ASIAN DEVELOPMENT BANK A REVIEW OF THE EUROPEAN REPRESENTATIVE OFFICE

ASIAN DEVELOPMENT BANK A REVIEW OF THE EUROPEAN REPRESENTATIVE OFFICE December 1999

2 ABBREVIATIONS COSO - Central Operations Services Office ERO - European Representative Office MFI - multilateral finance institution NGO - nongovernment organization OCO - Office of Cofinancing Operations OECD - Organization for Economic Cooperation and Development TOR - Terms of Reference UN - United Nations NOTE In this report, $ refers to US dollars.

3 CONTENTS Page I. INTRODUCTION 1 II. BACKGROUND 1 III. OPERATIONAL ASSESSMENT A. ERO s Effectiveness for the Bank B. ERO s Usefulness from the Perspective of its Constituency C. Improving Effectiveness and Minimizing Costs 2 2 4 7 IV. BENEFITS AND COSTS 8 V. FUTURE OPERATIONS A. Terms of Reference B. Business Plan C. External Relations D. Communications and Coordination E. Administrative Arrangements 8 8 11 VI. CONCLUSIONS 11

I. INTRDUCTION 1. In December 1996, the Asian Development Bank (ADB) opened its European Representative Office (ERO) in Frankfurt am Main, Germany. This paper reviews ERO s activities relative to its approved terms of reference (TOR) 1 during its first two years of operations (Appendix 1). 2. The paper is based on the findings of a working group 2 constituted by the Vice-President (Finance and Administration). The review included (i) an in-house study of ERO s operations and activities, (ii) interviews with staff from concerned ADB departments and offices, and the Directors and Alternate Directors representing ADB s European member countries, 3 (iii) a mail survey of ERO s contacts, and (iv) an ADB mission that visited Europe from 7 to 18 June 1999 to meet with ERO s staff and a cross-section of ERO s constituency (Appendix 2). 3. The paper first provides background on ERO s operations. ERO is then assessed on the basis of its (i) utility and operational effectiveness for ADB, (ii) usefulness from the perspective of the major interest groups in Europe, and (iii) ongoing efforts to improve ERO s effectiveness and minimize costs. Benefits and costs are then considered, followed by a discussion of initiatives that will be adopted to improve ERO s utility and operational effectiveness. The paper concludes with an overall assessment of ERO s performance. II. BACKGROUND 4. On 29 November 1995, ADB s Board of Directors approved the opening of ERO in Frankfurt am Main. ERO was officially opened on 11 December 1996, ADB s third office in donor countries. As with other representative offices, ERO reports directly to the Vice-President (Finance and Administration) with assistance provided, as required, by other ADB departments and offices. Staffing currently consists of a regional representative and a liaison officer assigned from headquarters and two locally recruited administrative staff. ERO is mandated to build working relations with the European member governments; multilateral financial institutions (MFIs) and United Nations (UN) agencies; and nongovernment organizations (NGOs) including the media, academia, and other interested parties in Europe. Priority consideration was to be given to disseminating information to governments and the general public including NGOs, and cooperation with financial institutions to enhance resource mobilization. On matters relating to (i) cofinancing, (ii) ADB s financial operations, (iii) business opportunities, (iv) recruitment, and (v) the use of the media, strengthened ADB representation was to be effected through specialized services originating from headquarters with the involvement of ERO only when appropriate and cost effective. 1 The paper establishing ERO (R254-95: Bank Representative Offices in Donor Countries: Establishment of a European Office and a Japanese Office, 29 October 1995) stated that operations would be evaluated after the office had been functioning for two years. 2 Composed of staff drawn from the Budget, Personnel and Management Systems Department; Central Operations Services Office; Office of Cofinancing Services; Office of External Relations; and Strategy and Policy Office. 3 Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Spain, Sweden, Switzerland, Turkey and United Kingdom.

2 III. OPERATIONAL ASSESSMENT A. ERO s Effectiveness for ADB 1. Activities 5. ERO actively worked toward fulfilling its TOR; its outreach activities are summarized in Appendix 3. During its first two years of operation, ERO s staff visited each of the 14 European member countries on at least two occasions and some more frequently. 1 While capital cities were visited most frequently, outreach activities were also held in large and small cities to widen geographic coverage. 6. ERO used headquarters events in Europe as a springboard for developing its outreach program, in particular the Business Opportunities Seminars of the Central Operations Services Office (COSO). These events provided ERO with cost-effective opportunities to meet with interest groups and to publicize the office. As ERO built its own contacts and gained experience, the office developed and managed its own program of activities. To maximize interest group coverage, ERO planned each country visit around meetings with a cross-section of its constituency. Where possible, each country visit included a business briefing, a seminar at a university, a meeting with the local press, and a discussion with the government counterpart agency on the visit and future plans. 7. When appropriate, ERO leveraged its outreach capabilities by participating in events organized by third parties, for example, a microfinance conference in Lyon and a small and medium industry conference in Geneva organized by the UN; the annual meeting of the European Banking Congress in Frankfurt; a seminar on financing for transnational cooperation projects organized by the Milan Chamber of Commerce and the Italian Institute of Foreign Trade; the Frankfurt Book Fair; a joint international forum with the Organization for Economic Cooperation and Development (OECD) in Paris; and an environmental conference organized by the German government and the International Center for Transfer of Environmental Technology. These events provided opportunities to interact with larger and more diverse audiences. 1 While ERO staff attempted to visit each member country at least twice per year, visit frequency was influenced by the work schedules of ERO staff and their counterparts.

