5 Chapter five Activities of the Boards Boards of Governors 2010 Annual Meetings Opening Ceremony Governors’ Statements Governors’ Resolutions Boards of Directors 2011 Administrative Expenses and Capital Expenditure Budgets Other Activities of the Boards of Directors Chapter 5 Activities of the Boards The Board of Governors of the African Development Bank is the institution’s highest policy-making organ, comprising one representative from each member country. The Board of Governors issues general directives and elects a 20-member Board of Directors, to which it delegates most of its powers. The Board of Governors also elects the President of the Bank Group. The Board of Directors sets policies and guidelines and oversees all Bank Group operations in addition to financial and administrative matters. This chapter outlines the Boards’ activities during 2010, with particular emphasis on the 2010 Annual Meetings held in Abidjan, Côte d’Ivoire. BOARDS OF GOVERNORS ed H.E. Tertius Zongo, H.E. Bernard Regarding the global financial crisis, the Makuza, and H.E. Guillaume Soro, Prime President reminded the meeting that the 2010 Annual Meetings Ministers of Burkina Faso, Rwanda, and Bank had swiftly responded to the chal- The Annual Meetings of the Boards of Côte d’Ivoire respectively. The other dig- lenges of the crisis by: (i) doubling its Governors of the African Development nitaries present included: H.E. Nguema operations in 2009; (ii) providing front- Bank (ADB) and the African Development Owono, Deputy Prime Minister of the loaded additional budget support, trade Fund (ADF) took place in Abidjan, Côte Republic of Equatorial Guinea, H.E. Alhaji finance, and liquidity; (iii) using resourc- d’Ivoire (the host country of the Bank’s Muhammad Mumuni, Minister of Foreign es from its private sector window to fill Headquarters), on May 27 and 28, 2010. Affairs and Regional Integration of the financing gaps in key private sector infra- The Annual Meetings were the first institu- Republic of Ghana, H.E. Antoine de structure projects; and (iv) being flexible, tional event in the Côte d’Ivoire since the Padoue Mboumbou Miyakou, President innovative, and proactive in providing the Bank’s temporary relocation of its opera- of the Economic and Social Council above support. tions from its Headquarters, in February of Gabon, H.E. Jean Ping, President of 2003. The venue of the Annual Meetings the African Union Commission and Mr. In his statement, the President of the reflected the hope of the Bank as well Abdoulie Janneh, Executive Secretary Republic of Côte d’Ivoire, H.E. Laurent as the people and government of Côte of the Economic Commission for Africa. Gbagbo, expressed appreciation to other d’Ivoire for a return of the Bank’s opera- The former Presidents of the African Heads of State for their participation at tions. Development Bank, Messrs. Willa the Meetings. This he acknowledged not Mung’omba, Babacar N’Diaye, and only as a token of esteem and friend- The Annual Meetings were preceded by Kwame Fordwor, were also present at ship, but also as a demonstration of meetings of the subsidiary organs of the ceremony. their commitment to the development the Boards of Governors, the Financial of the African continent. He welcomed Presentation, ADF-12 Consultations, and His Excellency Paul-Antoine Bouhoun the African Development Bank back High Level Seminars. The Meetings were Bouabré, Chairperson of the Boards of to Côte d’Ivoire, and congratulated the attended by about 2,408 participants Governors and Governor for Côte d’Ivoire, President and staff for the achievements including Governors, Alternate Governors extended a warm welcome to all partici- they had secured in the last few years. and Delegates, members of the Boards pants in his opening address. There were The President gave an assurance that all of Directors, development partners, the also speeches from H.E. Amadou Toumani Ivorians were working together to con- private sector, ADB staff, members of civil Touré, President of the Republic of Mali, Mr. solidate the peace and security that had society, and observers. Abdoulie Janneh, the Executive Secretary been restored after the crisis, and invited of the ECA, and Mr. Jean Ping, President the Bank to return to its Headquarters in Opening Ceremony of the African Union (AU) Commission. Côte d’Ivoire. He then declared the 2010 The formal opening ceremony was held Annual Meetings open. on May 27, 2010, and was presided over In his opening statement, Dr. Donald by H.E. Laurent Gbagbo, President of Kaberuka, President of the Bank Group, Governors’ Statements the Republic of Côte d’Ivoire. Also pre- highlighted that certain key decisions to be The Governors acknowledged that sent were H.E. Amadou Toumani Touré, taken during the Annual Meetings would despite the difficult economic climate, H.E. Thomas Yayi Boni, and H.E. Faure impact the trajectory of the Bank for a long the Bank had recorded positive results in Gnassingbé, Presidents of the Republic time to come. These included the Bank’s 2009. They unanimously expressed sup- of Mali, Benin, and Togo respective- Sixth