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Postal Voting

Mr. Andrew Turner: To ask the Secretary of State for Transport, Local Government and the Regions what steps he is taking to (a) safeguard the secrecy of the ballot, (b) protect voters from intimidation and (c) ensure that postal votes are completed by the voter to whom they belong, in postal ballots. [59174]

Ms Yvette Cooper: I have been asked to reply. We recognise that it is essential to make sure that new methods of voting do not undermine the integrity and security of the election process. Safeguards in relation to the postal voting have been in place for many years, and we have no reason to believe that they do not operate satisfactorily in all postal ballots. The Electoral Commission is evaluating the local authority pilot schemes that ran all postal ballots in the May 2002 local and mayoral elections, including issues such as security and privacy. The Commission will publish its report on 1 August 2002.

INTERNATIONAL DEVELOPMENT

CDC Capital Partners

Gregory Barker: To ask the Secretary of State for International Development, if she will list (a) those to whom CDC Capital Partners' sold its enterprise investments in the last three years and (b) the enterprise investments sold to them. [67390]

Clare Short [holding answer 11 July 2002]: In the last three years, CDC has sold the following significant equity investments to the following companies:

19 Jul 2002 : Column 575W

2000:

Investment	Buyer
Tip Top (Nicaragua)	Sun Valley Foods (Cargill Inc)
Usutu Pulp (Swaziland)	Sappi
Industrial Credit Company (Zambia)	Loita Capital Partners
Nanga Farms (Zambia)	Incumbent management team
PT Semen Andalas, (Indonesia)	Lafarge

2001:

Investment	Buyer
Housing Development Finance Corp (India)	Swiss Re Insurance Group
Pan Africa Cement	Lafarge
Zambia Sugar Corporation	Illovo Sugar
Eutco, Kawalazi, Sable (Tanzania and Malawi)	Global
Rwenzori Highlands Tea, Uganda	James Finlay
CG Glass, (India)	Koninklijke Philips Electronics

There have been no outright disposals so far in 2002.

Gregory Barker: To ask the Secretary of State for International Development, if she will break down by (a) region and (b) sector the representations her Department has received regarding the environmental impact of CDC Capital Partners' investments since 1997. [67367]

Clare Short [holding answer 11 July 2002]: In 1999 my Department received a representation concerning orange peel waste deposit by CDC in the Area de Conservacion Guanacaste, Costa Rica, under a local agreement. This was part of an experiment to recycle organic material to rehabilitate an area of degraded cattle pasture. In 2000 and 2001 representations were received concerning deforestation issues relating to oil palm plantations respectively in Indonesia and Papua New Guinea. The latter included concerns about protection of the habitat of the Queen Alexandra's Birdwing Butterly.

Gregory Barker: To ask the Secretary of State for International Development, if she will list the debts to the Treasury by CDC Capital Partners. [67388]

Clare Short [holding answer 11 July 2002]: CDC owes Government £755m in respect of loans made to CDC by my Department in the past. These were in the form of exchequer advances funded from the development assistance programme. CDC does not owe any debt to HM Treasury.

Gregory Barker: To ask the Secretary of State for International Development, what criteria are used in determining annual performance-related bonuses to CDC Capital Group executives [67371]

Clare Short [holding answer 11 July 2002]: The annual bonus pool, from which individual bonuses are paid, is determined by the Board from a set of objectives which is agreed each year. These objectives cover the areas of financial performance, portfolio management and non-financial factors, and are weighted appropriately:

Financial — accounting for 60 per cent of the pool

Portfolio management — accounting for 20 per cent of the pool

Non-financial — accounting for 20 per cent of the pool

19 Jul 2002 : Column 576W

Individual bonuses also depend on a number of factors including a 360-degree performance review and the individual's performance against personal targets.

Gregory Barker: To ask the Secretary of State for International Development, if she will list the sub-Saharan agri-businesses advertised for sale in 2001 by CDC Capital Partners; and what proportion those businesses represented in 2001 in CDC Capital Partners' sub-Sahran agri-businesses. [67381]

Clare Short [holding answer 11 July 2002]: The agribusinesses advertised for sale in 2001 are listed below. The figures in brackets represent their approximate proportionate value of the 2001 sub Saharan agribusiness portfolio.

