2006 Annual Report

2006

united nations capit al development fund

Resul t s -or iented Annual Repor t

Contents

Design by Green Communications inc., CanadaAll photos by Adam Rogers except pages 2 (UN photo); and 14 (UN photo).

FRom the exeCUtive SeCRetARy 2

iNtRoDUCtioN 5

i. PRoGRAmme ReSUltS 7

ii. mANAGemeNt ReSUltS 21

iii. FiNANCiAl ANAlySiS 29

ANNex i: UNCDF GlobAl PRojeCt PoRtFolio 31

ANNex ii: FiNANCiAl StAtemeNtS 38

NoteS to the FiNANCiAl StAtemeNtS 40

Box1: DeliveringDevelopmentinYemen 7

Box2: PerformanceBudgetinginSupportofLocalDevelopment 13

Box3: UNCDFSupporttoPost-conflictRecovery 14

Box4: UNCDF:ACenterofTechnicalExpertiseinMicrofinance 21

Box5: BroadeningAccesstoFinancialServicesinSierraLeone 23

Box6: TheUnitedNationsAdvisorsGrouponInclusiveFinancialSectors 24

Box7: TheUnitedNationsConferenceonFinancialInclusion 25

Box8: StrengtheningandExpandingUNCDF’sStrategicPartnershipwithUNDP 26

Table1. Achievementsof2006TargetsfortheLocalDevelopmentPracticeArea 9

Table2. OutreachofUNCDFLocalDevelopmentInvestmentsDuring2006 10

Table3. ExpenditureandTypesofLocalDevelopmentInvestmentsDuring2006 11

Table4. ActualIncomeSourcesofLocalGovernments 12

Table5. RecurrentandInvestmentBudgetsofLocalGovernments 13

Table6. Achievementof2006TargetsintheMicrofinancePracticeArea 17

Table7. Achievementof2006TargetsforOrganizationalPerformance 22

Table8. ExpenditureTrends,2001-2006 29

Table9. ProgrammeExpendituresPerRegionandPracticeArea 30

� UNiteD NAtioNS CAPitAl DeveloPmeNt FUND

WearepleasedtopresenttoyouUNCDF’s2006Result-orientedAnnualReport(ROAR).Aspartofourcommitmenttowardsresults-basedmanagementandourefforttocontinu-allyimprove,refineandmaximizeUNCDF’sdevelopmentimpact,theROARispreparedonanannualbasistoexamineUNCDF’sperformanceintermsofprogramme,manage-mentandfinancialresultsagainstestablishedtargets.Thereportisusedastheprincipalsourceofinformationtofullyunderstandandaccuratelyassessourdevelopmentresultsinourtwokeypracticeareas–(i)LocalDevelopmentand(ii)Microfinance.The2006

ROARwaspresentedtoUNCDF’sExecutiveBoardinJune2007andisavailableonUNCDF’swebsiteinallsixofficialUNlanguages(www.uncdf.org).

2006markedthe40thanniversaryforUNCDF.Itwasanimportantyearfortheorganization,bothonthegroundwhereUNCDFdoesitsmostimportantwork,andatheadquarterswithregardtodonorandpartnerrelations.Manyofourprogrammesexperienceddramaticupscalingandreplication,suchasinBangladesh,YemenandNicaraguawherethegovernments,supportedbyotherdonororganizations,areusingthedecentralizedgovernancestructureintroducedbyUNCDFtochannelimportantdevelopmentassistancetothelocallevel.

In2006,UNCDFhadactiveLocalDevelopmentProgrammes(LDPs)in23LDCs,withsupporttotenmoreLDCsbeingpreparedforimplementationin2007.Throughtheseprogrammes,UNCDFprovidedinvestmentresourcesfor1,775small-scaleinfrastructureprojectsthrough437localgovernmentsduringtheyear.

UNCDFexpandeditsprogrammesforbuildinginclusivefinancialsectorstofivenewcountriesin2006,bringingthenumberofLDCsapplyingUNCDF’sfinancialsectordevelopmentapproachto11.Morethan616,000microfinanceclients,66percentofwhomwerefemale,receivedmicrofinanceservicesfrom28financialserviceproviders(FSPs)supportedbyUNCDFin2006.

Alsoin2006,theUnitedNationsAdvisorsGrouponInclusiveFinancialSectors,hostedbyUNCDF,initiateditswork.Itheldtwomeetingsthatresultedintheformationofworkinggroupsonadvocacy,privatesectorengagement,regulatoryissuesandresearchandknowledge-sharing.Furthermore,UNCDFandUNDPco-organizedtheUnitedNationsConferenceonFinancialInclusioninJune2006inDakar,Senegal.Morethan320high-leveldelegatesparticipatedinthemeeting,representingabroadrangeofstakeholdersfrom48Africancountries.

From the executive secretary

�2006 Results-oriented Annual Report

In2006,UNCDFcontinuedtoalignitsprogrammesandoperationsmorecloselywithUNDP.ThiswasthefirstyearinwhichtheUNCDFadministrativebudgetwasmainstreamedintotheUNDPbienniumsupportbudget.Inaddition,UNDPandUNCDFworkedinclosecollaborationtointegratethecontributionsofUNCDFintotheUNDPStrategicPlanfor2008-2011.TheaimofthiscloserpartnershipbetweenUNCDFandUNDPistosignificantlyimprovetheefficiencyandeffectivenessofbothorganizations;enhanceourjointdevelopmentimpactintheLDCsandotherdevelopingcountries;andachievegreatercoherence,simplicityandharmonizationwithintheUNsystem,whileatthesametimesafeguardingUNCDF’sindependence,uniqueinvestmentmandateandinstitutionalcharacter.

TheseresultswouldnothavebeenpossiblewithoutthesupportofUNDP,ourmostimportantdevelopmentpartner.Inaddition,wehaveworkedcloselywithmorethan30nationalgovernmentsintheLDCs,andweconsiderthemtobefundamentalandindispensablepartnersineveryrespectofourprogrammes.Furthermore,weappreciateandacknowledgethecrucialfinancialsupportwereceivedin2006fromtheGovernmentsofAndorra,Australia,Austria,Belgium,Canada,Denmark,Finland,France,Japan,Ireland,Liechtenstein,Luxembourg,Netherlands,Spain,Norway,Sweden,Switzerland,UnitedKingdom,UnitedStates,andtheEuropeanCommunity.Lastly,Iwouldliketoacknowledgethehardwork,dedicationandcommitmentofmycolleaguesatUNCDF:ourprojectsupportteamsinthefield,ourcountryandregionalofficepersonnel,andallourheadquartersstaff.ItisthroughtheirdiligentandpersistenteffortsandtheirprofessionalexperienceandexpertisethatUNCDFhasbeenabletoaccomplishtheresultspresentedinthisreportandthusassisttheLDCstoaccomplishtheMillenniumDevelopmentGoals.

RichardWeingartenExecutiveSecretaryUnitedNationsCapitalDevelopmentFund

� UNiteD NAtioNS CAPitAl DeveloPmeNt FUND�


1. TheUnitedNationsCapitalDevelopmentFund(UNCDF)makesinvestmentsintheleastdevelopedcountries(LDCs).ItsoverallgoalistoreducepovertyintheLDCsandtohelpthemachievetheMillenniumDevelopmentGoals(MDGs).Itdoessobyinvestingintwopracticeareas–localdevelop-mentandmicrofinance–whilestrivingtostrengthenorganizationalperformance.Thethreesub-goalsoftheUNCDFstrategicresultsframework,asincludedintheUNCDFbusinessplan2005-2007,capturetheseperformancedimensions.

2. ThepresentreportprovidesanoverviewofUNCDFperformancein2006foreachofthesub-goals,withinacontinuouslychanginginternalandexternalenvironment.Theformatofthereport,whichwasrevisedin2005tobeconsistentwiththereportingframeworkusedbyUNDP,hasremainedunchanged.

3. 2006wasatransitionyearforUNCDF.Itrepresentedthefirstfullyearaftertheorganizationalrestructuringandchangemanagementprocess,begunin2005,anditwasthesecondyearoftheimplementationofthebusinessplanapprovedbytheExecutiveBoardinJune2005.ItwasthefirstyearinwhichtheUNCDFadministrativebudgetwasmainstreamedintotheUNDPbienniumsupportbudget.UNDPandUNCDFhaveworkedconstructivelyandcollegiallyduringtheyeartoadvancetheirstrategicpartnershiparrangements,culminatinginajointpresentationtotheExecutiveBoardatitsfirstregularsession2007.Internally,thesignificantreorganizationofUNCDFthatstartedinJuly2005wascompleted,withthereductionofheadquartersstaffingtakingeffectandtheregionalpresenceofUNCDFsubstantiallyexpanded.

4. Thepresentreportfocuses,inthreechapters,ontheprogramme,management,andfinancialresultsachievedin2006inimplementingthebusinessplan.ThereportthenlinksthedevelopmentresultstotheframeworkproposedfortheUNDPstrategicplan,2008-2011.

IntroduCtIon


I. Programme results

Box1: Delivering Development in Yemen

In Yemen, an increasing number of donors are using UNCDF’s decentralized institutional governance structure to ensure that their development assistance achieves the greatest possible impact in a manner that is sustainable over the long term. The coverage of the UNCDF/UNDP-supported Decentralization and Local Development Support Programme (DLDSP) continued to expand and reached 48 districts (from the original six in 2003).

Since its start-up in early 2004, the DLDSP has provided a unified methodology and institutional framework for supporting Yemen’s local governance system. An increasing number of donors – currently nine, including the Danish International Development Agency (DANIDA), the United States Agency for International Development (USAID), the Governments of Italy and France, as well as the Yemen Social Fund for Development – use the DLDSP framework to channel support to local authorities through a pooled funding framework that now exceeds $12 million.

For example, German Technical Cooperation (GTZ) is now in the process of re-channeling its initiatives supporting health sector reforms through strengthened local authorities in the DLDSP pilot regions. UNICEF also is taking the same approach and has shifted its point of entry for improving health and education services at the local level – from the community to the Governorate Local Authority (GLA) structure, and through this structure to the district local authority.

The Government of Yemen introduced its current system of decentralized governance in 2001. In 2003, it requested the support of UNCDF and UNDP to build local government capacity in the area of Public Expenditure and Asset Management (PEAM) on a pilot basis. The Government also requested that this process be used to assess the effectiveness of the current decentralized system of governance and to provide recommendations for its reform.

A. Performance analysis for sub-goal 1: local development

5. TheUNCDFlocaldevelopmentpracticeareaisconcernedwithbuildingthecapacityoflocalgovernmentsandotherlocalstakeholderstofosterparticipatorylocaldevelopment.Theunderlyingthemeisoneofdecentralizationreformsthatenablelocalgovernmentstodelivercapitalinvestmentforpro-poorinfra-structureandservicestoruralcommunities,thussupportingtheachievementoftheMDGsatthelocallevel.

6. AllUNCDFlocaldevelopmentprogrammespilotinstitutionalreformatthelocalgovernmentlevel,usingmodestcapitalfundingasanincentiveforchange.Thisemphasizestheimportanceoftheinvestmentmandateof

UNCDF,whichallowsittogobeyondnormalcapacity-buildingactivitiestofocusonestablishingandsupportingnewsystems,proceduresandcapacitiesforlocalgovernmentoperations.Pilotinggivestheopportunitytogovernmentsandlocalauthoritiestounder-take‘realtime’planningandimplementation,andtogeneratelessonsandlearning,whicharecriticalforpolicyimpactandreplication.

7. In2006,UNCDFhadongoinglocaldevelopmentprogrammesandlocaldevelop-mentfundsin23LDCs,withsupporttotenmoreLDCsbeingpreparedforstart-upin2007.Overall,theperformancewasmostsatisfactorywitharateoftargetachievementof82percentandanaveragedeliveryagainstavailablecoreresourcesof84percent.

