues for 3 weeks and executed by Arab Centre for the Studies of Arid and Dry Lands in Damascus- Syrian Arab Republic

Date of Board of Directors’ Approval: 9/03/2011 Fields of Training: - Resources of fodders (definition and formation), non- traditional fodders. - Agricultural remains (types and methods of use, horizons of making use thereof. - The importance of agricultural remains in Africa. - Methods and determination of the improvement of the nutrition of the agricultural remains. - Methods of use of the agricultural remains in animal feeding. - The use of agricultural remains in Silage production. - Practical training in silage production. - The use of the vegetables remains in animal feeding - The use of agricultural remains in the manufacture of fodders cubes and practical training manufacturing these cubes. - Practical training in the use of urea in the improvement of the neutritional values of the agricultural remains.

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BADEA Funding: A non-Refundable grant of $ 180.000 Date of Board of Directors’ Approval: 9/03/2011 Fields of Training: The course tackled the theoretical and practical aspects of the following subjects: - Understanding of the agricultural extension, its characteristics and its objectives. - Evolution of the environmental and agricultural extension programmes. - Evolution, planning and methods of conducting and evaluation of the agricultural extension training programmes for those working in this field. - Development of the agricultural extension equipment and strengthening the institutional relations. - Dissemination and adoption of the modern methods in the various fields of the agricultural production. - The teaching requirements for farmers in the fields of use of agricultural inputs, marketing of the products and consumption. - Study of the possibility of extending the agricultural extension services with paid cost. - The social and cultural aspects of the population communities in the rural areas.

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The 2nd Orientation Programme for the African Focal Points Responsible for the follow – up of BADEA’s Operations

Institutional Support for Teaching the Arabic Language

REGIONAL

TCHAD

Objective: The Assistance falls within BADEA’s policy which aims at the upgrading the effectiveness of projects and technical assistance operations which its finances through enhancing the skills of those responsible for the follow- up of BADEA’s operation in the African countries recipient to its aid. - Participation in the success and effectiveness of BADEA’s missions to the African countries. - Promotion of BADEA’s activities and its role in the participation in the development of the African countries recipient to its aid. - Creating a framework of co- operation between the Focal Points of the Anglophone and Franco phones countries and exchange of ideas. - Motivation of Focal Points responsible for the follow-up of BADEA’s operations. BADEA Funding: A non- refundable grant of $ 330,000 Date of Board of Directors’ Approval: 9/03/2011 Field of the Programme: The programme consists of the following subjects: - BADEA’s Procedures for Procurement of Goods and services. - The aspects related to the withdrawal from loans and grants. - Preparation, follow- up and evaluation of projects and technical assistance operations and the role of the focal points in each of these stages. - The legal aspects related to projects and technical assistance operations. - Creation of a network for the focal points responsible for the follow- up of BADEA’s operations. - Exchanging views on some of the issues of concerning Africa such as: food security, energy, potable water, sewerage and regional projects.

Objective: The technical assistance aims at training and enabling 1280 from the Government cadres who are Anglophone to learn the Arabic language for its use in the administrative system. The training will be conducted by the Islamic Centre of Educational Cultural and Scientific Organization (ISESCO), in Ndjamena- Republic of Tchad. BADEA Funding: A non- refundable grant of $ 335,000 Date of Board of Directors’ Approval: 9/03/2011 Technical assistance components: The Technical assistance consists of the following components: First: Procurement of Information, office and laboratory equipment (audiovisual): include 21 computers and accessories, 21 receivers, and one electronic stabilizer (10 KVA) and one console, books and cassettes. Second : Training Programme The training programme consists of two courses in the field of learning the Arabic language and its use in the administrative field, 1280 cadres from various Governments’ Departments will benefit from the programme. Each course consists of 500 hours for training and continues for 12 months and 640 cadres will participate in this course. This course is divided into: First Part: Basic Training for 160 hours and continues for 7 months and includes the following: - Listening, understanding, reading, dialogue, expression and writing. Second Part: The Advance Training continues for 340 hours and extends for 5 months: it includes: - Support and ability of the benefits of the first part of the course. - Learning of the Arabic language Grammar. - To enable the trainees to build their linguistic and cultural capabilities by themselves. - To be able to use the terms in the administrative system. - Methods of writing letters, minutes of meetings and other reports related to the administrative responsibilities of each trainee.

- Reviewing the institutional condition in view of the project.

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Provision of an Expert services in the Field of Roads Engineering for the Support of the Ministry of Transport and Communication in Zanzibar

Institutional Support for the National Laboratory for Building and Public Works

TANZANIA

TOGO

Objective: The technical assistance aims at the support of the Ministry of Roads and Communication in Zanzibar through training of the engineers and technicians in the field of design roads, construction and maintenance and management of contracts, especially, the supervision of progress of the execution of the works and preparation of addendea and variation orders, preparation of invoices for consultancy services and execution of works through procurement of the services of an expert for two years. BADEA Funding: A non- refundable grant of $ 250,000 Date of Board of Directors’ Approval: 9/03/2011 Terms of Reference of the Expert: The terms of reference include, inter-alia, the following: A-Training of Professionals and technicians of the Roads Department for the evolution of the technical and administrative capacities in the following fields: - Preparation and implementation of roads in accordance with the Ministry of Transport and Communications strategies. - Preparation of detailed designs and tender documents, launching and analysis of offers. - Follow up of management of contracts for consultancy services and civil works, monitoring and contract of quality of services and works according to the specifications and progress of execution of works according to the implementation programmes. - Set- up and improvement of a system for the evolution of the performance of the Roads Department. - Preparation of terms of reference for the feasibility studies and follow –up of preparation of the studies. - Review of the progress reports prepared by the consultants. - Review of the progress reports prepared by the consultants. - Review of the invoices according to the services rendered by the consultants according to the executed qualities. B- Give advice to the Director of Roads Department in all matters related to roads projects. The components of the technical assistance include supply of a means of transport for the expert and computer with accessories.

Objective: The technical assistance aims at the institutional support for the National Laboratory for Building and Public Works by supply of equipment to enable it to improve its capacities to meet the country’s increasing needs for the follow-up and monitoring the execution of projects and hence ensuring the safety of the materials used and the works executed according to the adopted technical standards. BADEA Funding: A non- refundable grant of $ 300,000 Date of Board of Directors’ Approval: 9/03/2011

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Components of the Technical Assistance: The technical assistance comprises the following: - Procurement of equipment for the laboratory for testing and monitoring of building materials. - Procurement of equipment for the laboratory for monitoring the asphalt roads.

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Feasibility Study for the Supply of Potable Water and Sewerage Project for Some Quarters of “Praia Town

Provision of an Economic Expert’s Services for the support of the Ministry of Finance

CAPE VERDE

D. R. CONGO

Objective: The technical assistance aims at the preparation of the feasibility study for the supply of potable water and sewerage project for some quarters of “ Praia” town according to the Government’s policies and the strategies in the sector for supply of potable water for domestic, industrial and administrative consumptions and improvement of the sanitation in the region until 2040. BADEA Funding: A non- refundable grant of $ 300,000 Date of Board of Directors’ Approval: 9/03/2011 Terms of Reference of the Study: The terms of reference of the study include, inter-alia , the following: A-Collection and analysis of statistics and data related to demographic, development of housing, socio- economic, metrological and hydrological aspects. B- Collection and analysis of data of the existing water supply and sanitation and collection and analysis of data and statistic of water consumption. C-Preparation of the preliminary studies for the water resources and the structures of the water supply system, with study of the alternatives and comparison of technical financial, economical and environmental aspects and defining the fast track works. A- Estimation of the detailed cost of the projects split into foreign and local components. B- Preparation of the financial and economical studies of the project including the calculation of the financial and economical returns and the social benefits and assessment of the impacts of the project on the environment and development in general. C- Review the organizational structure of the public institution for production and distribution of electricity and water(ELECTRA) which is responsible for operation and maintenance of the potable water utility, and the organizational structure of the institution responsible for the management, operation and the maintenance of the sewerage utilities.

Objective: The technical assistance aims at financing the services of an Arab Expert for two years for the support of the Minister of Finance’s office in the field of evaluation and follow –up of execution of projects programmes assist in training of cadres. This is due to the shortage of the ministry in the specialized cadres in this field. BADEA Funding: A non- repayable grant of $250,000 Date of Board of Directors’ Approval: 9/03/2011 Terms of Reference of the Expert: The terms of references of the expert include : - Participation in the set-up of mechanism for evaluation and follow up of execution of programmes and projects. - Assistance of the ministry to set- up modern methods for preparation and evaluation of projects. - Assistance of the ministry in choosing the effective prioritized projects within the strategy of the economic development and fight of poverty. - Participation in the coordination and follow –up of the implementation of programmes and projects financed by BADEA and the other Arab financing institutions. - Participation in training the cadres in the field of analysis, evaluation and planning of projects. - Enhance coordination among all related parties in the implementation of programmes and projects and the best use of the available resources. In addition, the technical assistance include procurement of a means of transport and a computer with its accessories for the expert.

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Training Programme in the Field of Procurement of Goods and services for Some Francophone African Countries

REGIONAL Objective: The training programme aims at training 50 cadres from 6 Anglophone African countries of the ministers’ employee and Government institutions responsible for the execution of development projects financed by external financing institutions to develop their capacities in the field of procurement of goods and services, to conduct training of the intermediate and auxiliary cadres to improve efficiencies to expedite implementation of development projects. The programme will be implemented in two courses: The first, in Brazzaville the capital of the Republic of Congo and the second in Bamako, the capital of the Republic of Mali. Each course will be for a period of two weeks and participate in its execution each of Purchasing Authorities in the two countries and in coordination with IDLO. BADEA Funding: A non- refundable grant of $ 300,000 Date of Board of Directors’ Approval: 22/06/2011 Fields of Training : - Principles and stages of procurement of goods and services. - Regulations of Procurement of goods and services. - Regulation relative to works private and partnership- private and Public (PPP). - Study of the legal and institutional framework for the purchasing systems in the countries benefiting from the training in comparison with national regulations in the field of procurement of goods and services. - Technicalities of negotiations and preparation of international contracts and methods of settlement of disputes. - Course in guidelines and procedures for procurement of goods and services for the international, regional financing institutions (BADEA Coordination Group ADB).

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Training course in the Field of Marine Fishing

REGIONAL Objective: The training course aims at raising the technical and training standards of African cadres in the field of artisanal marine fishing thus leading to the participation in increasing the fish production improvement of quality leading to aid in poverty reduction and availing opportunities for new employment through evolution and development of the cadres responsible for management, operation and organization of artisanal marine fishing with the objective of the development of the marine fishing sector in Africa. Participation in the improvement of the quality of marine fishing through the use of modern technologies in the field of artisanal marine fishing.20 trainees from Francophone African countries benefit from this course which is under the supervision of the Arab Organization for Agricultural development and executed by the National Institute for Pedagogy and Continuous Agricultural Training in “Sidi -Thabet”- Tunisia. BADEA Funding: A non- refundable grant of $170,000. Date of Board of Directors’ Approval: 22/06/2011 Fields of Training: The training course extends for three weeks and composed of two parts: The first part is general and include a background about marine fishing and the second part tackle the artisanal fishing in detail as follows: The first part include: - Organization of fishing and coastal navigation regulations, management of news site and training. - Fishing and coastal navigation technologies which include: marine safety, methods of marine fishing and use of modern communication technologies. - Quality of fishing products which include monitoring of quality, standards of quality and protection of marine environment. - Treatment of fishing products: processing, drying, smoking and canning. Marine environment include: protection of marine resources, national and international regulations in the field of marine fishing. The second part include: professional organization for the artisanal fishermen, set-up of cooperative and associations of artisanal fishing. • Quality of fishing products which includes:quality standards, monitoring of quality and protection from pollution. • Treatment of artisanal fishing which includes: Processing, drying, smoking and canning.

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Provision of an Arab Expert’ services to the Development Bank for Central African Countries

Institutional Support to the Fund for the Supporting Activities for Generating Incomes for Women

(BDEAC)

BURKINA FASO

Objective: The technical assistance aims at availing the services of an Arab expert in economic for two years in the field of development projects analysis and specialized in energy projects to support the professional capacities in the department of studies and financing of the bank, through technical services extended by the expert in the field of the analysis of the of the energy projects and training of the cadres. This is due to the shortage of specialized cadres in the field.

Objective: The technical assistance aims at extending institutional support to the Fund for the support of the incomes generating activities for the benefit of women of the ministry of Economy and Finance to enable it to execute the programme to enhance the capabilities of the Fund to spread on the country by establishing new branches, in addition to qualify the beneficiary women for the best use of credits which lead to the support of the commercial activities, stock raising and processing industries. The support also includes a training programme for 1740 women for one week and the Fund’s cadres will implement the programme. BADEA Funding: A non-refundable grant of $ 130.000 Date of Board of Directors’ Approval: 22/06/2011 Components of the Technical Assistance: a- Supply of information equipment for two branches of the Fund which include: - 10 computers (PC) and accessories, 2 servers, - Two photo copy machines, - Office furniture, b- Design of a website for the Fund in the internet. c- Training of 1740 beneficiary women for a week. The trainees will be divided into 58 groups, each group consists of 30 women and the training programme is composed of two courses each comprises 29 groups. The training includes: marketing, financing and credits management, management of human resources and operation. The cadres of the Fund will conduct the training operation inside the provincial headquarters or the local headquarters of the Fund.