Rwenzori Highlands Tea (10 per cent)

Shiselweni Forestry (2 per cent)

Sulmac (3 per cent)

York Farms (2 per cent)

Mpongwe Farm (15 per cent)

Kilombero Valley Teak (5 per cent)

Gregory Barker: To ask the Secretary of State for International Development, how many Commonwealth nationals employed by CDC Capital Partners have been made redundant since 1997. [67413]

Clare Short [holding answer 11 July 2002]: Since 1997 a total of 217 Commonwealth nationals (including UK employees) have been made redundant.

Gregory Barker: To ask the Secretary of State for International Development, what (a) current and (b) proposed (i) annual performance related bonus programmes and (ii) long term incentive plans exist for CDC Capital Partners' mid-level executives. [67373]

Clare Short [holding answer 11 July 2002]:
(i)(a) A current annual bonus programme exists which allows the Remuneration Committee to approve cash awards up to 50 per cent of an individual's base salary.
(b) No additional or new bonus plan is proposed.
(ii)(a) A long term incentive plan linked to NAV growth over a three-year period is in place.
(b) No new long-term plan has been proposed.

Gregory Barker: To ask the Secretary of State for International Development, what the proportional growth of CDC Capital Partners' (a) retail and (b) healthcare investments has been since 1997. [67393]

Clare Short [holding answer 11 July 2002]:) (a) retail — in 1997, retail represented 0.86 per cent of CDC's portfolio; today, retail represents 4.61 per cent of CDC's portfolio

(b) healthcare — in 1997, healthcare represented 0.16 per cent of CDC's portfolio; today, healthcare represents 3.25 per cent of CDC's portfolio

Gregory Barker: To ask the Secretary of State for International Development, if she will list the countries where CDC Capital Partners (a) has received and (b) receives exemptions on environmental regulations on its investments. [67377]

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Clare Short [holding answer 11 July 2002]: CDC Capital Partners does not ask for or receive exemptions on environmental regulations on any of its investments. CDC makes investments on the basis that any shortfall in the standards of social and environmental performance of the company, not only against local legislation but also against international good practice, will be addressed. Where substantial environmental improvements are required, it is possible that the investee company will request exemption from local environmental regulation in the short term, but this is only acceptable to CDC in the context of long-term improvement.

Gregory Barker: To ask the Secretary of State for International Development, if she will list CDC Capital Partners' agricultural investments in sub-Saharan Africa by country since 1997; describing the commercial activities in each case. [67361]

Clare Short [holding answer 11 July 2002]: CDC Capital Partners' new investments in agribusiness:

Year	Country	Company name	Commercial activity
2002	Tanzania	Tatepa	Tea blending and packaging business
1999	Tanzania	South Highlands Tea	Privatisation of smallholder tea factories
1998	Zimbabwe	Ariston	Diversified agribusiness holding co
1998	Kenya	Sulmac	Modernise floriculture and develop vegetable enterprise for export
1997	South Africa	New Farmers	Agricultural Investment Fund
1997	Mozambique	AGRIMO	Cotton production and ginning

Including the investments listed above, CDC has 37 agribusiness equity holdings as at end 2001.

Gregory Barker: To ask the Secretary of State for International Development, if she will list the countries where CDC Capital Partners (a) has received and (b) receives tax breaks on its investments. [67369]

Clare Short [holding answer 11 July 2002]: There are 44 countries in which CDC has a tax exemption not always available to other companies. Until recently CDC also received tax exemption in Costa Rica under an Operating Conditions Agreement (OCA) which CDC voluntarily gave up due to special circumstances in 2000.