� UNiteD NAtioNS CAPitAl DeveloPmeNt FUND

8. Thehighlightsof2006resultsinthispracticeareaare:

(a) UNCDFpilotingwassuccessfulinhelpingshapenationalprogrammesondecentraliza-tionandlocaldevelopmentinanumberofcountries.Thosenationalprogrammesincreasinglyaresupportedbydonorsinacoordinatedfashion.Someexamplesfollow:

(i) InBangladesh,theGovernmentapprovedamorethan$200million‘localgovernmentsupportprogramme’,replicatingtheUNCDF/UNDPpilotandscalingitupto4,500UnionParishads.TheWorldBank,theEuropeanCommission,theDanishInternationalDevelopmentAssociationand,earlier,theSustainableDevelopmentCommission,joinedUNDPandUNCDFtosupportthisnationalprogramme.

(ii) TheNicaraguanGovernmentadoptedits‘nationalstrategyfordecentralizationandlocaldevelopment’basedontheUNCDFlocaldevelopmentmodel.TheUnitedNationsResidentCoordinator,withUNCDFtechnicalsupport,nowseekstoalignandharmonizeUnitedNationsanddevelopmentpartnersupportforthisnationalstrategy.

(iii) InMozambique,UNCDF,UNDP,theWorldBankandtheGermanAgencyforTechnicalCooperationrecentlyjointlyevaluatedtheirpriorlocaldevelopmentcollaborationandusedthoseresultstoadvisetheGovernmentonanewnationaldecentralizedplanningandfinancepro-gramme.TheGovernmenthasdecided,inprinciple,toestablishtheprogrammewitharesource-poolingorcommon-fundingarrangementtoguidedonorsupport.TheprogrammewilldrawuponlessonslearnedfromtheUNCDF/UNDPpilotlocaldevelopmentprogramme,whichhasbeenimplementedsuccessfullyinNorthernMozambique.

(b) UNCDFalsoachievedseveralsignificantsuccessesin2006intermsofscalingupitspilotexperiencewithlocaldevelopmentprogrammesandreplicatingthisexperienceinpartnershipwithotherdevelopmentpartners.Someexamples:

(i) InBenin,theUNCDF‘decentralizationandlocaldevelopment’pilotpioneeredapublicexpendituremanagementprocessusingtheNationalTreasurytochannelinvestmentfunding.TheGovernmentandseveraldevelopmentpartnersagreedtoreplicateandscaleuptheUNCDFmodeltoadditionalprovinces.

(ii) InYemen,coverageofthe‘decentraliza-tionandlocaldevelopmentsupportprogramme’continuedtoexpandandreached48districts(fromtheoriginalsixin2003).NinedonorshaveharmonizedtheirapproachandpooledtheirfundinginaUNDP/UNCDF-ledsupportprogrammethatnowexceeds$12million.

(iii) The‘decentralizedfinancinganddevel-opmentprogramme’inNepal,covering20districts,wasabletocontinuefundingandsupportinglocal-levelinvestmentsduringtherecentpoliticalupheavals.TheGovernmentrecentlyadoptedtheperformance-basedgrantpolicypilotedbyUNCDF.Theprogrammeisemergingasanationalmodel,onthebasisofwhichthenextphaseprogrammewillbedesigned.ThatnewprogrammewillbesupportedjointlybyUNCDF,UNDP,theDepartmentforInternationalDevelopment,theNetherlandsDevelopmentOrganizationandtheNorwegianAgencyforDevelopmentCooperation.


(c)UNCDFisincreasinglytakinganimportantroleincoordinatingdevelopmentpartnerstosupportnationaldecentralizationandlocaldevelopmentprogrammesinpost-conflictcountriessuchastheDemocraticRepublicoftheCongo,Liberia,SierraLeoneand

TimorLeste.TheprogrammesareinlinewiththegrowingUNDPandUNCDFemphasisonsupportinglocalgovernmentsaskeylocalrecoveryinstitutions.

Table1. Achievements of 2006 Targets for the Local Development Practice Area

Coreresultsandoutcomes Overalltargetachievementin2005(%)

Overalltargetachievementin2006(%)

Performanceachieved

Coreresult1:Pilotsforpublicexpendituremanagementinfrastructureandservicedelivery(ISD)successfullyimplemented

Outcome1.1:Effective,participatoryassessmentofdemandforISDbylocalgovernmentsinUNCDFpilots

93 92 Fully achieved

Outcome1.2:IncreasedexpenditureonISDeffectively,equitablyandtransparentlymanagedbylocalgovernmentsinUNCDFpilots


Outcome1.3:Increasedmoreeffectivesupplyandmaintenanceofbasicsocio-economicinfrastructureandservicesbylocalgovernments,serviceprovidersandlocalcommunitiesinUNCDFpilots


Outcome1.4:Sustainedmanagementofthelocalnatural-resourcebaseensuredbylocalgovernmentsinUNCDFpilots

58 67 Partly achieved

Outcome1.5:EnablingenvironmentforlocaleconomicdevelopmentestablishedbylocalgovernmentsinUNCDFpilots

* *

Coreresult2:Pilotmodelsandlessonsleveragedforpolicyimpactandreplication

Outcome1.6:Governmentamendmentstopolicy/legal/regulatoryframeworksreflectlessonsfromUNCDFpilots


Outcome1.7:UNCDFpilotsscaledupthroughreplicationbyotherfundingentitiesand/orgovernmentbudgetaryresources


TOTal 72 82 Fullyachieved

Data source: UNCDF MIS data from 20 programmes

* Outcomes for which no targets had been set in 2006, but for which targets will be set in 2007.

10 UNiteD NAtioNS CAPitAl DeveloPmeNt FUND

Table2. Outreach of UNCDF Local Development Investments During 2006

No.ofcountries

localgov’tssupported

avg.localgov’tspercountry

No.ofprojects Beneficiaries(millions)

Westafrica 7 180 26 513 0.5

Eastern/Southernafrica 7 63 9 165 1.4

asia(includesYemen) 6 147 24 1,040 1.6

latinamerica 2 47 23 57 0.1

TOTal 22 437 20 1,775 3.6

Data source: UNCDF MIS data from 20 programme (countries without capital investments in 2006 excluded).

9. UNCDFachievedanoverallperformancerateof82percent(table1)andthusfullyachieveditscoreresultsandoutcomesinitslocaldevelopmentpracticeareain2006.2006performancerepresentedanimprove-mentof10percentcomparedto2005.Intermsofcapacity-buildingoflocalgovern-ments,thehigh2005performancelevelfortestingandinstitutionalizationparticipatoryplanning(outcome1.1)andpublicexpendituremanagementsystems(outcome1.2)wasmaintained.Nevertheless,theconsistencyofthelocaldevelopmentplanswithsectoralandhigher-levelplanning(suchasregional,provincial,andpoverty-reductionstrategies)isstillahugechallengeforthelocalplanningprocess.Theperformanceontheoutcomesdealingwithinvestmentsinservicedelivery(outcome1.3)andnaturalresourcesmanage-ment(outcome1.4)improvedby14percentand9percent,respectively.

10.Thetargetedresultswerefullyachievedintheareaofpolicyimpact(outcome1.6)andreplication(outcome1.7).Whileperfor-manceinreachingpolicyimpactwas75percentoftheplannedtargetsin2006(against91percentin2005),UNCDFachieved92percentoftargetsforreplicationofUNCDFbestpracticesin2006,comparedto48percentin2005.AchievingtangibleresultsinthosetwoareasisacriticalpriorityforUNCDF,astheseresultsdemonstrateprogrammeeffectivenessatthecountrylevel.

ThetwoareasremainextremelychallengingforUNCDF,butthegoodresultsreflecttheaccumulationofseveralyears’worthofworkontheground,atthecountrylevel.

11.Theabsenceofreportingonoutcome1.4:localeconomicdevelopmentreflectsthechallengesthatUNCDFfacedinstartinguppilotactivitiesduring2006.Thiswasduetolimitedhumanandfinancialresourcestobedevotedtothisnewprogrammaticarea.Anotherareaofdisappointingresultshasbeentherelativelyslowprogresstowardsamoresystematicexploitationofpotentialsynergiesbetweenthemicrofinanceandlocaldevelopmentpracticeareasthroughjointinnovationsontheground.Itisexpectedthat2007willshowanimprovementinbothareas.

12.Table2providesanoverviewofresultsachievementsduring2006withrespecttotheoutreachofUNCDFlocaldevelopmentinvestments.Asthetablehighlights,approxi-mately3.6millionruralpeoplewerereachedthroughtheprovisionoflocalservicedeliveryduring2006.UNCDFprovidedinvestmentresourcesfor1,775small-scaleinfrastructureprojects,through437localgovernmentsduringtheyear.Thisisanaverageof81investmentspercountry,orfourforeachclientlocalgovernment.

latinamerica 2

6

14

asia

africa

112006 Results-oriented Annual Report

Table3. Expenditure and Types of Local Development Investments During 2006

Typeofinvestment No.ofprojects

Investment(in$millions)

averageunitcost(indollars)

Percentageofprojects

(%investment)

Education 275 $1.76 $6,400 21%Health 120 1.22 0,166 14%Watersupply 284 2.31 8,134 28%localgovernmentofficesandcommunityfacilities

205 0.51 2,487 6%

Markets,agriculture,naturalresourcesmanagement

405 1.91 4,716 23%

Roads,bridges,culverts 413 0.65 1,574 8%

TOTal 1,748 8.36 4,782 100%

Data source: UNCDF MIS data from 16 programmes. Accurate user rates available from 8 programmes. Other programmes estimated.

13.Table3showshowcapitalgrantswereusedintermsofcompletedprojectsin2006andtheirsectoraldistributionin16oftheprogrammesonwhichdatawerereceived.Incomparisonwith2005,thetotalnumberofinvestmentscompletedbytheendof2006decreased33percent,whiletheaveragevalueofaninvestmentincreasedby62percent.Thelargersizeofinvestmentsseemstoindicatealongerconstruction

period,withagoodnumberofprojectsstartedin2006onlyscheduledforcomple-tionin2007.Overall,theaverageinvestmentpercapitaincreasedfrom$2.10to$2.32.

14.Watersupply,ruraleconomicactivityandeducationeachaccountedformorethan20percentofUNCDFinvestmentresourcesin2006.Thesewerefollowedbyhealth(14percent),roads,bridgesandculverts(8percent),andfacilities(6percent).Asin2005,morethan60percentofallinvest-mentswerededicatedtoenhancingaccesstosocialservicesandinfrastructure,whereasaboutaquarterofUNCDFinvestmentin2006wasusedforeconomiccapitalformation.Ultimately,alloftheseinvestmentsaredevotedtopro-poorandgenderequitablelocaldevelopmentinvestmentandsupporttheachievementoftheMDGsatthelocallevel.TheUNCDFworkingpaperGender Development: Investment Methods for Greater EquityprovidesmoreinformationonhowUNCDFintendstobettermainstream

issuesofgenderequalityandwomen’sempowermentwithinitslocaldevelopmentprogrammes.

15.HealthylocalgovernmentfinancesarecrucialforthelongtermsustainabilityoftheresultsproducedinUNCDFlocaldevelop-mentprogrammes.Toachievethissustainability,agoodmixisrequiredofthethreesourcesthatmakeuplocalincome:fiscaltransfers,localrevenueanddonorsupport.Further,ontheexpendituresidelocalgovernmentsneedtoappropriatelysharetotalincometofundboththeirrecur-rentandinvestmentbudgets.Thenextparagraphssummarizeaspecialanalysiscarriedoutforthepurposesofthisreporttoevaluatethelonger-termresultsofUNCDFinterventionsinstrengtheninglocalfinance.

