2008 Annual Report

i

PERIOD

1 January – 31 December, 2008

EQUIVALENCES

1 Unit of Account (UA) = 1 IMF SDR

1 UA = 1.540270 US Dollars

1 UA = 1.056570 Pound Sterling

1 UA = 1.890960 Canadian Dollars

1 UA = 1.106750 Euro

1 UA = 725.98041 FCFA

1 UA = 203.150100 Naira

1 UA = 1. 873934 Ghana Cedi

1 UA = 121.064300 Escudo

1 UA = 43.38268 Dalasi

1 UA = 7480.585000 Guinean Francs

1 UA = 4698.145000 Leone

1 UA = 98.285930 Liberian Dollars

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TABLE OF CONTENTS

Page

ACRONYMS & ABREVIATIONS …………………………………………………….. iii

NOTE FROM THE PRESIDENT………………..………………………………………... iv

I PRESENTATION OF EBID ……………………………………………………….…... 1

1.1 Establishment and corporate objective…………………………………………………. 1

1.2 Capital …………………………………………………………………………... 1

1.3 Decison-making bodies…………………………………………………………………... 2

1.4 Humain ressources …………………………………………………………………….. 2

II INTERNATIONAL AND REGIONAL ECONOMIC CONTEXT …………………….. 4

2.1 International Economic environment ………………..……………………………. 4

2.2 Regional Economic Context of ECOWAS ………………….……………………. 5

III ACTIVITIES OF EBID …………………………………………………………………… 6

3.1 Principal decision-making bodies…………………………………………... 6

3.2 Administrative activities ……………………………………………………………… 6

3.3 Operational activities ………………………………………………………………... 7

3.4 Cooperation and mobilization of resources ……………………………………………. 11

IV FINANCIAL SITUATION OF EBID……………………… 13

4.1 Operating result as at 31/12/2008……………………………………………... 13

4.2 Balance sheet as at 31/12/2008 ………………………………...……………………… 14

4.3 Conclusion …………..…………………………………………...……………………… 14

V PROSPECTS OF EBID ……………………………………………………………… 15

ANNEXES ……………………………………………………………………………… 16

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ACRONYMS & ABBREVIATIONS

ABREF African Bio-fuels and Renewable Energy Fund

ADB African Development Bank

AIB African Investment Bank

AIF Agence Intergouvernementale de la Francophonie

CEB Communauté Electrique du Bénin

CGIF Cultural Industries Guarantee Fund

DEG German Development Company

EBID ECOWAS Bank for Investment and Development

ECOMARINE West and Central African Shipping Company

ECOWAS Economic Community of West African States

EIB European Investment Bank

ERIB ECOWAS Regional Investment Bank

ETI Ecobank Transnational Incorporated

EXIMBANK India Export Import Bank of India

EXIMBANK USA Export Import Bank of the United States of America

FMI International Monetary Fund

FRDC ECOWAS Regional Development Fund

UNCTAD United Nations Conference on Trade and Development

MDGs Millenium Development Goals

NEPA National Electric Power Authority (Nigeria)

NEPAD New Partnership for Africa’s Development

New ITC New Information and Communication Technology

OECD Organization for Economic Cooperation and Development

PADEP Support Project to ECOWAS for Peace and Development

SDR Special Drawing Right

SFT Special Fund for Telecommunications

SPCAR Regional Airline Promotion Company

TF Telecoms Fund

UEMOA West African Economic and Monetary Union

UNO United Nations Organisation

WAPP West African Power Pool

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MESSAGE FROM THE PRESIDENT The Bank’s operations in 2008 were undertaken in an environment marked by a surge in inflationary pressure especially on the regional market. This development which reflected on some foodstuff and energy in the regional market was precipitated by the crisis in global financial markets. During the year under review EBID recorded very impressive operational results. The commitments of the Bank in 2008 as regards loans and equity for the public and private sectors rose to UA101 944 465, representing an increase of UA20 979 252 (25.91%) compared to the 2007 financial year. The financial situation showed improvement and income from operations continued to record profits which enhanced the Bank’s own resources. Furthermore, close to UA29 million was disbursed within the framework of project financing. In response to the food crisis, immediate energy needs and the reinforcement of infrastructure, the Bank maintained and emphasized its new strategy of focusing on the selected areas where it can make the most impact. With regard to management, EBID continued with the reforms engaged from 2007 which has yielded encouraging results in terms of cost control and efficient organization of work. Within this context, important policy documents and manuals of procedure were prepared and were adopted by decision making bodies of the Bank with a view to optimizing human resources, operational activities and risk control. During the period under review considerable efforts were made to diversify the Bank’s shareholding and mobilize more of the resources suitable for financing the activities of the Bank that is, resources obtained at market rates and stable resources obtained at concessionary rates for the financing of projects from Member States. I take the opportunity to express our profound gratitude to Heads of State and Government of Member States, the Council of Ministers, the ECOWAS Commission, the Board of Directors of EBID and cooperation partners for the constant and various support provided. Finally, I would like to end this message by congratulating and commending all staff members of the Bank for the quality of out put that has definitely put our Bank in good stead. This effort should be sustained in order to enhance sustainable regional development which provides greater opportunities for growth and well-being of Member States.

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CHAPTER I

PRESENTATION OF THE ECOWAS BANK FOR INVESMENT AND DEVELOPMENT

(EBID) 1.1 Establishment and corporate object Established on 28 May 1975 to promote cooperation and integration among West African countries, the Economic Community of West African States (ECOWAS) is currently made up of fifteen (15) Member States namely: Benin, Burkina Faso, Cabo Verde, Cote d’Ivoire, the Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. The treaty which set up ECOWAS also established the ECOWAS Fund for Cooperation, Compensation and Development as the financial arm of the Community. The Fund became operational in 1979. At their Twenty-Second Summit held on 9 and 10 December 1999, the Authority of Heads of State and Government decided to transform the Fund into a Bank Group known as the ECOWAS Bank for Investment and Development (EBID). The reason for the transformation was to enhance the resources of the Fund by opening up its capital to non regional partners and by diversifying its operational activities, so as to focus on the private sector, in particular. EBID became operational on 1 January 2004. As spelt out in Article 2 of its Articles of Association, EBID is an international public institution whose objective is to contribute to the economic development of Member States by financing regional priority integration projects and programmes including, among others, rural development, basic infrastructure, modern infrastructure, transport, energy telecommunications, industry, agro-industries, transport, tourism and other services.

