Thailand

The inaugural ceremony for the Mekong hydro-geological stations took place in the presence of the French Ambassador to Vietnam, the Director-General of the Mekong River Commission, the AFD Director in Hanoi, and representatives from the Vietnamese Ministries for the Environment and Transport and the Can Tho local authorities.

Why has the Mekong Commission set up the Mekong-HYCOS hydrological system?

The project’s overarching goal is to promote sustainable development in the Lower Mekong basin, under an international cooperation agreement signed in 1995 between the four Mekong countries (Laos, Thailand, Cambodia and Vietnam), which established the Mekong River Commission (MRC).

The specific target is to establish a reliable hydrological observation system for the region (virtually real time data collection and distribution) to be shared by all four member countries to monitor water resources in the Mekong Basin.

 
View of the Mekong at Can Tho (photo AFD - J.C. Pires)

The outcome will be:

• a functional and reliable system for real-time collection and transmission of hydro-meteorological data (rainfall, water levels) that will improve hydrological monitoring and forecasting along the Mekong River and its main tributaries
• improved data processing and archiving systems in each country
• shared databases and communication networks at regional level
• supply and distribution of hydrological information to users
• strengthened capacities for sustainable use of the water system in the long term.

The project therefore contributes to the Millennium Development Goals (MDG) and in particular to Target 1 of Goal 7 to ensure environmental sustainability: “to integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental”.

A sophisticated network for collecting and analysing data on water
Under the project, the Mekong Commission and its member countries selected 32 hydro-meteorological stations along the main tributaries of the Mekong and Tonle Sap rivers and in the Mekong delta.

 
A HYCOS hydro-meteorological station  (photo AFD - M. Parent)

The stations have been upgraded with:

• automated devices for measuring water levels and rainfall  
• a data storage platform
• a telemetry system for transmitting as much of the data collected as possible by satellite or other suitable means.

 
An unprecedented collaborative effort to share information between the four countries  

Each of the four national hydrogeological services as well as the Mekong River Commission’s regional centre in Phnom Penh have been equipped with computer terminals to receive, process and archive the data transmitted by the measurement stations. All the receiving terminals have simultaneous access to all of the raw data.

This is the first time that the member countries (Vietnam, Thailand, Laos and Cambodia) have agreed to share data to such an extent.  Real-time quality control of the raw data, acquired in virtually real time, ensures that they can be reliably used for flood forecasting by the Mekong River Commission and by the relevant national agencies: each country will be able to incorporate the data from upstream countries directly into their own forecasting system.
 
Transferring the know-how

A great many training activities were organised for the hydrological agencies in each country. These mainly followed the paired in-service training model, which is the most appropriate and effective system for the type of equipment installed.
Training was organised whenever an international expert was present in the region, at national level with local experts during each site visit and when the receiving stations (terminals) were being set up. Conventional training sessions and workshops were also organised to supplement the continuing training programme.

In Vietnam, the project financed 12 hydro-meteorological measurement stations and provided support on a diminishing scale to operations and maintenance.

Financing and implementation agencies

This 3M € Mekong-HYCOS project for the region is financed by the AFD (2 M€) and the French Global Environment facility (1 M€). It is implemented by the  Mekong River Commission and the technical ministries in each of the four member countries, Laos, Thailand, Cambodia and Vietnam. It is supported by scientific and technical expertise from the Institute for Development Research IRD) and the Compagnie Nationale du Rhône (CNR), and has received the scientific endorsement of the World Meteorological Organisation.

Entering the final project phase

The final project phase, now about to begin, will maintain the training effort for the stakeholders, introduce a regional policy for maintenance and processing of hydrological data and build up a stock of spare parts.

The postponement of project completion to the end of 2012 will enable the MRC to organise an event on the hydrology of the Mekong Basin, which will illustrate the project’s results (film, brochures, reports from users, etc.) and draw the attention of policy-makers to the issue of sustainable water supplies in the sub-region.