Markets,agriculture,naturalresourcesmanagement

Education

Watersupply405

413

205

120

284

275

Health

localgovernmentofficesandcommunityfacilities

Roads,bridges,culverts

1� UNiteD NAtioNS CAPitAl DeveloPmeNt FUND

16.Whileoutcome1.2showedafullysatisfactoryperformance,theindicatorscontributingtothisoutcomeprovideamoredetailedpicture.In2006,UNCDF-supportedprogrammeshadgoodresultsontheincomeside:theyexceededtheirtargetsforthesuccessfulmanagementofinter-govern-mentaltransfersandtheirplannedincreaseoflocalrevenuepercapitathroughtaxcollection,contributions,andcostrecovery.Ontheexpenditureside,however,theprogrammesreportedthattheywereonlypartiallyachievingprojectedincreasesforbudgettobeinvestedinbasicinfrastructureandsocialservices.

17.Theresultsintables4and5partiallyconfirmthistendencywhencomparing2006resultswiththeresultsoverafive-yearperiod.Basedonthefinancialdataforninecountries,itcanbeconcludedthattheinterventionsbyUNCDFinfiscaltransferandlocalrevenuemobilization,frombothpolicyandpracticalperspectives,seemtohaveadirectandpositiveimpact.In2006,53percentoflocalgovernmentincome,onaverage,wasderivedfromnationalincomesources,equallydividedbetweenfiscaltransfersandlocalrevenue.Donorsupportforinvestmentsmadeuponly47percentoftotalincome.

Table4. Actual Income Sources of Local Governments (average per programme, in dollars)

Incomesources 2002 % 2003 % 2004 % 2005 % 2006 %

Fiscaltransfer $23,450 5 $92,787 12 $324,300 32 $71,794 12 $236,261 26

localrevenue 102,878 22 185,555 23 413,796 40 169,852 29 244,610 27

Donorsupport 340,669 73 521,449 65 276,056 28 352,596 59 438,269 47

TOTal $466,997 100 $799,791 100 $1,016,157 100 $594,242 100 $919,140 100

Data source: UNCDF MIS data from a total of 6 countries (2002 – 2004) and 9 countries (2005-2006). For countries without budget closure, figures are estimates (2006).

18.Table5providesindicativedataregardinghowavailablelocalgovernmentbudgetswereusedforrecurrentexpendituresandinvestmentpurposes.In2006,58percentoftotallocalgovernmentbudgetsinUNCDFprogrammecountrieswasusedforlocalinvestmentsand42percentforrecurrentexpenditures.Moredetailedanalysisofdatasourcesrevealsthat100percentofdonorfundingtolocalgovernmentswasusedtofundinvestmentsand34percentoflocalincomeandfiscaltransferswasusedforthesamepurpose.Approximately66percentof

localincomeandfiscaltransferswasusedtocoverrecurrentcosts.Infact,2006wasthefourthconsecutiveyearinwhichrecurrentexpendituresincreasedaspartofthetotalbudget.ThistrendneedstobemonitoredandanalysedcarefullysoastoensurethatlocalauthoritiessupportedbyUNCDFaremovingtowardsanappropriatebalancewithregardtorecurrentcostsandinvest-mentsasashareoflocalincomeandfiscaltransfers,whilereducingtheirdependenceondonorresources.

2002 2003 2004 2005 2006

100%

0%

80%

60%

40%

20%

Fiscal transfer Local revenue Donor support

1�2006 Results-oriented Annual Report

Box2: Performance Budgeting in Support of Local DevelopmentLocal Governments are being given increased responsibility for ensuring the delivery of basic infrastructure and services in most developing countries. This increased responsibility is often hampered by the institutional environment. Service delivery responsibilities are being decentralized without commensurate resources to perform them. In short, policy debates on public expenditure management and infrastructure and service delivery tend to focus on central government

systems. While this is an essential prerequisite, UNCDF believes the impact on local governments and the importance of developing policy solutions with planning and budgeting tools at the local level, is critical to effective local development.

In supporting the work of local governments to plan, prioritize, implement and finance socio-economic infrastructure investments, UNCDF emphasizes the local planning, budgeting, management, and monitoring of public expenditures. This local public expenditure management is closely aligned to and integrated with national planning and budgeting systems.

The underlying theme of the performance budgeting dimension of UNCDF programmes is two-fold: first, it seeks to introduce accountability into the performance review, implementation and planning process. Secondly, it seeks to construct measurability through economy, efficiency and effectiveness tests. The goal is for local governments to be able to prepare and implement local development plans within national development frameworks. These plans should result from inclusive, participatory, multi-stakeholder processes and result in durable, sustainable planning, management, and financing structures. That durability should be seen through locally sustainable and targeted infrastructure and

service provision that contributes directly to the achievement of the country’s poverty reduction strategies.

The key to performance budgeting is to understand that it is concerned with all revenue and expenditure of a local government authority, not just donor support. Thus, all revenue includes local income, government transfers and donor contributions, if any. Expenditure concerns both capital (the creation of assets) and recurrent (the provision of services from those assets: a school, so education; a clinic, so health care; a road, so maintenance). The analytical core of performance budgeting is the development programme “on the ground” and, crucially, its integration of capital and recurrent expenditure from a variety of sources.

UNCDF’s policy experiment in performance budgeting was built upon the now mature experience at national and regional levels in Tanzania. Yemen is the most institutionally complete example of UNCDF practice in performance budgeting. A variety of other countries now are receiving technical advice from UNCDF in this important area. In 2006, in order to share its experiences with partners and other development practitioners, UNCDF published a book on the theory and practice of performance based budgeting, which is available on its website at www.uncdf.org.

Table5. Recurrent and Investment Budgets of Local Governments (average per programme in dollars)

Budgetcategories 2002 % 2003 % 2004 % 2005 % 2006 %

Recurrent $85,176 19 $197,070 25 $310,335 31 $191,855 33 $387,761 42

Investments 381,821 81 602,721 75 703,817 69 402,387 67 531,379 58

TOTal $466,997 100 $799,791 100 1,016,157 100 $594,242 100 $919,140 100

Data source: UNCDF MIS (same data material as Table 4)

2002 2003 2004 2005 2006

100%

0%

80%

60%

40%

20%

Recurrent Investments


Box3: UNCDF Support to Post-conflict RecoveryUNCDF has had extensive experience in supporting countries that are recovering from recent conflicts. These countries are frequently seeking to move from receiving humanitarian assistance and aid after a conflict is over to the early stages of economic recovery and development. In Mozambique, for example, UNCDF was one of the first agencies on the ground to help the country to recover from a long and difficult civil war. UNCDF’s pilot programme for local, participatory governance has now been upscaled nationwide as the model to deliver critical social and economic infrastructure where it is most needed. In Sierra Leone and Liberia, UNCDF is supporting the development of a broad-based inclusive financial sector to provide people with the financial services they need to rebuild their businesses and their lives.

UNCDF’s ‘local governance approach to post-conflict recovery’ stresses the role of local authorities (at the municipal, district and provincial levels) and community organizations in managing both the peace-building and the recovery and reconstruction processes. UNCDF experience has shown that local, transparent and participatory development planning, along with an inclusive and broad-based financial sector, are key ingredients to long-term social, economic and political stability and progress. Within its Local Development Practice Area, UNCDF contributes to the rebuilding of societies torn apart by conflict through:

Support to the development of policy, legislation and regulatory frameworks supporting political, fiscal and administrative decentralization reforms.

Technical and financial support to design programmes that implement an inclusive local governance approach to conflict mitigation and reconstruction of the state from the bottom up, including the reintegration of internally-displaced persons, returning refugees and ex-combatants.

The development of local-level public institutions (including the development of organizations and procedures for local level public expenditure management, public-private partnership and popular participation).

Investments in locally managed programmes to rebuild critical social and economic infrastructure, improve services delivery, and reactivate the economic life disrupted by the conflict.

UNCDF also believes that the development of an inclusive financial sector, with a variety of sustainable financial institutions, is an important and effective tool in post-conflict recovery. An inclusive financial sector supports and encourages many kinds of economic activity, encourages employment, and stimulates economic growth. It thus helps to facilitate a smooth transition from short-term humanitarian assistance to longer-term economic and social develop-ment. Through its Microfinance Practice Area, UNCDF’s builds inclusive financial sectors in post-conflict countries by:

Developing national policies, strategies and action plans designed to develop a shared vision for building a competitive, efficient and inclusive financial sector.

Identifying and removing constraints that hinder the provision of financial services to underserved markets, particularly poor and low-income people and micro and small enterprises.

Establishing multi-stakeholder investment committees in post-conflict countries that identify and finance promising financial service providers (FSPs).

Supporting the development of young and emerging FSPs through technical assistance and grant investments.


19.Toconclude,thedemandfordecentralizationandlocaldevelopmentinvestment–andsupportingadvice–ishighinallregionswhereUNDPhasprogrammes.Decentralizationandlocaldevelopmentarecloselylinkedtothedemocratizationprocess,whichmanyofthedevelopingcountriesareundergoing.DecentralizationandlocaldevelopmentarealsocentraltothelocalizationoftheMDGsand,indeed,tothevision,valuesandprinciplesoftheUnitedNations.Theyhaveabroadappealandinterestamonggovernments,developmentpartnersandassociationsoflocalgovernments.Asaresult,theUNDPstrategicplan,2008-2011,reflectsthejointintentionofUNDPandUNCDFtofocusevenmorestronglyonstrengtheningthecapacitiesoflocalgovernmentsandotherstakeholderstofosterparticipatorylocaldevelopmentandsupportachievementoftheMDGs.

B. Performance analysis for sub-goal 2: microfinance

20.Initsmicrofinancepracticearea,UNCDFsupportsthedevelopmentofinclusivefinancialsectorsthatprovideabroadrangeofaffordablefinancialservicestopoorandlow-incomefamiliesandsmallandmicroenterprisesintheLDCs,onasustainablebasis.Thisisaneffectivemeansofcontrib-utingtopovertyreductionandtoachievementoftheMDGs.

21. In2006,applyingitssectordevelopmentapproach,UNCDFexpandeditsinclusivefinanceprogrammetoadditionalLDCs,inlinewiththegoalssetforthintheUNCDFbusinessplan.UNCDFformulatedfivenewinclusivefinanceprogrammes,bringingthenumberofLDCsapplyingitssectordevelopmentapproachto11,nineofwhichareinSub-SaharanAfricaandtwoinAsia.Anumberofadditionalcoun-triesinAfrica,theArabStatesandAsiahaverequestedUNCDFassistanceinbuildinganinclusivefinancialsector,whichshouldresult

in16LDCs’benefitingfromUNCDFsupportbytheendof2007.

22.Highlightsof2006resultsachievedinthispracticeareawere:

(a) Initialindicationsoftheresultsofthesectordevelopmentapproachtofinancialinclusionareencouraging,astheSierraLeonecaseillustrates.SierraLeoneundertookthefirstinclusivefinancialsectorprogrammethatUNCDFpiloted.Thepro-grammebeganin2003andwassubmittedtoajointmid-termevaluationin2006.Theindependentevaluationconcludedthat“theevaluationfindingsindicatethattheprojectisontrackwithregardtoincreasingsustainableaccesstofinancialservicesforpoorandlow-incomepeople,asmeasuredbytheindicatorscitedbelow.”“Itisclearthattheprojectiswellonthewaytoachievingitstargets,havingachievedorsurpassedmostofitsmid-termgoals.Theprojecthasgener-atedthefollowingresultsatthemicroorretaillevelasofSeptember2006:

(i) Thereare42,768activeclientsbeingservedbyninemicrofinanceinstitutions(MFIs)

(ii) FiveMFIsreportmorethan100percentoperationalself–sufficiency

(iii) OneMFIhasbranchesinseventownsandsevensub-branchesinsurroundingareas

(iv) OneMFIisinthefinalstagesofnego-tiationswithamajorinternationalinvestor

(v) OnenewdonorhasjoinedtheInvestmentCommittee

(vi) $3.88millionadditionalresourceshavebeenmobilizedfortheproject.”“Additionally,progresshasbeenmadeonestablishingandstrengtheninglocalstructuresatthemeso(supportinfrastructure)andmacro(policy)levels,particularlythroughsupporttotheBankofSierraLeone(CentralBank)andtheSierraLeoneAssociationofMicrofinanceInstitutions(SLAMFI).”


