Conditions for Better Government

Transparency Fund

The IDB signed an agreement with the Royal Ministry of Foreign Affairs of Norway in March 2007 to establish the Transparency Fund (AAF), with an initial contribution of NOK30,000,000 (approximately US $5 million). Since 2007 the AAF received additional contributions from the IDB in 2011, Norway in 2012 and 2013, from Canada and MasterCard  in 2014, and Italy and Sweden in 2017. The objective of the Fund is to strengthen the institutional capacity of the Bank’s borrowing member countries to support the design and implementation of transparency and anti-corruption policies, mechanisms, and tools.


The Transparency Fund is a non-reimbursable technical cooperation multi donor trust fund. It accepts contributions from any donor or donors through the subscription of a Letter of Adherence to the initial donor agreement.

The Transparency Fund receives expressions of interest on a rolling basis (applications are reviewed upon submission).Proposals are selected according to the selection criteria described in the Operational Guidelines.Responsibility for the technical administration of the Transparency Fund resides with the Institutional Capacity of the State Division (IFD/ICS)at the IDB.

Areas of Strategic Support
  • Financial Integrity:support is targeted at preventing and controlling money laundering and strengthening fiscal transparency; in order to increase the institutional capacity of Bank member countries to identify solutions, improve legislation and implement strategies that enhance financial integrity.
  • Control Sistems:the objective in this area is to support countries in strengthening regulatory frameworks; to design and implement innovative control and auditing tools; to develop information sharing systems among control entities; and to create opportunities for South-South dialogue and cooperation.
  • Natural Resources Governance:the main purpose is to support countries in the development of solutions and action plans to implement transparency standards, including the guidelines of the Extractive Industries Transparency Initiative (EITI); to design systems to facilitate access to information; to provide technical assistance in the review of laws and regulations; and to support knowledge-creation and applied research.
  • Open Government: the overall aim is to conduct assessments, design, and monitor open government policies, strategies and action plans; to help countries to build or strengthen their capacities by implementing innovative open government solutions; and to promote south-south and extra-regional cooperation and strategic Bank-regional policy dialogue through the generation and dissemination of knowledge and good practices. 
Beneficiary Countries

All IDB borrowing member countries are eligible. Public and private sector entities including governments, civil society organizations, and private foundations are eligible to apply to the Fund for financing. The Transparency Fund considers regional initiatives as well as initiatives involving the national and/or sub-national levels of government (For more information see the Operational Guidelines).

So far, over 20 Bank member countries have benefitted from projects supported by the Transparency Fund. The recent Transparency Fund Review of Results and other reports available in the ¨Documents¨ section include information on a sample of projects financed by the Fund.

Eligible Activities

Initiatives that promote the design and implementation of transparency, anti-corruption and integrity policies, mechanisms and tools.

Support to preparation, execution and/or evaluation of loan or technical assistance projects, financed by other Bank’s sources, aimed at promoting transparency.

Eligible Entities

Proposals for financing may come from public entities, the Bank itself, civil society organizations, and regional and sub-regional organizations that have legal capacity to receive non-reimbursable technical assistance resources (grants).

How to apply to the Transparency Fund?

Applying for financing from the Transparency Fund requires that the interested institution or organization contact at the Transparency Fund’s Technical Secretariat (see contacts on this page) or an IDB Specialist in the proposed beneficiary country. If the project is aligned with the priorities of work between the Bank and the country, the Bank specialist will send the Expression of Interest to the Grants and Co-Financing Management Division (ORP/GCM) for identification of a funding source. If the Transparency Fund is deemed the most suitable funding source, ORP/GCM will forward the proposal to the Transparency Fund Technical Advisor, who will follow up with the team.

All proposals submitted to the Transparency Fund will follow the Bank’s standard policies and procedures on processing, approval, procurement, disbursement, and reporting.