This 3 M€ project is financed by the AFD (2 M€) and the FGEF (1 M€).

To find out more on this regional project, go to the  Mekong River Commission website

In Thailand, per capita CO2 emissions rose by 250% between 1990 and 2007. The country has been implementing an energy management policy since 1992, the results of which remain focused on the industrial sector. The number and performances of thermal rehabilitation operations in commercial buildings remain low. The commercial bank Kasikornbank will be managing between 20 and 40 loans financed by the project, which will allow it to build its in-house capacities to better assess the risks related to financing this type of investment and offer an appropriate product range. The financed investments will help save approximately 55 GWh a year and reduce emissions by roughly 30,000 tCO2 a year.

►Download the Annual Report 2010 in French (PDF)

2010: a new year of growth to support development

With €832 million of budget resources allocated by the State, AFD provided €6.8 billion of project financing in 2010, i.e. an 11% rise on 2009. Its activity accounted for 28% of France’s official development assistance. AFD also paid back €104 million of dividends to the State.

Africa remains the priority with €2.1 billion of financing in 2010.

Two-thirds of the financing break down between infrastructure, urban development, productive sectors and agriculture.

In 2010, AFD’s financing will contribute to:

• Improving drinking water supply systems for 33 million people
• Getting 13.4 million children into primary school
• Upgrading or building transport hubs that will be used by 85.8 million passengers a year
• Supporting energy efficiency by saving 5 million tons of CO2 a year
• Providing access to electrification for 3 million people
• Allocating microfinance loans that will benefit just over 700 000 people
• Supporting agricultural or irrigation projects that will benefit 1.4 million people

2011: consolidation of economic model

Dov ZERAH, Chief Executive Officer of AFD: “AFD has experienced a veritable revolution over the past few years. It has become a key player in development with an activity that has tripled in five years. Today, a new phase is beginning with the consolidation of our model.”

In the coming years, AFD will be focusing its activity on three priority areas:

• Sub-Saharan Africa:  60% of resources allocated to AFD by the State will be earmarked for this region, particularly for the sectors of agriculture and agro-industries, infrastructure, education and health.
• The Mediterranean: AFD will be supporting the recent developments in the region by scaling up its operations in Mediterranean Basin countries, particularly in the productive and vocational training sectors.
• Emerging countries: AFD will be supporting these countries via loans with a low level of concessionality in order to encourage them to set out on a growth path that respects the environment more and is more inclusive.

Consolidating the model requires stabilizing AFD’s level of activity, which is expected to reach €8 billion by 2013. AFD set up a Risk Department in 2011 in order to improve risk management. It has also reinforced its human capital with 125 recruitments in 2010.

Dov ZERAH: “Beyond financing, it is our expertise that our partners are seeking. AFD will also be continuing to actively provide input to international debates through its knowledge production. We will, at the same time, be forging an increasing number of partnerships with other development players such as NGOs, local authorities, private foundations, or again multilateral banks. They help increase the outreach and effectiveness of our actions. In a globalized world, the only winning strategies are cooperation strategies.”

In 2011, AFD will be celebrating the 70th anniversary of its creation in 1941 by General de Gaulle. AFD will be marking the occasion by organizing events to meet the French public in order to raise their awareness of North-South issues and allow them to learn more about development results. A travelling open-air exhibition called “Objectif Développement”, designed in partnership with Magnum Photos, will be launched in Bordeaux on 21 May 2011. It will be travelling to all the major cities in France throughout the year.

 
Agence Française de Développement (AFD) is a public development finance institution that has been working to fight poverty and support economic growth in developing countries and the French Overseas Communities for 70 years. It implements the development policy defined by the French Government.
With agencies in over 50 countries, AFD finances and supports projects that improve people’s living conditions, promote economic growth and protect the planet: getting children into school, support for farmers and small businesses, water supply, tropical forest preservation, fight against climate change…

Burundi: strengthening education and training

AFD’s Board of Directors approved a €2.586m grant to the Republic of Burundi to contribute to financing its Education and Training Sector Plan (PSDEF). This financing is being allocated within the framework of a Debt Reduction-Development Contract (CDD) which provides for the refinancing of Burundi’s public debt towards France in the form of a grant.