(b) Intermsofoutreach(outcome2.1),morethan616,000clients,66percentofwhomwerefemale,receivedmicrofinanceservicesfrom28financialserviceproviders(FSPs)supportedbyUNCDFin2006.TheFSPsincludenon-bankfinancialinstitutions,creditunions,microfinanceinstitutionsandcom-munitybanks.Moreover,almost90%ofFSPssupportedbyUNCDFhadanaverageloansizesmallerthanthegrossdomesticproductpercapita,whichshowsaneffectivepovertytargetingbythemajorityoftheFSPsfundedbyUNCDF.

23.UNCDFachievedanoveralltargetachievementratingof78percentin2006initsmicrofinancepracticearea(table6).Thus,itsperformancetargetsfortheyearwerefullyachieved.Intermsofoutreach(outcome2.1),the28FSPsreportingcollectivelyexceededtheirgrowthtargetsby30,000clients.Fromabaselineof379,018clientsin2004and438,272in2005,thenumberofactiveclientsattheendof2006amountedto616,035.Theincreasesover2004and2005arerespectively62.5percentand40.6percent.

24.ResultsonsustainabilityandefficiencyformicrofinanceinstitutionsandotherFSPswerebelowexpectations(outcome2.3).OutofeightFSPswithreportedresultsfor2006,50percentmettheirtargetsforprofitabilityandareonthepathtofinancialsustainability.TheFSPswithhigherprofit-abilitytendedtobeolderinstitutionalinvestmentsinWestAfrica,confirmingthatUNCDFistakingriskandinvestinginyounger,unproveninstitutions.Only39percentoftheFSPssupportedbyUNCDFmeettheinternationalstandardofstrongportfolioquality(portfolioatriskat30daysoflessthan5percent).Thisrepresentsadecreasefrom53percentreachedin2005andmayreflectthemoredifficultconditionsunderwhichUNCDFworksandthetypeofinstitu-tionsittargets.ThefactthatFSPs

sometimesexperiencerepaymentproblemsemphasizestheneedtoaddressthosechallengesquickly,beforetheyspiraloutofcontrol.BuildinginstitutionalcapacityforstrongerportfoliomonitoringandrepaymentisakeyfocusofUNCDFsupportandwillbecloselymonitoredin2007,withthetargettorestorethepreviouslevelofportfolioatriskat30daysbelow5percent.

25.Performancewasstrongintermsofinvestmentsmadeinlocalfinancialsectorinfrastructure(outcome2.4).AllthecountriessupportednowhavenationalmicrofinanceassociationsandnetworksofFSPs.Infact,22outof28FSPsfundedbyUNCDFbelongtoanationalassociationornetwork.ThosetworesultsclearlyshowtherecognitionbytheFSPsoftheimportanceofcollaborationandjointrepresentationto(a)strengthentheiradvocacycapacitytowardsnationalauthorities;(b)agreeoncommonstandards;and(c)sharelessonsandexperiencesbasedonsoundmicrofinancepractices.InelevenLDCs,UNCDFprovideddirectsupporttostrengthentheinstitutionalcapacitiesofthenationalassociations,eitherintheformofgrantsorbyensuringtheirinclusionintrainingactivitiesandtheelaborationofnationalstrategies.Asthesectorsdevelop,otherindicatorswillbeaddedtomeasureprogressatthemesolevel.


Table6. Achievement of 2006 Targets in the Microfinance Practice Area

Coreresultsandoutcomes Overalltargetachievementin2006(%)

Performanceachieved

Coreresult:establishedsustainableretailintermediariesprovidingarangeoffinancialservicestolowincomehouseholds

Outcome2.1:IncreasedoutreachofUNCDF-supportedfinancialintermediariestolow-incomehouseholds

Target: 586 941 clients Result: 616 035 clients

Exceeded targets

Outcome2.2:IncreasedbreadthanddepthofservicesprovidedbyUNCDF-supportedfinancialintermediariestolowincomehouseholds

* *

Outcome2.3:IncreasedsustainabilityandefficiencyofUNCDF-supportedfinancialintermediariesservinglow-incomehouseholds

4/8 FSPs or 50% ** (Profitability)

11/28 FSPs or 39% (Portfolio quality)

Partly achieved

Below expectations

Coreresult:supportingindustryinfrastructurefordeliveryoffinancialservicestolow-incomehouseholdsestablished

Outcome2.4:localfinancialsectorsupportinginfrastructureinplace 12/12 countries or 100%

22/28 FSPs or 78.6%

Fully achieved

Outcome2.5:IncreasedvisibilityandtransparencyofUNCDF-supportedfinancialinstitutions

14/28 FSPs or 50% Partly achieved

Coreresult3:Enablingenvironmentforbuildinginclusivefinancialsectorsfostered

Outcome2.6:Increasedcapacityofgovernmenttosupportconducivepolicyenvironmnentforaninclusivefinancialsector

12/10 countries or 120% Exceeded targets

Outcome2.7:Increasedcapacityofregulatoryandsupervisoryauthoritiestodevelopconducivelegalframeworkforaninclusivefinancialsector

12/9 countries or 133% Exceeded targets

Outcome2.8:Nationally-ownedgovernmentanddonorstrategiesexistinsupportofbuildinginclusivefinancialsectors

5/6 countries or 83% Fully achieved

TOTal 78% Fullyachieved

* Reporting on outcome 2.2 will be captured by the national household surveys that UNCDF expects to carry out in partnership with the World Bank under the Data Project which UNCDF and the World Bank are currently structuring. Reporting of results will take place after baseline and follow-up surveys have been completed.

** Only 8 out of 28 FSPs had reported on this indicator by end of March.

26.OnlyhalfoftheFSPsthatUNCDFsupportedhadindustrystandardauditsorratings(outcome2.5).ThisfurtherreflectsthechallengingnichewhereUNCDFisworking,namely,start-upandemerginginstitutions.ItalsoreflectsthefactthatUNCDFisworkingalmostexclusivelyinLDCswithweakandhighlyconstrainedfinancialsectors,includingseveralpost-

conflictcountries.ManyofthesecountriesdonothavethenecessarycapacitytoauditFSPs.Buildingthecapacityforauditstan-dardsrecognizedbytheConsultativeGrouptoAssistthePoorest(CGAP)isthereforeakeyelementofsectordevelopmentpro-grammesandwillbeactivelypromotedinthefuture.


27.AllelevenprogrammecountrieshaveseenimprovementsintheirpolicyandenablingenvironmentformicrofinancewithsupportfromUNCDF(outcome2.6).ThestrongachievementatthepolicylevelconfirmstheimpactofUNCDFatthepolicylevelinallcountrieswhereUNCDFhaspromotedtheinclusivefinancialsectorapproach.

28.TheUNCDFfinancialsectordevelopmentapproachbuildsthecapacityofnationalpolicymakerstodevelopnationalstrategiesforinclusivefinancialsectors.Aconstraints-basedapproachtopolicyissuesbuildsthecapacityofpolicymakerstoidentifycon-straintstoinclusivefinanceandtothenremovethemostseriousconstraints(out-come2.7).Thestrongachievementonoutcome2.7isaresultofUNCDFsupporttotrainingandcapacity-buildingofregulatoryandsupervisoryauthorities.

29.Almostallactivesectordevelopmentprogrammeshavedevelopedjointgovern-mentanddonorstrategies(outcome2.8).Thatpercentageincreasedfrom66percentin2005to83percentin2006asmorecountriescompletedtheirconsultativeprocesses.Infivecountries,theimplemen-tationoftheinclusivefinanceactionplanshascommenced.

30.Twofurtherinitiativeshavecontributedtotheprocessofbuildinginclusivefinancialsectors:theUnitedNationsAdvisorsGrouponInclusiveFinancialSectorsandtheDakarConferenceonFinancialInclusion.

31.TheUnitedNationsAdvisorsGrouponInclusiveFinancialSectors,hostedbyUNCDF,initiateditsworkin2006.Itheldtwomeetingsthatresultedintheformationofseveralworkinggroupsonadvocacy,privatesectorengagement,regulatoryissuesandresearchandknowledge-sharing.Eachworkinggrouphasalreadydefineditsworkingagendaincludingthefollowing:holdingaseriesofregionalconferenceson

regionalissuesconcerningfinancialinclusionandregulationduringlate2007and2008;launchingfivecountrystudieswithappro-priatemodelstoengagetheprivatesectorinfinancialinclusion;raisingpublicawarenessontheimportanceoffinancialinclusionamonggovernments,centralbanksandpolicymakers;andadvocacyandcoopera-tionwiththeWorldBankondevelopinginstruments,methodologiesandpilotstudiestomeasureaccesstofinancialservices.

32.UNCDFandUNDPco-organizedtheUnitedNationsConferenceonFinancialInclusioninJune2006inDakar.Itgathered320high-levelparticipantsfromgovern-ments,centralbanks,multilateralandbilateraldonors,privatesector,financialserviceprovidersandtheirnetworks,from53countriesincluding48Africancountries.TheConferenceadoptedtheDakarDeclarationonBuildingInclusiveFinancialSectorsinAfricaandestablishedaSteeringCommitteetosupportandfollowuptheimplementationoftheDakarConferencerecommendations.ThisConferenceanditsoutcomehighlightedtheconveningpowerofUNCDFandUNDParoundthethemeofinclusivefinanceandcreatedapowerfulplatformforadvocacy,knowledgesharing,learningandpartnershipdevelopmenttoenhancesustainableaccesstofinancialservicesinAfrica.Thesteeringcommitteetofollow-uptherecommendationsoftheDakarConferencemetinearly2007.

33.Lastly,itisusefultomentiontheresultsrelatedtotheUNCDFroleasthepolicyandtechnicaladvisortotheUNDPfamilyonissuesrelatedtomicrofinancetoensureconsistentapplicationofbestmicrofinancepractices.In2006,UNCDFsupportedUNDPinclusivefinanceactivitiesinsevennon-LDCsinAfricaunderitsjointregionalprogrammewiththeRegionalBureauforAfrica.UNCDFcontinuedtoworkwithUNDPtoimplementtheactionplantofollow


upontherecommendationstoUNDPfromtheCGAPpeerandportfolioreviewpro-cesses.AspartoftheimplementationoftheUNDPmicrofinancepolicy,whichwaspublishedinJanuary2006,UNCDFworkscloselywitheachoftheregionalbureauxofUNDPtoensureadherencetothispolicyandtherebythequalityofUNDPprogram-minginmicrofinancearoundtheworld.

34. TheaboveanalysisreflectsthecomparativeadvantageenjoyedbyUNCDFandUNDPinworkingjointlytowardsensuringsustain-ableaccessoflow-incomehouseholdsandsmallenterprisestoabroadrangeoffinan-cialservices.InallLDCstheirfieldpresencehasallowedthetwoorganizationstoplayanactiveadvocacyroleandprovidecapacity-buildingtogovernmentsandotherstakeholdersinestablishingpolicy,legal,andregulatoryenvironmentsconducivetoinclusivefinance.TheinvestmentmandateofUNCDFhasenabledthetwoorganizationstomakenecessaryinvestmentsthroughloansandgrantstoFSPs,therebyensuringarapidgrowthintheiroutreachcapacity.Asaresult,theUNDPstrategicplan,2008-2011,contemplatesthatUNDPandUNCDFwillexpandthegeographicalscopeoftheirjointinterventionsininclusivefinance,thuscontributingtothepromotionofinclusivegrowthandthereductionofpoverty.


