AFD - Universal Registration Document 2020

STATEMENT OF NON-FINANCIAL PERFORMANCE Fair practices

2.6.3 Support for project management and the building of capacities Project management is one of the cornerstones of projects financed by the AFD Group. In particular, these activities enable the project owner to better coordinate and manage the funding, and ensure the activities and/or works are performed properly. They contribute to reducing the risk that project managers may fail to comply with contractual procedures or clauses. To support its partners in terms of advice on organisational development and support for change, the Group initiated two major projects in 2020 aimed at better responding to the challenges that concern them: (i) Ǿ the creation and testing of an offering: support services for the organisational transformations of project owners to meet the SDGs and sustainable recovery challenges, (ii) Ǿ the improvement of the tools and methodological approaches available to project owners to optimise their public policy dialogue. These two projects will continue during 2021. P Support for the transformation of project owners financed by the Group aims to improve the performance of partners, a sine qua non condition of sustainable development, and is part of an approach that seeks to go beyond a dialogue focused on the needs of projects and the requirements of the lessor at the time of appraisal. Project owners with a clear vision, a known trajectory, built by their teams and an appropriate internal organisation, will be the most efficient for the management of projects and the inclusion of cross-cutting SDGs such as gender and climate. In 2020, the Capacity Building Support Unit developed this role of supporting change within organisations by setting up pilots. This involves creating a space for dialogue around the strategy of project owners, their internal functioning and their overall performance; then to

support them in identifying or creating favourable conditions for change and to formalise a development trajectory; and finally to think about the operationalisation of this change management strategy. Three “historical” counterparties are supported in terms of organisational development (ONAS in Senegal, HACP and Nigelec in Niger) to enable them to better face the sustainability challenges of their core business. Likewise, four financial institutions were supported in the diagnosis of their climate or gender maturity and the definition of a transformational roadmap affecting internal organisation, strategy and internal processes. P The AFD Group is committed to making continuous progress in supporting public procurement policies, which takes the form of public policy dialogues, the establishment of budget funding matrices, and technical and implementation assistance. In addition to its own project capacity-building activity, AFD has specific tools to strengthen the capacities of its project managers, such as: P the Project start-up, preparation and monitoring facility (FAPS); P the Technical expertise and experience exchange fund (FEXTE); P the French local authority financing facility (FICOL); and P the Crisis recovery expertise and studies fund (FEESC). In 2020, these different tools represented €90.1M in commitment approvals. In 2021, the integration of Expertise France will provide the AFD Group with additional and complementary leverage to reach its goals set with partners.

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2.7 Fair practices

2.7.1 Initiatives for preventing corruption, fraud, money

terrorism.To avoid unwittingly participating in any of these violations, the AFD Group has a general policy (1) on prohibited practices, which was revised in 2020, in the form of operational procedures describing in particular the commitments made by the Group, the verification actions carried out, as well as the remedial measures likely to be taken in cases of detection of such practices. The AFD Group has also enriched its system for preventing and combating prohibited practices by devoting to this purpose a dedicated page on the AFD and Proparco institutional website, as well as by publishing the guiding principles for investigations carried out by the AFD Group.

laundering, terrorist fi nancing and Ǿ tax evasion

Corruption, fraud and any form of misappropriation of public and private aid will cause long-term damage to the AFD Group’s mission of acting to protect the most vulnerable populations. The same applies to any funding which, unknown to AFD and Proparco, would lead to money laundering or the financing of

(1) https://www.afd.fr/fr/lutte-contre-la-corruption

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2020 UNIVERSAL REGISTRATION DOCUMENT