With GDP per capita estimated at US$126 in 2008, Burundi is one of the poorest countries in the world. It ranks 174th out of 182 in the UNDP Human Development Index. In the education sector, the primary completion rate (46%) remains one of the lowest in Sub-Saharan Africa. The State has made strong commitments to education and in 2009 adopted the PSDEF which specifies requirements in terms of the teachers that need to be recruited and the measures that need to be implemented to improve human resource management in this sector.

The program will provide financing to cover three years of salary expenditures for 1 230 teachers recruited in 2010 and to implement tools to supervise and manage the teacher recruitment policy.
 

Rwanda: program for access to electricity

AFD’s Board of Directors approved a €3.289m grant to the Republic of Rwanda to contribute to financing its national program for access to electricity. This financing is being allocated within the framework of a Debt Reduction-Development Contract (CDD) which provides for the refinancing of Rwanda’s public debt towards France in the form of a grant.

Rwanda lacks power generation and network infrastructure and less than 6% of households have access to electricity. In 2008, the government adopted an energy strategy which stipulates that the energy sector must contribute to economic growth in the country and to improving living conditions for populations in a sustainable and responsible manner. In 2009, it launched a far-reaching national program for access to electricity which aims to hook up an average 4 600 new households every month. The financing for this program is being implemented via a harmonized approach with other donors.

This financing will be mainly earmarked to finance investments, particularly in the district of Nyamagabe in the South Province. It will both improve living conditions for populations and social services (schools, hospitals) and will facilitate the economic development of the country.

Jordan: improving urban transport in Amman

AFD’s Board of Directors approved financing (US$166m loan and €200 000 grant) to the municipality of Amman to support its urban mobility and transport policy.

With 2.6 million inhabitants, the City of Amman gathers 39% of Jordan’s population, roughly 80% of the industrial sector and 55% of employment in the country. The municipality called on AFD to implement its investment program for public transport which includes – over a 15-year period – 6 Bus Rapid Transit (BRT) lines and three light metro lines (LMLs). This program aims to improve mobility in Amman by creating reliable, safe, rapid, comfortable and affordable public transport services. It will specifically give poor populations greater access to transport services and will reduce both transport times and household expenditure.

French companies may position themselves in the areas of service operation, engineering, services and equipment. The City of Paris and the Ile de France Transport Syndicate are partners of the project.

China: improving urban heating networks

AFD’s Board of Directors approved two loans totaling €68m to the People’s Republic of China for a program to install heating networks in Taiyuan and Jinzhong.

China’s urban heating networks emit high levels of greenhouse gases and constitute a major energy and environmental challenge. These networks are made up of inefficient and highly-polluting boiler rooms that are directly installed in the residential fabric. The program concerns Taiyuan, the capital of Shanxi Province, and Jinzhong Prefecture. It comprises the construction of two primary heat distribution networks equipped with heat exchanger stations, both supplied by cogeneration plants.

AFD supported the preparation of this program via an information and exchange campaign with French companies working in the sector. Each of the programs will make it possible to avoid the emission of over 400 000 tons of CO2 every year.

Colombia: improving urban transport in Bogota

AFD’s Board of Directors approved a US$125m loan to the Republic of Colombia for a program to develop urban transport in Bogota.

The “Transmilenio” is a rapid bus system that has been serving Bogato and its 7 million inhabitants since the 2000s. It is based on the principle of dedicated lanes for high-capacity articulated buses (or BRTs) and has a 75 km-long network. The commercial speed of buses is close to 30 km/h thanks to the priority they have at traffic lights and specific structures for crossing main crossroads (viaducts or underground passages).