General Capital Increase and the port for the Bank’s Sixth General Capital ly. Other distinguished guests includ- reconfiguration of the Board of Directors. Increase (GCI-VI) as well as the increase 70 Annual Report 2010 Activities of the Boards Chapter 5 in the number of seats on the Boards him to pursue the reforms that he had the Increase in the Number of of Directors. The Governors observed already initiated to improve the Bank’s Executive Directors to 20 under the that this expression of confidence need- operations. Agreements Establishing the African ed to be matched on the Bank’s part by Development Bank and the African redoubled efforts to improve the effec- Governors’ Resolutions Development Fund; tiveness of the decentralization process, During the Annual Meetings, the Boards • Resolution B/BG/2010/15 – Election reinforce its results agenda, and promote of Governors reviewed and adopted a of the President of the African De vel- the development of Africa’s private sec- number of resolutions on the ADB and op ment Bank; and tor, including in ADF-eligible countries. ADF (see Appendices II-1 and III-1). They • Resolution B/BG/2010/16 – General approved the recommendations put for- Election of the Executive Directors The Governors stressed the need for the ward by the Steering Committee and of the African Development Bank. Bank to concentrate its interventions in adopted, among others, the following: areas where it had a distinct compara- The Boards of Governors also adopted tive advantage, such as the development • Resolution B/BG/2010/08 – Au thor iz- resolutions on the Annual Report and of infrastructure, the promotion of the ing the Sixth General Capital Increase the Audited Financial Statements for private sector and regional integration, (from UA 23,947.46 million to UA the financial year ending December support to fragile states, and improved 67,687.46 million, representing a 200 31, 2009 for the ADB, ADF, NTF, access to water and sanitation in regional percent increase); and Special/Trust Funds. They also member countries. • Resolution B/BG/2010/09 – Amend- approved the Annual Report and ment to the Share Transfer Rules of Audited Special Purpose Financial Finally, the Governors congratulated the African Development Bank; Statements of the Fund for the finan- the Bank Group President, Dr. Donald • Resolutions B/BG/2010/10 and cial year ending December 31, 2009. Kaberuka, on his re-election. They urged F/BG/2010/03 – Concerning Annual Report 2010 71 Chapter 5 Activities of the Boards In addition, the Governors approved the hensive results and quality-driven oper- the President, Boards of Directors, and composition of Members of the Bureau, ations culture. Furthermore, addition- Management regarding the work ahead. and the Joint Steering Committee for the al resources were allocated to enhance period end-2010 Annual Meetings to end- quality at entry, through the Board’s 2011 Administrative Expenses and 2011 Annual Meetings. The Bureau would creation of an OpsCom Secretariat, also Capital Expenditure Budgets comprise Portugal as Chair, with Equatorial under the oversight of the Vice President, In December 2010, the Board of Directors Guinea and Kenya as the first and sec- COO. To ensure clarity and a common of the Bank approved an Administrative ond Vice-Chairs, respectively. During the understanding both internally and exter- Expenses and Capital Expenditure Budget same period, the Joint Steering Committee nally, in the measurement of results, the for 2011 comprising: (i) UA 289.1 million would comprise Algeria, Argentina, Austria, Boards of Directors of the Bank and the allocated to Administrative Expenses, (ii) Central African Republic, Madagascar, Fund approved a “One Bank” Results UA 40.0 million for the Capital Budget, Namibia, The Gambia, Togo, and the United Measurements Framework (RMF). and (iii) UA 2.9 million to contingency. The States of America. Board of Directors of the Fund approved Financial resource mobilization, as a key an indicative Administrative Budget of UA Furthermore, the Governors approved the 2010 Bank Group activity, consumed a 201.3 million for the Fund for 2011. resolution for allocations from the Bank’s considerable amount of the Boards’ time. 2009 allocable income of UA 238.8 mil- In this regard, the ADB Board of Directors Other Activities of the Board lion as follows: (i) UA 90.0 million as pro- endorsed the documents containing the The Boards of Directors function through vision for reserves; (ii) UA 27.8 million to proposals for the GCI-VI, as well as the seven committees: (i) Committee on the Surplus Account; (iii) UA 50.0 million related institutional reforms, and the Administrative Matters Concerning for ADF-11; (iv) UA 66.0 million for the amendments to the Share Transfer Rules, the Boards of Directors (AMBD), (ii) Democratic Republic of Congo (DRC) all of which were approved by the ADB Committee for Audit and Finance (AUFI), Special Account; and (v) UA 5.0 mil- Board of Governors at the 2010 Annual (iii) Committee on Administrative Affairs lion for the Technical Assistance Fund of Meetings.