1.2 Authorized Capital

The authorized capital of EBID is UA 603 000 000 which is equivalent to US$ 750 000 000. Member States of ECOWAS own 66.67% of the capital whilst the remaining 33.33% are on offer for subscription by non regional members. * Mauritania withdrew to join the Arab Magreb Union.

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As at 31 December 2008, the structure of the capital was as follows: Table N°1 :

UA in Millions

Authorized capital 603 Subscribed capital 402 Called up capital 147.7 Paid capital 116.3 Arrears of capital 31.4 Callable capital 254.3

1.3 Decision-making bodies

The decision-making bodies of EBID are the Board of Governors and the Board of

Directors.

Board of Governors

The Treaty establishing the Bank provides that the Board of Governors is the highest decision-making body. It has broad powers in terms of the management, operation, and the administration of the Bank. The substantive members are the Ministers of Finance of Member States. The Members of the Board of Governors elect the Members of the Board of Directors to whom they delegate some powers with the exception of the powers expressly reserved for the Governors.

Board of Directors

As at 31 December 2008, the Board of Directors, which was chaired by the President of EBID, comprised five Substantive Director and five Alternate Directors. A representative of the ECOWAS Commission participates in the meetings of the Board as observer. The list of Governors and Directors of EBID for the year 2008 is in annex 1.

1.4. Human resources

Between 2007 and 2008, eight (8) staff members left the Bank while eight (8) new staff members were recruited as indicated in the table below. The breakdown of the staff strength is as follows:

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Table 2: EBID staff complement as at 31st December 2008

Staff Category

Staff complement

As at 31/12/2007

Final Departures Recruitments

As at 31/12/2008

President 1 - - 1 Vice-President 2 - - 2 Professional staff 39 3 7 43 “G” Support staff 47 3 - 44 “M” support staff 23 2 1 22 Total 112 8 8 112

The recruitment of new staff would be continued in line with the reinforcement of the human resources base of the Bank. The organization chart of the Bank is attached as annex 2.

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CHAPTER II

INTERNATIONAL AND REGIONAL ECONOMIC CONTEXT

2.1 International economic context

The expansion of global economic activity observed over the last couple of years is now under serious strain. The world economy grew at 3.4% in 2008 as against 3.7% in 2007. However, there was a surge in inflationary pressure, with inflation averaging 5.5% in 2008 as against 4% in 2007. The resurgence of inflation was more felt in emerging and developing countries. The financial crisis experienced by the industrialized countries, the hike in crude oil prices, the sharp rise in food prices, and the lack of adequate production capacity, notably in developing countries, pushed inflation to a high level. In the emerging and developing countries, consumer prices rose to an unprecedented level of 8% whereas the average inflation hovered around 2.5% in the industrialized countries. The brake on the global economic activity was mainly due to the slowdown of the American economy fuelled by the downturn in the real estate sector. The crisis referred to as “sub-primes crisis” rapidly escalated to assume global proportions. Initially affecting the financial sector, the crisis spread inexorably to the real economy. The escalation of the financial crisis, which slowed down the growth of the dominant economies, also had the effect of weakening, to a small extent, the level of economic growth recorded by emerging and developing countries. The relative stability which was mainly attributable to the dynamism of the economies of China, Brazil and India which recorded growth rates of 9%, 5.6% and 7.1% respectively, cushioned against the effects of the downturn of the economies of the United States and Europe and had a stabilizing effect on the world economy. Thus, while Japan, the second biggest economy in the world was directly hit by the crisis (the American market is the main destination of its exports), China, by virtue of the size of its market, the significant amount of its reserves was able to insulate itself from the impact of the financial crisis thanks to its banking sector regulatory policy. With growth rate in the region stabilizing at 6% as against 6.9% in 2007, the African continent was not spared the troubles in the world economy. In sub-saharan Africa, GDP growth was 6% as against 6.7% in 2007. This dynamic was not only attributable to the progress made in the area of structural reforms, but also to the significant increase in commodity prices.

*Sources: UN World Economic Situation and Prospects 2009, IMF World Economic Outlook 2009, ECOWAS Commission

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In actual fact, since 1975 Sub-saharan Africa has been steadily recording positive economic growth resulting in increase in per capita income. Though the trend was very remarkable in central Africa in 2008 thanks to the increase in commodity prices coupled with the substantial reduction in external debts (made possible by the weak dollar), West African countries however, recorded a GDP growth rate that dropped again to 5.1% in 2008. 2.2. Regional economic context Even though they were not seriously affected by global downturn, the economies of many West African State were put under strain as a result of the crude oil price hike, the food crisis and falling prices of commodity prices (cotton, groundnuts etc) in 2008. However, the introduction of tight monetary policies, the robust growth in the minerals-rich countries and the sustained growth of domestic demand made it possible to maintain a modest growth rate in the region despite the crisis situation. The increase in crude oil production by Nigeria, including oil price (first quarter) coupled with the expansion of mining activity and good agricultural harvest in the other countries contributed to growth in West Africa. The sub-region also gained from the improved political climate, with relative peace in countries such as Liberia and Côte d’Ivoire. However, inflationist pressure from other parts of the world, fuelled by the hike in crude oil and food prices undermined the efforts made by many countries in the region. According to estimates, ECOWAS recorded an average inflation rate of 8.6% in 2008 as against 7.2% the previous year. In spite of the considerable progress achieved by ECOWAS countries from the institutional and regulatory perspective, the improved macro-economic balance, notably, internal and external deficits and reduction in inflation, it must be admitted that economic taken-off has been rather slow. Economic growth still hovers between 3 and 6% which is far from the 7% growth rate recommended if the region is to attain the Millennium Development Goals.