The program will extend the network by 37 km and is based on 4 new service areas. This will raise the capacity to 2.2 million trips per day against 1.55 million prior to the extension. This extension will have a social impact as it will improve urban mobility for low-income populations and an economic impact by helping to reduce urban congestion. It will also reduce annual CO2 emissions by roughly 100 000 tons.

Colombia: improving urban transport in Medellin

AFD’s Board of Directors approved a US$250m loan to the municipality of Medellin for the “transport” component of the Comprehensive Urban Project for the center-east of the city.

Certain major Colombian municipalities have managed to take advantage of their political and financial autonomy in recent years in order to implement innovative policies and bring about changes. Medellin, after having made a name for itself with its record low crime rates, seems to have moved “from fear to hope” since 2004. The municipality is now implementing a central-eastern “Comprehensive Urban Project” (CUP) to finance actions in a “verde corridor” which has 300 000 mostly poor inhabitants. The project’s transport component comprises a rolling tramway running on a 4 km stretch and two metrocable lines that will open up two neighborhoods located in the hills.

This project constitutes the first direct loan to a Colombian municipality and is contributing to the sustainable development of Colombian cities. It will have considerable social effects (fight against violence and social exclusion and improvement of living conditions for poor populations), environmental impacts (development of “clean” infrastructure) and impacts on economic growth (support for investments and the city’s attractiveness).

Mali: strengthening education

AFD’s Board of Directors approved an €8m loan to the Republic of Mali to support its Education Sector Investment Program (PISE III).

Mali ranks 178th out of 182 in the UNDP’s Human Development Index with an adult illiteracy rate estimated at 26%. The authorities are aware of how important education and training are for the economic and social development of the country and consider this sector as a national priority. The financing will support the sectoral policy with a specific focus on the development of general secondary education. It comprises three components: support for the construction and equipment of three public secondary schools and the refurbishment of one secondary school, a capacity building program for actors in secondary education and sectoral budget support.

Mali: support for the private sector

AFD’s Board of Directors approved a €4.8m grant – on funds delegated by the European Union – to the Republic of Mali to partially finance its Program to Support the Private Sector (PASP).

In Mali, companies suffer from a lack of competitiveness due to either structural reasons or the low level of their capacities or local services. This situation does not give banks an incentive to finance their investments. The PASP implemented by the government aims to contribute to developing a private sector adapted to market constraints and competition from imports. This program aims to reinforce the role of companies as engines of economic growth, contribute to structuring organizations that represent the private sector, support banks in their role of financing the economy and improve the quality of the business environment. The project comprises a support service for private businesses and a catalytic fund. AFD contributed €7.4m of financing to this project in June 2009. This new €4.8m contribution provided by the European Union will also be implemented by AFD.

Mali: budget support

AFD’s Board of Directors approved a €10m grant to the Republic of Mali to finance its economic and financial program.

Mali’s economic situation has become more stable, despite its vulnerability to exogenous shocks (climate shocks, food crises, oil shocks…), and the country has achieved honorable growth performances – in the region of 5% annually – for several years now. However, with annual demographic growth at 3.6%, these economic performances are not sufficient to obtain significant results in the fight against poverty. In order to achieve its ambitious objectives for growth and poverty reduction, the authorities aim to create a favorable economic environment and pursue the financial stabilization it set out to achieve within the framework of the program supported by the IMF. This grant will cover the financing required by the State for its economic and financial program for 2010 and 2011.

Uganda: financing housing

AFD’s Board of Directors approved a US$10m loan to the Housing Finance Bank (HFB) to refinance its home loan activity.

With a population of 32 million inhabitants, Uganda ranks 145th out of 182 in the UNDP’s Human Development Index. The country remains largely rural, despite rapid urbanization and strong demographic growth (3% annually). The home loan financing market is extremely concentrated and dominated by three banks. HFB, a public bank, holds 60% of this market and is the traditional leader. The sector is dynamic, despite being constrained, with average annual growth for loans at 15% since 2002 in number and 28% in volume. However, less than 1% of households have access to mortgage loans.

