Best Practices

General Operational Policies*

TECHNICAL COOPERATION FUND (FONTEC)

Policy

The Technical Cooperation Fund Account, established as an independent account, shall consist of such monies as may be deposited thereto from time to time, with the purpose of providing nonreimbursable financing for the Bank's technical cooperation operations with its developing member countries, in conformity with the policies governing such operations.

Objectives

• To seek actively to attract and make effective use of technical cooperation funds from a variety of sources.

• To establish a consolidated strategy framkework with objectives and targets to ensure effective and systematic management of technical cooperation operations.

• To contribute in the promotion of the Bank's program of activities for the preparation of studies and the development of programs and projects that conform to the priorities established in the course of its programming exercises.

• To help consolidate technical cooperation policies, resources, and procedures, with the aim of greater institutional efficiency.

Resources

The FONTEC Account shall consist of funds in convertible currencies from the following sources:

The portion of the net income of the FSO in convertible currency, which the Board of Executive Directors shall make available each year to the FONTEC Account to meet the expenses of providing nonreimbursable technical assistance.

Income on investments of the liquid assets and financial income of the FONTEC Account.

Such additional contributions as may be placed at the disposal of the FONTEC Account by member and nonmember countries and by other national or international institutions and agencies.

Prevailing Reference Documents:
AB-1704-2, August 1995
Resolution AG-8/95

* The operational policies of the Inter-American Development Bank are intended to provide operational guidance to staff in assisting the Bank's borrowing member countries. Over the course of the Bank's more than 40 years of operations, the approach to developing operational policies has taken various forms, ranging from the preparation of detailed guidelines to broad statements of principle and intent. Many policies have not been updated since they were originally issued, and a few reflect emphases and approaches of earlier years which have been superseded by specific mandates of the Bank's Governors, the most recent being the Eighth Replenishment mandates of 1994. In accordance with the Bank's information disclosure policy, the Bank is making all of its operational policies available to the public through the Public Information Center. Users please note that the Bank's operational policies are under a process of continuous review. This review process includes preparation of best practice papers summarizing experience at the Bank and other similar institutions, and sector strategy papers.