3 8. ERO facilitated headquarters operations by coordinating, organizing, and participating in a number of important events, for example, five Greater Mekong Subregion seminars in five European cities with Programs Department (West); the ADB Day seminars in Barcelona and Madrid with the Vice-President (Finance and Administration) and COSO; the Emerging Asia Conference in Frankfurt am Main with the Economics and Development Resource Center; cofinancing and private sector seminars in Finland (for the Nordic countries) and the United Kingdom with the Office of Cofinancing Operations; and the President s visits to Finland, France, Germany, Sweden, and the United Kingdom. 9. ERO also assisted headquarters by handling assignments that were difficult for headquarters staff to accommodate due to staff and/or travel constraints. Some of the more significant events include attending two International task force meetings on commodity risk management (in Brussels and Geneva) for the Strategy and Policy Office; speaking at the Global Projects 1998 Conference in Paris for the Private Sector Group; attending a UN symposium on human development and human rights in Oslo for the Office of Environment and Social Development; and participating in a joint MFI meeting, sponsored by the European Investment Bank, to discuss opportunities for improving information sharing among institutions for the Office of External Relations.. ERO s interaction with MFIs and UN agencies based in Europe has primarily involved participating in and speaking at conferences. Discussions with the MFIs have not dealt with strategy, policy, and resource mobilization issues; these topics have been managed from departments and offices in the headquarters. Similarly, discussions on operations issues have been managed from headquarters and facilitated through resident missions in developing member countries. However, when requested, ERO discussed specific joint investment opportunities with the MFIs and bilateral financial institutions, and organized and participated in operational meetings with headquarters staff, for example, meetings between the Programs Department (East) and the European Commission to discuss activities in the Central Asian republics. 11. In terms of interaction with interest groups, ERO devoted the most time to business and financial concerns, and then to academia. Interaction with government and government agencies also received attention. Interaction with development NGOs, MFIs, UN agencies, and the media was limited due to work priorities and opportunity. Nevertheless, ERO s media

4 contacts led to the publication of approximately 2 articles in newspapers and journals in Finland, France, Germany, Netherlands, and the United Kingdom. And recently, ERO has started to build relationships with a few umbrella NGO groups in Europe. 2. Operational Priorities 12. When established, ERO was given two priority considerations: (i) information dissemination to governments and the general public including NGOs, and (ii) cooperation with financial institutions to enhance resource mobilization. a. Information Dissemination 13. ERO geared most of its outreach activities toward information dissemination across a wide range of topics: the Asian financial crisis, ADB and its activities, business opportunities, cofinancing, and the private sector. ERO targeted its information dissemination activities predominantly at speaking events organized by third parties. ERO also promoted ADB by opening information booths and selling ADB publications at public events, and through select media interventions. To complement its direct outreach activities, ERO was ADB s first representative office to publish (i) a quarterly newsletter (from the second quarter of 1998), which is now mailed to approximately 2,5 European contacts with identified interest in the Asian and Pacific Region; and (ii) a brochure summarizing its activities. b. Resource Mobilization 14. Resource mobilization, relating to cofinancing and the private sector investment, was a central discussion topic in most of ERO s contacts with business interests. Private sector investment operations and opportunities were discussed extensively at seminars and meetings with banks and potential investors in nearly all the European member countries. Similarly, cofinancing opportunities were explored with many official and commercial cofinanciers. And investment opportunities were discussed with the European bilateral and multilateral financiers to promote joint loan and/or equity participation in ADB-sponsored projects. ERO did not pursue resource mobilization, for ADB s Asian Development Fund and ordinary capital resources, as these issues will continue to be managed directly between headquarters and ADB s member governments. B. ERO s Usefulness from the Perspective of its Constituency 1. Survey Results 15. A survey questionnaire was developed and sent to 353 individuals in Europe. The questionnaire was mailed to 52 individuals suggested by ERO and 31 individuals selected randomly 1 from the newsletter mailing list. While the response rate was good, (28 percent), the results are not fully representative of the constituency. 2 Information from survey responses (Appendix 4) included the following: Before ERO opened, ADB s level of recognition was rated poor to average across Europe and within individual European member countries. 1 While the individuals were selected at random, an attempt was made to ensure all countries were represented. 2 Responses are unevenly distributed among European member countries and are weighted heavily toward business and financial interest groups.

5 Before ERO opened, ADB s level of recognition was rated average to good among interest groups represented in the survey (predominantly business and financial sector interest groups). The opening of ERO has moderately improved the level of recognition for ADB across Europe, within individual European member countries, and within the interest groups surveyed. ERO s performance was rated good to very good in terms of (i) its contributions to the understanding of regional issues, (ii) clarification of ADB s purpose and functions, (iii) the quality of its public presentations, and (iv) its response to information needs and requests. While the recent Asian financial crisis and business and financial issues are high priority interests, ERO should also discuss regional issues relating to the environment, governance, and the social sectors. While commercial and financial opportunities with ADB are high priority interests, ERO should also discuss ADB s country lending programs and its development policies and research program. Excluding the media, the Internet and theme conferences and seminars are the most preferred channels for disseminating information among the respondents, while government agencies and academic institutions are the least. 1 2. The Constituency 16. The general consensus among interest groups consulted is that a European office is required and ERO has helped raise the profile of ADB. However, ADB is not well known in Europe and ERO s outreach activities are constrained by current staffing levels. In addition, there is uncertainty regarding what ADB is trying to accomplish in Europe. To better serve the European constituency, interest groups noted that ERO s purpose and activities should be more clearly defined and explained. Comments and suggestions provided by ERO s interest groups are summarized in this subsection. a. The Governments 17. The governments consulted recommend that ERO d develop a business plan and share it to ensure that interest groups know what ERO expects of them and what they can expect from ERO. Governments also unanimously requested for regular ERO activity reports; this is considered a basic requirement for interacting with their country constituency on ERO-related issues. Governments noted that regular activity reports would reduce the need for ERO to meet counterpart ministries during every country visit. This would provide additional time for meeting other interest groups. 18. Governments suggested that ERO adopt a flexible approach to country visits. While country visits are important, ERO should also consider increased participation at events that 1 This response is reasonable in terms of ADB s ability to reach a large audience the qualitative element associated with information dissemination media also needs to be considered in designing an outreach program.