II. management resultsC. Performance analysis for

sub-goal 3: organizational performance

35.TheUNCDFperformanceframeworkformeasuringorganizationalperformanceisderivedfromtheframeworkusedbyUNDPforitsbalancedscorecardforcountryoffices.AsisthecaseforUNDP,perfor-manceismeasuredaccordingtofourdifferentperspectives:learningandgrowth,clientsatisfaction,internalefficiencyandfinancialresources.Foreachperspectiveanumberofstrategicobjectiveshavebeen

identified.ThesecorrespondtotheUNCDFmanagementplanandtospecificindicatorsthatmeasureandtheachievementofperfor-mancetargets.Eachstrategicobjectiveisaccompaniedbyindicatorsandtargetsthatwereestablishedatthebeginningof2006.

36.Table7providesonoverviewof2006resultsonorganizationalperformance.TheoverviewcontainsabouthalfofthestrategicobjectivesandindicatorsusedintheUNCDFbalancedscorecard,thebalancebeingusedmainlyforinternalmanagementpurposes.

Box4: UNCDF: A Center of Technical Expertise in MicrofinanceUNCDF’s financial sector development programmes are designed to create enabling environments for a variety of retail financial service providers (FSPs), including com-mercial banks, non banking financial institutions (NBFIs), microfinance institutions (MFIs), credit unions, cooperatives, insurance providers, money transfer companies, and other institutions providing financial services. This approach also seeks to address gaps in the supportive financial infrastructure and the policy, legal, and regulatory constraints that prevent a financial sector from being inclusive. This results in a dynamic process, tailored to the realities of each country.

Although it concentrates its direct investments in its Microfinance Practice Area in the LDCs, UNCDF works to ensure consistent application of best microfinance practices throughout the UN system. This role for UNCDF, as a center of technical expertise in microfinance, was in large part derived from the 2005 Consultative Group to Assist the Poor (CGAP) peer review wof UNDP microfinance activities. This review concluded that UNCDF should play a key “gatekeeper” role to help assure that microfinance activities within UNDP were established and maintained at a level consistent with the highest global standards.

UNCDF works closely with UNDP to implement its new microfinance policy, which was adopted in response to the CGAP Peer Review. In this regard, UNCDF is now collaborating with each of UNDP’s regional bureaux to ensure the quality of UNDP programming in microfinance around the world. In 2006, for example, UNCDF supported UNDP’s inclusive finance activities in many countries (both LDCs and non-LDCs) under its joint regional programme with UNDP’s Regional Bureau for Africa. In Asia, UNCDF has agreed with UNDP to place an Inclusive Finance Adviser in the UNDP Regional Office in Colombo, Sri Lanka to provide technical leadership and high-level policy advice to key stakeholders, partners and other constituencies in the region.

�� UNiteD NAtioNS CAPitAl DeveloPmeNt FUND

Table7. Achievement of 2006 Targets for Organizational Performance

Perspective Strategicobjective Indicator 2005result 2006target 2006result

learningandgrowth

Expand geographically to more LDCs, including post-conflict LDCs

LDCs with UNCDF programmes (> $50,000 investment/year)

26 LDCs 32 LDCs 28 LDCs

Post-conflict LDCs with UNCDF programmes

13 LDCs 15 LDCs 13 LDCs*

Increase average investment size

Investment per LDC per year $0.72 million $1.1 million $0.85 m

Clientsatisfaction

Improve strategic partnership with UNDP and the rest of the United Nations system

UNDP country office satisfaction with overall quality of partnership with UNCDF

73% 80% TBD***

Internalefficiency

Increase staff at regional and country level to be closer to clients and investments

Ratio of professional staff posted at country and regional levels

63% 75% 71%

Strengthen United Nations coordination

Integration of UNCDF in United Nations country-level programming framework

26 LDCs 32 LDCs 28 LDCs

Improve efficiency of delivery Administrative-to-total-expenditure ratio

32% 26% 22%

UNDP CO satisfaction with timeliness of operational support

64% 80% TBD***

Strengthen ‘people management’

Staff perception 65% 75% 70%

Financialresources

Achieve resource mobilization targets

Core resources mobilized $9.5 million $18 million $13.9** million

Non-core resources mobilized $10.3 million $18 million $8.1 million

Ensure delivery against plan Delivery against approved annual spending limits

74% 90% 84%

* Based on comparison of the 2005 and 2006 LDC lists. ** Includes a 2005 core contribution of $1.2 million which was received and recorded as income in January 2006.*** Results of surveys in these areas had not yet been received by the time this report was finalised. They will be included when available.

37. In2006,UNCDFhadongoingprogrammeswithinvestmentsof$50,000ormorein28LDCs,includingallofthepost-conflictLDCsinwhichithadbeenactivein2005.ThetotalnumberofprogrammeswithUNDPgrewtomorethanthirty,reflectingthedeliberatechoiceofUNCDFtoprogrammetogetherwithUNDP.TheaverageUNCDFexpenditureperLDCincreasedby18percentin2006,to

$0.85million.Thatreflectstheimprovedoverallprogrammedeliveryagainstcoreresourcesinthelocaldevelopmentandmicrofinancepracticeareas.TheincreasedprogrammedeliverywasfacilitatedbythemainstreamingoftheUNCDFadministrativebudgetintotheUNDPbiennialbudget,whichensuredthatallUNCDFcoreincomecouldbeusedforprogrammeexpenditures.

��2006 Results-oriented Annual Report

38.Organizationalperformancewasleastsatisfactoryintheareaoffinancialresources,bothintermsofcoreandnon-coreresourcesmobilized.DespitethecontinuedexcellentperformancerecordofUNCDFandenhancedresourcemobilizationeffortsthatbeganinlate2005,avarietyoffactorsconstraineditsabilitytomeetitsresourcemobilizationtargetsin2006.ThosefactorsrelatedprimarilytocontinuedfocusamongdonorMemberStatesonUnitedNationsreformanduncertaintiesrelatedtotheworkoftheHigh-levelPanelduringmuchof2006.Thoseissuescreatedconcernamongsomedonormemberstates

regardingUNCDFanditsrolewithintheUNDPdevelopmentframework.Inaddition,limitedexperienceandguidancewithintheUnitedNationssystemwithrespecttojointprogrammesandjointresourcemobilizationresultedinseveraldonorMemberStateschannellingfundsintendedforUNCDFthroughUNDP,whichfundsarenotconsid-ered‘non-coreresources’forUNCDF.Further,UNCDFwasnotabletohireitsbusinessdevelopmentadvisoruntilApril2006,andwasthusdelayedinimplementingsomesignificantaspectsofitsresourcemobilizationprogramme–particularlyatcountrylevel–untilthesecondhalfof2006.

Box5: Broadening Access to Financial Services in Sierra LeoneThe financial services sector in Sierra Leone is at a nascent stage. It is estimated that the demand for credit for productive purposes ranges between 90,000 and 160,000 customers with a combined loan volume ranging from US$ 24.8 to 43.5 million. Although many financial service providers have adopted a business like approach and are committed to reaching profitability and scale, the present supply of credit reaches less than 13,000 customers with a combined loan portfolio of less than US$1,000,000. Experience shows that this gap can only be overcome by building robust and professional financial institutions that are specialized in providing sustainable financial services to the lower segments of the market.

UNCDF is addressing these issues in Sierra Leone by actively supporting the development of a competitive and sustainable inclusive financial sector. Initial indications of the results of the programme are encouraging. The initiative began in 2003, while Sierra Leone was just emerging from its civil war. The programme was submitted to a joint mid-term evaluation in 2006. The independent evaluation concluded that the programme is increasing sustainable access to financial services for poor and low-income people and has thus far generated the following results at the micro or retail level (as of September 2006):

There are 42,768 active clients being served by nine microfinance institutions (MFIs). Five MFIs report more than 100% operational self-sufficiency. One MFI has branches in seven towns and seven sub-branches in surrounding areas. One MFI is in the final stages of negotiations with a major international investor. One new donor has joined the Investment Committee. US$3.88 million additional resources have been mobilized for the project.

Additionally, the programme has made significant progress in establishing and strengthening local support infrastructure and policies, particularly through support to the Bank of Sierra Leone (Central Bank) and the Sierra Leone Association of Microfinance Institutions (SLAMFI).


Box6: The United Nations Advisors Group on Inclusive Financial SectorsAt the conclusion of the 2005 International Year of Microcredit, one of the main recommendations of the Advisors Group to the Year was that “the UN should appoint a group of experts, for a limited period not exceeding two years, to see the work we have begun through to completion.” Following this recommendation, the UN Advisors Group on Inclusive Financial Sectors initiated its work in 2006 for a term of two years. The main role of the Advisors Group is to advise the United Nations system and various other stakeholders on global issues relating to inclusive finance.

The Advisors Group held two meetings in 2006 that resulted in the formation of working groups on advocacy, private sector engagement, regulatory issues and research and knowledge-sharing. Each working group defined its working agenda, which includes the following:

Developing and implementing a communications and public awareness programme that will assure that access to financial services is on the global development agenda.

Encouraging and supporting governments and their regulatory institutions to review their regulations to ensure that they encourage prudent and sound provision of financial services to poor and low-income people and to micro and small enterprises while at the same time minimizing or removing regulatory constraints that discourage financial inclusion.

A sector-based global analysis of what has worked and what has not worked based on the private sector’s experiences in building inclusive financial sectors. The results (including a special “private sector handbook”) will be published in 2008 and broadly disseminated.

Holding a series of Advisor Forums for high-level policy makers on key regional regulatory and policy issues concerning financial inclusion during 2008.

Assuring that national governments and regulatory agencies adopt common indicators and methodologies for measuring access to financial services and then gather and analyze data and other information using these indicators and methodologies in a systematic and regular way.

Collecting and disseminating learning and best practices with regard to financial inclusion and the policies related thereto and encouraging and supporting governments and policy makers who seek to adopt policies to develop and strengthen financial infrastructure at regional and local levels.

Working closely with the private sector (and particularly private financial institutions) to enhance their participation in facilitating infrastructure expansion, designing new financial products and services, expanding retail outreach, facilitating access to capital and technology, providing training and management support, and building public-private partnerships that promote inclusive financial sectors.

The development, launch and broad diffusion of key advisory messages to governments, regulators, development partners and the private sector concerning the expansion of financial services.

UNCDF is the host for the Secretariat of the Advisors Group. More information is available online at unag.uncdf.org.


Box7: The United Nations Conference on Financial InclusionUNCDF and UNDP co-organized the United Nations Conference on Financial Inclusion in June 2006 in Dakar to address the challenges and constraints to building inclusive financial sectors in Africa. The Conference assisted policy makers and other stakeholders in their efforts to assure that poor and low income people and micro and small enterprises in Africa have access to a broad range of financial products and services. More than 320 high-level delegates participated in the meeting, representing governments, central banks, multilateral and bilateral donors, the private sector, financial service providers and their networks from 53 countries including 48 African countries.

The Conference adopted the Dakar Declaration on Building Inclusive Financial Sectors in Africa and established a Steering Committee to support and follow up the implemen-tation of the Dakar Conference recommendations. This Conference and its outcome created a powerful platform for advocacy, knowledge-sharing, learning and partnership development to enhance sustainable access to financial services in Africa. The Steering Committee met twice in 2006 to follow-up the recommendations of the Dakar Conference and to work with all stakeholders, including governments, central banks and other regulatory and supervisory bodies, development partners, and the private sector to create a common vision, develop innovative solutions, establish and strengthen networks and bring greater synergy to ongoing efforts to promote financial inclusion in Africa. More information is available online at bifsa.uncdf.org.