BADEA Funding: A non-refundable grant of $ 250.000 Date of Board of Directors’ Approval: 22/06/2011 Terms of Reference of the Expert: - Participation in outlining the policies and directions for review of the energy projects submitted to the bank or on-going projects under special agreements, - To aid the bank to set – up a methodology and mechanism for the financing and economical analysis adequate for energy projects, - Participation in reviewing the terms of reference of project’s studies and the preparation of the financial and economical analysis for these projects and provide recommendations for these projects to the responsible department, - Provide advice in the framework of the bank’s mandate in the field of projects preparation, feasibility studies, selection of consultants and contractors - The technical assistance includes also: - 4WD car for the transport of the expert to perform his duties, - One computer and its accessories.

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Feasibility Study for “Waoundi” Agricultural Project

Technical Assistance in the Field of Promotion of Arab Investment

SENEGAL

SIERRA LEONE

Objective: The technical assistance aims at financing the techno – economic study for the management of the irrigable lands in “waoundi” area which aims at the development of irrigated agriculture for rice in an area of 400 ha to participate in the achievement of food security and improvement of living conditions in the project area and reduction of poverty. BADEA Funding: A non-refundable grant of $ 380.000 Date of Board of Directors’ Approval: 22/06/2011 Terms of reference of the Study: The feasibility study will be prepared in two phases: Phase 1: Analysis of the current state and preparation of sectoral studies including: - Collection of the basic data and study of the socio – economic characteristics in the project area, - Study of the agricultural sector’s constraints, - Study of the existing socio-economic infrastructures, - Preparation of the field studies pertaining to topographical survey, social study and assessment of the quantity and quality of water resources. In this stage the results will be evaluated to proceed with the second phase. Phase II: Preparation of the preliminary technoeconomic financial and institutional studies for the project. - Preparation of the technical studies for the development of lands and parallel activities and the social-economic related infrastructure, - Estimated of the costs of project’s components, - Analysis of the soci- economic and financial aspects and calculation of the financial and economical rates of returns for the project, - Study of the environmental impact of the project and methods of mitigations of the negative impacts, - Outline of a tentative programme for project implementation, its management, operation and maintenance after its implementation, in accordance with the policies for the irrigated agricultural subsector in the Republic of Senegal.

Objective: The technical assistance aims at assisting the Government of Sierra Leone in attracting financial flows for investment from the Arab countries through financing sector identification studies, training and capacity building activity, (promotion of projects and investments chances, and making available the supporting services). BADEA Funding: A non-refundable grant of $ 300.000 Date of Board of Directors’ Approval: 22/06/2011 Components of the technical Assistance: A. Sector identification (a) Conduct competitive and comparative analysis (including strengths, weakness, opportunities and threats SWOT analysis) of sectorsidentifying approximately (3) sub-sectors on the basis of competitiveness and beneficial impact on the community. The sectors will be in conformity with the Standard Industry Classifications (SICs) used to define sectors. (b) Preparation of Marketing Materials encapsulating a Unique Selling Proposition (USP) for the identified Sub-sectors. (c) Preparation of at least (60) proposals of projects within the identified sectors. (d) Identify administrative or infrastructural barriers for investing in these sub-sectors and recommend policies for reform. B. Marketing and Promotion Campaign: (a) To develop an image-building campaign by identifying investor’s current perceptions of Sierra Leone. (b) To conduct direct marketing campaign for Sierra Leone. (c) To conduct high-level sector specifically targeting mission to selected companies from Arab and Gulf countries. C. Facilitation and Investor Serving: a) Creation of database of domestic companies within the concerned sector and conducting research to identify the appropriate investment within the region. b) Creation of database for Arab investors. c) Preparation of short-list of the concerned companies and information thereof, for purpose of conducting the marketing campaign. D. Training and Capacity Building of SLIEPA The objective of the training program is to put SLIEPA in a position to conduct further sector identification, benchmarking, targeting and marketing programs (locally and for other regions) upon completion of the project thereby increasing the sustainability of the program in the future.

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Training Programme for the Support of Guinea Water Company

Feasibility Study for the Rehabilitation of Fishery Port in “Angoche” town

GUINEA

MOZAMBIQUE

Objective: The technical assistance aims at the support of Guinea water company through organizing training programme for the benefit of 40 cadres from the company to enable them to improve the management and operation of the structures related to the supply of potable water. This assistance falls within the framework of the country’s efforts aiming at covering the shortfall in the needs of the urban population to potable water. The duration of the programme will be 2 weeks and the trainees will be divided into five (5)groups, each group is composed of 8 cadres. The programme will be implemented by the National Office for Potable Water (ONEP) in Rabat- Kingdom of Morocco. BADEA Funding: A non-refundable grant of $225.000 Date of Board of Directors’ Approval: 22/06/2011 Fields of training: The technical assistance is for training of about 40 cadres for two weeks in the following fields: - Methods of potable water treatment (8 cadres) which include: • The physical, chemical and bacteriological characteristic, collection of samples and methods of analysis. Monitoring of quality of water in the distribution networks and preparation of analysis reports. - Production of drinking water (8 cadres) • The hydrology studies and methods of drilling for underground waters, wells water, water pollution regulations for water protection. - Maintenance of treatment plants (8 cadres) include: • Review of principles of operation of treatment plant, diagnosis of breakdown of treatment plant and methods of adequate maintenance. - Measurement of water and improvement of distribution networks (8 cadres) includes mechanic of fluids, pumps technology, choise and operation of pumps.

Objective: The technical assistance aims at financing the cost of undertaking a technical and economic feasibility study for the fishing port of Angoche to increase efficiency of fish handling and preparation in the fishing port in the town of Angoche on the artisanal and industrial levels, and hence increases the export revenues and cover the increase in the local demand, which will help in availing jobs opportunities, increase income and raise the standard of living and fight poverty. BADEA Funding: A non-refundable grant of $400.000 Date of Board of Directors’ Approval: 22/06/2011 Terms of Reference of the study: The terms of reference of the study include, inter alia, the following: - Estimate the volume and type of the current and future movement of fishing ships in the project area, - Study the requirements of Angoshe Port, which includes dimensions for the floating jetty for industrial fishing. service buildings, fish preparation hall, in addition to cooling and ice production stores and provision of mechanical and electrical provisions, - Identify the limits for infrastructure, machineries, and inputs needed to promote small fishermen, including: • Small boats docking, • Fishing boats and their machineries, • Cooling, storing, marketing, transport and packing. - Field and laboratory examination for soil type at the proposed location of the Port and conduct vertical and horizontal topographic survey, - Prepare the preliminary design for the project, - Calculate the quantities and estimate the project cost in both foreign and local currencies, - Gather basic information for getting materials and water good for construction, and quarries located in the project area to be utilized in the project execution, - Conduct financial and economic analyses for the project and calculate the financial and economic rate of return, - Study administration and operation of the port, - Examine the current situation for small fishermen in the artisanal fishing sector in the project area and identify the obstacles and challenges facing them, - Propose methods for administrating artisanal fishing in the area, - Study the project impact on environment.

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Institutional Support for the Ministry of Planning, Territory Management and local Development

Training Course for Arabic language teachers in some schools in “Addis Ababa”city

NIGER

ETHIOPIA

Objective: The technical assistance aims at the support of the ministry of Planning, Territory Management and local Development which is newly established in the field of territory management and local development, in addition to the supply of office equipment and means of transport. BADEA Funding: A non-refundable grant of $300.000 Date of Board of Directors’ Approval: 22/06/2011 Components of the technical Assistance: The technical assistance consists of the following components: • Provision of services of an Arab expert in the field of national and regional planning for a period of six months to participate in the support of the national capacities in this field, procurement of external financial resources, and development of capacities of the ministries and regional departments. The terms of references of the expert include: - Development of incomes means, and the long term planning, study and review of investment programmes. - Participation in training the ministry’s cadres and cadres of the Department of Studies and Planning of the sectoral ministries and the regions in the field of development planning. - Participation in review of the methodology and investment programmes in the medium term. - Procurement of services of an Arab expert in the field of territory management and local development for one year to participate in the outline of local management policies taking in consideration decentralization and his terms of reference include: - Support of the national capacities in outlining methodology and planning of territory. - Integration of climatic changes and management of the natural resources aspects management of the territory. - Set-up of space planning which is adequate with the administrative divisions or regions and provinces. - Establishing an act for territory management to be suitable for the local communities. - Preparation of planning means to be suitable for level of experience of the local communities. - Equipping of the lecture hall, sub-meeting rooms including the required furniture, audio-visual equipment, connection with telephone and internet networks, in addition to a permanent source of electricity (generator), air condition and fire alarm system. - Procurement of office equipment including two computers with accessories, photocopy machine and furniture of 4WD car for the transport of the two experts.

Objective: The Training Course aims at improving the teaching methodology for 30 Arabic Language Teachers from different Preliminary Schools in Addis Ababa for a period of one (1) month at the Department of the Arabic Language in the University . The Trainees will be introduced to modern teaching methodology and provided with teaching materials to enable them communicate easily with their students.

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BADEA Funding: A non-refundable grant of $12.000 Date of Board of Directors’ Approval: 21/07/2011 Fields of Training : • Preparation of the teacher • Preparation of materials • Skills of teaching • Design of exams • Class management • Teaching methodology • Sounds skills • Speaking skills • Writing and reading skills

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Feasibility Study for Storm Water Drainage Project in “Bangui” Town

Provision of an Expert’ services for the Support of the Regional Conference for the Countries of the Great Lake Region

CENTRAL AFRICA

REGIONAL

Objective: The technical assistance aims at the preparation of a feasibility study for the required structures for storm water drainage in the city of “Bangui”, the capital, specially the two districts (2) and (6). This is for participation in the metigation of the hardship facing the population during the rainy season and improvement of the living and hygienic conditions for the population, improvement of the general environment inside the city and fighting of poverty.. BADEA Funding: A non- refundable grant of $300,000 Date of Board of Directors’ Approval: 19/10/2011 Terms of Reference of the Study: The terms of the reference of the study include, inter-alia, the following: - Collection of the basic data of the storm water and its drainage and studies of the natural climatic, geological hydrological, topographical, housing aspects in the project area. - Preparation of the field studies, and topographical survey in the project area and sites of the proposal project structures. - Preparation of preliminary studies for the storm water drainage studies. - Estimates of the project’s coast - Analysis of socio- economic aspects of the project including the calculation of the Internal Economic Rate of Return. - Study of the impact of the project on the environment and methods of mitigation of the negative impacts and defining the necessary means of population awareness. - Study of management, operation and maintenance of the project after its implementation.

Objective: The technical assistance aims at the support of the conference of the countries of the Great lakes by procurement of the services of an economic expert for two years to develop the relations of cooperation with the bilateral and international financing institutions, and search for financing resources for regional project financing within the prioriced programmes aiming at the achievement of security, safety and development of the countries of the Great lakes Region and support of technical capacities of the tExecutive secretariat. BADEA Funding: A non-refundable grant of $250.000 Date of Board of Directors’ Approval: 19/10/2011 Terms of Reference of the Expert: The terms of reference of the expert include, inter-alia, the following: - Procurement of the financial resources for the projects’ Programme to which financial resources are not available. - Encouragement of development Partners to expedite participation in implementation of the projects’ programmes to achieve the objectives of conference of the countries of the Great lakes and hence to achieve security, safety and integration among the countries of the region. - Activation the relations of cooperation between the countries of the Great Lakes Region and International and bilateral financing institutions. - To offer help to the executive secretariat in the follow-up of projects implementation, monitoring financial withdrawals. - To extend advice to the technical secretariat pertaining to the encouragement of governments to implement the defined regional projects within the framework of the convention of the countries of the Great Lakes Region. - Training of the cadres in the field of cooperation and search for financing resources to finance the regional Projects Programmes, in addition to the procurement of vehicle and computer with accessories.

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Provision of an Expert’services for the Support of the National Ports Company

Provision of an Expert services for the Support of Works And Roads Management Authority

CAPE VERDE

SENEGAL

Objective: The technical assistance aims at the support of the national posts company by the provision of the services of an economic expert in the field of Ports management to improve the technical capacities of the company’s cadres and to participate in the preparation and follow-up of projects implementation, in addition to help in outlining policies and programmes for the evaluation of the ports sub- sector. BADEA Funding: A non-refundable grant of $250.000 Date of Board of Directors’ Approval: 1/10/2011 Terms of Reference of the Expert: The terms of references of the expert include the following: 1. Provision of the technical support for the Board of Directors of the National Ports Company (ENAPOR) to help it in taking decisions: 2. Provision of technical support to all institutions of the National Ports Company in its headquarters and its parts in the ministry to which the company belongs. 3. Provision of recommendation and participation in the preparation of the studies or other works within the scope of the expert’s specialization. 4. Participation in preparation and review of the tender documents and selection of offers. 5. Participation in the follow up of consultancy services. 6. Provision of technical support in the fields of fixing marin tariff for the adequate use of marine infrastructures and improvement of the services reentered by the company to be able to complete with other parts in the region. 7. Participation in the support of human capacities (definition of needs, training, outline of policies, in addition to management of training programmes). 8. Provision of support in the field of the internal relations of the company(support of partnership of the existing network of the company , attraction of new partners, commercial companies or institutions). 9. Participation in the redefinition of the role of the marine authority in the new directions issued by the Government (abandonment of the Marine authority to some of the Operation for the private sector).

