Technical Cooperation

A total of 427 nonreimbursable technical cooperation projects for $167.8 million were approved in 2007. The IDB funds its grant program for technical cooperation with resources from the net income of the FSO, donor trust funds, the Ordinary Capital and the new IDB Grant Facility (GRF). In 2007, the FSO funded $30.7 million, donor trust funds $51.5 million, the Ordinary Capital $37 million and the GRF $50 million. Of the $51.5 million funded with trust fund resources, Japanese trust funds accounted for $23.2 million for 53 projects.

For social sector support, 125 projects were approved for a total of $31.7 million. They aim to promote social equity, improve efficiency in social spending and strengthen support systems for social programs. The sectors in which these projects were carried out include education, rural development, microenterprise, youth, violence prevention and protection of vulnerable groups, urban development and environmental protection.

Projects for competitiveness included 186 operations approved for a total of $86.8 million. The Bank provided support to its borrowing member countries for their own initiatives to improve competitiveness through the deployment of productive infrastructure (see Box 10 • IDB Fund Supports Infrastructure Investment), the use of innovative technology and support for small and medium-sized enterprises. The Bank also supported various trade and sustainable development initiatives.

The program for modernization of the state included approvals for 84 projects for $36.5 million, comprising projects to strengthen the institutional, regulatory and management areas of government entities, as well as good governance and results-based management in taxation, fiscal management, customs and public spending. E-government and information technology were also important areas supported by the Bank.

In the regional integration area, 32 projects were approved totaling $12.5 million. The Bank continued to focus on supporting countries in their integration processes at the subregional, hemispheric and international levels, with special emphasis on trade. Technical assistance was also provided for consolidation of subregional integration schemes.

Two new technical cooperation programs were approved by the Board in 2007: the Special Program to Support MDGs - Social Fund, and the Sustainable Energy and Climate Change Program. They supplement the special programs approved in 2006: the Program for Development Effectiveness (PRODEV); the IDB Integration Fund, which supports regional infrastructure initiatives; the Initiative for the Promotion of Regional Public Goods; the Disaster Prevention Fund; and the Infrastructure Project Preparation Fund (InfraFund).