39.Coreresourcesincreasedfrom$9.5millionin2005to$13.9millionin2006,anincreaseof46percent,includingacorecontributionof$1.2millionfor2005thatwasreceivedandrecordedinearly2006.Ifthatcorecontributionhadbeenconsideredasacontributionin2005,corecontributionsin2006wouldhaveincreasedby$2millionover2005,anincreaseof19percent.Theincreaseisprimarilyaresultof(a)a40percentincreaseinnewcoredonorMemberStates,and(b)sustainedorincreasedcontributionsfromexistingcoredonorMemberStates.

40.Withrespecttonon-corecontributions,approximately$1millionthatwasdesignatedforUNCDFactivitieswascontributedtoUNDPratherthanasnon-corecontributionstoUNCDF.IfthatamounthadbeenreceivedbyUNCDF,non-coreresourcesfor2006wouldhavebeen$9.1million,approximately12percentlessthan2005.Withincreasedcapacityandtoolsinplaceforbusinessdevelopmentandresourcemobilization,preliminarypredic-tionsindicatethatthetrendsince2003ofincreasinglevelsofnon-corecontributionswillcontinuein2007.UNCDFnotes,however,thatbothcoreandnon-coreresourcemobilizationwassignificantlybelowthe$18milliontargetssetforbothtypesofresourcesin2006duetothefactorssetforthabove.

Box8: Strengthening and Expanding UNCDF’s Strategic Partnership with UNDPUNCDF and UNDP have been close partners since UNCDF was established in 1966. During 2006 – the organization’s 40th Year – UNDP and UNCDF began exploring ways to bring the two organizations even closer together and to integrate the contributions of UNCDF into the UNDP Strategic Plan for 2008-2011. The aim of this strategic partnership between UNDP and UNCDF is to (i) significantly improve the efficiency and effectiveness of both organiza-tions, (ii) enhance their joint development impact in the LDCs and other developing countries, and (iii) achieve greater coherence, simplicity and harmonization within the UN system. The key elements of this strategic relationship between UNDP and UNCDF that have been agreed to are as follows:

Within the framework of the Strategic Plan for 2008-2011, UNDP and UNCDF have integrated their strategic planning and overall results frameworks.

UNDP and UNCDF have formulated “Development Outcomes” and “Outcome Indicators” in the Strategic Plan that will permit the two organizations to be more effective in achieving results, while relying upon each organization’s comparative advantages and added value.

At the country level, UNCDF’s contributions in its two Practice Areas (Local Development and Microfinance) will be integrated into the UN programming frameworks, such as the UNDAF and UNDP’s CPAP.

Joint Programmes will be the primary modality for UNDP and UNCDF to work together at country level and will form the basis for joint resource mobilization activities.

UNDP and UNCDF will duly recognize and acknowledge their respective contributions towards achieving their joint development results.

UNDP and UNCDF will seek to refine, broaden and strengthen this strategic partnership. The next steps will include seeking to operationalize many aspects of the partnership at headquarters, regional, and country office levels and establishing appropriate programming and funding arrangements to help support UNCDF’s activities. UNDP and UNCDF expect to make considerable progress together on these initiatives in 2007 and 2008.


41. Intheareaofinternalefficiency,UNCDFwasabletoimproveitsefficiencyofservicedeliverybyreducingtheratioofadministra-tiveexpenditurestototalexpendituresfrom32percentin2005to22percentin2006.Thatimprovementwasduetoseveralfactors,includingarapiddecentralizationofprofessionalstafftobeclosertoLDCclientsandsignificantreductionsinheadquartersstaffaspartofthereorganizationprocessbegunin2005.Bytheendof2006,71percentofUNCDFprofessionalstaffwerepostedtothecountryorregionallevel,andUNCDFhadmovedclosertoUNDPphysi-callybyexpandingitspresenceintheUNDPregionalservicecentresinDakar,JohannesburgandBangkok.UNCDFisstilladdressingsomeoftheunplannedconse-quencesofthechangemanagementprocess,includingthehighworkloadassoci-atedwithservingalargernumberofLDCsandcountrylevelprogrammeswithsubstan-tiallyreducedheadquartersstaff.

42.Staffperception,anindicatorusedbybothUNDPandUNCDFtomeasureoverallstaffsatisfactionthroughtheglobalstaffsurvey,stoodat70percent,whichisa5percentimprovementcomparedtothe65percentscoreof2005.Therewasstrongevi-denceofthecontinuedcommitmentofUNCDFstafftothemissionandactivitiesandUNCDF,inatransitionyearafterthedifficultchangemanagementprocessof2005.

��


III. Financial analysis43.Asindicatedabove,totalcoreincomein2006was$13.9million.Totalincomefromcoreandnon-coreresourcesfor2006wasapproximately$22.0million,comparedto$19.8millionin2005,anincreaseofapproxi-mately11percent.Totalincomefor2006increasedto$27.2millionfrom$24.2millionin2005anincreaseofapproximately12percent.Ofthatincrease,about$1.1millionwasduetoanincreaseininterestincome.

44.Table8containskeyinformationcon-cerningUNCDFexpendituresfortheperiod2001-2006.In2006,therewasasubstantialincreaseincoreprogrammeexpenditurescomparedto2005.Coreexpendituresincreasedfrom$11.6millionin2005to$16.8millionin2006.Overallnon-coreexpendi-turesincreasedaswell,combiningasubstantialincreaseofcountry-levelnon-core

expendituresandasharpreductioninnon-coreexpendituresatheadquartersin2006duetothecompletionoftheInternationalYearofMicrocredit(YoM).Non-coreexpendi-turesmadeup39percentofcountrylevelprogrammeexpendituresandone-thirdoftotalprogrammeexpenditures.

45.UNCDFwasabletoreduceitsheadquar-tersexpendituresto$4.6millionin2006ascomparedto$6.7millionin2005,areduc-tionofabout34percent.Thatreductionwaslargelyattributabletothesuccessfulreorga-nizationandchangemanagementprocessdescribedabove.90percentoftheUNCDFheadquartersadministrativebudgetwasfundedthroughtheUNDPbiennialbudget.Theremaining10percentreflected2006costsassociatedwiththeUNCDFchangemanagementprocess,whichwerefinancedfromUNCDFcoreresources.

Table8. Expenditure Trends, 2001-2006 (in millions of dollars)

Expenditures 2001 2002 2003 2004 2005 2006

Programmeexpenditures $33.9 $24.8 $21.1 $22.9 $19.2 $25.2

-ofwhichcore 32.3 22.6 16.3 14.9 11.6 16.8

-ofwhichnon-core 1.6 2.2 4.8 8.0 7.6 8.4

Headquartersexpenditures 6.0 5.5 6.2 5.3 6.7 4.6*

TOTal $39.9 $30.3 $27.3 $28.2 $25.9 $29.8

Source: Financial statements for UNCDF* This includes $4.2 million in expenditures

against the UNDP biennial support budget allocation for UNCDF and $0.4 million against UNCDF core.

2002 2003 2004 2005 2006

$40$

$0

$30

$20

$10

2001

�0 UNiteD NAtioNS CAPitAl DeveloPmeNt FUND

46.Table9showsthatin2006theAfricaregionaccountedfor73percentoftotalUNCDFexpendituresatthefieldlevel.TotalexpendituresinAsiagrewto16percentandareexpectedtogrowfurtherin2007,withthestart-upofanumberofnewUNCDFprogrammesinbothlocaldevelopmentandinclusivefinance.UNCDFspent$1.2milliononitsresearchanddevelopmentagenda,focusingonknowledgemanagementanddevelopingnewproductinnovations.About$0.3millioninnon-coreexpendituresrelatedtothefinalactivitiesofYoMandthestart-upontheUnitedNationsAdvisorsGrouponInclusiveFinancialSectors.

47.Overall,$20.8millioninprogrammeexpenditures(83percent)wasspentatthecountrylevel,$2.9millionforcountrysupportprovidedfromtheregionallevel(11percent),and$1.5million(6percent)attheheadquarterslevel.Capitalinvestments,eitherlocaldevelopmentinvestmentsunderthelocaldevelopmentpracticearea,andinvestmentsinFSPsunderthemicrofinancepracticearea,madeupabouttwothirdsofcountry-levelexpendituresand54percentoftotalUNCDFprogrammeexpenditures.

Table9. Programme Expenditures Per Region and Practice Area (in millions of dollars)Regions/specificpurposes local

DevelopmentMicrofinance Total

africa $13.7 $3.7 $17.4

asia 3.8 0 3.8

arabStates 0.9 0.2 1.1

latinamerica 1.4 0 1.4

Researchanddevelopment 0.8 0.4 1.2

U.N.advisorsGroup/YoM 0.3 0.3

TOTal $20.6 $4.6 $25.2

48.Regardingitsliquidityandreservepositionattheendof2006,UNCDFmaintaineditsoperationalreservesat$22.6million,thesamelevelas2005.Inaddition,totalunex-pendedresourcesincreasedfrom$37.5millionin2005toapproximately$38millionattheendof2006.Accordingly,UNCDFwasabletoaccomplishthedevelopment,manage-mentandfinancialresultssetforthabovewhilesustainingitsliquidityandfinancialsoundness.

Microfinance

78%

22% localDevelopment


UN

CDF

Proj

ect P

ortfo

lio 2

006-

2007

/ A

fric

a

Coun

try/

Proj

ect

Prac

tice

area

Part

ners

UN

CDF

gran

tsi

zein

US$

Tota

lpro

ject

co

stin

US$

Dur

atio

n

BEN

IN

app

uia

uD

ével

oppe

men

tCom

mun

ale

taux

In

itiat

ives

loc

ales

dan

sle

Bor

gou

(aD

ECO

I)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t,

Belg

ian

Surv

ival

Fun

d$1

,631

,000

$6,8

33,8

6420

03-2

007

BU

RkIN

aF

aSO

Proj

etd

’app

uia

uPr

ogra

mm

eSa

hel

Bur

kina

bè(P

SB)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent

2,61

0,09

13,

300,

000

2001

-200

6

Proj

etd

eD

ével

oppe

men

tdes

ress

ourc

es

agr

o-Pa

stor

ales

dan

sle

Nam

ente

nga

(Pa

PNa

)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Be

lgia

n Su

rviv

al F

und,

WFP

2,63

6,14

55,

969,

209

2000

-200

7

Prog

ram

me

deR

enfo

rcem

entd

uSe

cteu

r de

laM

icro

finan

ceIn

clus

ive

Fina

nce

UNDP

, Gov

ernm

ent,

Rése

au d

es c

aiss

es

popu

laire

s du

Bur

kina

(RCP

B), A

fDB

Wor

ld B

ank

1,50

0,00

03,

662,

143

2007

-200

9

BU

RUN

DI

Proj

etd

’app

uià

laR

econ

stru

ctio

net

au

Dév

elop

pem

entC

omm

unal

dan

sla

Pro

vinc

ede

Rut

ana

(Pa

RDC/

R)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Swis

s Ag

ency

for

Deve

lopm

ent &

Coo

pera

tion

(SDC

)1,

500,

000

6,20

0,00

020

06-2

011

CEN

TRa

la

FRIC

aN

REP

UB

lIC

Prog

ram

me

d’a

ppui

àl’

Emer

genc

ed’

un

Sect

eurF

inan

cier

Incl

usif

enR

épub

lique

Ce

ntra

fric

aine

(Pa

E/SF

I)

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

t1,

200,

000

4,00

0,00

020

07-2

010

DEM

OCR

aTIC

REP

UB

lIC

OF

CON

GO

Prep

arat

ory

ass

ista

nce

toD

ecen

tral

izat

ion

loca

lDev

elop

men

tDe

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t0

358,

668

2005

-200

6

app

uia

laD

écen

tral

isat

ion

eta

uD

ével

oppe

men

tloc

al(P

aD

El)

*

Indi

cativ

e

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

DFID

3,00

0,00

059

,272

,000

*20

07-2

011

(Pen

ding

Ap

prov

al)

