§ Gregory BarkerTo ask the Secretary of State for International Development (1) if she will list the CDC Capital Partners' offices in the United States; and what the locations of those offices are; [67389]
(2) if she will list (a) the countries in which CDC Capital Partners has opened offices in the past three years and (b) the location of those offices; [67387]
(3) how many CDC Capital Partners' offices are in non-Commonwealth countries; and if she will list (a) those offices and (b) when they were opened. [67415]
§ Clare ShortCDC has offices in the United States in Miami (Latin America regional office), Houston (for GlobeleQ power fund) and Vienna, Virginia (India representative office). In the last three years, in addition to the three offices in the United States, CDC has opened in Beijing, Lagos, Mexico City, Cairo and Singapore.
CDC has offices in 10 non-Commonwealth countries. They are: Bolivia (1997), the People's Republic of China (2000), Costa Rica (1978), Cote d'Ivoire (1987), Cuba (1997), Egypt (2000), Indonesia (1971), Mexico (2000), Thailand (1971) and the United States (all three US offices opened in 2000).
§ Gregory BarkerTo ask the Secretary of State for International Development what the(a) target, (b) current and (c) projected rate of return on CDC Capital Partners' investments is, by sector, in (i) sub-Saharan Africa, (ii) South Asia, (iii) Latin America, (iv) Asia-Pacific and (v) China. [67349]
§ Clare ShortCDC will seek to make a rate of return on an individual investment commensurate with the associated risk involved. This will vary across sectors and geographies. Information about the target, current and projected rate of returns for individual investment is commercially sensitive.
§ Gregory BarkerTo ask the Secretary of State for International Development if she will make a statement on CDC Capital Partners' scheme for assessing the environmental impact of its investments. [67366]
§ Clare ShortEach new deal investigated by CDC is given a risk rating for health and safety, environmental and social issues. A formal environmental impact assessment is carried out by independent consultants, and an environmental management plan is put in place, where there is perceived to be a high risk of the investment potentially having a significant environmental impact (as may be the case with mining, cement manufacture, and projects involving large construction sites). Otherwise the deal team will review the possible environment impact of investments as part of its due diligence exercise and, if any specific areas of concern are identified, external appropriate consultants may be brought in to advise on these specific issues. CDC reviews any environmental concerns arising from existing investments via a formal investment valuation review every six months and through its Business Principles Unit.
450W
§ Gregory BarkerTo ask the Secretary of State for International Development what meetings she had with CDC Capital Partners' executives in April; what was discussed; and if she will make a statement. [67350]
§ Clare ShortI had meetings in April with the chairman, chief executive and finance director of CDC about the annual results in 2001 and the progress of the Public/Private Partnership.
§ Gregory BarkerTo ask the Secretary of State for International Development what CDC Capital Partners' stock options are held by(a) each executive director, (b) each non-executive director, (c) each office director and (d) other mid-level executives. [67385]
§ Clare ShortNone.
§ Gregory BarkerTo ask the Secretary of State for International Development by how much CDC Capital Partners' net debt increased in 2002; to whom the debt is liable; and at what interest rate in each case. [67345]
§ Clare ShortAt the start of the year CDC Group plc had net cash of £207 million and loans due to the Department of International Development (DFID) of £755 million, producing a net debt figure of £548 million. At 30 June 2002, the net cash was approximately £225 million and loans due to DFID remained at £755 million. The loans due to DFID are interest free.
§ Gregory BarkerTo ask the Secretary of State for International Development if she will describe CDC Capital Partners' criteria for assessing human rights conditions in the countries in which it invests. [67363]
§ Clare ShortCDC has developed a framework for assessing the human rights conditions in the countries in which it invests. This is informed by reference to international, governmental and NGO sources. CDC does not make investments in countries which are subject to UN sanctions. Specific issues may also be highlighted during due diligence into possible investments. The decision on whether to make a particular investment in a certain country will also be determined in part by whether acceptable labour practices will be able to be pursued and the investment will result in a positive benefit for the wider community.
§ Gregory BarkerTo ask the Secretary of State for International Development if she will list the years of CDC Capital Partners service of(a) the chairman, (b) the Chief Executive, (c) each member of the Board of Directors and (d) each member of the Management Committee. [67405]
§ Clare ShortInformation about the background and length of service of Directors and other members of the Management Committee was published in CDC Group plc's annual report for 2001. A copy has been placed in the Library of the House.
§ Gregory BarkerTo ask the Secretary of State for International Development what CDC Capital Partners' criteria are for sustainability by(a) sector and (b) country; and what steps are followed to (i) approve and (ii) reject investments. [67343]
§ Clare ShortSustainability in the context of private sector investment combines a judgment about both an investee company's commercial viability and about social and environmental responsibility, so that the investment 451W is not at the expense of people and the environment. This applies across investments in all sectors and countries. In the power sector, renewable energy sources are not always an option but CDC's strong preference is for cleaner fuels and every plant is committed to operating to international environmental standards.
All potential investments are subject to a social and environmental review, whether internally or by external consultants. I refer the hon. Member to the reply to Question 67366 at columns 449–50W. Any social or environmental concerns are fully investigated and any necessary action plans put in place before the investment is made.
§ Gregory BarkerTo ask the Secretary of State for International Development (1) what representations her Department has received regarding CDC Capital Partners' investments in African smallholders since 1997; [67368]
(2) what representations have been made to her Department regarding the effectiveness of CDC Capital Partners' website; [67354]
(3) what representations her Department has received regarding CDC Capital Partners' procedures for measuring the (a) infrastructure and (b) employment effects of its investments; [67394]
(4) what representations have been made to her Department concerning hours worked per month by CDC Capital Partners' executives since 1997. [67355]
§ Clare ShortNone.
§ Gregory BarkerTo ask the Secretary of State for International Development (1) if she will list the rate of return on each CDC Capital Partners' investment, broken down by sector, since 1997; [67352]
(2) if she will list the rate of return on each CDC Capital Partners' investment, by country, since 1997. [67346]
§ Clare ShortThis information is commercially sensitive.
§ Gregory BarkerTo ask the Secretary of State for International Development when she expects to complete the privatisation of CDC Capital Partners. [67407]
§ Clare ShortIn the current market conditions, the Government do not believe that it will he 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 BarkerTo ask the Secretary of State for International Development what discussions she has had with(a) the Chancellor of the Exchequer and (b) CDC Capital Partners' senior executives regarding the future tax position of CDC Capital Partners. [67347]
§ Clare ShortExtensive discussions took place in 1998 and early 1999 about the future tax position of CDC. Provisions for the future tax treatment of CDC were set out in Schedule 3 of the Commonwealth Development Corporation Act 1999.