Objective: The technical assistance aims at the provision of services of an expert in civil engineering specialized in public works and works and roads for two years to support the efficiency of the Works and Roads Management Authority through participation in preparation of investment programmes in roads and preparation of tender documents, selection of consultants, contractors and supervision of the execution of the works. BADEA Funding: A non-refundable grant of $ 250.000 Date of Board of Directors’ Approval: 19/10/2011 Terms of References of the Expert: To terms of reference of the expert include: • To provide help to the engineering cadres in the Department of works in outlining the master plans for the evolution of the roads networks, defining priorities related to the construction of new roads and supervision of implementation theory. • To provide help to the Authority to outline a training programmes for the cadres of the Authority. • To provide help to the Authority to programme for roads and bridges and supervision of implementation. • Support of the “Maintenance Department” and the “Department of Works” to outline a strategy for the execution of routine and periodic maintenance works for roads and bridges. • Participation in updating technical specifications for new works and rehabilitation and maintenance. • Provision of views on the technical aspects pertaining to the engineering designs of roads projects. • Preparation of guideline for monitoring of studies and works. • Preparation of studies for materials used in the construction of roads and proposals of technologies for improvement of methods uses and computability with the recognized standers. • Set-up of technical monitoring system for projects under construction. The components of the technical assistance include provision of 4 WD car and a computer with accessories.

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Feasibility Study for the improvement of the Electricity Network in the South of “Mahi” Island

Feasibility Study for the Expansion and Development of the Vegetable anf Fruits Production Project in the Regions of “Mamo” and “Kindia”

SEYCHELLES

GUINEA

Objective: The technical assistance aims at financing the cost of undertaking a technical and economic feasibility study for 33KV transmission network reinforcement project in South of Mahe Island. The technical assistance aims at studying the available means to support the electricity network in south of Mahe island by adopting the best means to enhance the electricity supply in the capital, also for enhancing the citizens standard of living, and promoting public services health, education utilities, and tourism in addition, to industrial activities which will help in creating employment opportunities, also to increase income and raise the standard of living and fight poverty. BADEA Funding: A non-refundable grant of $ 200.000 Date of Board of Directors’ Approval: 19/10/2011 Terms of Reference of the Study: The terms of reference of the study include, inter alia, the following: - Study of the electricity demand and network and service performance in Mahe, - Review and study of the existing electricity transmission and distribution networks in Mahe, - Performing user/customer and stakeholder surveys and all the necessary data collection for the analysis exercise, - Analysis of the possibilities of renewable energy generation, the use of advanced technologies, and the impact on the existing and proposed grids/networks, - Preparation of engineering design, - Preparation of bill of quantities and cost estimate, - Financial and Economic analyses, - Analysis of the potential social and environmental impact.

Objective: The technical assistance aims at the preparation of a feasibility study for the expansion and development of vegetables and fruits production project in the two regions of “Mamo” and “kindia” for the achievement of the following: Continuing of the development of lands in the project areas, cooling, processing and packing of fruits and vegetables, facilitations of goods transportation by construction of roads, provision of equipment for ensuring quality of goods for exportation, development of food processing industries, provision of the required means of production and agricultural credits for procedures and improving the means of marketing. BADEA Funding: A non-refundable grant of $ 350.000 Date of Board of Directors’ Approval: 19/10/2011 Terms of Reference of the Study: The terms of reference of the study include interalia the following: The study will be conducted in two phases: Phase I: - In this stage the outcomes and the project which had been completed will be assessed technically and economically, definition of constraints during its construction and conducting field studies and laboratory investigations for the proposed projects and these studies include: - Assessment of the project achievement and its impact on the economy of the region. - Study of demographic, climatic, soils, human resources and socio-economic aspects. - Study of the water resources and the condition of existing equipment and infrastructures in the area. - Study of the chains of production with special stress on marketing of agricultural product, the main inputs and agricultural mechanization and methods of its improvement. Phase II: - Definition of the project components and preparation of the technical studies for the proposed alternatives for equipment or agricultural investment. - Estimation of the detailed cost for the different components of the project. - Analysis of the economic aspects and expected benefits and calculation of the financial and economical rates of returns. - Outline a programme for implementation, management, operation and maintenance of the project.

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Institutional Support for the Ministry of Economy, Planning and Management of Territory

Training Programme for the Benefit of cadres from the Ministry of Finance

CAMEROON

LIBERIA

Objective: The technical assistance aims at the institutional support for the Cooperation Division with the Islamic World of the Ministry of Economy to be able to perform its mandates with efficiency to cope with the development in the country, through the provision of information equipment and the basic equipment for unit offices. The assistance also aims at training of cadres to build their capacities in the various means of programming and planning and follow-up of projects and technical assistance operations and programmes of development in the country. The training programme consists of two courses for training of 13 trainees in the division for two weeks. The Institute for Economic Development and Planning (IDEP) in Dakar- Senegal will execute the training Programme. BADEA Funding: A non-refundable grant of $ 138.000 Date of Board of Directors’ Approval: 19/10/2011 Components of the Technical Assistance: The technical assistance consists of the following components: First: Supply of Information equipment and office equipment and furniture. Second: The contents of the training programme of training for 13 trainees in the field of follow-up implementation and post evaluation of projects. The programme is composed of two courses, each extends for two weeks and the training programme include the following: - General knowledge about the project and investment, types of development projects and selection of the project. - The technical studies, estimation of costs and the financial and economical analysis. - Follow- up of project implementation, post evaluation.

Objective: The technical assistance aims at enhancing the capacities of the ministry of Finance to improve its performance especially in the field of financial management and budget, thus leading to protection against corruption, and improvement of purchases for public sector. BADEA Funding: A non-refundable grant of $ 200.000 Date of Board of Directors’ Approval: 19/10/2011 Fields of Training: The training programme in the aspect of Management of Public Funds and Budgets consisting of six separate training sessions in accordance with the courses offered by ESAMI, as described hereafter: 1- Training Session in Medium Term Expenditure Framework (for the benefit of 7 trainees): – Venue: Arusha, duration 3 weeks – Language: English 2- Training Session in Cash and Balance sheet Management(for the benefit of 6 trainees): – Venue: Arusha, duration 2 weeks – Language: English 3- Training Session in Budgeting and Budgetary Control (for the benefit of 3 trainees); – Venue: Arusha, duration 3 weeks – Language: English 4- Training Session in Procurement and Materials Management (for the benefit of 2 trainees): – Venue: Arusha, duration 3 weeks – Language: English 5- Training Session in Introduction to IT auditing (CAAT) (for the benefit of 3 trainees): – Venue: Arusha, duration 3 weeks – Language: English 6- Training Session in Implementation and Followup of Projects and Foreign Aid Management (for the benefit of 6 trainees): – Venue: Arusha, duration 3 weeks – Language: English

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Provision of an Expert services for the Support of the Ministry of Finance and Economic Development

Institutional Support for the Ministry of Finance and Central Bank

MAURITIUS

MOZAMBIQUE

Objective: The technical assistance aims at support of the ministry of Economic Development by provision of the services of an Arab expert for two years to participate in upgrading the technical capacities of the Ministry’s cadres in the fields of financing and management of projects financied by the government and financing intuitions. BADEA Funding: A non-Refundable grant of $ 250.000 Date of Board of Directors’ Approval: 9/3/2011 Terms of Reference of the Expert: The terms of reference of the Expert include, inter alia, the following: 1. Provide advice and counselling to the Ministry in setting up the overall framework of preparation and evaluation of technical and economic feasibility studies for projects; 2. Contribution to the laying of the foundations of the methods of projects financing in such a manner as to take into consideration the ability to service loans and the risks of the projects, taking into consideration the implicit and explicit financial commitments placed on the Government by funded projects and advising the appropriate divisions of the said financial commitments so that adequate appropriations may be budgeted for; 3. Participate in training and upgrading of staff; 4. Advise the Ministry in the financial modelling of projects to insure that they are financially viable, sustainable and risks were taken into consideration ; 5. Participating in the development of the Management Information System (MIS) and the data base concerning the legislations and regulations of the Ministry and development of model contracts and standard documentation relating to projects implementation; 6. Assisting in planning for Private –PublicProjects (PPP); 7. Assisting the Ministry in the design of followup and monitoring feasibility studies and in the phases of project design and implementation by contractors and consultants; 8. Undertaking any other related assignments given by the Financial Secretary of the Ministry.

Objective: The technical assistance aims the support and enhancing the capacities of the concerned divisions in the Ministry of Finance and the Central Bank to be able to improve their performances and participation of the national economy through training of professionals in the field of managing and implementation of projects through a training programme from which 50 trainees will benefit divided into 5 courses each course compromises 10 trainees. The training programme will be conducted in the HQs of the African Institute for Development of Management “AMADI”in the city of “Mbabani”, the capital of Kingdom of Swaziland, in addition to the supply of the supporting equipment needed by their developments. BADEA Funding: A non-Refundable grant of $ 250.000 Date of Board of Directors’ Approval: 19/10/2011 Components of the Technical Assistance: The technical assistance consists of the following: - Execution of a training programme for the benefit of 50 cadres from the Ministry of Finance and the Central Bank and the employees engaged in the project financed by BADEA in the other sectors. - Procurement of 20 computers and accessories The training programme consists of the following: - Projects Financial management (10 trainees) - Monitoring and evaluation of projects (10 trainees) - Analysis and Design of Projects (10 trainees). - Advanced Project Finance and Management (10 trainees). - Project Finance and Disbursement Management (10 trainees).

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Feasibility Study for Rural electrification of Five Regions

UGANDA Objective: The technical assistance aims at financing the cost of undertaking a technical and economic feasibility study for grid extension to five areas of Uganda. (North, Center,West, ) through the study of the best methods for providing continuous and reliable electricity supply to improve the standard of living for the population and fight poverty through improvement of health services, education, tourism activities and development of agriculture and small scale industries. BADEA Funding: A non-Refundable grant of $ 400.000 Date of Board of Directors’ Approval: 19/10/2011 Terms of References of the Study: The terms of reference of the study include, inter alia, the following: - Collect data on electric power facilities currently in operation, which include power plants, transmission lines, distribution networks and study the current and future demand for electricity and analyse the deficit to meet the demand, - Identify the towns and villages in the project areas not supplied with electricity and the study of the alternatives available to electrify the area from existing grid or from future grid expansion (3-5 years), - Identify the components of the project including the types and numbers of equipment and materials, - Preparation of preliminary designs for substations and transmission lines and distribution networks for each town and village, - Cost estimate for each component of the project split into foreign and local portions, - Assess the benefits of the project and analyse the project financial and economic viability, - Environmental and social Impact assessment of the project, - Develop a preliminary program for the implementation of the project.

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Under its Technical Assistance Program, BADEA financed the cost of 198 training sessions in various sectors, to the benefit of 7876 trainees from African countries beneficiaries of BADEA’s assistance, with the objective of developing human resources, building capacities and upgrading skills.

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

PART THREE

FINANCIAL RESOURCES Financial Position as of 31/12/2011: Total net assets of BADEA at the end of 2011, amounted to $ 3.480.1 million compared to 3,418.8 million at the end of 2010. The increase of $ 61.3 million represents the net income for the year 2011 amounting to $ 74.9 million less the grant amounting to $ 13.6 million which has been allocated in accordance with the Resolution No2 of the Board of Governors in its Thirty Six Meeting (Damascus – April 6th , 2011) Capital: The balance of the capital as at 31/12/2011 stood at $ 2,800 million, with no change from the previous year. General Reserve The balance of the general reserve at the end of 2011 stood at $ 605.2 million, compared to US$ 482.4 million at the end of 2010. The increase of $ 122.8 million represents the net income for the year 2010 amounting to $ 136.4 million less the grant allocated by the Board of Governors amounting to $ 13.6 million. Special Reserve: The balance of the special reserve at the end of December 2011 amounted to $ 13.6 million, compared to $ 48.7 million at the end of 2010, thereby decreasing by $ 35.1 million. This amount was added to the net income for the year 2011 in accordance with the resolution of the Board of Governors No 1 for the year 1989. Income BADEA’s total income for the year 2011 amounted to $ 92.7 million, compared to $ 153.1 million during 2010, thereby decreasing by $ of 60.4 million .The details of income for 2011 and 2010 are as follows: 2011

2010

Difference

($ million)

($ million)

($ million)

Investment income

40.1

133.4

(93.3)

Interest on Loans

16.8

18.8

(1.9

0.6

0.7

(0.1)

35.1

0.2

(34.9)

92.7

153.1

(60.4)

Other income Reversal of special reserve Total

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It is noted from the above figures that investment income during the year 2011 decreased by $ 93.3 million (i.e. 69.9%) over its level during 2010, while income resulting from the reversal of the special reserve has increased by an amount of $ 34.9 million. BADEA’s liquid assets are invested in short term bank deposits and fixed income and equity portfolios, in accordance with a conservative investment policy and guidelines established by the Board of Directors which take into consideration liquidity requirements, the diversification of investment instruments and the realization of highest possible return. With this policy, BADEA was able to maintain the value of its assets, while achieving a return higher than what could have been achieved had all its liquid assets been invested exclusively in one of the instruments, as a low performance by one investment instrument is offset by a higher performance of the other. The objective reasons for the decrease of investment income during 2011 can be illustrated through the analysis of its components as described in the table below. The data indicate that the income generated from time deposits and call accounts decreased by $ 0.9 million during the year 2011 and that the income from equity portfolios during the same period also decreased by $ 110 million due to the deterioration of stock prices in global equity markets during the third quarter of the year 2011, while the income from fixed income portfolios increased during the same period by $ 17.1 million, which led to a decrease of the income resulting from the investment of Badea’s liquid resources during 2011 by about $ 93.3 million and by 69.9% compared with 2010.