Prog

ram

me

d’a

ppui

au

Sect

eurd

ela

M

icro

finan

ce(P

aSM

IF)

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

t, Fr

ance

, KfW

1,29

8,62

511

,518

,605

2005

-200

9

AnneX I: unCdF Global Project Portfolio


Coun

try/

Proj

ect

Prac

tice

area

Part

ners

UN

CDF

gran

tsi

zein

US$

Tota

lpro

ject

co

stin

US$

Dur

atio

n

ERIT

REa

ans

eba

loca

lDev

elop

men

tPro

ject

(alD

P)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t, Be

lgia

n Su

rviv

al F

und

$2,0

23,6

42$5

,700

,000

2002

-200

8

ETH

IOPI

a

loca

lDev

elop

men

tPro

ject

(lD

P)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t1,

700,

000

1,80

0,00

020

05-2

007

Emer

ging

Reg

ions

Dev

elop

men

tPro

gram

me

(ERD

P)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t2,

000,

000

13,4

20,0

0020

07-2

011

(Pen

ding

Ap

prov

al)

GU

INEa

BIS

SaU

Gab

uU

rban

Infr

astr

uctu

reDe

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t1,

568,

555

2,56

8,55

520

01-2

006

Proj

etd

’app

uia

uD

ével

oppe

men

trég

iona

let

loca

lde

laré

gion

de

Gab

u(P

aD

Rl)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Spai

n1,

137,

150

5,82

5,00

020

06-2

009

Prog

ram

me

d’a

ppui

al’

Emer

genc

eet

au

Dév

elop

pem

entd

uSe

cteu

rde

la

Mic

rofin

ance

(Pa

ED/M

F)

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

t26

5,50

01,

015,

500

2004

-200

7

GU

INEa

Prog

ram

me

deD

ével

oppe

men

tloc

ald

ans

les

régi

ons

natu

relle

sde

Hau

tee

tde

Moy

enne

G

uiné

e(P

DlG

)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent

3,04

5,29

65,

045,

296

2001

-200

7

lESO

THO

leso

tho

loca

lDev

elop

men

tPro

gram

me

(llD

P)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t1,

200,

000

8,40

0,00

020

07-2

010

(Pen

ding

Ap

prov

al)

lIB

ERIa

libe

ria

Dec

entr

aliz

atio

nan

dlo

cal

Dev

elop

men

tPro

gram

me

(lD

lD)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Euro

pean

Com

mis

sion

2,50

0,00

05,

000,

000

2007

-201

1

laun

cho

fan

Incl

usiv

eFi

nanc

ialS

ecto

rin

lib

eria

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

t, Co

rdai

d75

0,00

03,

438,

450

2005

-200

8


Coun

try/

Proj

ect

Prac

tice

area

Part

ners

UN

CDF

gran

tsi

zein

US$

Tota

lpro

ject

co

stin

US$

Dur

atio

n

Ma

Da

Ga

SCa

R

Proj

etd

’app

uià

laS

trat

égie

Nat

iona

led

eM

icro

finan

ce(P

aSN

/MF)

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

t$1

,625

,800

$4,0

80,8

0020

05-2

009

Ma

laW

I

Fina

ncia

lInc

lusi

onin

Mal

awi(

FIM

a)

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

t, US

AID

2,00

0,00

06,

233,

827

2007

-201

1

Mal

awiD

ecen

tral

ised

Gov

erna

nce

Prog

ram

me

(MD

GP)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent

1,50

0,00

07,

500,

000

2002

-200

7

Ma

lI

Colle

ctiv

ités

Terr

itori

ales

etD

ével

oppe

men

tlo

cal(

CTD

l)

*To

talp

roje

ctb

udge

tund

erre

visi

on

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNCD

F, UN

DP, G

over

nmen

t, Be

lgia

n Su

rviv

al F

und,

Eur

opea

n Co

mm

issi

on, F

onds

po

ur l’

envi

ronn

emen

t mon

dial

, Lux

embo

urg,

UN

V

2,00

0,00

011

,428

,970

*20

06-2

010

Proj

etd

’app

uia

uxc

omm

unes

rura

les

de

laR

egio

nde

Mop

ti(P

aCR

)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

CDF,

UNDP

, Lux

embo

urg

4,34

4,57

15,

544,

571

2000

-200

7

Ma

URI

TaN

Ia

Prog

ram

me

d’a

ppui

aux

Com

mun

es

del’

ass

aba

(Pa

Ca)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Fran

ce30

0,00

03,

170,

505

2005

-200

8

MO

zaM

BIq

UE

Prog

ram

ade

Pla

nific

ação

eF

inan

ciam

ento

D

istr

ital(

PPFD

)/D

ecen

tral

ized

Pla

nnin

gan

dFi

nanc

ing

Prog

ram

me

Dece

ntra

lizat

ion

and

Loca

l De

velo

pmen

tUN

DP, G

over

nmen

t, Iri

sh A

id, N

ethe

rland

s,

Nor

way

, SDC

3,08

7,56

9$2

0,99

7,38

720

02-2

007

Cons

trui

rSec

tord

eFi

nanç

asIn

clus

ivo

/B

uild

ing

anIn

clus

ive

Fina

ncia

lSec

tori

nM

ozam

biqu

e(B

IFSM

O)

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

t, Af

DB, I

FAD

1,34

2,37

93,

142,

379

2007

-200

9 (P

endi

ng

Appr

oval

)

NIG

ER

Proj

etd

’app

uià

laC

omm

une

Urb

aine

de

Diff

a(P

aCU

RD)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Fran

ce40

0,00

02,

056,

254

2005

-200

8

Proj

etd

’app

uia

uD

ével

oppe

men

tloc

al

dans

laré

gion

de

May

ahi(

PaD

l/M

)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t,

Belg

ian

Surv

ival

Fun

d, W

FP1,

816,

662

5,46

5,25

320

00-2

007

Proj

etd

’app

uia

uD

ével

oppe

men

tloc

ald

ans

laré

gion

de

Ngu

igm

i(Pa

Dl/

N)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Belg

ian

Surv

ival

Fun

d,

Dani

da, W

FP1,

850,

449

5,41

4,51

020

00-2

007


Coun

try/

Proj

ect

Prac

tice

area

Part

ners

UN

CDF

gran

tsi

zein

US$

Tota

lpro

ject

co

stin

US$

Dur

atio

n

RWa

ND

a

Proj

etd

’app

uia

uD

ével

oppe

men

tCo

mm

unau

tair

ede

Gic

umbi

etR

ulin

do

(Pa

DC/

GR)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Be

lgia

n Su

rviv

al F

und

$2,0

00,0

00$7

,250

,000

2004

-200

9

SEN

EGa

l

Prog

ram

me

d’a

ppui

àla

Déc

entr

alis

atio

nen

M

ilieu

Rur

al(P

aD

MIR

)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t, Eu

rope

an C

omm

issi

on,

Luxe

mbo

urg

3,61

2,29

86,

948,

298

2000

-200

7

Prog

ram

me

d’a

ppui

àla

let

tre

deP

oliti

que

Sect

orie

lle(P

a/l

PS)

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

t, CI

DA2,

500,

000

9,00

0,00

020

07-2

011

(Pen

ding

Ap

prov

al)

SIER

Ral

EON

E

kene

ma

Dis

tric

tEco

nom

icR

ecov

ery

Prog

ram

me

(kD

ERP)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Belg

ium

, ITU

3,25

0,00

06,

920,

000

2007

-201

1

Dev

elop

men

tofa

Sus

tain

able

Pro

-Poo

rFi

nanc

ialS

ecto

rin

Sier

ral

eone

(DSP

FS)

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

t, Co

rdai

d, K

fW3,

000,

000

12,5

00,0

0020

04-2

009

TaN

zaN

Ia

Supp

ortt

oG

ood

loca

lGov

erna

nce

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

NOR

AD3,

390,

324

6,15

3,62

720

00-2

006

Supp

ortt

olo

calE

cono

my

inM

wan

za

Prog

ram

me

(SlE

M)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent

1,50

0,00

07,

800,

000

2006

-201

0

TOG

O

Prog

ram

me

d’a

ppui

ala

Str

ateg

ieN

atio

nale

de

Mic

rofin

ance

(Pa

SNa

M)

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

t1,

274,

201

2,70

2,19

420

05-2

008

UG

aN

Da

Dis

tric

tDev

elop

men

tPro

gram

me

2(D

DP2

)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t, Au

stria

, Dan

ida,

DFI

D,

Japa

n W

omen

Tru

st F

und

3,00

0,00

04,

010,

919

2002

-200

7


UN

CDF

Proj

ect P

ortfo

lio 2

006-

2007

/ A

sia

Coun

try/

Proj

ect

Prac

tice

area

Part

ners

UN

CDF

gran

tsi

zein

US$

Tota

lpro

ject

co

stin

US$

Dur

atio

n

Ba

NG

laD

ESH

Sira

ganj

loc

alG

over

nanc

ean

dD

evel

opm

ent

Proj

ect(

SlG

DP)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent

$7,3

05,4

80$1

0,23

5,62

320

00-2

007

loca

lGov

erna

nce

Supp

ortP

rogr

amm

e:

lear

ning

&In

nova

tion

com

pone

nt(l

GSP

-lIC

)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t, Da

nida

, Eur

opea

n Co

mm

issi

on, S

DC, W

orld

Ban

k2,

500,

000

18,1

00,0

0020

07-2

011

(Pen

ding

Ap

prov

al)

BH

UTa

N

Dec

entr

aliz

edS

uppo

rtP

rogr

amm

e(D

SP)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Dani

da, S

NV

1,00

0,00

03,

348,

900

2002

-200

6

CaM

BO

DIa

Dec

entr

aliz

edS

uppo

rtP

rogr

amm

e–

Fisc

al

Dec

entr

aliz

atio

nCo

mpo

nent

(FD

SP)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent

650,

000

1,50

0,00

020

02-2

007

Inno

vatio

nsfo

rDec

entr

aliz

atio

nan

dlo

cal

Dev

elop

men

t(ID

lD)

*In

dica

tive

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Dani

da1,

600,

515*

2,10

0,51

5*20

07-2

009

(Pen

ding

Ap

prov

al)

laO

PD

R

Sara

vane

Gov

erna

nce

&P

ublic

adm

inis

tratio

n

Refo

rm&

Dec

entr

alis

edS

ervi

ceD

eliv

ery

Proj

ect(

GPa

R-SP

)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Euro

pean

Com

mis

sion

1,99

9,41

04,

150,

000

2005

-201

0

Gov

erna

nce

&P

ublic

adm

inis

trat

ion

Refo

rm

forS

tren

gthe

ning

Bas

icS

ervi

ceD

eliv

ery:

D

istr

ictD

evel

opm

entF

und

com

pone

nt

(GPa

R/SB

SD:D

DF)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Euro

pean

Com

mis

sion

, Lu

xem

bour

g, S

DC, W

orld

Ban

k1,

100,

000

10,7

43,0

8320

07-2

010

NEP

al

Dec

entr

alis

edF

inan

cing

and

Dev

elop

men

tPr

ogra

mm

e(D

FDP)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

DFID

5,00

0,00

05,

000,

000

2000

-200

7

loca

lGov

erna

nce

&D

evel

opm

ent

Prog

ram

me

(lG

DP)

*

Indi

cativ

e

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

DFID

, GTZ

, Nor

way

, SN

V, U

NIC

EF2,

000,

000

25,0

00,0

00*

2007

-201

0 (P

endi

ng

Appr

oval

)

Bui

ldin

gIn

clus

ive

Fina

ncia

lSec

tors

inN

epal

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

t1,

500,

000

34,0

00,0

0020

07-2

012

(Pen

ding

Ap

prov

al)