A list of the 44 countries where CDC currently receives a tax exemption is below: Country

1

Anguilla

2

Bangladesh

3

Barbados

4

Belize

5

Bolivia

6

Botswana

7

Cameroon

8

Cote d'Ivoire

9

Cuba

10

Dominica

11

Dominican Republic

12

Ecuador

13

Egypt

14

Ghana

15

Guatemala

16

Guyana

17

Honduras

18

Indonesia

19

Jamaica

20

Kenya

21

Laos

22

Malaysia

23

Mauritius

24

Montserrat

25

Mozambique

26

Namibia

27

Nicaragua

28

Nigeria

29

Pakistan

30

Philippines

31

Sierra Leone

32

Solomon Islands

33

South Africa

34

Sri Lanka

35

St Kitts & Nevis

36

Sudan

37

Tanzania

38

Thailand

39

Trinidad & Tobago

40

Uganda

41

Vietnam

42

Zambia

19 Jul 2002 : Column 578W

Gregory Barker: To ask the Secretary of State for International Development (1) if she will list the unsuccessful formal investments and sale tenders in which CDC Capital Partners has participated, by sector, since 1997; [67398] (2) if she will list the unsuccessful formal investments and sale tenders in which CDC Capital Partners has participated, by country, since 1997. [67341]

Clare Short [holding answer 11 July 2002]: This information is not kept by CDC.

Gregory Barker: To ask the Secretary of State for International Development, if she will list CDC Capital Partners' disposal of investments by (a) sector, (b) size and (c) country since 1997. [67342]

Clare Short [holding answer 11 July 2002]: Full details are not available without disproportionate cost. However for a list of significant disposals, I would refer the hon. Member to my reply to his question. [67390]

Gregory Barker: To ask the Secretary of State for International Development, if she will list by (a) country and (b) sector the environmental impact studies (i) performed and (ii) contracted by CDC Capital Partners since 1997. [67378]

Clare Short [holding answer 11 July 2002]: An environmental impact study is carried out by CDC on every investment where the environmental risk is high, and where thorough mitigation, management and monitoring is therefore required. Where the risk is perceived to be medium or low, a detailed study and management plan is not required but a basic assessment of environmental issues will be undertaken by the Investment Manager, with advice from CDC's Business Principles Unit.

19 Jul 2002 : Column 579W

CDC does not hold records of environmental impact studies going back to 1997, but the following investments made in each of the years 1997 to 2002 were subject to a detailed environmental review.

Year	Country	Sector	Client Company
1997	Ghana	Minerals Oil & Gas	Abosso Goldfields Limited
1997	Kenya	Other Sectors	Nairobi Business Park Ltd
1997	Tanzania	Minerals Oil & Gas	East Africa Gold Mines Ltd
1997	Tanzania	Property	International House Property Ltd
1997	Uganda	Property	Rwenzori Courts Limited
1997	Zimbabwe	Agribusiness	Lake Harvest Aquaculture (Pvt) Ltd
1997	Indonesia	Agribusiness	PT Harapan Sawit Lestari
1997	Philippines	Cement	Alsons Cement Corporation
1997	Philippines	Power	Mirant Sual Corporation
1997	Solomon Islands	Minerals Oil & Gas	Gold Ridge Mining Ltd
1997	Bolivia	Other Sectors	Sociedad Boliviana de Cemento, SA
1997	Nicaragua	Agribusiness	Tip Top Industrial SA
1997	Sri Lanka	Power	Asia Power (Pvt) Ltd
1998	Ghana	Minerals Oil & Gas	Satellite Goldfields Ltd
1998	Mozambique	Minerals Oil & Gas	Mozal SARL
1998	South Africa	Minerals Oil & Gas	Kuyasa Mining (Pty) Ltd
1998	Papua New Guinea	Minerals Oil & Gas	Morobe Consolidated Goldfields Ltd
1998	Costa Rica	Property	Torre Mercedes SA
1998	India	Power	Lanco Kondapalli Power Ltd
1999	Cote d'Ivoire	Power	Azito Energie SA
1999	Indonesia	Agribusiness	PT Agro Indomas
1999	Indonesia	Agribusiness	PT Harapan Sawit Lestari
1999	Guatemala	Power	Orzunil 1 SA
1999	Guyana	Power	Americas and Caribbean Power Ltd
1999	Nicaragua	Power	Empresa Energetica Corinto Ltd
2000	Kenya	Other Sectors	The Junction Ltd
2000	Kenya	Power	Tsavo Power Co Ltd
2000	South Africa	Infrastructure	Comazar (Pty) Ltd
2000	Zambia	Minerals Oil & Gas	Konkola Copper Mines Ltd
2000	Indonesia	Agribusiness	PT Asiatic Persada
2000	Bolivia	Minerals Oil & Gas	Compania Minera Colquiri S.A.
2000	Dominican Republic	Power	Hart Energy Haina Ltd
2000	Dominican Republic	Power	La Compania de Electricidad de San Pedro de Macoris
2000	Guatemala	Power	Puerto Quetzal Power Ltd Liability Company
2000	Sri Lanka	Infrastructure	South Asia Gateway Terminals (Pvt) Ltd
2001	South Africa	Minerals Oil & Gas	Aquarius Platinum Ltd
2001	Tanzania	Power	Songas Company Ltd
2001	Nicaragua	Power	Empresa Energetica Corinto Ltd
2001	Sri Lanka	Power	Ace Power Generation Anuradhapura (Pvt) Ltd
2001	Sri Lanka	Power	Ace Power Generation Matara (Pvt) Ltd

