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The Year's Lending


Funds in Administration

During 2004, the Bank administered 55 trust funds for technical cooperation activities. This number includes the Regional Fund for Agricultural Technology (FONTAGRO); the Indigenous Peoples’ Fund; trust funds for microenterprise development; independent funds established by Austria, Canada, Japan, Korea, Spain, the United States and Venezuela; the Global Environmental Facility; and 37 funds under the Program for Development of Technical Cooperation among Member Countries of the Bank (TC/Funds Program).

The trust funds have been established by donors to provide support to IDB borrowing member countries through consulting services and training and, in some cases, cofinancing for Bank loans and microenterprise development projects. Among the funds in administration, the TC/Funds Program is currently the largest pool of resources. Since 1991, 48 funds have been established under the TC/Funds umbrella, with total contributions of $228.6 million. The program also encompasses five agreements for the provision of in-kind services.

In 2004, the nonborrowing member countries of the Bank contributed $45.6 million to trust funds. Funds have been established by Austria, Belgium, Canada, Denmark, the European Union, Finland, France, Israel, Italy, Japan, Korea, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom and the United States.

During the year, the United Kingdom, through its Department for International Development (DFID), established two new arrangements with the Bank in support of poverty reduction: the DFID-IDB Enlace Trust Fund, which focuses on social inclusion in Central America, and the Cooperation Framework Arrangement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Inter-American Development Bank, which stipulates the financial instruments to be used by DFID to fund IDB projects.

In addition, the Bank and the Global Environment Facility (GEF) signed a Memorandum of Understanding outlining the procedures for access to GEF’s Full-sized and Medium-sized Projects and Block A and Block C grants under its Project Preparation and Development Facility, along with a Financial Procedures Agreement with the World Bank as GEF trustor.

In conjunction with the agreement reached with the government of the Republic of Korea concerning the conditions for its admission as a new member country of the Bank, it is expected that Korea will participate actively in trust funds, particularly in the areas of technology and poverty reduction.

Trust funds have become the second largest source of financing for the Bank’s nonreimbursable technical cooperation projects after the FSO. In 2004, of the total $56.7 million approved under the nonreimbursable technical cooperation program, $24.8 million was financed with trust fund resources to finance 188 technical cooperation operations. In addition to this amount, the trust funds financed eight operations in support of the Bank for $8 million.