6 attract larger, pan-european audiences. This approach leverages staff resources by increasing information dissemination opportunities while providing an audience drawn from a number of European member countries. In terms of activities, governments stated that ERO needs to more closely align its outreach with ADB s development policies and strategies, in particular ADB s planned poverty reduction strategy. Governments noted that this strategy will guide ADB s activities for many years and that it is important that the European constituency be informed about poverty in the Asian and Pacific Region, and what ADB is doing to reduce poverty. b. Business Associations 19. Business associations are generally pleased with ERO s level of interaction and the quality of service provided. However, respondents noted that European visits by headquartersbased Management and senior staff are infrequent and that ERO should catalyze more visits. In addition, it was suggested that ADB and ERO facilitate visits of Asian decision-makers to Europe, to help raise the profile of developing member countries and ADB. 2. Business associations noted that some outreach activities would have benefited from better coordination between headquarters and ERO, as overlapping country missions were occasionally fielded to discuss similar topics. On a similar note, information on planned European activities was not available to the public. Depending upon the event, business associations commented that they might be prepared to travel to meet with ADB management and staff if they are aware in advance of the opportunities. c. Financial Institutions 21. Financial institutions appreciate ERO efforts to explain the Asian financial crisis, ADB s public and private sector operations, and cofinancing. However, regarding cofinancing, most of the larger European public and private sector cofinanciers have established relations with ADB s headquarters; are familiar with ADB operations; and regularly meet the Office of the Cofinancing Operations (OCO) and operations staff in Manila, Europe, or developing member countries. Thus, ERO does not need to pursue cofinancing with the large official and commercial cofinanciers, which should be directly managed from headquarters by OCO. However, in collaboration with OCO, ERO could assist ADB s resource mobilization efforts by targeting financial institutions not familiar with ADB and its operations, for example, insurance companies, pension funds, and second-tier banks. d. The NGOs 22. ERO has had limited contact with development NGOs; most contact has been indirect (interaction at third party events) and reactive when required. However, NGOs have expressed interest in increased and direct contact with ERO and headquarters staff. 23. ERO s contacts with academia, including research institutes, have taken place primarily in northern Europe. This form of outreach has proven relatively cost effective and attractive as academia can attract a diverse and influential audience. 1 Academia has expressed appreciation for the ERO s outreach activities and would like the relationship to expand. Governments have also expressed interest in ERO expanding its academic outreach to more European member countries. 1 In some European countries, academics serve as members of government committees that address policy matters relating to development and foreign aid.

7 e. The Media 24. Governments believe that media contact should be an important part of ERO s outreach activities but that the office had not been very successful in establishing a media network. 1 The media are interested in reporting on ADB. Reporting suggestions made by print media include (i) special articles or supplements on ADB and its work in the Asian and Pacific Region, and (ii) a yearly feature coinciding with ADB s Annual General Meeting. Accordingly, the European media needs to be examined more closely to determine which journalists are interested in reporting on Asia and ADB, and which topics are considered newsworthy. A media outreach program can then be designed accordingly. f. Multilateral Financial Institutions and United Nations Agencies 25. While interaction with MFIs and UN agencies has been limited, these organizations have expressed interest in collaborating with ERO on a range of information dissemination activities. Various interest groups agreed that ERO should build closer relations with the European MFIs specifically the European Commission and UN agencies, as they sponsor events that attract large, pan-european audiences. In addition, the MFIs suggested that ERO explore opportunities with the European Development Finance Institutions, an umbrella organization for these institutes. C. Improving Effectiveness and Minimizing Costs 26. ERO subleases 3 square meters from a commercial bank in a medium-sized commercial building facing the Frankfurt Stock Exchange. As ERO is engaged predominately in outreach activities, the office was designed along functional lines, which lowered the establishment cost. To lower operating expenses, ERO jointly participates with the other building tenants in a contractual arrangement that outsources ground floor reception, security, and mail management. 27. ERO has introduced a number of measures to improve outreach effectiveness and lower administrative expenses. Outreach activities have been designed to meet a number of interest groups during each city mission. Third party events have been used to leverage ERO s public relations opportunities to large and more diverse audiences. In areas where ERO does not have expertise, the office has arranged a few missions by headquarters staff to visit Europe in order to broaden information dissemination activities. The ERO newsletter and brochure extend ERO s outreach capabilities. And to lower travel costs, ERO works with a travel agent that can arrange reduced hotel rates in all major European cities. 28. ERO was the first representative office to install video conferencing facilities. The equipment has been used for discussions with European business groups and headquarters staff. Use of this technology could be expanded for leveraging outreach activities within Europe and between headquarters and ERO. 1 While media outreach forms part of ERO s TOR, it was to be effected through specialized services originating from headquarters. On its own initiative, ERO had some success in seeing articles published in the monthly/quarterly journals for business interest groups. Attempts to facilitate articles in the daily and weekly news publications have met with little success.