Particulars

2011

2010

Difference

($ million)

($ million)

($ million)

Income from deposits and call accounts

1.6

2.5

(0.9)

Income from fixed income portfolios

100.1

83.0

17.1

Income from equity portfolios

(62.4)

47.6

(110.0)

0.8

0.3

(0.5)

40.1

133.4

(93.3)

Income from securities lending Total

It is worth mentioning in this respect, that the average interest rate on bank deposits decreased from 0.99% during 2010 to 0.93 % during 2011. The volume of deposits and call accounts also decreased during 2011, and amounted to $ 122.9 million at the end of 2011 compared to $ 222.3 million at the end of 2010, thereby decreasing by $ 99.4 million and by 44.7% which represents the net amount withdrawn from deposits and call accounts to meet the needs of administrative expenditures and loan disbursements. The decrease in portfolios’ income was due to the decrease of the market value of the equity portfolios, as a result of the decline in the performance of global equity markets during the year 2011 in comparison with 2010. It is noted that a large part of the loss recorded in accounting represents unrealized loss resulting from the valuation of shares held by the fund managers at markets value at the end of December 2011. The unrealized loss amounting to $ 54.4 million represents 74.7% of the loss from purchase and sale of shares. The details of portfolios’ income during the year 2011, compared to that of 2010 are as follows

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Portfolio Income

2010

2009

Variation

($ million)

($ million)

($ million)

46.5

(6.5)

Fixed Income: Interest on Bonds

40.0

Interest on Time Deposits and Call Accounts Profit/Loss on Bond Purchases & Sales Profit/Loss on Valuation of non $ currencies Total

-

0.1

(0.1)

64.2

36.6

27.6

(4.1)

(0.2)

(3.9)

100.1

83.0

17.1

13.6

7.3

6.3

-

-

-

(72.8)*

40.5

(113.3)

Equities: Dividends Interest on Call Accounts Profit/Loss on Equity Purchases & Sales Profit/Loss on Valuation of non $ currencies

(3.2)

(0.2)

(3.0)

Total

(62.4)

47.6

(110.0

0.8

0.3

0.5

Total

38.5

130.9

(92.4)

Securities Lending

Expenditures Total expenditures during the year 2011 amounted to $ 17.8 million, compared to $ 16.7 million during 2010. Total expenditures during 2011 included administrative expenses amounting to $ 12.5 million and grants for technical assistance amounting to $ 5.3 million compared to $ 12.2 million and $ 4.5 million during 2010, respectively. It should be noted that administrative expenses represents 74.0% of interest income on loans. Net Income Net income for the year 2011 amounted to $ 74.9 million compared to $ 136.4 million for the year 2010, thereby decreasing by $ 61.5 million and by 45.1%, taking into consideration the increase of the amount of reversal of Special Reserve from $ 0.2 million in 2010 to US$ 35.1 million in 2011, while investment income decreased from $ 133.4 million in 2010 to $40.1 million in 2011. Financial Commitments BADEA’s total financial commitments to beneficiary countries during the year 2010 amounted to $ 200 BADEA’s total financial commitments to beneficiary countries during the year 2011 amounted to $ 200 million, of which $ 192 million were allocated to project loans and $ 8 million to technical assistance, compared to similar amount of commitments during 2010, to project loans and to technical assistance. The total cumulative net commitments at the end of 2011 amounted to $ 3,500(1) million, of which $ 3,398 million were allocated to loans and $ 102 million to technical assistance, compared to $ 3,307(2) million at end of 2010, of which $ 3,211.6 million were for loans, and $ 95.4 million were for technical assistance.

* Includes unrealized loss of $ 54.4 million. (1) Includes grant withdrawals deducted from income, totalling $79.8 million at the end of 2011 and $74.5 million at the end of 2010. (2) Includes grant withdrawal deducted from income, totalling $ 74.5 million at the end of 2010.

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The liquidity ratio (i.e. the ratio of liquid assets to disbursable commitments) at the end of 2011 stood at about 205.9% compared to 222.4% at the end of 2010. This means that BADEA’s liquid assets represent more than double the amount of disbursable commitments, which reflects BADEA’s sound financial position and its ability to meet its financial obligations. Disbursements and Repayments Project loans disbursements during the year 2011 amounted to $ 131.1 million, compared to $ 120.2 million during 2010, thereby increasing by US$ 10.9 million and by 9.1% . Technical assistance grants disbursements during the year 2011 amounted to $ 5.3 million, compared to $ 4.5 million during 2010 corresponding to an increase of $ 0.8 million and by 17.7%. This increase in disbursements is due to improved management of loans and grants and follow up. Total cumulative loan disbursements at the end of 2011 reached $ 2,280.2 million, compared to $ 2,149.1 million at the end of 2010. With the addition of technical assistance grants , the total cumulative disbursements at the end of 2011 is equal to $ 2,360(1) million compared to $ 2,223,6(2) million at the end of 2010. Thus, the percentage of cumulative disbursements to net cumulative commitments at the end of 2011 amounted to 67%, corresponding to the same rate at the end of 2010.

Graph 9 Financial Resources at 31 /12 /2011 605.200 605. $ million

General Re Ge Reserve ese serve 2.360.060 2.36

Disbursements Disb Di sbur urse seme ment ntss 2.800.000 2.80

Paid-Up p Capital Capi p ta tall 3.500.160 3.50

Cumulative Net Commitments 0

500.000

1.000.000 1.500.000 2.000.000 2.500.000 3.000.000 3.500.000 4.000.000

Repayment of installments on loans during 2011 amounted to $ 49.5 million, against $ 49.2 million during 2010, thereby increasing by $ 0.3 million. Income from interest and charges during 2011 amounted to $ 16.9 million compared to $ 18.8 million during 2010; declining by $ 1.9 million. On the other hand, total amount of interest and charges received during 2011 amounted to $ 16.7 million compared to $ 18.2 million during 2010, thereby decreasing by $ 1.5 million. Total repayments of loans, including interest and charges amounted to $ 66 million during the year 2011, compared to $

(1) Includes grant withdrawals deducted from income, totalling $79.8 million at the end of 2011 and $74.5 million at the end of 2010. (2) Includes grant withdrawal deducted from income, totalling $ 74.5 million at the end of 2010.

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67.4 million during 2010, thereby decreasing by $ 1.4 million. This decrease is due to Badea’s policy to provide loans on concessionary terms, to reduce the debt burden of heavily indebted African countries under HIPC initiative. Cumulative repayments of principal installments at the end 2011 amounted to $ 1,131.5 million against US$ 1,082 million at end 2010, whereas total cumulative interests and administrative charges received amounted to $ 460.2 million at end of 2011 compared to $ 443.5 million at the end of 2010. Conclusion It is clear from the foregoing, that BADEA continued its policy of maintaining a sound financial position, through which its net assets at the end of 2011 compared to 2010 increased by an amount of $ 61.3 million as a result of the increase of its investment income from fixed portfolios and reversal of a part of special reserve, while continuing to control administrative expenditures in accordance with the policy of rationalization of expenditure followed by BADEA, without prejudice to fulfilling its objectives and programs. It is worth noting that the net income has decreased from $ 136.4 million in 2010 to $ 74.9 million dollars in 2011, due to the deterioration in the performance of global equity markets during 2011 compared with 2010, noting that a large part of losses incurred by equity portfolios represents unrealized loss.

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B A D E A

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31ST2011 With INDEPENDENT AUDITORS’ REPORT Page 1.

Independent Auditor’s Report

84

2.

Statement of Financial Position

86

3.

Statement of Comprehensive Income and Expenditure

87

4.

Statement of Changes in Members’ Countries Equity

88

5.

Statement of Cash Flows

89

6.

Notes to the Financial Statements

90

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

KPMG Al Fozan & Al Sadhan Al Dainy Plaza Al Madinah Road P. O. Box 55078 Jeddah 21534 Kingdom of Saudi Arabia

Telephone +966 2 658 1616 Fax +966 2 605 0597 Internet www.kpmg.com.sa

The Board of Governors of Arab Bank for Economic Development in Africa We have audited the accompanying financial statements of Arab Bank for Economic Development in Africa (“BADEA”), which comprise the statement of financial position as at 31 December 2011, the statements of comprehensive income and expenditure, changes in equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standards appropriate to the requirements and nature of BADEA as explained in Note 2 in the accompanying financial statements, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements

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Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of BADEA as at 31 December 2011, and of its financial performance and its cash flows for the year then ended in accordance with the International Financial Reporting Standards appropriate to the requirements and nature of BADEA as explained in Note 2 in the accompanying financial statements.

KPMG Al Fozan & Al Sadhan:

Tareq Abdulrahman Al Sadhan n License No. 352 Jeddah, 14 Rabi Al Thani 1433H Corresponding to 7 March 2012G

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA SSTATEMENT OF FINANCIAL POSITION As at 31 December 2011

($ 000)

Notes

2011

2010

ASSETS Cash on hand and with banks

608

992

Investments

4

2,327,197

2,388,587

Investment in AFREXIM Bank

5

4,000

4,000

Investment in AIECGC

6

17,300

17,300

Export finance

7

139

108

Loan balances

8

1,148,680

1,067,068

Net accrued interest on loans

9

20,273

20,141

Other assets

10

983

876

Net fixed assets

11

346

358

3,519,526

3,499,430

20,248

26,986

5,639

4,898

25,887

31,884

13,570

48,734

39,457

80,618

3,480,069

3,418,812

Total LIABILITIES Other liabilities Provision for end of service benefits

Special reserve provision

12

3(d), 8(c)

Total Net assets MEMBERS’ COUNTRIES EQUITY Subscribed and paid up capital

13

2,800,000

2,800,000

General reserve

14

605,173

482,426

74,896

136,386

3,480,069

3,418,812

Net income for the year Total members’ countries equity Financing and other commitments

21

The accompanying notes 1 through 22 form an integral part of these financial statements.

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B A D E A

STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE For the year ended 31 December 2011

($ 000)

Notes

2011

2010

INCOME Net income from investments

15

40,131

133,404

16,918

18,801

543

697

57,592

152,902

Board of Governors

155

200

Board of Directors

966

993

Salaries and staff related benefits

8,706

8,286

Travel and services

1,850

1,785

688

777

173

181

12,538

12,222

3

17

5,319

4,490

Total expenditure

17,860

16,729

Net income before special reserve provision

39,732

136,173

35,164

213

74,896

136,386

Income from loans Other Total income

EXPENDITURE

Utilities Depreciation

11

Other expenditure Grants disbursed to beneficiary countries

Reversal of special reserve provision Net income for the year

3(i)

8(c)

The accompanying notes 1 through 22 form an integral part of these financial statements.

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

STATEMENT OF CHANGES IN MEMBERS’ COUNTRIES EQUITY For the year ended 31 December 2011

($ 000)

Note

Balance as at 31 December 2009 Appropriations

Transfer to general reserve

14

Net income for 2010

Balance as at 31 December 2010 Appropriations

Transfer to general reserve Net income for 2011 Balance as at 31 December 2011

14

Subscribed and paid-up capital

General reserve

Net income for the year

2,800,000

340,052

158,194

3,298,246

--

(15,820)

--

(15,820)

--

158,194

(158,194)

--

--

--

136,386

136,386

2,800,000

482,426

136,386

3,418,812

--

(13,639)

--

(13,639)

--

136,386

(136,386)

--

--

--

74,896

74,896

2,800,000

605,173

74,896

3,480,069

The accompanying notes 1 through 22 form an integral part of these financial statements..