Gregory Barker: To ask the Secretary of State for International Development, if she will list the investments visited by CDC Capital Partners for monitoring purposes; and how many times each has been visited since 1997. [67362]

Clare Short [holding answer 11 July 2002]: It is not possible to answer this question without disproportionate cost.

19 Jul 2002 : Column 580W

Gregory Barker: To ask the Secretary of State for International Development, if she will list, by country, the publicly guaranteed debt owed to CDC Capital Partners. [67386]

Clare Short [holding answer 11 July 2002]: As part of CDC's restructuring efforts, all outstanding public sector loans, guaranteed by host governments, were transferred to the Department for International Development in 2000. Therefore, there is no publicly guaranteed debt owed to CDC Capital Partners.

The Government does not stand as guarantor for any debt owed to CDC.

Gregory Barker: To ask the Secretary of State for International Development, if she will list the funds containing private capital (a) managed and (b) joint-managed by CDC Capital Partners; and how much capital has been in each fund since 1997. [67364]

Clare Short [holding answer 11 July 2002]: Between 1997 and 2000, CDC Capital Partners did not jointly manage any private equity funds. In 2001 CDC formed a joint venture fund management company with Norfund under the name Aureos Capital. A series of country funds which hitherto had been solely managed by CDC were rolled up as part of Aureos Capital and are now jointly managed.

Funds containing private capital managed and joint-managed by CDC Capital Partners since 1997

	Country/ region	Launch date	Size of fund (US$m)
Managed regional funds
South Asia Regional Fund	South Asia	1998	108
Comafin	Sub-Saharan Africa	1996	60
Managed country funds
Enterprise Capital Fund	South Africa	1995	20
Managed and transferred to Aureos in 2001 (2001 onwards— joint management with Norfund)
Central America Investment Facility	Costa Rica	1996	26.4
Ghana Venture Capital Fund	Ghana	1992	5.8
Acacia Fund	Kenya	1996	19.7
Indian Ocean Regional Fund	Mauritius	1999	18.0
Mauritius Venture Capital Fund	Mauritius	1995	7.5
Mozambique Investment Company	Mozambique	1998	14.0
Kula Fund	Pacific Islands	1997	16.9
NDBVI (Sri Lanka) "B" and Ayojana Fund	Sri Lanka	1993	16.7
Tanzania Venture Capital Fund	Tanzania	1993	7.6
Fedha Fund	Tanzania	1998	13.0
Zambia Venture Capital Fund	Zambia	1996	12.5
Takura Fund	Zimbabwe	1996	6.3
Aureos Capital Fund		2002	33
Jointly managed with CGU in China
CGU-CDC China Investment Company	China	2000	100

Gregory Barker: To ask the Secretary of State for International Development, what discussions she has had with CDC Capital Group board members regarding annual performance-related bonuses to CDC Capital Group executives. [67372]

Clare Short [holding answer 11 July 2002]: There have been periodic discussions over the last two years between my Department, the Treasury and senior CDC

19 Jul 2002 : Column 581W

management about the Long Term Incentive Plan (LTIP), which has been approved on an annual basis. Otherwise annual performance bonuses to CDC staff are the responsibility of the Board of CDC and its Remuneration Committee.