The financing will help develop home loan financing activities, foster property development financing and support HFB during both its transition and growth phases.

Kenya: financing energy efficiency projects

AFD’s Board of Directors approved the allocation of a line of credit in dollars equivalent to €30m to Co-Operative Bank of Kenya and CfC Stanbic Kenya to finance renewable energy and energy efficiency projects in the agribusiness and hotel industries.

Kenya’s energy mix is characterized by a massive use of the least efficient forms of biomass in terms of energy yields. This leads to a phenomenon of deforestation which gives cause for concern. Moreover, the share of fossil fuels in this energy mix is expected to rise under the effect of the increase in the country’s thermal capacities and droughts. A significant impact can be expected on Kenya’s energy bill as a result of these changes and this will also weigh on the competitiveness of economic sectors turned towards export.

The project – via two local partner banks – will finance small and medium scale renewable energy production units (ranging between 0.5 and 8 MW for a minimum investment of €10m) built by Kenyan agro-industrial companies and independent energy producers. It will gradually lead the commercial banking sector to finance this type of innovative project.

Democratic Republic of Congo: sustainable forest management

AFD’s Board of Directors approved a €5m loan to the Democratic Republic of Congo to support the sustainable management of its forests.

In DRC, forest cover 62% of the national territory and flora and fauna constitute an inestimable biodiversity heritage. The area devoted to formal wood production stands at 10 million hectares and protected areas represent 11% of this territory. It is estimated that the formal forest sector represents less than 1% of GDP and 15 000 direct jobs. Little information is available on the informal sector which continues to lack supervision. It is estimated to represent over 90% of activity in this industry in terms of volume (construction wood and energy wood).

Following a long period of conflict in the 1990s, the country set out to overhaul its legislative framework governing forest exploitation. The forest policy now consequently benefits from an appropriate framework in terms of the main acts, but it cruelly lacks application due to shortcomings in terms of forest title deeds, the lack of enforcement acts for the forestry law, as well as the lack of human and material resources. The project will initiate the definition of development plans for forest concessions in order to create a sustainable development process that can rapidly be extended to all forest areas in DRC.

Republic of Mauritania: budget support

AFD’s Board of Directors approved a €3m loan to the Republic of Mauritania to finance its economic and financial program.

Mauritania suffered badly from the 2007/2008 food crisis and subsequently from the 2009 global economic crisis. The consequences of these external shocks were exacerbated by a domestic political crisis which led to a fall in flows of external aid and a drop in oil production. The Presidential election in July 2009, which marked the return to constitutional legality, made it possible for relations with the international community to resume. A new economic program has been defined by the government in order to implement the structural reforms that are essential for growth and poverty reduction and an agreement with the IMF was approved in March 2010. This loan will cover the financing required by the State for its economic and financial program for 2010.

Niger Basin: water management for the River Niger

AFD’s Board of Directors approved a €3.4m grant to the Niger Basin Authority (NBA) to support this institution in its process to acquire, process and model data in order to efficiently manage the water resources of the River Niger.

The River Niger is 4.200 km long and covers an area of 1.5 million km2. It is shared by nine West African countries. The basin faces the critical challenge of how to mobilize water resources in the face of a considerable drop in surface flows and a sharp rise in needs and water use due to rapid population growth. A water resource management authority, the NBA, was set up in 1980 in order to promote cooperation between member States. The political integration process was conducted successfully and made it possible to adopt an action plan for the sustainable development of the Niger Basin in 2007, then in 2008 to implement an investment program which comprises the construction of three dams. However, the success of all these projects depends above all on NBA’s capacity to become the main reference authority and official decision-maker for all these issues.

The project will provide the Authority with the resources it requires to efficiently monitor water resources and major water infrastructure in order to ensure the infrastructure is managed in a harmonious, integrated and coordinated manner.

Tunisia: securing drinking water production

AFD’s Board of Directors approved a €40m loan to Sonede, Tunisia’s national water exploitation and distribution authority, for a program to secure drinking water production and supply capacities.