8 IV. BENEFITS AND COSTS 29. When ADB opened its first representative office, the opportunity cost of not strengthening representation in donor countries was considered very high. Representative offices were considered essential for (i) sustaining the support of member governments and the general public, (ii) promoting understanding and awareness of the role and value of multilateral development assistance, (iii) mobilizing appropriate levels of official development assistance, (iv) demonstrating enhanced accountability and transparency, (v) facilitating relations with increasingly complex donor country constituencies, and (vi) strengthening interagency collaboration. These objectives remain valid for representative offices: ERO has had success in achieving these objectives and the office has demonstrated that it adds value for ADB as well as the European constituency. 3. In financial terms, ERO was projected to cost $365, to establish and $3.19 million to operate (including establishment amortization) from 1996 through 1998. The actual establishment cost was $297, and operating cost was $2.71 million (Appendix 5). The only operating expense item to exceed the estimate is office space: rent was costlier than anticipated. V. FUTURE OPERATIONS 31. To strengthen ERO s impact in Europe, a number of initiatives will be introduced that are aimed at improving activity focus and selectivity and outreach leverage. A. Terms of Reference 32. ERO s TOR currently includes outreach activities that provide limited value. Interaction with European government agencies on policy matters and resource mobilization issues is not required, as the preferred channels of communication are directly with headquarters and through ADB s Board of Directors. ERO will instead approach government counterpart agencies, when appropriate, as a sounding board and a resource for facilitating its country outreach programs. Interaction with known official and commercial cofinanciers is of limited value, as relationships are already established and such cofinanciers prefer direct dealings with OCO or the task managers for specific loans. Thus, ERO will focus on promoting and developing commercial cofinancing opportunities with financial institutions not familiar with ADB. Interaction with MFIs and UN agencies is not required for strategy, policy, and resource mobilization issues as communications of substance take place between headquarters. ERO will instead work more closely with these institutions to promote awareness and joint cooperation on outreach initiatives in Europe. 33. Given these circumstances, ERO s TOR will be reoriented to more clearly identify the focus of work and activities of the office as follows. 1. Primary Responsibility 34. ERO s primary responsibility will be to enhance public awareness of and support for ADB in its European member countries. To this end it will target interest groups, including academic institutions, business associations, chambers of commerce, employee and employer

9 associations, export and trade promotion organizations, financial associations and institutions, government and government agencies, NGOs, research organizations, and the media. ERO will improve its outreach by disseminating information (i) (ii) of a general nature covering (a) ADB s role and mission, long-term strategy, ownership and organization, development, operational and sector policies, public and private sector operations, and country operations and programs; and (b) the Asian and Pacific Region; and of a specialized nature, when appropriate, covering material aimed at specific interest groups. 2. Subsidiary Responsibilities 35. ERO s subsidiary responsibilities will include building relations with multilateral institutions, mobilizing resources, acting as an information conduit, and facilitating outreach. (i) ERO will coordinate and cooperate with multilateral institutions headquartered in Europe to strengthen relations and promote outreach opportunities. (a) Target interest groups could include the European Bank for Reconstruction and Development, European Commission, European Development Fund, European Investment Bank, Food and Agriculture Organization, International Fund for Agricultural Development, Organization for Economic Cooperation and Development, United National Industrial Development Organization, and World Trade Organization. (b) Outreach orientation will be the same as noted in paragraph 34 (i) and (ii) for activities directed at the multilateral institutions as well as for audiences attending joint outreach events. (ii) ERO will promote greater awareness among Europe s private sector of development trends and opportunities in the Asian and Pacific Region, leading to increased investment within the region and in ADB-assisted projects and programs. (a) (b) Target interest groups will include business associations, chambers of commerce, employee and employer associations, financial associations and institutions, fund management companies, export/trade promotion organizations, insurance companies, pension funds, regional banks, and venture capital companies; and Outreach orientation will be the same as noted in paragraph 34 (i) and (ii) but will focus primarily on the development, business and investment climate in the Asian and Pacific Region, ADB s country strategies and programs, and its public and private sector strategy, operations, and investment opportunities including cofinancing.

(iii) ERO will act as a conduit to keep (a) (b) ADB informed of the views, concerns and interests of European interest groups regarding ADB and the Asian and Pacific Region, and of initiatives that ADB may need to take to influence or respond to them; and the European member governments informed of ERO s planned and actual activities. (iv) ERO will facilitate outreach by catalyzing and assisting, when appropriate, ADB missions to Europe. B. Business Plan 36. Given the diversity of the constituency, ERO will develop a business plan with the assistance of a public relations consultant and in consultation with European interest groups to implement the TOR. The plan will address (i) the integration of ERO into ADB s external relations activities; (ii) the office s desired results and planned accomplishments in Europe; and (iii) target audiences, partner organizations, performance benchmarks, and other indicators that will help define ERO s activities. Taking into account the resources available to ERO, the business plan will be selectively designed to maximize outreach opportunities and potential with specific emphasis, where appropriate, on (i) pan-european and country-specific umbrella organizations that broadly represent particular interest groups, and (ii) interest groups that are not well informed about ADB and the Asian and Pacific Region. Attention will be given to building an effective media relations program and identifying ADB activities and country issues of particular interest in each of the European member countries. The business plan will provide direction over the medium term and will be structured along the lines of a three-year rolling work program. Upon completion, the business plan will be shared with concerned interest groups. C. External Relations 37. ADB is currently reviewing the scope and effectiveness of its external relations activities and the role of the Office of External Relations, as defined in the information policy and strategy, 1 so that ADB can become better known and more clearly understood in its member countries. One of the items being evaluated is the role and responsibility of the representative offices and resident missions with regard to external relations work. The review may lead to changes in the way ADB uses representative offices for external relations. Any changes will be incorporated into ERO s business plan during its formulation. D. Communications and Coordination 38. Good communications and coordination are important, particularly for an office with a constituency that includes 14 countries. To strengthen communications and coordination, a technical assistant will be assigned to the Office of the Vice-President (Finance & Administration) to help (i) coordinate the work of the representative offices, (ii) monitor the outreach activities of ADB and the representative offices in donor countries, (iii) inform staff about the activities of representative offices, and (iv) organize the annual joint consultation meeting for representative offices. In addition, (i) quarterly reports will be provided to the Board 1 R143-94: Information Policy and Strategy of the Asian Development Bank, 26 August 1994.