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CHAPTER III

ACTIVITIES UNDERTAKEN BY EBID 3.1. Main activities of the decision-making bodies

Board of Governors In 2008 an ordinary session of the EBID Board of Governors was held at which several resolutions were considered and approved in particular, the resolutions relating to Articles of Association, activity report and financial statements of the Bankas at 31 December 2007. Board of Directors Four (04) meetings of the Board of Directors of the Bank were held in 2008. During these meetings Directors considered Resolutions relating to financial statements, 2007 activity report, project financing, Articles of Association of the institution, 2009 budget and manual of procedures for making provisions for doubtful debts and the rating of companies. 3.2. Administrative activities

In 2008 EBID continued with its human resources management modernization policy by reviewing the texts governing staff. Furthermore, the Bank placed special emphasis on capacity building through seminars and training workshops. During the period indicated, twenty two (22) staff members benefited from the training programme as follows:

Refresher course for Translators;

Refresher course for Internal Auditors;

Training programmes for Secretaries: work organization, techniques and

methods;

Preparation and management of contracts relating to funding;

Refesher course on Management Control ;

Accounts consolidation techniques;

Risk management methods and tecniques;

Project Environmental Impact Assessment;

Training on International Accounting Standards IAS/IFRS;

Techniques and Tools for Human Resources Management ;

Science and Technique of International Law;

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In addition a strategic retreat on the theme «Management of the Transformation from the former ECOWAS Fund to EBID» was organized for the staff of the Bank during the same period.

3.3. Operational activities

The operational activities undertaken by the Bank during period under review related mainly to project identification and appraisal, approval of loans, signing of loan agreements and project supervision. 3.3.1 Project identification As part of efforts to increase the number of projects in its pipeline, the Bank undertook missions to Member States of the Community, notably the Federal Republic of Nigeria. As at 31 December 2008, EBID had 336 projects (comprising all sectors) in its pipeline. 3.3.2 Project appraisal In 2008, nineteen (19) projects were appraised as against 17 in 2007. Out of the nineteen projects seven (7) were public sector projects whilst the remaining twelve (12) related to the private sector. 3.3.3 Supervision During the period under review, five (5) projects (3 in the public sector and 2 private in the private sector) were supervised. They are : The Praia Airport VIP lounge Project in Cabo Verde;

The Polyclinic Project in SAL, Cabo Verde ;

KAYA - DORI Road Asphalting Project in Burkina Faso ;

The Flour Mill Project in Burkina Faso (Société Nationale des Grand Moulin du

Burkina) ;

SOFITEX Debenture Loan Project.

3.3.4 Approvals Eighteen (18) projects amounting to UA 117 481 902 were approved by the Board of Directors in 2008.

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Table n°3: Breakdown of approvals according to sector in 2008 (in UA)

The details of the approvals for the period under review are presented in Annex 4. 3.3.5 Loan agreements Table n°4 : Breakdown of commitments in 2008 according to form of intervention

Form Amount in UA Amount in US$ Number of projects

Direct loans 92 206 960 142 023 614,28 14 Indirect loans 5 378 588 8 284 477,74 2 Equity Participation 4 358 917 6 713 909,09 2

TOTAL 101 944 465 157 022 001,11 18

The financing granted and signed by EBID in 2008, in the form of direct loans and equity participation for the implementation of 16 investment projects amounted to UA 101 944 465 Total direct loan granted by the Bank for 14 projects in 2008 amounted to UA 92 206 960 representing 94.49% of total loans granted for the year. With respect to indirect loans, the amount made available by the Bank in 2008 was UA 5 378 588, representing 5.51% of the total loans granted. The amount was made available to two projects. The Bank also increased its equity participation in two service companies in an amount of UA 4 358 917. 3.3.6 Situation of commitments As at 31 December 2008 total net commitment (including those inherited from the former ECOWAS Fund) in favour of Member States of the Community stood, as show in the table below, at UA 384 696 287. The details in respect of the commitments of the Bank as at 31 December 2008 are presented in Annex 5.

OPERATIONS 2008 2007

Nb Amount Nb Amount

LOAN 16 110 568 837 22 175 320 304

GUARANTEE - - 3 29 424 973

EQUITY PARTICIPATION 2 6 913 065 1 130 402

TOTAL 18 117 481 902 26 204 875 679

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Table n°5 : Breakdown of net commitments as at 31/12/2008 (in UA)

Form Sectors Nb Commitments Percentage

Loans

Infrastructure 39 183 295 545 65,13%

Rural development 6 14 710 665 5,23%

Industry 6 38 043 103 13.51%

Services 6 19 887 171 7.07%

Social 3 25 504 581 9.06%

Sub – total 1 60 281 441 065 100.00%

Equity Participation

7 20 037 006 100.00% Services

Sub – total 2 7 20 037 006 100,00%

Guarantee

Infrastructure 7 60 060 293 72.17%

Industry 1 13 345 912 16.04%

Services 1 9 812 011 11.79%

Sub – total 3 9 83 218 216 100.00%

Total 76 384 696 287 As shown by the graph below, infrastructure absorbed about 60.80% of the Bank’s net commitments as at 31 December 2008 Graph n°1

Infrastructures 60,80%

Rural Development

4,88%Industry 12,62%

Services 13,24% Social 8,46%

The breakdown of total net commitments according to Member States as at 31 December 2008 which is presented in the table below points to the concentration of the Bank’s assistance on five (5) Member States namely: Benin (20.38%); Burkina

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Faso (15.20%); Togo (12.88%); Senegal (12.33%); and Guinea (11.08%). However, what should be noted is that all Member States of ECOWAS benefit from the assistance of the Bank. Table n°6 : Breakdown of net commitments per country as at 31/12/2008 (en UC)