Gregory Barker: To ask the Secretary of State for International Development, what proportion of CDC Capital Partners' (a) retail and (b) healthcare investments are in (i) low-income and (ii) least-developed nations. [67392]

Clare Short [holding answer 11 July 2002]: CDC has no retail or healthcare investments in low-income or least-developed countries.

Gregory Barker: To ask the Secretary of State for International Development, if she will list CDC Capital Partners' investment partners by (a) sector, (b) country and (c) size since 1997. [37344]

Clare Short [holding answer 11 July 2002]: It is not possible to answer this question without disproportionate cost.

Gregory Barker: To ask the Secretary of State for International Development when her Department's review period for the financial advice service provider in relation CDC Capital Partners (a) began and (b) ends. [69056]

Clare Short: An advertisement was submitted to the Official Journal of the European Communities (OJEC) on 5 June inviting expressions of interest. The new contract is due to be awarded from 1 August 2002.

Gregory Barker: To ask the Secretary of State for International Development if she will renew the contract of CDC Capital Partners' chief executive. [69052]

Clare Short: The Chief Executive's contract is with CDC, not with my Department. The contract is automatically renewed unless either side (the employer or the employee) serves notice.

Gregory Barker: To ask the Secretary of State for International Development who (a) has participated and (b) will participate in selecting a financial advice service provider in relation to CDC Capital Partners. [69044]

Clare Short: An advertisement was submitted to the Official Journal of the European Communities (OJEC) on 5 June, in accordance with EU procurement rules, inviting expressions of interest. Formal bids have yet to be considered. The independent member on the evaluation panel has yet to be decided.

Gregory Barker: To ask the Secretary of State for International Development what discussions she has had with the Treasury regarding her Department's solicitation of financial advice service providers in relation to CDC Capital Partners. [69060]

Clare Short: No discussions have been held with the Treasury about the re-tendering of the financial advice consultancy to DFID for work on CDC. The Treasury has been kept informed about the exercise.

Gregory Barker: To ask the Secretary of State for International Development what the status is of CDC Capital Partners' (a) chief executive and (b) chairman. [69050]

19 Jul 2002 : Column 582W

Clare Short: Information about the Chairman and the Chief Executive is contained in the annual review for 2001. Copies of this are available in the Library of the House.

Gregory Barker: To ask the Secretary of State for International Development (1) what tenders criteria her Department uses in selecting financial advice service providers in relation to CDC Capital Partners; [69042] (2) what criteria were used in selecting a financial advice service provider in relation to CDC Capital Partners. [69043]

Clare Short: Formal bids will be assessed according the following criteria:
a. Demonstrated experience and knowledge of personnel and firm in (a) corporate finance, (b) private equity investment management (c) private equity and other funding instruments, (d) fund management contracts, (e) fund performance assessment, (f) incentivisation arrangement for fund managers and other personnel, (g) negotiation of transactions in these and related fields, and (h) access to current information on markets parameters and trends. (15 per cent).
b. Demonstrated experience and knowledge in capital markets and investment conditions in the poorer developing countries. (10 per cent)
c. Demonstrated capability to access potential UK and international investors and partners for CDC, including institutional investors, development finance institutions, and corporate investors. (5 per cent)
d. Demonstrated recent experience and understanding of UK Government PPPs and privatisations. (20 per cent)
e. Demonstrated appreciation of DFID's approach to pro-poor private sector development and the role of CDC in this context. (10 per cent)
f. Methodology of work proposed. (5 per cent)
g. Total cost, fees, average daily rates, number of days offered, special contractual conditions. (35 per cent)

Gregory Barker: To ask the Secretary of State for International Development which financial advice service providers followed up on their expressions of interest regarding providing financial advice in relation to CDC Capital Partners; and when the follow-ups took place. [69058]

Clare Short: One firm of consultants, following its expression of interest, approached the department with a query about the form in which its proposal should be submitted. It would not be appropriate to identify the firm, and the query was answered promptly. A further firm, which was not invited to make a formal bid, has also now approached the Department to ask why it was not short-listed. The closing date for receiving bids was 18 July.