11 of Directors summarizing the outreach activities of the representative offices, and (ii) ERO will create a page on ADB s Internet site to provide information about the office and its activities. E. Administrative Arrangements 39. As is the general practice in representative offices, outreach activities have been designed so that one ERO professional staff is always available at the office. However, as ERO staff have Internet mail service and cellular phones and the office has few walk-in visitors, this practice has limited outreach value and will be discontinued. In addition, ERO s supporting staff will, when appropriate, be included in the outreach program for making presentations and running information booths. The net effect of changing these office practices will be more outreach activities in the European constituency. 4. To enhance ERO s outreach resources, the office will purchase two lightweight computer image projectors. This will allow staff to make computer-based presentations at any venue, without first having to arrange for an overhead projector to work with the office s current projection equipment. VI. CONCLUSIONS 41. ERO has improved ADB s ability to interact, disseminate information, and develop better working relationships with European interest groups. ERO facilitates information flow, both in terms of timeliness and quality, and contributes to informing the European constituency about ADB and its activities in the Asian and Pacific Region. 42. ERO has successfully addressed a number of items in its TOR, in particular outreach with business and academic interest groups, imparting added value and cost effectiveness to ADB s activities in Europe. Perceptions of the office are generally positive and supportive of an ADB presence in Europe. During ERO s first two years of operations, staff performed their tasks well and helped to raise ADB s profile in Europe. 43. Experience to date has shown that, with the available staff resources, ERO must be more focussed and selective in it outreach activities. Following the adoption of the initiatives discussed in this paper, specifically the modification of its TOR and development of a business plan, ERO will be able to more meaningfully contribute to enhancing public awareness of and support for ADB in its European member countries.

12 APPENDIXES Appendix Title Page Cited on (page, para) 1 Terms of Reference 13 1, 1 2 Interest Groups Consulted 14 1, 2 3 Activities: October 1996 to June 1999 16 2, 5 4 Survey Results 23 4, 15 5 Estimated and Actual Costs 32 8, 3

13 Appendix 1 EUROPEAN REPRESENTATIVE OFFICE TERMS OF REFERENCE As approved by the Board of Directors, 1 Representative Office are: the terms of reference for the European (i) regarding Bank-Government cooperation (a) (b) (c) to assist policy makers in the European governments and their agencies through the provision of timely information and dialogue on matters that directly affect ADB; to collect information of interest to ADB on legislation relating to ADB s capital subscriptions and ADF contributions and to respond directly and promptly to queries from the European governments and their agencies; and to keep ADB informed in a timely and comprehensive manner of the views, concerns and interests of the European governments and their agencies, and to provide advice on initiatives that may need to be taken by ADB to influence as well as respond to them. (ii) (iii) regarding cooperation with multilateral finance institutions and United Nations (UN) agencies headquartered in Europe, to assist the decision making processes of MFIs and UN agencies as regards strategic, policy, and resource mobilization issues that directly concern ADB; and regarding cooperation with nongovernment organizations (NGOs), to keep ADB informed of the views, concerns, and interests of the major NGOs (including the media, academia and other interested parties) which are pertinent to ADB, and of initiatives that ADB may need to take to influence and respond to them. 1 R254-95: Bank Representative Offices in Donor Countries: Establishment of a European Office and a Japanese Office, 29 November 1995, paragraph 3 R 33-95: Bank Representative Office in Donor Countries: Establishment of a North American Office, 17 January 1995, paragraph 26.

14 Appendix 2, page 1 INTEREST GROUPS CONSULTED Belgium France Germany European Investment Bank Federation of Belgian Enterprises Ministry of Finance Agency for International Promotion of Trend, Technology and Trade Banque Nationale de Paris Centre Français du Commercial Exterieur Le Moci Mantra Systems and Information Ministry of Economy and Finance OECD Development Center Association of German Chambers of Commerce DG Bank Deutsche Bank Research Federal Ministry of Economic Cooperation and Development Federal Office of Foreign Trade Information Frankfurt Chamber of Commerce German Investment and Development Company Kreditanstalt für Wiederaufbau Italy ANCE Building Industry Association Confidustria Italian Institute for Foreign Trade Ministry of Treasury Universita La Sapienza Viale Regina Elena Netherlands Confederation of Netherlands Industry and Employers Ministry of Finance Netherlands Development Finance Company Netherlands Foreign Trade Agency

15 Appendix 2, page 2 Spain Sweden Banco Bilbao Vizcaya Banco de Santander Compania Espanola de Financiacion del Desarrolla Ministry of Economy and Finance Foundation of Women s Forum Ministry of Foreign Affairs Swedish Export Credit Corporation Swedish Trade Council United Kingdom British Consultants Bureau British Trade Council Department for International Development London Chamber of Commerce and Industry