88

Total

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B A D E A

SSTATEMENT OF CASH FLOWS For the year ended 31 December 2011

($ 000)

Notes

2011

2010

Cash flows from operating activities: Net income for the year

74,896

136,386

173

181

(35,164)

(213)

5,855

(57,247)

89,185

(28,585)

Export finance

(31)

8,985

Loan balances

(81,612)

(70,999)

Net accrued interest on loans

(132)

(409)

Net other assets

(107)

(245)

Other liabilities, net of appropriation

(20,377)

(23,915)

Provision for end of service benefits

741

720

33,427

(35,341)

(161)

(157)

(161)

(157)

Net increase (decrease) in cash and cash equivalents

33,266

(35,498)

Cash and cash equivalents at the beginning of the year

51,373

86,871

84,639

51,373

Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation Reversal of special reserve provision Unrealized loss (gains) from investments fair value valuation Net change in operating assets:

11 8 (c) 15

Investments

Net change in operating liabilities:

Net cash provided by (used in) operating activities

Cash flows from investing activities: Net purchase of fixed assets

11

Net cash used in investing activities

Cash and cash equivalents at the end of the year

16

The accompanying notes 1 through 22 form an integral part of these financial statements.

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA NOTES TO THE FINANCIAL STATEMENTS 31 December 2011 1. ESTABLISHMENT AND OBJECTIVES Arab Bank for Economic Development in Africa (“BADEA”) was established in accordance with the resolution of the Sixth Arab Summit Conference held on 28 November 1973 following the recommendations of the Economic Council of the League of Arab States. BADEA was established with a capital of USD 231 million and then was subsequently increased in accordance with resolutions issued by the Board of Governors until it reached USD 2.8 billion as of 31 December 2010 and 2011. BADEA is an independent international financial institution domiciled in Khartoum, Sudan. It has international legal status, enjoys full legal personality and full autonomy in administrative and financial areas. BADEA is governed by the articles of its Establishing Agreement (the “Establishing Agreement”) and by the principles of International Law. BADEA is located at the following address: Arab Bank for Economic Development in Africa P. O. Box 2640 Khartoum 11111 Sudan BADEA aims at consolidating economic, financial and technical cooperation between African countries and the Arab world. In order to achieve its objectives, BADEA undertakes the following functions: 1- Participation in the financing economic development in Africa; 2- Encouraging the participation of Arab capital in African development; and 3- Contribution in providing the technical assistance necessary for development in Africa. 2.

BASIS OF PREPARATATION (a) Functional and presentation currency BADEA’s functional and presentation currency is the United States Dollar (“USD”). The financial statements are expressed in USD and are rounded off to the nearest thousands. (b) Use of estimates The preparation of financial statements in conformity with accounting policies adopted by the Board of Governors requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as at the year end and the reported amounts of income and expenditure for the year then ended. Such estimates, assumptions and judgments are continually reviewed, based on historical experience and other factors. The significant items in which estimates are used comprise the following: (i)

Special reserve provision BADEA’s method for determining the special reserve provision is described in the “loans and special reserve provision” (Note 3(d)) and further explained under credit risk (Note 19(b)).

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(ii) Fair value of unquoted financial instruments The financial instruments that are not quoted in active markets and for which their fair market value cannot reliably be measured are carried at cost less any impairment provision. 3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted in the preparation of these financial statements are consistent with those used in the previous year. The significant accounting policies adopted in the preparation of the accompanying financial statements are set out below: (a) Settlement date accounting All regular purchases and sales of financial assets are recognized and derecognized on the settlement date. Regular purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the market place. Income from interest on bank deposits, fixed income securities and loans is recognized on an accrual basis. (b) Financial assets BADEA’s financial assets are composed of financial assets at fair value through statement of comprehensive income and expenditure (fixed income and equity securities), available-for-sale investments and loans balances as follows: (i)

Fixed income and equity securities All investments in fixed income and equity securities are classified as held for trading and are initially recognized at the fair value of the consideration given including acquisition charges associated with the investments. Such securities are re-measured at fair value using quoted market prices at the date of the statement of financial position. Changes in the fair value are recognized in the statement of comprehensive income and expenditure.

(ii) Available-for-sale Financial assets whose fair value cannot be reliably measured are classified as available for sale investments and are carried at cost less provision of impairment, if any. (iii) Loans balances Financial assets having fixed payments that are not quoted in an active market are classified as loans presented at amounts disbursed after deduction of repaid amounts. (c) Investment in AFREXIM Bank and AIECGC Investment in African Export Import Bank (“AFREXIM Bank”) and Arab Investment & Export Credit Guarantee Corporation (“AIECGC”), for which fair values are not available, classified as available for sale, are reported at cost less provision for impairment, if any. (d) Loans and special reserve provision All loans granted by BADEA are recognized as assets when disbursed. Interest on loans overdue for 180 days and over is excluded from interest income.

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

The amount of special reserve for overdue loans (which is named as special reserve provision for financial statements presentation purposes) is calculated in accordance with the Board of Governors’ Resolution No.1 for 1989. According to the resolution, the reserve should be equal to the sum of (a) half of the amount of due and unpaid instalments of principal loans which at the end of the financial year, remain overdue for a period of time exceeding one year and less than two years and (b) all instalments of principal of loans which, at the end of the financial year, remain overdue for a period of two years or more. BADEA believes that the separate presentation of the loans and special reserve (which is called as special reserve provision for financial statements presentation purposes) in the statement of financial position is appropriate to the nature of its operations. (e) Loans with repayment arrangements Loans which have their original terms renegotiated, and are governed by agreements of arrangements for repayment of arrears or rescheduling of instalments, including loans under the Initiative of Highly Indebted Poor Countries (HIPC), so that their instalment payments are no longer in arrears, are treated as new loans. (f) Impairment of financial assets An assessment is made at each date of statement of financial position to determine whether there is an objective evidence that a financial asset or a group of financial assets may be impaired. If such evidence exists, the estimated recoverable amount of that asset is determined and any impairment loss is recognized for changes in its carrying amount as follows: - For financial assets, other than those described in Note (c) above, carried at amortized cost, the carrying amount of the asset is adjusted either directly or through the use of an allowance account and the amount of the adjustment is included in the statement of comprehensive income and expenditure. - For financial assets carried at fair value, the carrying amount of the asset is adjusted and the amount of the adjustment is included in the statement of comprehensive income and expenditure. (g) Income recognition Income from interest on bank deposits, fixed income securities and loans is recognized on an accrual basis. (h) Dividend Dividend income is recognized when it is declared. (i)

Grants Cost of projects’ study and its preparation and technical assistance are classified as grants and charged to expenditure when incurred.

(j)

Fixed assets Fixed assets are stated at cost net of accumulated depreciation. The cost of fixed assets is depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives for the current and comparative year are as follows: - Buildings 30 years - Fixtures and equipment 5 years - Vehicles 5 years

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B A D E A

(k) Provisions Provisions are recognised when BADEA has an obligation, legal or constructive, arising from a past event and the costs to settle the obligation are probable and may be measured reliably. (l)

Derivative financial instruments and hedging Derivative financial instruments, including forward contracts and futures, are initially measured at cost and are subsequently re-measured at fair value. Fair values are generally obtained by reference to quoted market prices, discounted cash flow models and pricing models as appropriate. Any changes in the fair values of derivatives that are held for trading purposes are directly included in the income for the year.

(m) Foreign currency translation Transactions denominated in currencies other than United States Dollars are translated into United States Dollars at the exchange rates prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated into United States Dollars at exchange rates prevailing at the date of the statement of financial position. Exchange adjustments are charged or credited to the statement of comprehensive income and expenditure. (n) Employees’ end of service benefits End of service benefits for the Director General are computed in accordance with Article No. 6 of the Resolution of the Ministerial Committee selected to review the salaries and benefits of the Presidents and Directors General of Arab Financial Institutions. End of service benefits for employees are calculated in accordance with Article No. (13/1) of BADEA’s Employees Regulations as amended by the Board of Directors’ resolutions. (o) Cash and cash equivalents For the purpose of preparation of the statement of cash flows, cash and cash equivalents comprise cash on hand and with banks; call deposits and time deposits maturing within three months or less from the date of acquisition. 4.

INVESTMENTS BADEA’s investment portfolios which are held for trading purpose, and which are managed in accordance with guidelines established by BADEA are comprised of the following, as at 31 December: ($ 000) 2010 261.402 1.55.613 570.100 (10.039) 15.511 2.388.587

2011 187,385 1,421,578 693,823 11,396 13,015 2,327,197

Time deposits and call accounts Fixed income securities Equity securities (listed) Fair value of derivative instruments, net (Note 18) Accrued interest on deposits and securities Net investments

Time deposits and call accounts as at 31 December are as follows: ($ 000) Managed by BADEA Portfolio Managers Time deposits Call accounts Total

2011 103,354 19,466 122,820

2010 211.021 11.281 222.302

2011 13,225 51,340 64,565

2010 16.114 22.986 39.100

Total 2011 116,579 70,806 187,385

2010 227.135 34.267 261.402

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

5.

INVESTMENT IN AFRICAN EXPORT AND IMPORT BANK (“AFREXIM BANK”) I In accordance with Resolution No. 4 of the Board of Governors in its 19th annual meeting for 1994, it was approved that BADEA subscribes $ 10 million, representing approximately 1.3% of the authorized capital of AFREXIM Bank, of which $ 4 million were paid during 1995 (see Note 21(b)).

6.

INVESTMENT IN ARAB INVESTMENT & EXPORT CREDIT GUARANTEE CORPORATION (“AIECGC”) In accordance with Resolution No. 6 of the Board of Governors in its 27th annual meeting for 2002, it was approved that BADEA subscribes $ 17.3 million, representing approximately 9.2% of the authorized capital of AIECGC. BADEA paid the amount in full.

7.

EXPORT FINANCE At its 22nd annual meeting for 1997 and 27th annual meeting for 2002, the Board of Governors approved that BADEA allocates $ 100 million to finance foreign trade between Arab countries and African countries. An agreement was signed between BADEA and the Islamic Development Bank (“IDB”), under which IDB was entrusted the task of managing an amount of $ 75 million under this export finance scheme between Arab countries and non-Arab African countries. Since February 2008, this task has been entrusted to International Islamic Trade Finance Corporation (“ITFC”). Amounts advanced under this scheme through a revolving bank account are recognized as export finance, at cost, being the fair value of the amounts disbursed to the relevant countries. At 31 December 2011, the aggregate amount of finance outstanding under this scheme is approximately $ 139 thousand (2010: $ 108 thousand).

8.

LOAN BALANCES AND SPECIAL RESERVE PROVISION a) Loan balances The details of the loan balances as at 31 December are as follows: ($ 000)

Project loan 3,183,817 (46,100)

2011 SAAFA loans 214,244 --

Total 3,398,061 (46,100)

2010 Total 3,211,567 (33,000)

Total signed loans Less: Loans not declared effective

3,137,717 (128,200)

214,244 --

3,351,961 (128,200)

3,178,567 (144,550)

Total loans declared effective Less: Undisbursed loans

3,009,517 (943,528)

214,244 --

3,223,761 (943,528)

3,034,017 (884,922)

Total disbursed loans Less: Loan instalments repaid

2,065,989 (950,439)

214,244 (181,114)

2,280,233 (1,131,553)

2,149,095 (1,082,027)

Balance outstanding at December 31

1,115,550

33,130

1,148,680

1,067,068

Approved loans Less: Unsigned loans

SAAFA (the “Fund”) loans represent amounts granted by the Fund to non-Arab African countries prior to the merging of its loans in BADEA’s capital in 1977.

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The movement of the loan balances during the years ended 31 December, is as follows: ($ 000)

Balance as at January 1 Disbursement made during the year Recoveries during the year Balance outstanding as at 31 December

2011 Project SAAFA Loan Loans 1,032,630 34,438 131,138 -(48,218) (1,308) 1,115,550 33,130

Total 1,067,068 131,138 (49,526) 1,148,680

Total 996,069 120,189 (49,190) 1,067,068

b)

The Board of Directors approved BADEA’s participation in the International Monetary Fund (IMF) and World Bank Debt Initiative for Highly Indebted Poor Countries (“HIPC”). The Board of Directors considers the loans on an individual basis for negotiations with the concerned beneficiary country. BADEA’s participation involves arrangements for repayment of arrears and/or concessional rescheduling of outstanding debt and/or reduction of interest rates on due instalments. Total rescheduled loans under HIPC arrangement during the year ended 31 December 2011 amounted to $ 45.14 million (2010: $ 20.71 million). Total outstanding balances as at 31 December 2011 of the rescheduled loans under HIPC arrangements amounted to $ 322.46 million (2010: $ 277.32 million).

c)

Special reserve provision The detail of the special reserve provision as at 31 December is as follows

Balance as at 1 January Reversals made during the year Balance as at 31 December

9.