Commitments

% of Commitments

BENIN 57 354 732 20,38% BURKINA FASO 42 765 458 15,20% CAP VERT 7 215 478 2,56% CÔTE D'IVOIRE 16 147 845 5,73% THE GAMBIA 13 206 899 4,69% GHANA 15 149 447 5,38% GUINEA 31 177 802 11,08% GUINEA - BISSAU 1 421 512 0,51% LIBERIA 967 936 0,34% MALI 5 696 602 2,02% NIGER 1 204 496 0,43% NIGERIA 14 105 429 5,01% SENEGAL 34 699 449 12,33% SIERRA LEONE 4 110 000 1,46% TOGO 36 217 980 12,88%

TOTAL 281 441 065 100,00% Graphe n°2

0

10

20

30

40

50

60

70

BENIN

BURKIN

A FA

SO

CAB

O V

ERDE

CÔTE

D'IVOIR

E

GAM

BIA

GHANA

GUIN

EA

GUIN

EA - B

ISSAU

LIBERIA

MALI

NIG

ER

NIG

ERIA

SENEG

AL

SIERR

A LEO

NE

TOGO

Millions UA

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3.3.7 Disbursements As at 31 December 2008 total loan disbursements by the Bank amounted to UA 117 740 945 (41.85% of commitments for 2008) as against the UA 89 393 695 disbursed in 2007 (ref. Annex 6). Table n°7: Situation of loan portfolio as at 31/12/2008 (in UA)

Operations 2008 2007 Variation %

Disbursements 117 785 778 89 393 695 28 392 083 31,76%

Invoicing 63 298 969 61 357 930 1 941 039 3,16%

Recovery 50 756 848 53 233 747 -2 476 899 -4,65%

Arrears 12 542 121 8 124 183 4 417 938 54,38%

Rate of arrears 19.81% 13.24%

It must be noted that a large proportion of the amounts owed EBID were inherited from the former ECOWAS Fund. 3.3.8 Other operational activities a) Special Fund for Telecommunications (SFT) EBID manages the Special Fund for Telecommunications (SFT) which is tasked with financing the telecommunications infrastructure of Member States. As at 31 December 2008, the total balance sheet of the Fund amounted to UA 18 561 629, representing an 8.16% decrease of the amount of UA 20 210 183 recorded in 2007. With respect to the income statement, it posted a negative result of UA 1 648 552 as against UA 1 174 997 in 2007. The situation was due to the exchange rate loss recorded.

b) Cultural Industries Guarantee Fund (CIGF) The Cultural Industries Guarantee Fund is a special Fund established by virtue of an agreement between the Bank and the International Francophony Organization (OIF).The Fund basically provides guarantee to cultural enterprises to enable them to access financing from banks. In 2008 six projects amounting to FCFA 1 463 billion were approved, bringing the total interventions by the Fund to 16 (costing a total of FCFA 7 426 billion).

3.4. Cooperation and Resources Mobilization

In 2008 the Bank continued with its policy of cooperating with bilateral and multilateral partners with a view to mobilizing more resources to support its activities in favour of the economies of the Member States of the Community.

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In line with efforts to enhance its intervention capacity in Member States, the Bank intensified efforts aimed at getting Spain, United States of America, India, China and Brazil to participate in its capital, to obtain concessionary resources and grants. In 2009 the Bank intends to extend its resources mobilization drive to European countries and financial institutions such as the World Bank (WB) and the African Development Bank. The capital markets of UEMOA and those of Nigeria and Ghana would also be used by the Bank in its effort to raise resources.

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CHAPTER IV

THE FINANCIAL SITUATION OF EBID The financial situation for the year ended 31 December 2008 is as follows: 4.1. Income Statement of EBID as at 31/12/2008 Table n°9 : Income statement (in UA)

2008 2007

INCOME

Interest income 6 259 469 6 596 505

Interest charges <2 187 931> <1 986 546>

Net interest income 4 071 538 4 609 959

Fees and commission 3 074 195 2 108 210

Dividend income - 1 058 506

Exchange rate Gain/Loss <4 934 431> <88 301>

Other income 46 528 979 326 211

Total income 48 740 281 8 014 585

EXPENDITURE

Staff expenditure 3 601 040 3 273 136

Other operating expenditure 2 681 328 3 359 481

Other losses (Provision on loans) 2 653 961 546 888

Dividend - -

Exchange loss - -

Total Expenditure 8 936 329 7 179 505

Operating income 39 803 652 835 080

Minority interest 852 652 <540 499>

Profit/Loss transferred to reserves 40 656 604 294 581

Net income from loan operations amounted to UA 48 740 281 as at 31st December, 2008. This represented an increase of 508% over the amount of UA 8 014 585 recorded at the end of the previous year. Interest on loans and fees and commission were the main traditional sources of income of the Bank. However, it must be stressed that the surplus value (UA 46 657 157) realized from the sale of the ETI shares held by EBID largely accounted for the very favourable trend. Staff expenditure for the year amounted to UA 3 601 040 as against the UA 3 273 136 expended on the item in 2007. The amount represented an increase 10% and was mainly due to reinforcement of staff. However, the other items of expenditure decreased by 20% from UA 3 359 481 in 2007 to UA 2 681 328 in 2008 as a result of the pursuit of cost reduction measures initiated.

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The 2008 income statement of the Bank posted a profit of UA 40 656 604 against UA 294 581the profit realized in 2007. 4.2. Balances sheet of EBID as at 31/12/2008 Table n°10: Balance sheet (in UA)

Total balance sheet rose by 23.08% from UA 155 720 744 in 2007 to UA 191 656 612 in 2008. The improvement in the situation was attributable to enhancement of the loans portfolio and the increase in the cash-flow of the Bank. Total loans increased by 50.12% over the level recorded on 31 December 2007 as a result of the step-up of operational activities by the Bank. The surplus value realized from the sale of the ETI shares enabled the Bank to improve on its financial situation with the free reserves rising from deficit (UA -12 714 971) in 2007 to an appreciable surplus of UA 27 941 633. Subsequently, the ratio of own capital to paid-up capital rose to 1.17% as against 0.58% in 2007. 4.3. Conclusion As at the end of 2008 the financial situation of the Bank had improved significantly over the situation for the same period in the previous year. The improvement was mainly attributable to loan operations which recorded a substantial increase, the pursuit of the cost control policy initiative coupled with the sound management of the Bank.