Tunisia’s drinking water coverage rate stands at 100%. Sonede has set itself the obligation to maintain the quality of its equipment and improve the efficiency of its organization. The program aims to strengthen drinking water production systems and renew transfer and supply pipes. It includes the replacement of 340 000 domestic meters in order to reduce commercial losses. It is expected to improve the drinking water service (by reducing damage and leaks) for roughly 880 000 people living outside Greater Tunis.

Palestinian Autonomous Territories: support for NGOs

AFD’s Board of Directors approved a €5m grant to the NGO Development Center (NDC) for a program to support Palestinian NGOs in order to improve basic services for populations in disadvantaged areas.

In the Palestinian Territories, NGOs play a fundamental role in society as providers of essential services for populations, particularly in the most disadvantaged and remote areas. Since 2002, AFD has financed two consecutive projects that have benefited these organizations for an amount totaling €11m. This financing has made it possible to build or rehabilitate community infrastructure and agricultural areas. This third financing, led jointly with the World Bank, will be implemented by NDC. This NGO was set up in 2006 and stems from the Welfare Association project unit of which it keeps the structure and experience.

The project will have three components: it will finance projects led by local NGOs selected via calls for proposals, structure the NGO sector and strengthen the structure of NDC. It will improve living conditions for marginalized populations (day-care centers and nursery schools, activities for youth, training…) and will provide support for the productive sector (particularly agriculture). It will also lay the foundations for an attractive mechanism for other donors and will thus facilitate aid coordination.

Thailand: reducing the impact of hotels on biodiversity

AFD’s Board of Directors approved a €30m loan to Kasikornbank Public Limited Company to finance actions to reduce the impact of hotels on biodiversity in Thailand’s coastal areas.

Tourism, a major contributor to Thailand’s economy, constitutes a major threat to the country’s natural heritage, particularly in coastal areas. Although the government’s policy to support the tourism sector appears to be voluntary, it currently does not include a planning strategy integrating the environment. Moreover, the integrity of environments cannot be guaranteed due to the lack of controls on the application of environmental regulations. A whole host of initiatives to promote more sustainable tourism have emerged, but there is no financial mechanism to give incentives to hotels to make voluntary investments to reduce their impact on biodiversity.

The line of credit, the concept of which has been developed by WWF, aims to provide the technical and financial conditions that will make it possible to catalyze emerging environmental developments in the hotel sector by focusing on biodiversity in coastal areas. Kasikornbank, the country’s fourth largest private commercial bank, will distribute financing to the final beneficiaries.

Agence Française de Développement (AFD) is a public development finance institution that has worked to fight poverty and support economic growth in developing countries and the French Overseas Communities for more than 60 years. AFD executes the French government’s development aid policies. With offices in more than 50 countries, AFD finances and supports projects that improve people’s living conditions, promote economic growth and protect the planet. AFD-funded projects provide schooling for children, support farmers and small businesses, supply drinking water, preserve tropical forests and fight climate change, among other things. AFD committed over €6.2 billion to financing aid activities in developing countries and the French Overseas Communities in 2009. The funds should permit the vaccination of 1.8 million children, give 7.3 million people access to drinking water and create or save jobs for 900,000 workers engaged in private enterprise; funding for energy efficiency projects will save nearly 5 million tons of carbon dioxide emissions per year.
www.afd.fr

Press relations
AFD
Laure Weisgerber, weisgerberl@afd.fr
Anne-Sophie Morizot (Hopscotch), asmorizot@hopscotch.fr
 

The Bangkok Metropolitan Administration (BMA) and the French Development Agency (AFD) have signed a Memorandum of understanding (MOU) on their cooperation on climate change in presence of Anne-Marie IDRAC, French Minister of State for Foreign Trade, on Monday 14 December 2009 at BMA’s City Hall. Two officials from the City of Paris were also attending the signing ceremony.