EUROPEAN REPRESENTATIVE OFFICE ACTIVITIES: OCTOBER 1996 to JUNE 1999 DATE CITY ACTIVITY MAIN CONTACT(S) OR ORGANIZER(S) -- PARTICIPANTS Austria 21-22 Oct. 97 Vienna Business Opportunities Seminar (with COSO) Foreign Trade Department of the Chamber of Commerce 27 Aug. 98 Vienna Consultations (government) Ministry of Finance and the Economic Chamber of Commerce 28 Aug. 98 Vienna Consultations (financial institutions) five financial institutions 28 Aug. 98 Vienna Consultations (small and medium industry) UNIDO Belgium 1-2 Apr. 97 Brussels Consultations (governement and EC) Ministry of Finance (MOF) and European Commission (EC) 15-17 Apr. 98 Brussels Consultations (government, EC and media) MOF, EC and three journalists 1 Sept. 98 Brussels Consultations (government) MOF 2 Sep. 98 Brussels Consultations (financial institutions) Export Credit Agency, Corp. of International Investment and 3 banks 2 Sep. 98 Brussels Consultations (EC) EC ( Directorate C) 23 Sep. 98 Brussels MDB Information Officers' Meeting European Investment Bank 17-18 Feb. 99 Brussels Consultations (Central Asian Republics) -- with PED EC (Directorates I & IA and Service Commun Reflex) and World Bank 14-15 Apr. 99 Brussels Second Commodity Risk Management Meeting International Task Force -- ERO attended at the request of SPO 18 May 99 Brussels Seminar: Private Sector Opportunities with the ADB Foreign Trade Board/Antwerp Chamber of Commerce -- 36 participants 18 May 99 Brussels Consultations (business groups) three contractors and one consulting firm Denmark 12 Nov. 96 Copenhagen Consultations (government) Ministry of Foreign Affairs (MFA) 28 May 98 Copenhagen Consultations (government -- work program) MFA 28 May 98 Copenhagen Consultations (private infrastructure financing) financial institutions 14 Sep. 98 Aarhus Seminar: Business Opportunities with the ADB MFA -- 35 companies and 4 participants 15 Sep. 98 Aarhus Seminar: The ADB and the Asian Financial Crisis University of Aarhus --15 faculty 15 Sep. 98 Aarhus Seminar: The ADB and the Asian Financial Crisis University of Aarhus -- 4 students 16 Sep. 98 Copenhagen Seminar: Business Opportunities with the ADB MFA -- 35 companies and 35 participants 16 Sep. 98 Copenhagen Briefing: Private Sector Operations & Cofinancing MFA -- seven financial institutions 17 Sep. 98 Copenhagen Seminar: The ADB and the Asian Financial Crisis Nordic Institute for Asian Studies -- 15 faculty and students 17 Sep. 98 Copenhagen Press Briefing 6 journalists 17 Sep. 98 Copenhagen Seminar: The ADB and the Asian Financial Crisis Copenhagen Business School -- 4 faculty and students

EUROPEAN REPRESENTATIVE OFFICE ACTIVITIES: OCTOBER 1996 to JUNE 1999 DATE CITY ACTIVITY MAIN CONTACT(S) OR ORGANIZER(S) -- PARTICIPANTS Finland 15 Oct. 96 Helsinki Consultations (government) Ministry of Foreign Affairs (MFA) 15 Oct. 96 Helsinki Consultations (cofinancing) Nordic Investment Bank (NIB) and Nordic Development Fund (NDF) 9 Apr. 97 Helsinki Consultations (government) MFA, Ministry of Trade & Industry (MTI) and Cabinet Committee Apr. 97 Helsinki Cofinancing and Private Sector Operations(with OCO) MFA -- Nordic country participants 11 Apr. 97 Helsinki Consultations(financial institutions and academia) NIB, World Inst. For Dev. Economic Research and University of Helsinki 17 Aug. 98 Helsinki Consultations (government and financial institution) MFA, MTI, NDF and commercial bank 2 Oct. 98 Tampere Consultations (businss group) Chamber of Commerce 2 Oct. 98 Tampere Round Table Discussion -- Asia issues 5 academic institutions -- faculty 2 Oct. 98 Tampere Seminar: The ADB and the Asian Financial Crisis University of Tampere -- 4 faculty and students 21 Oct. 98 Turku Round Table Discussion -- Asia issues University of Turku -- 2 faculty and students 22 Oct. 98 Turku Seminar: The ADB and the Asian Financial Crisis Abo Akademi University, Business Admin. Dept. -- 25 faculty and students 22 Oct. 98 Turku Seminar: The ADB and the Asian Financial Crisis Abo Akademi University, Center for SE Asian Studies--25 faculty and students 23 Oct. 98 Helsinki Consultations (government) MFA and MTI 22 Apr. 99 Helsinki Seminar: ADB and the Asian Crisis various academic institutions -- 2 students 22 Apr. 99 Helsinki Consultations (cofinancing) FINNVERA 23 Apr. 99 Helsinki Seminar: Business Opportunities with the ADB MTI -- 35 business participants 23 Apr. 99 Helsinki Consultations (government) MFA and MTI 24 Apr. 99 Vantaa Seminar: ADB and the Asian Crisis Mercuria Business School -- 45 participants 26-27 Apr. 99 Jyvaskyla Consultations (business groups) four contractors and equipment suppliers 27 Apr. 99 Jyvaskyla Seminar: ADB and the Asian Crisis University of Jyvaskyla -- 15 students France 21 Apr. 97 Paris Seminar: Greater Mekong Subregion (with PWD) French Center for External Commerce--arranged through ERO--64 participants 3 Jun. 97 Paris Speaker: Privatization Conference CFEI (COFACE Group) -- 6 participants 9 Feb. 98 Paris Global Projects '98 conference: round table ERO participated at request of IWD and PSG -- 7 participants 11 Feb. 98 Paris Global Projects '98 conference: speech ERO participated at request of IWD and PSG -- 7 participants 14 Jun. 98 Paris OECD/ADB Forum Information booth 3 Sep. 98 Paris Consultations (government) Ministry of Economy, Finance & Industry 4 Sep. 98 Paris Consultations (financial institutions) four financial institutions 9- Nov. 98 Lyon Microfinance Conference:Partners for Development UNCTAD -- 2 participants 9 Dec. 98 Paris Seminar: Business Opportunities with the ADB BNP Promex Club -- 3 participants 29 June 99 Paris Consultations (government) Ministry of Economy, Finance & Industry