2008 2007 ACTIFS Cash on hand and in banks 1 005 746 659 168 Short term investments 57 405 859 47 902 488 Loans to Member States 82 126 754 54 708 249 Inter-institutional account 3 632 271 5 245 258 Other debit balances 12 373 639 7 309 978 Long term investments 18 203 006 22 760 718 Fixed assets 16 909 337 17 134 885 Total actifs 191 656 612 155 720 744 ASSETS AND LIABILITIES Accounts payable 5 008 700 7 280 443 Emprunts 33 979 767 36 933 908 Comptes inter-institutionnels 67 992 57 656 Capital 116 287 229 114 939 764 Statutory reserves - - Reserves 27 941 633 <12 714 971> 183 285 320 146 496 800 Minority interests 8 371 292 9 223 944 Total assets and liabilities 191 656 612 155 720 744

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CHAPTER V

PROSPECTS

Although West Africa has recorded improvements in its macro-economic performance notwithstanding the financial turbulence rocking almost all the regions of the world, the progress realized so far is quite modest. Poverty is a wide-spread phenomenon in the region. Only few ECOWAS countries seemed to be on track to meet the Millennium Development Goals. The challenge now is to continue with economic and structural reforms so as to create the environment for viable and sustained economic growth that will lead to significant reduction in poverty. Thus the most important issue is to assist ECOWAS Member States to implement their sector-based development policies and to create the enabling environment that will attract investments into the region. EBID will, in its capacity as the development finance institute of ECOWAS, continue to complement the efforts of Member States to enable them to implement their development projects and programmes, with special emphasis on integration-oriented projects. Thus, the Bank needs to do is to mobilize concessionary as well as commercial loans to finance the projects and programmes. The Bank must concentrate its efforts on regional economic integration by financing economic infrastructure projects in the energy, telecommunications and transport sectors. Furthermore, the Bank should continue with its support to the private sector which generates employment and wealth. As mentioned earlier, the main challenge for 2009 is the mobilization of resources. To this end efforts will be made to mobilize resources particularly from India, China, United States, Europe, the Arab Peninsular and from within the Community through the capital markets.

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A N N E X E S

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LIST OF ANNEXES

Annex 1: Decision-making bodies

Annex 1.1 Members of Board of Governors of EBID as at 31.12.2008 Annex 1.2 Members of Board of Directors of EBID as at 31.12.2008

Annex 2: BIDC ORGANISATION CHART of EBID Annex 3: Details of loans approved in 2008 Annex 4: List of loan agreements signed in 2008 Annex 5:

Annex 5.1 Position of loans granted to Member States as at 31.12.2008 (in UA) Annex 5.2 Situation of guarantees provided as at 31.12.2008 (in UA) Annex 5.3 Situation of equity participation as at 31.12.2008 (in UA)

Annex 6: Financial situation

Annex 6.1 Profit and loss account (in UA) Annex 6.2 Balance sheet (in UA)

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Annex 1

Decision-making bodies

Annex 1.1 Members of Board of Governors of EBID as at 31.12.2008

MEMBERS STATES

GOVERNORS

BENIN

Mr. Pascal I. KOUPAKI

BURKINA FASO

Mr. Lucien Marie Noël BEMBAMBA

CABO VERDE

Mrs. Cristina DUARTE

CÔTE D’IVOIRE

Mr. Charles Koffi DIBY

GAMBIA

Mr. Moussa Gibril BALA - GUEYE

GHANA

Honorable Kwadwo BAAH-WIDERU (MP)

GUINEA

Mr. Ousmane DORE

GUINEA BISSAU

Mr. Issufo SANHA

LIBERIA

Mrs. Antoinette M. SAYEH

MALI

Mr. Abou-Bakar TRAORE

NIGER

Mr. Ali Mahamane Lamine ZENE

NIGERIA

Dr. Mansur MUHTAR

SENEGAL

Mr. Aboulaye DIOP

SIERRA LEONE

Mr. O. CAREW

TOGO

Mr. Adji Otèth AYASSOR

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Annex 1.2 Members of Board of Directors of EBID as at 31.12.2008

NAME/COUNTRY / GROUP OF COUNTRY

DIRICTORS ALTERNATES

EBID Mr. Christian

ADOVELANDE (PRESIDENT)

-

ECOWAS COMMISSION PRESIDENT of COMMISSION

(Observer)

NIGERIA Mr. Abiodun ALAO Mrs. Chigozie ERUCHALU

GROUP I COTE D’IVOIRE, GUINEA BISSAU, MALI

Mr. Kouassy OUSSOU (COTE D’IVOIRE)

Mr. Assitan KOUYATE (MALI)

GROUP II GHANA, NIGER, CABO VERDE

Mrs. Matilda OBENG- ANSONG (GHANA)

Mr. Abdou SOUMANA (NIGER)

GROUP III LIBERIA, GUINEA, BENIN, BURKINA FASO

Mr. Daniel BAMBARA (BURKINA FASO)

Mr. Martin GBEDEY (BENIN)

GROUP IV SENEGAL, GAMBIA, TOGO, SIERRA LEONE

Mr. Mamadou Makhtar GUEYE (SENEGAL)

Mr. Tchaa L. BOROZE (TOGO)

