Objectives
	The Italian Consulting Firms and Specialized Institutions Trust Fund was established by the Directorate General for Development Cooperation (DGDC) of the Ministry of Foreign Affairs of the Government of the Republic of Italy in July of 1992. The fund has the objective of financing on a non-reimbursable basis studies carried out by the Bank, such as preinvestment or feasibility studies, technical assistance, sector studies, and special programs or initiatives. Funds may be used in all IDB borrowing member countries, with preference for the following two groups of countries: First Priority Argentina, Bolivia, Chile, Colombia and Peru. Second Priority Brazil, Costa Rica, Dominican Republic, Ecuador, Guatemala, Jamaica, Nicaragua, Venezuela and Uruguay.
Projects Developed and Future Developments
Strategic Development Plan (Uruguay)	An Italian consulting company, under the financing of the Fund, elaborated the Strategic Development Plan for the Paysandu and Canelones Departments in Uruguay. The technical assistance project was developed in the context of the third phase of the National Municipal Development Plan for Uruguay, for which the Bank is in the process of approving a US$ 55 million loan. The technical assistance developed in collaboration with the local authorities has been useful in establishing the strategic guidelines for the rehabilitation of the productive sector in those departments, and the specific technical and financial requirements for the loan. The study demonstrated that the agricultural and agroindustrial sectors present the most interesting development prospects, despite existing difficulties derived from the increase in competitiveness of the local and international markets. The regional economic integration promoted in the context of the MERCOSUR justifies such optimism for the development of the agriculture and the agroindustrial sectors, as well as tourism in those Uruguayan Departments.
Legal and Institutional Environmental Framework (Regional)	The environment has become an important issue at all levels of government, business and society in general, both in the national and the international arenas. This concern is mirrored in new legislation and regulations being debated, proposed and implemented throughout the region. The Fund financed a study on six countries in South America carried out by an Italian consulting firm, with the valuable support of local expertise. The analysis considered a number of factors concerning environmental management of the beneficiary countries. Based on the analysis, actions were recommended for policymaking, planning, funding, cost effectiveness and enforcement of environmental protection in those countries. Recommendations were also made in regard to training and improved coordination between private and public stakeholders as well as the engagement of the media, NGOs and segments of society, especially in regard to actions against environmental violations. Contracting environmental services from the private sector was suggested as a possible solution to lower the costs of environmental protection activities, as well as the adoption of appropriate market-based instruments, together with adequate monitoring and auditing of the activities. In order to ensure an increasing demand for improved environmental standards and services, formal and informal environmental education at all levels was suggested as a priority for the region. The MERCOSUR regional integration agreements offer the possibility of harmonizing environmental standards and regulations across member countries, with adequate investments in environmental information systems and resource management. Therefore, conditions exist for the implementation of the recommendation of the technical assistance, depending on the political willingness of the beneficiary countries.
Future Projects Developments
	Italy can provide a broad range of expertise to assist the Bank's borrowing member countries in private sector development activities, as well as in those in the energy and transportation sectors. Other sectors included in the priorities of the Eighth Replenishment like modernization of the State and the environmental sector could also generate business opportunities for Italian consulting firms. The Trust Funds represent an effective way to promote expertise and generate profitable partnerships in Latin American and Caribbean countries. The donor could consider additional initiatives to promote the international visibility and access of Italian experts to the Bank's business.