Coun

try/

Proj

ect

Prac

tice

area

Part

ners

UN

CDF

gran

tsi

zein

US$

Tota

lpro

ject

co

stin

US$

Dur

atio

n

SOlO

MO

NIS

laN

DS

Prov

inci

alG

over

nanc

eSt

reng

then

ing

Prog

ram

(P

GSP)

–P

repa

rato

rya

ssis

tanc

ePh

ase

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Aust

ralia

Aid

$250

,000

$906

,350

2006

-200

8

Prov

inci

alG

over

nanc

eSt

reng

then

ing

Prog

ram

(PG

SP)

*

Indi

cativ

e

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Aust

ralia

Aid

, Eur

opea

n Co

mm

issi

on1,

250,

000*

15,6

35,8

50*

2007

-201

2 (P

endi

ng

Appr

oval

)

TIM

OR

lEST

E

loca

lDev

elop

men

tPro

gram

me

(lD

P)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t, Iri

sh A

id, N

orw

ay61

0,46

11,

500,

000

2004

-200

6

loca

lGov

ernm

entS

uppo

rtP

rogr

amm

e(l

GSP

)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t, Iri

sh A

id64

7,00

53,

000,

000

2007

-201

1

Incl

usiv

eFi

nanc

efo

rthe

Und

er-S

erve

dEc

onom

y(IN

FUSE

)In

clus

ive

Fina

nce

UNDP

, Gov

ernm

ent

1,05

0,00

07,

058,

241

2007

-201

2 (P

endi

ng

Appr

oval

)

VIET

Na

M

Stre

ngth

enin

glo

calG

over

nmen

tPro

ject

(S

lGP)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Fran

ce, I

rish

Aid,

DFI

D75

0,00

03,

350,

000

2005

-201

0

UN

CDF

Proj

ect P

ortfo

lio 2

006-

2007

/ La

tin A

mer

ica

Coun

try/

Proj

ect

Prac

tice

area

Part

ners

UN

CDF

gran

tsi

zein

US$

Tota

lpro

ject

co

stin

US$

Dur

atio

n

Ha

ITI

Gov

erna

nce

inN

orth

-Eas

tDep

artm

ent

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

CIDA

$6,2

63,5

60$8

,361

,375

1999

-200

7

NIC

aRa

GU

a

Supp

ortt

oth

ePr

ogra

mm

eof

Mun

icip

al

Stre

ngth

enin

gof

the

Nic

arag

uan

Inst

itute

of

Mun

icip

leG

over

nmen

t

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

GTZ

2,78

9,61

62,

899,

616

2001

-200

7

Dec

entr

aliz

atio

nan

dM

DG

loc

aliz

atio

nSu

ppor

tpro

ject

(Pa

DET

OM

)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t1,

609,

125

2,50

9,12

520

07-2

009

(Pen

ding

Ap

prov

al)


UN

CDF

Proj

ect P

ortfo

lio 2

006-

2007

/ A

rab

Stat

es

Coun

try/

Proj

ect

Prac

tice

area

Part

ners

UN

CDF

gran

tsi

zein

US$

Tota

lpro

ject

co

stin

US$

Dur

atio

n

DJI

BO

UTI

Prog

ram

me

d’a

ppui

àla

Déc

entr

alis

atio

net

au

xCo

llect

ivité

slo

cale

s(P

aD

Cl)

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

Euro

pean

Com

mis

sion

$526

,000

$1,8

06,0

0020

07-2

011

(Pen

ding

Ap

prov

al)

SOM

alI

a

UN

Joi

ntP

rogr

amm

eon

loc

alG

over

nanc

ean

dD

ecen

tral

ised

Ser

vice

Del

iver

y(l

G/D

SD)

*In

dica

tive

Dece

ntra

lizat

ion

and

Lo

cal D

evel

opm

ent

UNDP

, Gov

ernm

ent,

UNIC

EF, I

LO,

UN-H

abita

t2,

000,

000

92,5

17,0

00*

2007

-201

1 (P

endi

ng

Appr

oval

)

laun

cho

fan

Incl

usiv

eFi

nanc

ialS

ecto

rin

Som

alia

Incl

usiv

e Fi

nanc

eUN

DP2,

000,

000

8,50

0,00

020

07-2

012

(Pen

ding

Ap

prov

al)

YEM

EN

Dec

entr

aliz

atio

nan

dlo

calD

evel

opm

ent

Supp

ortP

rogr

amm

e(D

lDSP

)De

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, G

over

nmen

t, Da

nida

, Fra

nce,

Ital

y,

USAI

D$1

,760

,000

$12,

520,

000

2004

-200

7

UN

CDF

Regi

onal

Pro

ject

Por

tfolio

200

6-20

07

Coun

try/

Proj

ect

Prac

tice

area

Part

ners

UN

CDF

gran

tsi

zein

US$

Tota

lpro

ject

co

stin

US$

Dur

atio

n

Bui

ldin

gIn

clus

ive

Fina

ncia

lSec

tors

in

afr

ica

(BIF

Sa)

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

ts o

f Ang

ola,

Ben

in,

Burk

ina

Faso

, Cen

tral A

frica

n Re

publ

ic,

Chad

, DRC

, Gam

bia,

Gui

nea

Biss

au, L

iber

ia,

Mad

agas

car,

Mal

awi,

Moz

ambi

que,

Se

nega

l, Si

erra

Leo

ne, T

ogo

and

Tanz

ania

$4,9

44,2

26$1

2,42

9,67

120

04-2

010

aFR

ICa

PIn

clus

ive

Fina

nce

369,

671

369,

671

2004

-201

0

Gen

derE

quita

ble

loca

lDev

elop

men

t(G

ElD

)*

Indi

cativ

eDe

cent

raliz

atio

n an

d

Loca

l Dev

elop

men

tUN

DP, U

NIF

EM, G

over

nmen

ts o

f Sen

egal

, Si

erra

Leo

ne, R

wan

da, T

anza

nia

and

Moz

ambi

que

200,

000*

6,15

5,00

0*20

07-2

010

(Pen

ding

Ap

prov

al)

ach

ievi

ngF

inan

cial

Incl

usio

nin

Pa

cific

Isla

nds

*

Indi

cativ

e

Incl

usiv

e Fi

nanc

eUN

DP, G

over

nmen

ts o

f Sol

omon

Isla

nds,

Sa

moa

, Van

uatu

, Kiri

bati,

Tuv

alu,

Au

stra

lia A

id, E

urop

ean

Com

mis

sion

1,25

0,00

0*7,

284,

000*

2007

-201

1 (P

endi

ng

Appr

oval

)


UNCDF Income and Expenditures 2006 (Thousands of United States dollars)

INCOME 2006 2005

Voluntary Contributions 13,906 9,492

Cost Sharing Contributions 2,441 5,024

Sub-trust funds contributions 5,635 5,266Sub Total 21,982 19,782

Interest Income 2,913 1,832

Reimbursable Support Services 1,172 927

Other Income 1,120 1,709

TOTalINCOME 27,187 24,250

EXPENDITURE

Programme

Regular Resources 17,235 11,647

Cost Sharing 3,992 2,033

Sub-trust funds 4,464 5,561Sub Total 25,691 19,241

Biennial Support Budget - Net

Management and Administrative Costs 0 3,877

Technical Support Costs 0 2,853

Reimbursable Support Services Costs 880 1,276Sub Total 880 8,006

Other Expenditure 6 15

TOTalEXPENDITURE 26,577 27,262

EXCESS(SHORTFall)OFINCOMEOVEREXPENDITURE 610 (3,012)

Savings on prior biennium’s obligations 0 0

Transfer to/from Reserves 0 0

Refunds to donors and transfers to/from Other Funds ($150.00) ($369.00)Fund balances, 1 January 37,498 40,879

FUNDBalaNCES,31December 37,958 37,498

AnneX II: Financial statements


UNCDF Balance Sheet 2006 (Thousands of United States dollars)

aSSETS 2006 2005

Cash 496 702

Investments 53,282 53,229

Loans to Governments 0 0

Operating funds provided to Governments 0 0

Operating funds provided to Executing agents 397 384

Due from UNDP - Regular Resources 5,634 6,838

Other accounts receivable and deferred charges 3,019 2,151

Accrued interest 1,117 686

TOTalaSSETS 63,945.00 63,990.00

lIaBIlITIES

Operating Funds payable to Governments 0 0

Operating Funds payable to Executing agents 1,313 1,313

Unliquidated Obligations 873 1,024

Accounts Payable 1,199 1,555

Due to UNDP - Regular Resources 0 0

TOTallIaBIlITIES 3,386.00 3,892.00

RESERVESaNDFUNDBalaNCES

Operational Reserve 22,600 22,600

Unexpended Resources

Regular Resources 25,747 25,259

Cost Sharing 3,698 5,337

Sub-trust funds 6,632 5,314

Sub Total 36,077 35,910

Reimbursable Support Services 1,881 1,588

Total Unexpended Resources 37,958 37,498

TOTalRESERVESaNDFUNDBalaNCES,31DECEMBER 60,558 60,098

TOTallIaBIlITIES,RESERVESaNDFUNDBalaNCES 63,944 63,990

The accompanying notes are an integral part of the financial statements

�0 UNiteD NAtioNS CAPitAl DeveloPmeNt FUND

notes to the Financial statements

United Nations Capital Development Fund

(a)Mandateandgoals

TheUnitedNationsCapitalDevelopmentFund(UNCDF)isamultilateraldonororganizationundertheadministrationoftheUNDevelopmentProgramme(UNDP).Itworkstoreducepovertyinleastdevelopedcountriesbystrengtheninglocalgovernmentandcommunityinstitutions,enhancingtheprivatesector,creatingmechanismsfortheprovisionofcredittothepoorandswappingcapitalinvestmentsfortheenvironmentallysounduseofnaturalresources.

TheGeneralAssemblyestablishedUNCDFasanautonomousorganizationwithintheUnitedNationsSystembyitsresolution2186(XXI)of13December1966.TheAssemblyfurtherdecided,byitsresolution2321(XXII)of15December1967,thattheUNDPAdministratorwouldadministertheFundandserve,asitsManagingDirectorwhiletheUNDPGoverningCouncilwouldactastheFund’sExecutiveBoard.

(b)Cash

Theamountsshowninschedule7consistofthefollowing(inthousandsofUnitedStatesdollars):

(c)Investments

Thecarryingvalueofinvestmentsforbondsandnotesof$4.7isdisclosedintheIncomeandExpenditureReport.Thedecreaseof$14,115,238inthebondvalueisdetailedbelow:

Beginning Value Purchases Maturities Net Amortization Carrying Value Movement Market Value Par Value 1 January 2006 31/12/2006 (Decrease)

18 849 434 - (14 000 000) (115 238) 4 734 197 (14 115 238) 4 668 854 4 740 000

(d)Unliquidatedobligations(ULOs)

ThebalanceofunliquidatedobligationsshownintheBalanceSheetconsistofthefollowing(inthousandsofUnitedStatesdollars):

(e)Operationalreserve

Atitstwenty-sixthsessionin1979,theGoverningCouncilapprovedtheestablishmentofanoperationalreserveatthelevelofatleast20percentofprojectcommitmentsandcontingentliabilitiesforguaranteesenteredintobytheFundinrespectofbankloanstoGovernments(excludingsub-trustfundandcost-sharingarrangements).Inlinewiththisdecision,theoperationalreserveoriginallyestablishedin1979,remainedunchanged$22.6millionasat31December2006asshowninthefinancialstatements.

2006 2005Accumulating non-convertible currencies 496 702TOTal 496 702

2006 2005UNCDF – controlled funds 857 884

Biennial support budget and others 16 140 TOTal 873 1024

UNITED NATIONS CAPITAL DEVELOPMENT FUND

2 un plaza, 26th floor

new York, nY 10017

www.uncdf.org | [email protected]

tel: +1 212 906-6565 | faX: +1 212 906 6479

2006 Annual Report

Documents

Transcript of 2006 Annual Report