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BOARD OF GOVERNORS

BOARD OF DIRECTORS

President EBID

Special Advisers

Internal Audit and Evaluation

Administrative Assistant

Risk Analyst

Vice-President Finance & Corporate services

Vice-President Operations

Research and Strategic Planning

Finance

Corporate Services

Administration

Operations Public sector

Operations Private sector

General Accounts

Loan Administration

Treasury

Human Resources

General Services

Management Control

Legal

Communication

Information Technology

Languages

Strategic Planning

Partnership and Cooperation

Policy and procedures

Financial Services

Portfolio Development

Joint venture & Participation

Rural Development & Natural Resources

Health and Education

Industry and Energy

Infrastructures

Interne Audit and Norms

Evaluation of Operations

Annex 2 ORGANISATION CHART

of EBID

2008 Annual Report

v

Annex 3

Details of loans approved in 2008

N° Projects Country Sectors Nature

EBID’s Participation

(in UA)

Public

1 Modernisation of the Ghana National Fire Service (GNFS) Ghana Service Loan

9 430 483 (USD 15 013 250)

2 Rehabilitation of the Airport – Place du Souvenir – Air Afrique link road

Benin Infrastructure Loan 5 133 210

(CFA F 3.5 billion)

3 Rehabilitation and expansion of the CEET expansion and distribution of electricity network

Togo Energy Loan 7 924 752

(USD 13 million)

4 Procurement of pumping equipment, crane trucks and drilling units PAMAF)

Senegal Infrastructure Loan 9 415 247

(USD 14 835 511)

5 Establishment of a tomato and mango processing factory in Loumbila

Burkina Faso

Industry Loan 9 973 124

(USD 15 140 000)

6 Interconnection of Mali – Côte d’Ivoire electricity grid

Mali / Côte

d’Ivoire Infrastructure Loan

18 440 669 (USD 30 millions)

7 Construction of the Kandadji dam Niger Infrastructure Loan 4 753 463

(USD 7,5 millions )

8 Livestock development project in the Liptako-Gourma region

Burkina Faso

Rural Development

Loan 1 741 859

9 Construction du barrage de Taoussa Mali Infrastructure Loan 4 774 698

(USD 7,5 millions )

10 Upgrading of the electricity production and transmission in the Island of Santiago

Cabo Verde

Infrastructure Loan 6 058 121

(€ 6,5 millions)

Sub - Total 1 77 891 559

Private

11 Expansion of filling stations network of PRIDE PETROLEUM

Côte d’Ivoire

Hydrocarbons Loan 1 884 892

(USD 3 millions )

12 Expansion of pharmaceutical products factory by SPRUKFIELD Togo

Pharmaceutical Industry

Loan 7 297 233

(FCFA 4,5 billion )

13 Equity participation in the share capital of the regional airline ASky Togo

Transport Service

Equity Participation

3 770 763 (USD 6 millions )

14 Subscription to the capital increase of ETI Togo Service

Equity Participation

3 142 302 (5 millions $EU)

15 AMASA Agro Processing Ghana Agro-industry Loan 1 666 892

(USD 2,650 millions)

16 Expansion of mobile network of Intercel Guinea

Guinea Telecom Loan 5 793 183

(€ 6 003 476 )

17 Urban waste collection and recycling project by Sitrade

Côte d’Ivoire

Industry / MDP* Loan 8 876 800

(FCFA6 149 459 400)

18

Information and communication Biotechnology and Technologies Free Zone (ZBTIC) in Grand Bassam

Côte d’Ivoire

Telecom Loan 7 158 279

(USD 11,1 millions )

Sub - Total 2 39 590 343

TOTAL 117 481 902

2008 Annual Report

vi

Annex 4 List of loan agreements signed in 2008

N° Projects Country Sectors Nature Date of

signature Participation

(in UA )

Public

1 Completion of rehabilitation and modernisation works on the Aflao-Hillacondji road

Togo Infrastructure Loan 04/01/2008 4 144 163

2 Line of credit to Burkina bail Burkina

Faso Line of credit Loan 17/01/2008

2 693 279 (CFA F billion)

3 Procurement of tram train Senegal Transport Loan 06/02/2008 9 968 367

(USD 15 million )

4 Electrification through connection to 58 rural communities

Benin Energy Loan 28/02/2008 12 534 366

(USD 18.8 million)

5 Rehabilitation of the Airport – Place Souvenir – Air Afrique

Benin Transport Loan 06/05/2008 5 133 210

6 Extension of rural electrification

Gambia Energy Loan 08/05/2008 13 206 899

(USD 20 million)

7 Modernisation du service des sapeurs-pompiers (GNFS)

Ghana Service Loan 08/08/2008 9 676 416 (15 013 250 $EU)

8

Rehabilitation and expansion of the CEET expansion and distribution of electricity network

Togo Energy Loan 13/08/2008 7 924 752

(13 millions $EU)

9 Livestock development project in the Liptako-Gourma region

Burkina Faso

Rural Development

Loan 15/12/2008 1 741 859

10 Establishment of a tomato and mango processing factory in Loumbila

Burkina Faso

Industry Loan 15/12/2008 9 973 124

(15 140 000 $EU)

Sub - Total 1 76 996 435

Private

11 Establishment of a flour mill in Banankoro, loan to "les Moulins du Sahel"

Mali Agro-food industry

Loan 24/01/2008 2 016 151

(CFA F 1.5 billion)

12

Rehabilitation of Hotel Independence, loan to Société Malienne de Promotion Hôtelière (SMPH)

Burkina Faso

Services / hotel

management Loan 24/01/2008 2 627 534

13 SENELEC Senegal Energy Loan 06/02/2008 Amendment of loan

conditions

14

Construction of Hotel Radison Sas Dakar (SEA PLAZA), loan to Société Chain Hotel Company SA

Senegal Services /

Hotel management

Loan 26/02/2008 4 077 994

(CFA F 3 billion)

15 Malian Bank for Solidarity (BMS)

Mali Line of credit Loan 03/2008 2 685 309

16

Expansion of a pharmaceutical products factory by SPRUKFIELD UK SARL

Togo Industry Loan 29/07/2008 6 721 733

(CFA F 4.5 billion)