2010

2011 48,734 (35,164) 13,570

($ 000) 2010 48,947 (213) 48.734

NET ACCRUED INTEREST ON LOANS

Net accrued interest on loans as at 31 December, is as follows:

Accrued interest on loans Less: Interest in suspense Net accrued interest on loans

2011 87,830 (67,557) 20,273

($ 000) 2010 87,529 (67,388) 20,141

2011 4,118 983 5,101 (4,118) 983

($ 000) 2010 4,118 876 4,994 (4,118) 876

10. OTHER ASSETS Other assets as at 31 December are as follows

Receivable from BCCI Other Less: Provision for impairment (see below) Net other assets

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

During the year 1999, an agreement was made between BADEA and the liquidators of the Bank of Credit and Commerce International (“BCCI”) through which BADEA agreed to limit its claims against its balance due from BCCI to $ 30.5 million. According to the agreement which was subsequently approved by a special court, BADEA received $ 18.3 million, $ 4.6 million, $ 1.8 million, $ 0.915 million and $ 0.762 million during the years 2000, 2003, 2006, 2007 and 2008 respectively. Provision for impairment as at 31 December 2011 and 2010 represents provision against the remaining balance outstanding with BCCI.

11. NET FIXED ASSETS Net fixed assets at 31 December, are as follows: ($ 000) Building

Furniture and equipment

Vehicles

Total

Cost Balance as at January 1, 2011

7,615

3,166

237

11,018

Additions made during the year

--

120

41

161

Disposals made during the year

--

--

(35)

(35)

7,615

3,286

243

11,144

7,581

2,907

172

10,660

Charge for the year

2

142

29

173

Disposals during the year

--

--

(35)

(35)

7,583

3,049

166

10,798

Balance as at December 31, 2011

32

237

77

346

Balance as at December 31, 2011

34

259

65

358

Balance as at December 31, 2011 Accumulated depreciation Balance as at January 1, 2010

Balance as at December 31, 2011 Net book value

The lease of land on which the building is constructed was renewed for a 30-year period commencing 1 January 1997. 12. PROVISION FOR END OF SERVICE BENEFITS The balance of end of service benefits is invested in a separate bank interest bearing time deposit account managed by BADEA.

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13. SUBSCRIBED AND PAID-UP CAPITAL Subscription of each member country in BADEA’s capital as at 31 December 2011 and 2010 is presented as follows: ($ 000) Country’s subscription Hashemite Kingdom of Jordan

5,708

United Arab Emirates

342,476

Kingdom of Bahrain

5,708

Republic of Tunisia

23,783

People’s Democratic Republic of Algeria

114,159

Kingdom of Saudi Arabia

684,952

Republic of Sudan

5,708

Arab Republic of Syria

3,805

Republic of Iraq

399,556

Sultanate of Oman

34,248

Palestine

5,708

State of Qatar

228,318

State of Kuwait

418,582

Great Arab Libyan People’s Socialist Jamahiriya

456,635

Republic of Lebanon

19,026

Arab Republic of Egypt

5,708

Kingdom of Morocco

41,858

Islamic Republic of Mauritania

4,062

Total

2,800,000

14. GENERAL RESERVE In accordance with the article 36 of the Establishing Agreement, the Board of Governors shall, on the recommendation of the Board of Directors, determine annually the portion of net income that should be transferred to general reserve or to shareholders’ equity capital or any other transfers which are in line with the objectives of BADEA. 15. NET INCOME FROM INVESTMENTS Interest income from time deposits and call accounts for the two years ended 31 December, are as follows: ($ 000)

Time deposits Call accounts Total

Managed by BADEA Portfolio Managers 2011 2010 2011 2010 1,548 2.529 20 47 4 5 39 33 1,552 2.534 59 80

Total 2011 1,568 43 1,611

2010 2.576 38 2.614

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ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

Net income from the portfolio investment held for trading purposes for the two years ended 31 December, comprised of the following:

Interest from fixed income securities Dividend from equity securities Foreign exchange, net Net trading income Portfolio managers’ net fee Total Net income (loss) from investments

2011 43,504 15,117 (7,294) (8,579) (4,228) 38,520 40,131

($ 000) 2010 49.763 8.649 (473) 77.128 (4,277) 130.790 133.404

Net trading income for the years ended 31 December 2011 and 2010 includes unrealized (loss) gain of approximately $ 5.85 million and $ 57.25 million, respectively, resulting from the use of fair value at the end of the year are as follows:

Unrealized income on valuation from equity securities Unrealized income (loss) from fixed income securities Net

2011 (54,355) 48,500 (5,855)

($ 000) 2010 49.024 8.223 57.247

16. CASH AND CASH EQUIVALENTS For the purposes of cash flow statement, cash and cash equivalents as at 31 December, comprised of the following: ($ 000) 2011 Cash and balances with banks

2010 608

992

Time deposits and call accounts

84,031

50,381

Net

84,639

51,373

17. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm’s length transaction. Consequently, differences can arise between carrying values and fair value estimates. The fair values of financial assets and liabilities, except for loans and export finance, are not significantly different from the carrying values included in the financial statements. BADEA does not currently sell its loans nor it believes that there is a comparable market for these products. Accordingly, it is impractical to determine the fair value of these loans with sufficient reliability. 18. DERIVATIVES (continued BADEA’s investment guidelines authorize the use of forward and future derivative instruments. Forwards and futures are contractual agreements to either buy or sell a specified currency, commodity or financial instrument at a specified price and date in the future. Forwards are customized contracts transacted in the over-the-counter market. Futures are transacted in standardized amounts on regulated exchanges and changes in futures contract values are settled daily.

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The table below summarizes the positive and negative fair values of derivative financial instruments, together with the nominal amounts analyzed by the term to maturity. The nominal amounts, which provide an indication of the volumes of the transactions outstanding at the year end, do not necessarily reflect the amounts of future cash flows involved. These nominal amounts, therefore, are neither indicative of BADEA’s exposure to credit risk, which is generally limited to the positive fair value of the derivatives, nor to market risk. ($ 000) Notional amounts by term to maturity Positive fair value

Negative fair value

total Notional amount

Within 3 months

3-12 months

1-5 years

Over 5 years

17,981

6,585

1,861,197

1,861,197

--

--

--

8,093

8,093

--

--

--

2011 Forward contracts Futures

--

--

17,981

6,585

1,869,290

1,869,290

--

--

--

Forward contracts

8,227

18,266

1,373,792

68,345

--

--

--

Futures

--

4,601

--

--

--

--

1,378,393

68,345

--

--

--

2009

8,227

-18,266

19. RISK MANAGEMENT The investment policy adopted by BADEA as established by its Board of Directors, considers BADEA a specialized developmental institution, whose investment objective is to preserve its capital and increase its resources without exposing its assets to significant risks. Therefore, the nature of BADEA necessitates the adoption of a conservative investment policy that mitigates investment risk, in the same manner as adopted by similar development financial institutions. Therefore, BADEA’s investment policy based on a combination of investment in short-term bank deposits and securities portfolios, and changing the proportions of resources employed in each of deposits and portfolios in the light of the prevailing and expected developments in the financial markets. a) Custodial risk BADEA has entrusted the task of safekeeping of the components of its portfolio investment to a major custodian bank. The custodian safeguards the components of the portfolio, maintains separate accounts for each sub-portfolio, and settles the investment transactions entered into by the portfolio managers. b) Credit risk Credit risk is defined as the inability of a counter-party to pay amounts in full when due. In respect of deposits and trading securities, credit risk is managed by establishing investment guidelines including setting exposure limits based on credit ratings and the size of individual counter-party and the country or the currency. BADEA’s Management and the Investment Committee, established by the Board of Governors, monitors such limits regularly. The details of concentration of BADEA investment in fixed income securities as at 31 December are as follows:

99

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

1- According to the sectoral distribution of the investee parties: ($ 000) 2011

2010

Amount

%

Amount

%

1,015,840

71

1.124.114

73

Corporate

197,790

14

176.633

11

Government agencies

122,096

9

171.420

11

85,852

6

79.446

5

1,421,578

100

1.551.613

100

Government

Supranational Total

2- According to the geographical distribution of the investee parties: ($ 000) 2011 Amount

2010 %

Amount

%

United States and Canada

809,102

57

914.264

59

Europe

372,660

26

360.387

23

Japan

135,150

10

154.544

10

South East Asia

13,776

1

22.175

1

Other

90,890

6

100.243

7

Total

1,421,578

100

1.551.613

100

3 - According to the credit rating of the investee parties in accordance with Standard and Poors Agency: ($ 000) 2011

2010

Amount

%

Amount

%

AAA

465,739

33

1,243,639

80

AA

795,816

56

187,095

12

55,216

7

93,230

6

3,206

4

25,072

2

1.551.613

-

2,577

-

1,712

-

1,421,578

100

A BBB BB B

1,411,981

100

The details of concentration of BADEA investment in securities – equity securities as at December 31, are as follows:

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1 - According to the sectoral distribution of the investee parties: ($ 000) 2011

2010

Amount

%

Amount

%

179,187

26

131.751

23

Energy

86,832

12

68.867

12

Financials

86,868

13

97.772

17

Healthcare

90,186

13

53.613

10

Industrials

65,013

9

59.013

10

Information technology

91,271

13

69.428

12

Materials

39,566

6

45.546

8

Telecommunication services

43,962

6

38.196

7

Utilities

10,938

2

5.914

1

Consumable commodities

Total

693,823

100

570.100

100

2 - According to the geographical distribution of the investee parties ($ 000) 2011

2010

Amount

%

Amount

%

United States and Canada

376,071

54

308.279

54

Europe

235,308

34

172.917

30

Japan

41,799

6

42.157

7

South East Asia

25,622

4

26.677

5

Other

15,023

2

20,070

4

Total

693,823

100

570.100

100

BADEA’s lending program aims to support the implementation of development programs in non-Arab African countries. Loan approvals are subject to a study by BADEA. Loans are extended to or guaranteed by governments and are considered as sovereign debts. BADEA monitors regular payments of loan instalments by the borrowing country, and new lending is suspended for countries that fall in arrears. BADEA prepares periodical reports on the position of all loan repayments.

101

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

The following table illustrates the details of BADEA’s loans as at 31 December 2011: ($ 000) Country Benin Botswana Burundi Burkina Faso Central Africa Republic of Chad Cameroon Brazzaville Democratic Republic of Congo Comoros Cap Verde Equatorial Guinea Eritrea Ethiopia Gabon Ghana Gambia Guinea Bissau Guinea Cote d Ivoire Kenya Liberia Lesotho Madagascar Malawi Mauritius Mali Mozambique Namibia Nigeria Niger Rwanda Senegal Seychelles Sierra Leone Sao Tome and Principe Swaziland Tanzania Togo Uganda Zambia Zimbabwe Other Grand total

No. of loans

Total approved loans*

Loans not Undisbursed declared balances effective

Outstanding balances

% of total outstanding loans

24 16 11 28 7 16 13 6

75,260 29,896 36,074 114,259 17,688 74,370 77,769 27,519

10,400 --1,500 -8,200 ---

--10,000 ---10,000 8,000

27,134 10,706 10,452 37,473 11,263 13,257 39,840 11,707

37,726 19,190 15,622 75,286 6,425 52,913 27,929 7,812

3.28 1.67 1.36 6.55 0.56 4.61 2.43 0.68

6

45,353

--

10,000

25,096

10,257

0.89

4 16

18,110 53,848

---

---

25,665

18,110 28,183

1.58 2.45

5

3,672

--

--

2,290

1,382

0.12

-10,000 -8,000 ----10,000 ---11,000 -4,000 ---10,000 11,000 ----

4,089 39,743 8,348 23,008 17,602 -37,060 31,595 34,463 -25,880 26,730 19,550 22,991 36,941 44,306 6,700 7,477 22,907 24,710 54,378 15,552 23,256

18,002 61,264 1,652 49,503 40,359 6,997 31,384 25,472 35,345 9,716 24,310 31,590 32,041 14,177 61,498 76,798 14,506 523 37,941 31,089 79,307 13,578 32,535

1.57 5.33 0.14 4.31 3.51 0.61 2.73 2.22 3.08 0.85 2.12 2.75 2.79 1.23 5.35 6.69 1.26 0.05 3.30 2.71 6.90 1.18 2.83

3,200

4,020

5,875

0.51

-8,000 -5,000 10,000 --128,200

12,669 55,624 19,044 31,429 24,464 34,109 20,000 943,528

16,935 36,396 8,338 20,250 16,895 13,569 -1,148,680

1.47 3.17 0.73 1.76 1.47 1.18 -100

4 15 2 21 17 4 23 10 16 4 14 20 9 13 30 26 5 1 19 17 37 10 12

22,091 111,007 10,000 80,511 57,961 6,997 68,444 63,067 79,808 9,716 50,190 58,320 62,591 37,168 102,439 121,104 21,206 8,000 70,848 66,799 133,685 29,130 55,791

-------6,000 ----------------

7

13,095

--

7 18 7 13 11 11 6 561

39,604 100,020 37,382 56,679 51,359 47,678 20,000 2,266,508

*Except recovered and cancelled loans.