EUROPEAN REPRESENTATIVE OFFICE ACTIVITIES: OCTOBER 1996 to JUNE 1999 DATE CITY ACTIVITY MAIN CONTACT(S) OR ORGANIZER(S) -- PARTICIPANTS Germany 12-13 Dec. 96 Bonn Consultations: host country agreement (with OGC) Ministry of Finance (MOF) and Ministry of Foreign Affairs (MFA) 4 Apr. 97 Frankfurt Project Discussions contractor/equipment supplier 15 Sep. 97 Bonn Consultations (government) MFA and Ministry of Economic Cooperation & Development (BMZ) 7 Oct. 97 Frankfurt Conference: Emerging Asia The Next 3 Years organized by ERO for OPR and EDRC -- 2 participants 14-2 Oct. 97 Frankfurt The Frankfurt Book Fair ERO participated at request of OER 6-7 Nov. 97 Munich Seminar: Business Opportunities with the ADB Munich business community - companies and 15 participants 21 Nov. 97 Frankfurt European Banking Congress (EBC) EBC and European Monetary Institute 13 Jan. 98 Bonn Consultations (government and business group) BMZ and German Chambers of Industry and Commerce (DIHT) 14 Jan. 98 Cologne Consultations (business group) Federation of German Industries 3-4 Mar. 98 Dusseldorf Environment Conference: speech on Financing BMZ, International Center for Transfer Of Environmental Technology Instruments for Environmental Technology Transfer 22 Apr. 98 Hamburg Business Opportunities Seminar (with COSO) BMZ -- 23 participants 24 Apr. 98 Cologne Business Opportunities Seminar (with COSO) BMZ -- 29 participants Jul. 98 Bonn Consultations (government) BMZ 13-14 Oct. 98 Cologne Information booth German Federation of Engineers -- booth for Bank publications 15 Oct. 98 Cologne Consultations (financial institutions) German Investment & Development Company (DEG) -- 14 officers 29 Oct. 98 Frankfurt Briefing: Infrastructure Financing under CFS commercial bank -- seven officers 3 Oct. 98 Berlin Speaker on Asian financial crisis and panel member European Consultants Unit (Annual Meeting) -- 7 participants 3-31 Oct. 98 Berlin Information booth European Consultants Unit (Annual Meeting) 16 Nov. 98 Frankfurt Speaker at Asian Initiatives Conference ABB Export Marketing -- 13 finance and industry participants 5 Mar. 99 Munich Seminar: Cofinancing Opportunities with the Bank commercial bank, global project finance team -- 2 participants 5 Mar. 99 Munich Consultations (cofinancing) regional bank 19 Apr. 99 Bonn Consultations (government/ngos) BMZ and Association of German Development NGOs 11 May 99 Dresden Seminar: The ADB and the Asian Financial Crisis World Trade Center Dresden -- 16 participants 12 May 99 Dresden Seminar: The ADB and the Asian Financial Crisis IFO Institute for Economic Research -- researchers 12 May 99 Dresden Seminar: The ADB and the Asian Financial Crisis Dresden University for Engineering and Business -- 9 faculty and students Jun. 99 Frankfurt Seminar: The ADB and its Activities organized at ERO for Norwegian School of Management (study tour) 16 Jun. 99 Berlin Consultations Association of Former Employees of the Bank, German chapter