17 Expansion of the filling stations network of PRIDE PETROLEUM SA

Côte d’Ivoire

Petroleum products

Loan 29/08/2008 1 884 432

Sub - Total 2 20 589 113

TOTAL 97 585 548

Rapport Annuel 2008

vii

Annex 5

Annex 5.1 Position of loans granted to Member States as at 31.12.2008 (in UA)

N° Country Project Sector Comt. N° Country Project Sector Comt. 1

BENIN

BENIN 4 PARAKOU DJOUGOU ROAD Public 4 144 541 1

BURKINA FASO

BURKINA 2 FADAMA PAMA ROAD Public 4 695 630

2 BENIN 5 PADE BORGOU Public 3 484 619 2 BURKINA 3 OUAGA LEO ROAD Public 3 731 343

3 BENIN 6 SAVALOU DJOUGOU ROAD Public 3 024 490 3 BURKINA 4 KAYA DORI ROAD Public 3 594 507

4 BENIN 7 DJOUGOU NDALI ROAD Public 4 013 056 4 BURKINA 5 SAMANDENI DAM Public 9 084 493

5 BENIN 8 AKOSSOMBO - Place Souvenir ROAD Public 6 561 971 5 BURKINA 6 BURKINA BAIL Public 2 693 279

6 BENIN 9 KEREMOU – KANDI ROAD Public 7 218 131 6 SN GMB Private 4 623 689

7 BENIN 10 ELECT. 58 LOCALITIES Public 12 534 366 7 SMPH SA-Sté Malienne de Promotion Hôtelière Private 2 627 534

8 BENIN 11 LIAIS. AEROP. AIR AFR ROAD Public 5 133 210 8 BURKINA 7 LOUMBILA TOMATO FACTORY Public 9 973 124

9 SOCIETE DES CIMENTS DU GOLFE Private 6 552 848 9 BURKINA 8 LIPTAKO-GOURMA LIVESTOCK Public 1 741 859

10 NEPA CEB Private 4 687 500

10 S/T BENIN 57 354 732 9 S/T BURKINA FASO 42 765 458

1

CABO VERDE

CAP VERT 1 SAL POLYCLINIC Public 2 459 467 1

CÔTE D'IVOIRE

COTE D'IVOIRE 2 PLDA DAOUKRO Public 3 425 524

2 CAP VERT 2 PRAIA AIRPORT VIP. LOUNGE Public 4 756 011 2 COTE D'IVOIRE 3 PLDA OUELLE ETTROKO Public 3 444 050

3 COTE D'IVOIRE 4 ABIDJAN ADZOPE ROAD Public 7 393 379

4 COTE D'IVOIRE 5 PRIDE PETROLEUM Private 1 884 892

2 S/T CABO VERDE 7 215 478 4 S/T COTE D'IVOIRE 16 147 845

1

GAMBIA

GAMBIA 3 EXTENSION ELECTR. RURAL Public 13 206 899 1

GHANA

AIRPORT WEST HOSPITALITY Public 670 500

2 GHANA 2 AKATSI AFLAO ROAD Public 4 802 531

3 GHANA 3 NATIONAL FIRE SERVICE Public 9 676 416

1 S/T GAMBIA 13 206 899 3 S/T GHANA 15 149 447

1

GUINEA

GUINEA 3 INTERCOM 1-3 Public 1 537 342 1

GUINEA BISSAU

GUINEA BISSAU 1INTELCOM 1-B Public 541 930

2 GUINEA 4 INTERCOM 1-C Public 664 707 2 GUINEA BISSAU 2 MTCE NETWORK Public 76 493

3 GUINEA 5 FAMOILA CENTRE Public 1 619 471 3 GUINEA BISSAU 3 INTELCOM 1-C Public 568 221

4 GUINEA 6 LINE OF CREDIT Private 2 159 000 4 GUINEA BISSAU 4 INTELCOM 1-C Public 234 868

5 GUINEA 7 SAMOU GARAFIRI KINKON Public 6 371 223

6 GUINEA 8 ELECTRICITY NETWORK Public 13 182 004

7 GUINEA 9 URBAN TRANSPORT Public 5 644 055

7 S/T GUINEA 31 177 802 4 S/T GUIN,BISSAU 1 421 512

Rapport Annuel 2008

viii

N° Country Project Sector Comt. N° Country Project Sector Comt. 1

LIBERIA

LIBERIA MONROVIA HIGHWAY Public 967 936 1

MALI

MALI 2 MADINA DIASSOU Public 995 142

2 MALI 4 BANQUE MALIEN. DE SOLIDARITE Private 2 685 309

3 MALI 5 LES MOULINS DU SAHEL Private 2 016 151

1 S/T LIBERIA 967 936 3 S/T MALI 5 696 602

1

NIGER

NIGER INTELCOM 1-A Public 1 204 496 1

NIGERIA

NIGERIA 5 LINA OIL MILLS Private 2 207 505

2 NIGERIA 6 TINAPA FREE ZONE Public 6 525 371

3 NIGERIA 7 DUNLOP NIGERIA PLC FACTORY Private 5 372 553

1 S/T NIGER 1 204 496 3 S/T NIGERIA 14 105 429

1

SENEGAL

SENEGAL 2 DIALAKOTO KEDOUGOU Public 4 223 276 1

SIERRA LEONE

SIERRA LEONE MARITIME ADMIN. Private 4 110 000

2 SENEGAL 5 FATICK KAOLACK ROAD Public 3 335 517

3 SENEGAL 7 HOTEL RADISON SAS Private 4 077 994

4 SENEGAL 8 PETIT TRAIN BANLIEU Public 9 968 367

5 SENELEC Private 13 094 295

5 S/T SENEGAL 34 699 449 1 S/T SIERRA LEONE 4 110 000

1

TOGO

PORT AUTONOME DE LOME Private 2 676 845

2 TOGO 2 AKATSI-DZODZE-NOEPE ROAD Public 806 289

3 TOGO 3 AFLAO-HILLACONDJI ROAD Public 4 144 163

4 TOGO 4 HOSPITAL EQUIPEMENT Public 13 368 698

5 TOGO 5 REHAB. CEET DISTRIB. NETWORK Public 7 924 752

6 SPRUKFIELD PHARMACEUTICAL CO UK Private 7 297 233

6 S/T TOGO 36 217 980

TOTAL N° Commitments

60 281 441 065

Rapport Annuel 2008

ix

Annex 5.2 Situation of guarantees provided as at 31.12.2008 (in UA)