+ Table VII. Funds in Administration
TABLE VII • FUNDS IN ADMINISTRATION
   
Name Date Established Entrusted
by
Currency Contributions1
(US$ millions equivalent)
Sector Concentration or Purpose
Social Progress Trust Fund
1961 United States USD 525.0 Agriculture, sanitation, education, social sectors
Canadian Fund 1964 Canada CAD 47.2 Physical infrastructure and other sectors
Venezuelan Trust Fund 1975 Venezuela USD
VBO
400.0
100.0
Integration, natural resources, industry, exports
Norwegian Development Fund for Latin America 1987 Norway USD 2.0 Low-income groups, health, education, agriculture, small-scale industry
Japan Special Fund 1988 Japan JPY 208.2 Technical assistance, small projects, emergency assistance
Spanish Quincentennial Fund 1990 Spain EUR 83.8 Technical education, agriculture, health, communications, urban development
Belgian Trust Fund for Consultants 1991 Belgium EUR 3.1 Technical assistance for the preparation of projects
IDB Graduate Scholarship Program 1991 Japan JPY 26.6 Scholarship for advanced studies
Special Fund for Small Projects in Latin America 1991 European
Commission
EUR 9.9 Small projects and technical cooperation
Austrian Technical Cooperation Trust Fund 1992 Austria USD 1.0 Preparation, execution and supervision of projects
Israeli Consultant Trust Fund (Bank of Israel) 1992 Israel USD 0.7 Preparation and appraisal of economic and social development projects
Italian Consulting Firms and Specialized Institutions 1992 Italy USD 11.0 Sector studies and special programs
Italian Individual Consultant Trust Fund 1992 Italy USD 7.2 Short-term consultancy for development projects
Norwegian Fund for Women in Development 1993 Norway USD 9.9 Technical assistance, studies, training and seminars under the Women in Development
Program
Norwegian Technical Cooperation Trust Fund for Consulting Services 1994 Norway USD 8.7 Prefeasibility and feasibility studies in infrastructure, environment, health and education
Spanish Fund for Consultants (ICEX) 1994 Spain EUR 13.8 All sectors, preferably in agroindustry and industrial restructuring
Swiss Consultants Fund 1994 Switzerland USD 5.2 Activities sponsored by the Bank and the Bolívar Program
United Kingdom Fund for
Consulting Services
1994 United Kingdom GBP 0.8 All sectors of activities, particularly for project assessment and technical support studies
Japanese Trust Fund for
Consultancy Services
1995 Japan JPY 30.0 All sectors of activities for project preparation and implementation
USTDA-IDB Evergreen Fund for Technical Assistance 1995 United States USD 6.5 All sectors, preferably in support of infrastructure and industrial projects
European Special Fund for Technical Assistance in Latin America 1997 European
Commission
EUR 3.9 Improve preparation of projects, transfer of technology and development of human resources
European Special Fund for
Microenterprise
1997 European
Commission
EUR 15.9 Small projects and technical assistance
Finnish Technical Cooperation Trust Fund for Consulting Services 1997 Finland USD 2.0 Project identification, preparation and implementation, training, sector studies
French Technical Cooperation for Consultancy and Training Activities 1997 France EUR 19.5 Consultancy services and training activities in all sectors sponsored by the Bank
Norwegian Fund for Innovation in Social Programs 1997 Norway USD 5.6 Technical cooperation for social sector programs in the poorest countries of IDB Region 2
Indigenous Peoples’ Fund 1998 Regional USD 14.5 Endowment fund for assistance to indigenous peoples
Norwegian Fund for Microenterprise Development 1998 Norway USD 1.9 Technical cooperation for microenterprise projects in the poorest countries
Portuguese Technical Cooperation Fund 1998 Portugal EUR 1.2 Technical assistance, scholarships and training
Regional Fund for Agricultural Technology (FONTAGRO) 1998 Regional USD 34.0 Endowment fund for assistance in agricultural projects
Swedish Trust Fund for Governance, State Reform and Civil Society 1998 Sweden USD 1.1 Financing of projects for modernization of the State and civil society
Danish Consultants Fund 1999 Denmark USD 3.7 Prefeasibility and feasibility studies in infrastructure, environment, health and education
United Kingdom Capacity Building Fund for Local Institutions in Central America 1999 United Kingdom USD 3.1 Capacity building of local institutions in Central America
IDB Disaster Assistance and Reconstruction Fund 1999 Austria USD 4.1 Disaster assistance and reconstruction of countries affected by Hurricane Mitch
Italian Trust Fund for MIF Project Preparation 2000 Italy USD 3.2 Support for the preparation of MIF projects
Swedish Framework-Sida IDB Partnership Program 2000 Sweden USD 3.0 Social sectors of the poorest countries in Central  America affected by Hurricane Mitch
U.S. Department of Energy-Hemispheric Sustainable Energy Fund 2000 United States USD 1.3 Support clean energy technology projects in all energy-consuming sectors
Partnership Program in Environment 2000 Netherlands USD 5.0 Support environmental projects
The Netherlands Framework-Program for Women’s Leadership for Good Governance 2000 Netherlands USD 0.7 Support women’s leadership in civic and public life
Korean Trust Fund 2000 Korea USD 1.0 Assistance to Central American countries and social projects in Colombia
Global Environment Facility
Trust Fund
2000 GEF/
World Bank
USD 1.9 Project development facility for the environment
Spanish Framework-General
Cooperation Fund
2001 Spain EUR 44.4 Support projects in modernization of the state and governance, regional integration and competitiveness
Canadian Technical Cooperation Program 2001 Canada CAD 11.3 Consultancy services in all sectors with emphasis on social reform
Swedish Fund for Small Projects and Technical Assistance for Latin America 2001 Sweden USD 5.3 Small project financing for low-income groups
Swedish Trust Fund for Consulting Services and Training Activities 2001 Sweden USD 2.0 Consulting and training in areas of  social and economic development
Korean Trust Fund for the Republic of Colombia 2002 Korea USD 0.8 Assistance for social projects in Colombia
Netherlands Water Management Partnership Program 2002 Netherlands USD 4.8 Preparation of projects in water management
Italian Special Trust Fund for the Sustainable Development of the Republic of Argentina 2002 Italy USD 12.4 Sustainable development for environmental, urban renewal and infrastructure projects in Argentina
Italian Trust Fund for
Microenterprise Development
2002 Italy USD 5.8 Support for microenterprise development projects
IDB-Canada Trade Fund 2003 Canada CAD 4.7 Preparation of trade projects
Danish Consultants Fund 2003 Denmark USD 1.3 Projects aimed at poverty reduction
Italian Information and Communication Technology Fund 2003 Italy USD 3.5 Preparation of information technology projects
Social Inclusion Fund 2003 Norway
United Kingdom
USD
USD
2.2
0.7
Social inclusion projects
Finnish Technical Assistance Program 2003 Finland USD 0.8 Preparation of social development, good governance, environment projects
IDB/Global Environment Facility 2004 World Bank USD 7.5 Environment projects
IDB-DFID Enlace Trust Fund 2004 United Kingdom USD 0.4 Poverty reduction and social inclusion
1 Amounts reflect historical exchange rates.


See www.iadb.org/ar/tec

Japanese Funds

Since its establishment in 1988, the Japan Special Fund (JSF) has become a major source of untied resources for the Bank’s technical cooperation activities. One of the oldest and largest technical cooperation funds administered by the Bank, the JSF approved six projects in 2004 totaling $2.1 million, of which 61 percent targeted the social sectors. New contributions from Japan to the JSF in 2004 totaled approximately $2.6 million, raising the aggregate contribution to approximately $208.2 million.

In 2001, the government of Japan created the Poverty Reduction Program (JPO), setting aside $30 million from the JSF. The JPO uses innovative methods to provide direct assistance to poor and vulnerable groups, encouraging the participation of civil society organizations such as NGOs and community groups to enhance IDB loans.

A third initiative, the Japan Program, was created in 1999 with funds mainly from the government of Japan to facilitate the transfer of knowledge and the exchange of best practices between Latin America and Asia. In 2004, the Japan Program approved 12 technical cooperation projects for a total of $1.6 million.

Still another window, the Japanese Trust Fund for Consultancy Services (JCF), was created in 1995. In 2004, the Bank approved six JCF projects for $3 million. JCF funding is tied, requiring that at least 50 percent of project resources be used for Japanese consultants or consulting firms. Any sectors in which Japanese expertise is needed, such as infrastructure and the environment, are eligible for financing. In 2004, Japan contributed approximately $2.1 million to the JCF, bringing cumulative contributions to approximately $30 million (see Box 13).

+ Box 13. Japanese Trust Funds

See www.iadb.org/ar/jsfund

 

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