102

Unsigned loan amount

10,000 -10,000 ----46,100

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BADEA monitors the repayments of its due loans from the borrowing countries and assesses the position of recoverability in accordance with Board of Governors Resolution No. 1 for the year 1989. The following schedule illustrates the extent of performability of the countries in repayment of BADEA’s due loans: Description

(α) Performing Countries with regular repayments Without arrears Arrears less than one year Sub-total (β) Countries with arrangements for settlement of arrears with regular repayments Without arrears Arrears for one year and less Sub-total (χ) Countries with arrangements for settlement of arrears but not performing Arrears for one year and less Arrearsfor more than one year and less than two years Arrears for two years and more Sub-total (δ) Countries with no arrangements for settlement of arrears and not performing Arrears for one year and less Arrears for more than one year and less than two years Arrears for two years and more Sub-total Grand total

Number of countries

Project loans

SAFAA loans

Total

Special reserve

22 4 26

725,563 148,306 873,869

4,243 -4,243

729,806 148,306 878,112

----

15 -15

228,111 -228,111

28,887 -28,887

256,998 -256,998

----

--

--

--

--

--

--

--

--

--

--

1 1

13570 13570

---

13,570 13,570

13,570 13,570

--

--

--

--

--

--

--

--

--

--

--42

--1,115,550

--33,130

--1,148,680

--13,570

c) Liquidity risk Liquidity risk is the risk that BADEA will be unable to meet its funding requirements primarily for loan commitments. BADEA maintains adequate funding to meet such obligations when they become due. d) Interest rate risk Interest rate risk is defined as the potential impact of future interest rate fluctuations on BADEA’s financial position and cash flows. Interest income may increase because of such fluctuations but may decline in the case of unexpected movements. In respect of deposits and fixed income securities, BADEA’s main objective is to maintain security and liquidity of assets. Subject to these factors, BADEA seeks the highest possible return. Performance is monitored regularly and adjustments are made to the portfolios in the light of market developments. In respect of loans and export finance, interest rate is determined independently of market forces by the Board of Directors and at levels consistent with BADEA’s strategic orientation within the framework of its development objective.

103

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

($ 000) Within 3 months 2011 Assets Cash and balances with bank 608 Investments 1,581,661 Investment in AFREXIM Bank -Investment in AIECGC -Export finance -Loan balances 122,031 Net accrued interest -Other assets, net -Net fixed assets -Total assets 1,882,325 Liabilities and members’ countries equity Other liabilities -Provision for end of service benefits -Special reserve provision -Members’ countries equity -Total liabilities and members’ -countries equity On balance sheet gap 1,704,300

3-12 months

1-5 years

Over 5 years

Non-interest bearing

-49,367 ---36,865 ---86,232

-----210,329 ---212,455

-----697,756 ---777,329

-696,169 4,000 17,300 139 -20,273 983 346 739,210

608 2,327,197 4,000 17,300 139 1,148,680 20,273 983 346 3,519,526

-----

-----

-----

20,248 5,639 13,570 3480,069

20,248 5,639 13,570 3,480,069

--

--

--

3,519,526

3,519,526

86,232

212,455

777,329

(2,780,316)

--

Total

($ 000) Within 3 months

3-12 months

1-5 years

Over 5 years

Non-interest bearing

Total

2010 Assets

Cash and balances with bank Net investments Investment in AFREXIM Bank Investment in AIECGC Export finance Loan balances Net accrued interest Other assets, net Net fixed assets Total assets 2010 Liabilities and shareholders’ equity

Other liabilities Provision for end of service benefits Special reserve provision Members’ countries equity Total liabilities and shareholder equity On balance sheet gap

992 1,756,246

---125,087 ----

---66,447 -----------33,896 210,329 697,756 ----------

-565,894 4,000 17,300 108 -20,141 876 358

992 2,388,587 4,000 17,300 108 1,067,068 20,141 876 358

1,882,325

100,343

210,329

697,756

608,677

3,499,430

-----

-----

-----

-----

26,986 4,898 48,734 3,418,812

26,986 4,898 48,734 3,418,812

-1,882,325

-100,343

-210,329

-697,756

3,499,430 (2,890,753)

3,499,430 --

e) Foreign exchange risk Foreign exchange risk is defined as the fluctuations in the rates of exchange of foreign currencies and its effects on BADEA’s financial position and cash flows. BADEA has an established policy regarding foreign currencies to be used in transactions as well as their percentage composition, which are monitored regularly by BADEA. BADEA uses the US Dollar in its lending operations and placements with banks. In respect of portfolios for trading, a limited number of other

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currencies are allowed. Nevertheless, the US Dollar represents the main currency with a weight of not less than 65% of the total portfolio held for trading including derivatives. The following analysis illustrates assets and liabilities by currency as at 31 December: ($ 000) Currency composition Description

2011 Total assets Total liabilities 2010 Total assets Total liabilities

$

Euro

GBP

Other

Total

3,519,526 25,887

74 100

3,499,430 31,884

74 100

2,603,529 25,887

311,603

204,176

400,218

--

--

--

2,581,831 31,884

310,753

172,965

433,881

--

--

--

% of $

20. TAXATION IMMUNITY In accordance with Article 40 of its Establishment Agreement, BADEA is exempted from all taxes and fees in the member countries. In addition, BADEA is exempted from restrictions on import of goods necessary for its operations and from custom duties thereon. This is not applicable to any dues payable for actual services rendered to BADEA. BADEA is also exempted from any responsibility related to collection or payment of any tax or duty. 21. FINANCING AND OTHER COMMITMENTS a) Loans and grants commitments All loans and grants are governed by agreement and letters of understanding with sovereign countries. The total amount of such commitments do not necessarily represent future cash requirements, as many of these commitments may be ineffective either for non-signature of agreements or cancellation of letters of understanding or non-completion of effectiveness procedures. Details of these commitments as at 31 December are as follows: ($ 000) 2010

2010

46,100

33,000

Loans not declared effective

128,200

144,550

Un-disbursed loan Un-disbursed grants

943,528 22,272

884,922 20,954

1,140,100

1,083,426

Unsigned loans

Total

b) Other commitments At 31 December 2011, BADEA is committed to subscribe the remaining balance amounting to $ 6 million (2010: 6 million) of its contribution in the capital of AFREXIM Bank upon call (see Note 5). 22. BOARD OF DIRECTORS APPROVAL On 14 Rabi Al Thani 1433H, corresponding to 7 March 2012G, the Board of Directors recommended to issue and present these financial statements to the Board of Governors for their final approval.

105

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

SUMMARY The year 2011 was the second year of BADEA’s Sixth Five Year Plan (SFFYP - 2010-2014). In its meeting held in April 2009, BADEA’s Board of Governors allocated one $ billion for the five years period. During the second year of the Plan, BADEA managed to fully execute its operational plan, by committing 24 projects loans amounting to $ 192.00 million for the finance of development projects in Africa, the equivalent of 100% of the planned allocation. The infrastructure sector was accorded the greatest share of the commitments, amounting to 63.9% of the total. Commitments in the agriculture and rural development sector and the social sector amounted to 14.7% and 18.6% respectively. In addition, allocation to technical assistance amounted to $ 8 million offered as non-reimbursable grants in support of 31 operations consisting of 7 economic feasibility studies and 24 institutional support operations particularly for training African cadres and for financing the services of Arab experts in African countries. 2. During 2011, 30 projects were completed with a total financing of $ 237.89 million and 31 technical assistance operations were completed with a total cost of $ 8 million. Also during the year, 22 loan agreements, 30 memorandum of technical assistance, and 2 debt relief agreements were signed. 3.In the area of financing Arab exports to African countries, BADEA has continued to cooperate with the International Islamic Trade Finance Company (ITFC) in executing its programme of financing Arab exports to the African countries. It has also continued to support trade in Africa through contributing to the capital of AFREXIM BANK. 4.With regard to the financial position of BADEA, indicators show the Bank has continued to follow strategies which enabled it to maintain sound financial position resulting in a steady growth assets reaching $ 3,480.1 million by the end of 2011 compared to $ 3,418.8 at the end of 2010. This was due to an increase in revenues and control of total administrative expenses. It is to be noted that the Bank’s net income declined from $ 136.4 million in 2010 to $ 74.9 in 2011 million due to the fall in the (unrealized) market value of the equities in its portfolio consequent to the deterioration in the international equities market. 5.The year 2011 witnessed significant activities by BADEA in promoting the modalities of Arab African cooperation. BADEA participated in the 89th Session of the Economic and Social Council of the Arab League held in Cairo. It also participated in the 4th Joint Annual Meetings of the Ministries of Economics and Finance of the African Union held in Addis Ababa and attended the 19th Conference of the Ministries of Industry of the African Union. Furthermore, BADEA attended the Annual Meetings of the African Development Bank held in Lisbon, Portugal and the 17th Session of the African Union held in Malabo in the Republic of Equatorial Guinea. In addition, BADEA participated in Addis Ababa in the 6th General Coordination Meeting of the Arab League and the African Union which was intended to reinforce Arab African cooperation.

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Page

Evolution of BADEA’s Financing Operations (1975-2011)

Annex II

Data on Beneficiary African Countries from BADEA’s Aid during 2011 109

Annex III

Details of Distribution of BADEA’s commitments by Beneficiary Countries (1975-2011) 110

Annex IV

Summary of Sectoral Breakdown of BADEA’s Annual Commitments 1975-2011) 111

Annex V

Details of Sub-Sectoral Breakdown of BADEA’s Commitments (1975-2011) 112

Annex VI

Total BADEA’s Joint Financing (1975-2011)

113

Annex VII

Subscription in BADEA’s Capital by Member States and Distribution of Votes

114

108

ANNEXES

Annex I

107

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

ANNEX I EVOLUTION OF BADEA’S FINANCING OPERATIONS (1975-2011) Item / year Loans Approved

1975-2005

2006

379

25

2007

2008

2009

2010

2011

Total

25

23

26

23

24

525*

Lines of Credit Approved

17

‫ــ‬

2

2

3

2

2

28

Special Programme Operations

14

‫ــ‬

-

-

-

-

-

14

Technical Assistance Operations Approved (1)

352

24

31

31

27

30

31

526

59

‫ــ‬

-

-

-

-

-

59

Signed Loan Agreements

378

21

23

26

28

21

22

519

Effective Loan Agreements

347

23

20

23

26

23

-

485

SAAFA Loans (2)

Technical Assistance charged against Income annually ($million)

49,415

5,174

5,476

5,019

4,934

4,490

-

79,827

Technical Assistance Charged against income of the year of approval ($million)

60,385

4,328

4,490

4,107

2,934

2,806

777

79,827

Total technical assistance ($ million)

84,238

6,225

6,500

6,750

7,000

8,000

8,000

126,713**

Amount of Cancelled Grants and Feasibility studies ($ million)

19,817

568

548

518

516

628

-

22,595

2,790,338

169,945

179,600

190,000

200,000

200,000

200,000

3,929,883

626,989

13,268

2,048

518

516

628

-

643,967

2,100,947

151,020

171,600

183,250

193,000

192,000

192,000

3,183,817

2,163,349

156,677

177,552

189,482

199,484

199,372

200,000

3,285,916

Amount of BADEA Financing ($ million) (3) Amount of Cancelled Commitments including grants charged against income ($ million) (4) Amount of BADEA Loans ($ million) BADEA’s total net commitments including technical assistance ($ million) SAFAA loans ($ million)

214,244

-

-

-

-

-

-

214,244

SAFAA disbursement ($ million)

214,244

-

-

-

-

-

-

214,244

120,189

131,138

2,065,989

-

2,800,000

Total disbursement excluding SAFAA ($ million)

1,304,231

104,227

142,358

135,840

128,006

Paid up capital

2,200,000

-

-

-

600,000

(1) Since the beginning of the Third Five Year Plan (1995-1999) it has been decided that technical assistance funds earmarked for feasibility studies are to be considered as grants, whether the study resulted in viable project or otherwise. Up to 1994, technical assistance grants used to be considered as part of the loan in case BADEA decides to contribute to the financing of the project whose feasibility study was financed through the technical assistance operation. (2) The Special Arab Aid Fund for Africa (SAAFA) started operations in 1974, and then its resources were incorporated into BADEA’s capital in 1997. (3) BADEA’s financing includes allocations to technical assistance and grants charged to annual revenue as well as cancelled commitments. (4) Being amount of loans cancelled as requested by beneficiary countries, or remaining balances after project completion and technical assistance operation and cancelled with reference to the year in which the loan was approved. (∗) The fifth five year Plan (2005-2009) included 122 loans for financing 120 projects, thus the number of the projects is 499 untill the end of 2010. In 2011, the number of loans amounted to 24 for financing 22 projects including 2 additional loans, thus the total number of projects is 521. (∗∗) Including an amount of $ 24.614 million (cancelled grants and balaces of operations amounted to $ 22.614 million during 1976-2011 and the amount of $ 2.019 million allocated to finance feasibility studies of some projects financed by BADEA and included in the loans).