GUARANTEES Commitments at signature

Com.Fact. Paymt.Com. Balance as at

31/12/2008

ONATEL DEBENTURE LOAN, 6,65% 2005-2011

12 563 749 603 570 603 570 -

SOFITEX DEBENTURE LOAN, 6,65% 2006-2013

13 345 912 218 807 131 057 87 750

CELTEL DEBENTURE LOAN, 7,50% 2003-2009

10 656 030 360 003 360 003 -

S/T BURKINA 36 565 691 1 182 380 1 094 630 87 750

SOTRA DEBENTURE LOAN, 6,80% 2007-2012

9 812 011 360 723 300 511 60 212

SIFCA DEBENTURE LOAN, 6,60% 2005-2010

2 573 672 113 710 113 710 -

S/T COTE D'IVOIRE 12 385 683 474 433 414 221 60 212

SEMA DEBENTURE LOAN, 6,85% 2006-2011

4 982 133 179 475 179 475 -

S/T MALI 4 982 133 179 475 179 475 -

PAD DEBENTURE LOAN, 6,50% 2004-2011

16 697 350 486 465 476 387 10 078

S/T SENEGAL 16 697 350 486 475 476 387 10 078

CEB DEBENTURE LOAN, 6,50% 2004-2011

5 863 842 247 878 247 878 -

TOGO TELECOM DEBENTURE LOAN, 6,50% 2008-2014

6 723 517 141 404 106 711 34 693

S/T TOGO 12 587 359 389 282 354 589 34 693

TOTAL 83 218 216 2 712 035 2 519 302 192 733

Rapport Annuel 2008

x

Annex 5.3 Situation of equity participation as at 31.12.2008 (in UA)

Equity Participation Country Sector 2003 2004 2005 2006 2007 2008

ETI Africa Service - - - - - 7 568 336

Lomé Regional Telecommunications Maintenance Center (CRTML)

Togo Service 157 427 - - - - -

Special Fund of Telecommunications

Togo Service 8 507 861 - - - - -

Ecomarine Coastal Shipping Project

ECOWAS Service

/ Transp. - 1 702 751 - - - -

African Investment Bank Project (AIB)

Benin Service - 317 291 - - - -

SPCAR Airline Company project / ASKY

ECOWAS Service

/ Transp. - - 335 550 12 288 - 1 305 100

African Bio-fuels and Renewable Energy Development Fund

Africa Service - - - - 130 402 -

Total 20 037 006

Rapport Annuel 2008

xi

Annex 6

Financial situation

Annex 6.1 Profit and loss account (in UA)

ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)

CONSOLIDATED PROFIT AND LOSS ACCOUNT

AS AT 31 DECEMBER 2008

Group Bank

2008 2007 2008 2007

Note UA UA UA UA

INCOME Interest income 16 6 259 469 6 596 505 5 755 120 5 728 716 Interest expense 17 (2 187 931) (1 986 546) (2 687 200) (1 986 546)

Net interest income 4 071 538 4 609 959 3 067 920 3 742 170 Fees and commission 18 3 074 195 2 108 210 3 074 195 2 108 210 Dividend income - 1 058 506 - 1 058 506 Exchange gain/(loss) (4 934 431) (88 301) (2 381 524) (420 982)Other income 19 46 528 979 326 211 46 528 979 326 211

48 740 281 8 014 585 50 289 570 6 814 115

EXPENSES

Staff cost 3 601 040 3 273 136 3 719 764 3 273 136 Other operating expenses 2 681 328 3 359 481 3 112 534 3 334 008 Provision for bad and doubtful accounts

20 2 653 961 546 888 2 474 505 546 888

8 936 329 7 179 505 9 306 803 7 154 032

39 803 952 835 080 40 982 767 (339 917)Minority interest 852 652 -540 499 - -

Profit for the year, transferred

to revenue reserve 40 656 604 294 581 40 982 767 -339 917

Rapport Annuel 2008

xii

Annex 6.2 Balance Sheet (in UA)

ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2008

Group Bank

2008 2007 2008 2007

Note UA UA UA UA

ASSETS Cash and bank balances 2 1 005 746 659 168 1 050 330 646 103 Short term funds 3 57 405 859 47 902 488 43 313 236 31 035 723 Loan to member states 4 82 126 754 54 708 249 87 295 571 54 708 249 Loan to subsidiaries 5 - 0 - 0 Inter-institutional accounts 6 3 632 271 5 245 258 3 632 271 5 245 258 Other assets 7 12 373 639 7 309 978 6 671 457 7 059 127 Long term investments 8 18 203 006 22 760 718 26 710 867 31 268 579 Fixed assets 9 16 909 337 17 134 885 16 909 337 17 134 885

Total assets 191 656 612 155 720 744 185 583 069 147 097 924

LIABILITIES AND CAPITAL Creditors and accrual 10 5 008 700 7 280 443 5 477 248 7 368 804 Borrowings 11 33 979 766 36 933 908 33 979 767 36 933 908 Inter-institutional accounts 12 67 992 57 656 4 137 767 3 137 158 Share capital 13 116 287 229 114 939 764 116 287 229 114 939 764 Revenue reserve 14 27 941 633 (12 714 971) 25 701 058 (15 281 710)

183 285 320 146 496 800 185 583 069 147 097 924Minority interest 15 8 371 292 9 223 944 - -

191 656 612 155 720 744 185 583 069 147 097 924

Contingent liabilities and other obligations on behalf of customers and customers' liability thereon 23 46 196 370 83 218 216 46 196 370 83 218 216