Gregory Barker: To ask the Secretary of State for International Development when her Department expects to complete the tender for providing financial advice in relation to CDC Capital Partners. [69054]

Clare Short: It is currently envisaged that the contract will be awarded on 25 July, with the new contract taking effect from 1 August 2002.

Gregory Barker: To ask the Secretary of State for International Development what assessment her Department has made of the effectiveness of CDC Capital

19 Jul 2002 : Column 583W

Partners in improving the export competitiveness of lesser developed countries; and if she will make a statement. [69172]

Clare Short: None.

Gregory Barker: To ask the Secretary of State for International Development what assessment she has made of the background investigations performed on service providers tendering expressions of interest in providing financial advice in relation to CDC Capital Partners. [69046]

Clare Short: None. No background investigations have been performed.

Gregory Barker: To ask the Secretary of State for International Development what representations her Department has received regarding private investors' expressions of investment interest in CDC Capital Partners since 1999; and which private investors expressed investment interest and when. [69049]

Clare Short: No direct representations have been received.

Gregory Barker: To ask the Secretary of State for International Development what responses she has received, and when, to her Department's notice seeking expressions of interest from financial advice service providers in providing her Department with financial advice in relation CDC Capital Partners. [69057]

Clare Short: As the re-tendering exercise is currently in progress, it would not be appropriate to divulge this information.

Gregory Barker: To ask the Secretary of State for International Development if the current performance of CDC Capital Partners' chief executive would trigger a bonus payment. [69053]

Clare Short: Yes. The Chief Executive is eligible for a bonus along with all other CDC employees. Criteria are set each year in line with CDC's business plan. The amount is determined by the Remuneration Committee and, in the case of the Chief Executive, may be discussed with the Department.

Gregory Barker: To ask the Secretary of State for International Development what the real terms expenditure of CDC Capital Partners was on (a) publicity, (b) advertising and (c) press and public relations in each of the financial years since 1997; and what the figures are for the present year. [69171]

Clare Short: An exact breakdown is not available except at disproportionate cost. CDC retained a UK public relations agency in 1997 and 1998, but stopped their services in mid 1999.

CDC uses consultancies on a project basis, as and when required. CDC has no advertising/sponsorship campaign in place.

Gregory Barker: To ask the Secretary of State for International Development how long the contract is for the financial advice service provider in relation to CDC Capital Partners. [69045]

Clare Short: It is currently intended that the contract will be for 24 months, with the possibility of an extension for up to twelve months.

19 Jul 2002 : Column 584W

Gregory Barker: To ask the Secretary of State for International Development what discussions she has had with CDC Capital Partners' senior executives regarding her Department's tender for financial advisers in relation to CDC Capital Partners. [69061]

Clare Short: None.

Gregory Barker: To ask the Secretary of State for International Development when the contract of CDC Capital Partners' chief executive expires. [69051]

Clare Short: The contract of the Chief Executive would normally expire on his 60th birthday unless terminated earlier.

Gregory Barker: To ask the Secretary of State for International Development if she will list the financial advice service providers with whom her Department is negotiating to provide financial advice in relation to CDC Capital Partners. [69059]

Clare Short: It would not be appropriate to divulge which firms have been invited to tender for the financial advice consultancy.

Gregory Barker: To ask the Secretary of State for International Development if she will list the external consultants and advisors retained and used by her Department in respect of its plans to tender for financial advice in relation to CDC Capital Partners. [69055]

Clare Short: None.

Gregory Barker: To ask the Secretary of State for International Development what her assessment is of the implementation CDC Capital Partners privatisation plan. [69047]

Clare Short: In the current market conditions, the Government does not believe that it will be possible to sell a majority of CDC's shares in the near future at a price that represents good value for the development assistance programme. We are therefore exploring alternative ways to achieve the objective of the Public Private Partnership, to mobilise increased investment for the benefit of poorer developing countries.

Gregory Barker: To ask the Secretary of State for International Development what her Department's criteria are for private investors in CDC Capital Partners. [69048]

Clare Short: The willingness of private investors to invest in CDC or to work with CDC in joint ventures or at project level is entirely a commercial matter. Investors will, at the outset, be aware of the distinctive nature of CDC, and its commitment to investing for the benefit of developing countries and to ethical business principles.

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