EUROPEAN REPRESENTATIVE OFFICE ACTIVITIES: OCTOBER 1996 to JUNE 1999 DATE CITY ACTIVITY MAIN CONTACT(S) OR ORGANIZER(S) -- PARTICIPANTS Italy 5 Jun. 97 Rome Business Opportunities Seminar (with COSO) Italian Institute of Foreign Trade (ICE) -- 15 participants 3 Mar. 98 Milan Seminar: Greater Mekong Subregion (with PWD/IWD) Milan Chamber of Commerce -- arranged through ERO -- 55 participants 31 Mar. 98 Turin Seminar: Greater Mekong Subregion (with PWD/IWD) Turin Chamber of Commerce -- arranged through ERO -- 55 participants 19 Oct. 98 Rome Consultations (government) Ministry of Treasury 2 Oct. 98 Rome Seminar: Business Opportunities with the ADB ICE -- 25 participants 23 Nov. 98 Milan Seminar: Granting of Financing for Transnational BORITEC, Milan Chamber of Commerce and ICE -- 7 participants Co-operation Projects Netherlands -11 Mar. 97 Amsterdam Cofinancing for AIMC fund four financial institutions 23 Apr. 97 The Hague Seminar: Greater Mekong Subregion (with PWD) VNO-NCW -- arranged through ERO -- 55 participants 9- Jun. 97 The Hague Business Opportunities Seminar (with COSO) Netherlands Foreign Trade Agency (EVD) -- 75 participants 12 Sep. 97 The Hague Consultations (government and business) Ministry of Econ. Affairs(MEA) -- three ministries and three finance companies 1 Apr. 98 The Hague Seminar: Greater Mekong Subregion (with PWD/IWD) VNO-NCW -- arranged through ERO -- 55 participants 2 Apr. 98 The Hague Business Opportunities Seminar (with COSO) EVD -- 8 participants 8 Jul. 98 The Hague Consultations (government) Ministry of Finance, Ministry of Foreign Affairs and MEA Norway 17-18 Oct. 96 Oslo Consultations (government and cofinancier) Ministry of Foreign Affairs (MFA), Norwegian Trade Council and NORAD 14 Nov. 96 Oslo Business Opportunities Seminar (with COSO) NorwegianTrade Council (NTC) -- 35 companies 22 Sep. 97 Oslo Speaker: Financing Seminar - The Asian Plan Ministry for Trade and Industry (MOTI) -- 12 participants 23 Sep. 97 Oslo Speaker: Financing of Private Sector Projects in Asia commercial bank -- 35 participants 24 Sep. 97 Oslo Consultations (government) MFA 11 May 98 Bergen Seminar: Business Opportunities with the ADB Provincial Government and MOTI -- 45 companies and 75 participants 12 May 98 Bergen Seminar: The ADB and the Asian Financial Crisis Norwegian School of Economic and Business Administration -- 15 faculty 12 May 98 Bergen Seminar: The ADB and the Asian Financial Crisis Norwegian School of Economic and Business Administration -- 4 students 13 May 98 Bergen Seminar: The ADB and the Asian Financial Crisis Christian Michelsen Institute -- 15 participants 13 May 98 Trondheim Briefing on ADB Norwegian Institute of Technology 14 May 98 Trondheim Seminar: Business Opportunities with the ADB Trondheim Chamber of Commerce -- five companies and seven participants 14 May 98 Trondheim Briefing on ADB Norwegian University of Science & Technology -- 12 faculty

EUROPEAN REPRESENTATIVE OFFICE ACTIVITIES: OCTOBER 1996 to JUNE 1999 DATE CITY ACTIVITY MAIN CONTACT(S) OR ORGANIZER(S) -- PARTICIPANTS Norway (continued) 19 Aug. 98 Oslo Consultations (government and cofinancier ) MFA and NORAD 2-3 Oct. 98 Oslo Symposium on Human Development & Human Rights MFA, UNHCR and UNDP -- at request of OESD -- participants 1 Mar. 99 Oslo Seminar: The Markets in Asia towards the year 2 NTC -- 12 participants 3 Mar. 99 Oslo Seminar: The ADB and the Asian Financial Crisis University of Oslo, Center for Development and Environment -- 2 participants 3 Mar. 99 Oslo Seminar: The ADB and the Asian Financial Crisis Norwegian School of Management -- 95 participants 4 Mar. 99 Oslo Consultations (government and cofinanciers) MFA, NTC, NORAD, NORFUND and EKSPORTFINANS Spain 15-16 Apr. 97 Madrid Consultations (government) Ministry of Economy and Finance (MEF) Dec. 97 Madrid Seminars: ADB Day [with VP(F&A) and COSO] MEF -- 6 participants Dec. 97 Madrid Press Briefing [with VP(F&A) and COSO] 6 journalists 11 Dec. 97 Madrid Seminar: PRC & Hong Kong Seminar (with COSO) MEF -- 6 participants 12 Dec. 97 Barcelona Seminars: ADB Day (with COSO) MEF -- 2 participants 12 Dec. 97 Barcelona Press Briefing (with COSO) 4 journalists 6 Jul. 98 Madrid Consultations (government) MEF Sweden 4 Nov. 96 Stockholm Business Opportunities Seminar (with COSO) Swedish Trade Council (STC) -- 25 participants 15 May 98 Stockholm Consultations (government and business groups) Ministry of Foreign Affairs (MFA), STC and Chamber of Commerce 18 Aug. 98 Stockholm Consultations (government, business. financial) MFA, STC and Swedfund 29 Sep. 98 Stockholm Seminar: Business Opportunities with the ADB Swedish Trade Council -- 3 companies / 45 participants 3 Sep. 98 Stockholm Seminar: The ADB and the Asian Financial Crisis Stockholm University (SU) -- 55 faculty and students 3 Sep. 98 Stockholm Press Briefing 4 journalists 3 Sep. 98 Stockholm Roundtable: Asian Financial Crisis SU, Center for Pacific Asian Studies -- participants 1 Oct. 98 Uppsala Seminar: Recent Asia Developments Uppsala University, Council for Dev. and Assistance -- 4 faculty & students 1 Oct. 98 Stockholm Consultations (government) MFA 15 Mar. 99 Lund Seminar: The ADB and the Asian Financial Crisis Lund University -- 3 faculty and students 15 Mar. 99 Lund Seminar: The Asian Financial Crisis Lund University, Center for Asia Studies -- 2 faculty and students 16 Mar. 99 Gothenburg Seminar: The ADB and the Asian Financial Crisis Gothenburg University -- 6 faculty and students 18 Mar. 99 Stockholm Roundtable: Business Opportunities/ Asian Crisis MFA -- 12 participants