Multilateral Investment Fund
Project Characteristics
One of the key roles of the Multilateral Investment Fund (MIF) is to introduce
effective new approaches to promote private sector development. Projects
should have a credible plan and potential for financial sustainability once MIF
resources are expended and offer the potential to be replicated in other sectors
and/or other beneficiary countries. MIF projects are carried out with local
partners, and its participation must be critical to the outcome of a project and
the most appropriate choice to fund a given initiative.
General Conditions for Submitting Funding Proposals
Applications can be submitted any time of year and should be roughly seven
to 15 pages in length, exclusive of annexes. Applications should be sent to the
IDB Country Office in the country where the project would be located. From
there, the Country Office sends the completed application to the corresponding
regional operational department at IDB headquarters in Washington,
D.C., with its appraisal of the document.
Recipients
Depending on the exact scope of the proposed project, the MIF can provide
resources to both public and private sector organizations. Private sector
agencies can include nongovernmental organizations, industry associations,
chambers of commerce, etc., but must be nonprofit. The MIF Office, in conjunction
with Bank technical staff, conducts project analysis, design and processing.
The MIF Donors Committee approves each project, which is then
implemented under the direct supervision of the Country Offices.
Eligibility of Expenses
Costs eligible for MIF support within a project are actual costs borne by the
institutions during the duration of the contract and necessary for the performance
of the work defined in the contract. Costs may include all or part of the
following general categories: consulting services; seminars/workshops; payment
of trainers; development of instructional or training materials; and purchase
of licenses, software and minor computing equipment. MIF resources
are excluded for the following categories of expenditures: investment in
physical infrastructure (construction, land property and durable equipment
such as heavy machinery); direct credit to beneficiaries; purchase of raw
materials (agricultural and industrial); and subsidy and/or monetary compensation
for existing personnel of the executing agency. The MIF will reimburse
only actual expenditures within the limits set by the contract.
Counterpart Financing
The executing agency is responsible for counterpart contributions of at least
30 percent of the total amount of operation. One half of all local contributions
must be in cash (fresh investment during the project execution period). Fees
paid for services offered by the project will not be counted as counterpart
contribution.
For more information, please contact:
E-mail:mifcontact@iadb.org
Tel.:(202) 942-8211
www.iadb.org/mif
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