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ANNEX II Data on Beneficiary African Countries from BADEA’s Aid during 2011

No

Beneficiary Country

1

Ethiopia

2

Area(Km2)

Population 2010 (Million)

Average per Capita of GDP (2010) (Dollar)

GDP Growth rate 2010(%)

Annual Inflation Rate 2010 (%)

1,127,127

82.9

358

10.1

8.5

Central African Republic

623,000

4.4

457

3.3

5.1

3

Benin

112,622

8.9

780

3.0

1.8

4

Burkina Faso

267,950

15.8

536

9.2

4.0

5

Chad

1,340,000

11.2

676

4.3

-

6

Tanzania

945,087

44.8

527

7.0

5.4

7

Togo

56,790

6.0

523

2.1

1.3

8

Gambia

11,300

1.7

476

5.0

8.4

9

Cap Verde

4,030

0.5

3323

5.4

3.8

10

Rwanda

26,338

10.6

530

7.5

17.4

11

Zambia

752,600

12.9

1253

7.6

13.4

12

Sao Tome&Principe

1,001

0.212

1190

4.5

-

13

Sengal

196.700

12.4

1042

4.2

1.1

14

Swaziland

118,000

1.2

3073

1.1

5.0

15

Sierra Leone

71,740

5.9

325

4.9

4.0

16

Seychelles

196,722

0.1

10852

6.2

3.8

17

Guinea

246,000

10.00

452

1.9

11.6

18

Cameroon

475,442

19.6

1143

2.6

2.1

19

Cote d’Ivoire

322,461

19.7

1154

3.0

5.9

20

342,000

4.0

2943

8.8

4.3

2,344,798

66.0

199

7.2

30.2

22

Congo Democratic Republic of Congo Kenya

581,787

40.5

775

5.3

3.9

23

Liberia

30,400

4.0

247

5.5

3.7

24

Mali

1240,200

15.4

602

4.5

2.5

25

Malawi

118,480

14.9

343

7.1

8.7

26

Maurituis

2,040

12.4

1042

4.2

2.5

27

Mozambique

799,380

23.4

410

7.2

7.7

28

Niger

1,267,000

15.5

358

8.8

6.1

29

Uganda

241,000

33.4

509

5.2

6.3

21

Reference: Data base of World Bank.

109

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

ANNEX III DETAILS OF DISTRIBUTION OF BADEA’S COMMITMENTS BY BENEFICIARY COUNTRIES (1975-2011)($ MILLION) Countries

1975-2005

2006

2007

2008

2009

2010

2011

Total

Angola

10.146

-

-

-

-

-

-

10.146

Benin

82.924

1.850

10,000

1.550

1.710

10.407

10.400

118.841

Botswana Burkina Faso

64.078

-

10.000

-

8.000

-

-

82.078

114.840

2.477

12.000

18.465

1.500

10.000

11.630

170.912

Burundi

28.026

-

-

10.286

8.440

10.088

-

56.840

Cameroon

68.567

-

8.000

6.000

7.000

7.000

10.138

106.705

Cap Verde

53.745

-

8.000

9.100

9.000

2.238

0.550

82.633

8.200

3.330

-

6.800

13.000

8.485 -

20.315

64.900

-

0.300

Chad

-

8.555

93.255

Cote d’Ivoire

39.398

-

12.000

-

8.000

8.000

6.000

73.398

Central African Republic

Congo

28.123

-

-

0.041

10.480

-

8.000

46.644

Democratic Republic of Congo

10.000

13.500

-

-

6.176

8.000

10.250

47.926

Eretria

23.849

4.500

-

0.201

0.300

-

-

28.850

Ethiopia

75.620

-

-

9.000

10.029

10.093

10.001

114.743

Gabon

7.556

-

-

10.000

-

-

-

79.168

Gambia

64.067

0.098

-

7.663

-

0.340

7.000

72.178

Ghana

118.643

8.000

-

6.000

-

8.000

-

140.643

Guinea

120.310

0.108

3.671

13.500

8.400

-

0.575

146.564

10.584

-

-

-

-

-

-

10.584

Guinea Bissau Equatorial Guinea

9.988

-

-

-

-

-

-

9.988

Kenya

55.412

10.000

4.299

8.000

6.320

10.380

10.000

104.411

Lesotho

46.988

3.700

10.000

-

6.000

10.000

-

76.688

7.011

-

-

-

-

-

0.200

90.087

5.350

4.900

-

-

Liberia Madagascar

7.211 100.337

Mali

98.966

15.600

12.480

0.211

10.000

20.100

4.000

161.357

Malawi

29.732

10.000

-

10.000

7.000

7.250

4.000

67.982

Mauritius

55.087

4.000

3.291

10.000

-

-

0.250

72.628 164.385

Mozambique

111.641

5.999

9.000

8.085

10.000

9.000

10.660

Namibia

25.147

-

-

-

-

-

-

25.147

Niger

50.807

2.420

7.900

10.000

6.294

0.055

10.300

87.776

-

8.000

-

-

-

-

8.000

56.035

-

10.387

-

10.000

10.250

11.000

97.672

Nigeria Rwanda Sao Tome &Principe Swaziland Senegal

4.690

0.180

-

-

4.102

-

3.200

12.172

19.180

6.600

-

8.210

-

0.450

10.000

44.440

149.740

7.001

6.500

14.200

18.038

-

10.630

206.109

Seychelles

26.086

6.500

1.500

6.000

-

0.430

0.200

40.716

Sierra Leone

32.688

11.313

10.000

-

0.106

0.551

5.990

60.648

Tanzania

56.227

8.223

6.000

6.000

18.335

10.000

8.250

113.035

Togo

24.517

-

-

-

6.290

5.300

10.300

46.407

Uganda

43159

-

-

4.813

10.000

10.000

5.400

73.372

Zambia

32.921

6.800

-

8.000

-

10.000

10.000

67.721

Zimbabwe

75.053

-

-

-

-

5.000

-

80.053

Comoros

7.996

-

-

-

-

-

-

7.996

-

-

-

10.000

5.000

5.000

-

20.000

Group of countries (Private sector) Regional Organizations Grants deducted against income Grand Total

110

0.230

-

0.134

0.050

0.030

0.149

1.444

2.037

60.385

4.328

4.490

4107

2.934

2.806

0.777

79.827

2.163.349

156.677

177.552

189.482

199.484

199.372

200.000

3.285.916

%

1795691

122,600

102,000

94,040

97,000

134,500

109,050

%

47,000 23.57

28,200 14.10

51.16

61.30

797419

55,200 27.67

47.14

54.65

43,200 22.80

51.19

24.27

9.52

16,900

75.75

9.02

14,140

592,779 27.40

Amount

69.60

1,136,501 52.53

Amount

Agriculture and Rural Development

51529

51.529

Amount

1.67

0.00

0.00

0.00

0.00

0.00

0.00

2.56

%

Industry

* Intended to mean lines of credit extended to the private sector. **include the sum of $ 79.827 million reprsenting grants charged against income.

Total

2011

2010

2009

2008

2007

2006

2005-1975

Year

Infrastructure and Environment

184995

-

-

10,000

9,000

9,000

7,000

149,995

Amount

%

5.63

0.00

0.00

5.01

4.75

5.07

4.47

6.93

Energy

12635.

12.635

Amount

0.41

0.00

0.00

0.00

0.00

0.00

0.00

0.63

%

Special Programme

241848

35,700

33,000

26,000

19,550

9,700

20,830

97,068

Amount

7.36

17.85

16.55

13.03

10.32

5.46

13.29

4.49

%

Social Sector

99700

5,500

10,000

7,760

14,500

1,500

-

60,440

Amount

3.03

2.75

5.02

3.89

7.65

0.84

0.00

2.79

%

Private Sector*

102099

8,000

7,372

6,484

6,232

5,952

5,657

62,402

Amount

3.11

4.00

3.70

3.25

3.29

3.35

3.61

2.88

%

Technical Assistance

3285916

200000

199372

199484

189482

177552

156677

2163349

%

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

Total Amount

ANNEX IV SUMMARY OF SECTORAL BREAKDOWN OF BADEA’S ANNUAL COMMITMENTS (1975-2011) ($ MILLION)

B A D E A

Annual Report

20

11

111

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

ANNEX V DETAILS OF SUB-SECTORAL BREAKDOWN OF BADEA’S ANNUAL COMMITMENTS (1975-2011) ($ MILLION) Sector

1975-2005

2006

2007

2008

2009

2010

2011

Total

48.050

74.100

83.000

42.000

60.000

75.000

Infrastructure &Environment : Roads

720.203

1.102.353

Railways

30.796

-

-

30.796

River Transport

12.245

-

6.000

18.245

Air Transport

89.719

16.700

Telecommunications

27.117

-

Water Supply and Drainage

167.586

26.000

28.300

-

-

-

4.300

8.000

-

Dams and Bridges

54.147

16.000

17.000

-

Public Services

34.688

-

13.100

-

134.500

97.000

Sub-Total

1,136,501

109.050

14.000

Agriculture and Rural Development

265,067

7.340

Food Production

185.075

-

-

Livestock and Poultry

37.184

-

-

Fishing

62.204

6.800

2.900

Food Industry

23.749

-

-

Forestry Development

19.500

-

-

Sub- Total

592,779

14.140

16.900

8.000

38.040

140.419 33.000

-

27.117

31.200 16.400

6.000 94.040

-

49.000

37.000

6.200

310.426 103.547

9.000

-

62.788

102.000

122.600

1.795.691

47.000

18.200

400.607

10.000

238.275

6.200

43.384 -

71.904

-

-

23.749

-

-

19.500

43.200

55.200

47.000

28.200

797.419

Industry : Building Materials

48.407

-

-

-

-

48.407

3.122

-

-

-

-

3.122

51.259

-

-

-

-

51.529

149,995

7.000

9.000

9.000

The Social sector

97,068

20.830

9.700

19.550

26.000

33.000

35.700

241.848

The private Sector *

60,440

-

1.500

14.500

7.760

10.000

5.500

99.700

The Special Programme

12.635

Chemical Industries Sub- Total Energy : Electric Power Infrastructure and Production

184.995

10.000

12.635

Emergency Aid Technical Assistance Countries Regional Organizations Grants deducted against income Sub Total Grand Total

1.787

1.329

1.328

2.075

4.417

5.779

20.235

0.230

-

0.134

0050.

0.030

0149.

1444.

2037.

60.385

4.328

4.490

4107.

2.934

2.806

777

79.827

62.402

5657.

5.952

6.232

6.484

7.372

8.000

102.099

2.163.349

156.677

177.552

189.482

199.484

199.372

200.000

3.285.916

* Intended to mean lines of credit extended to the private sector.

112

3.520

11

Annual Report

20

B A D E A

ANNEX VI Total BADEA’S JOINT FINANCING (1975-2011) ($ MILLION) Item Total Project Costs

Total 17163.872

BADEA

2792.580

Arab Funds, ISDB and OFID Fund

4417.381

World Bank Group

1550.300

ADB Group**

1710.080

European Union Group

744.960

Industrialized Countries

1666.080

Beneficiary Governments & Local Institutions

4208.901

Other Groups

73.590*

* Including $ 33.79 million provided by the International Fund for Agricultural Development (IFAD) , $ 33.6 million from Development Bank of West Africa and $ 6.2 million from the Investment and Development Bank of the Economic Community of West Africa.

113

ARAB BANK FOR ECONOMIC DEVELOPMENT IN AFRICA

ANNEX VIII SUBSCRIPTION IN BADEA’S CAPITAL BY MEMBERS STATES AND DISTRIBUTION OF VOTES Member States

Hashemite Kingdom of Jordan

Amount (in $)

Subscription Number of shares

Percentage

Voting Power Number of Percentage Votes

5,707,937.02

57.07937

0.203855

257.07937

0.813542

342,476,221.92

3424.76222

12.231294

3624.76222

11.470767

Kingdom of Bahrain

5,707,937.02

57.07937

0.203855

257.07937

0.813542

Republic of Tunisia

23,783,070.94

237.83071

0.849395

437.83071

1.385540

114,158,740.64

1141.58741

4.077098

1341.58741

4.245530

684,952,443.85

6849.52444

24.462586

7049.52444

22.308622

Republic of Sudan

5,707,937.02

57.07937

0.203855

257.07937

0.813542

Arab Republic of Syria

3,805,291.36

38.05291

0.135903

238.05291

0.753332

Republic of Iraq

399,555,592.24

3995.55592

14.269843

4195.55592

13.277076

Sultanate of Oman

34,247,622.21

342.47622

1.223129

542.47622

1.716697

State of Palestine

5,707,937.02

57.07937

0.203855

257.07937

0.813542

State of Qatar

228,317,481.28

2283.17481

8.154196

2483.17481

7.858148

State of Kuwait

418,582,049.02

4185.82049

14.949359

4385.82049

13.879179

Republic of Lebanon

19,026,456.80

190.26457

0.679516

390.26457

1.235015

456,634,962.56

4566.34963

16.308392

4766.34963

15.083385

5,707,937.02

57.07937

0.203855

257.07937

0.813542

41,858,204.91

418.58205

1.494936

618.58205

1.957538

4,062,177.17

40.62177

0.145078

240.62177

0.761461

2,800,000,000.00

28,000.00000

100.000000

31,600.00000

100.000000

State of the United Arab Emirates

People’s Democratic Republic of Algeria Kingdom of Saudi Arabia

Great Arab Libyan People’s Socialist Jamahiriya Arab Republic of Egypt Kingdom of Morocco Islamic Republic of Mauritania Total

114

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