Transparency
Conditions for Better Government

Transparency Fund

The Transparency Fund (AAF) was created in 2007 following an agreement between the IDB and the Norwegian Ministry of Foreign Affairs, which provided an initial contribution of approximately US$5 million.  Since then, the AAF has received additional contributions from the IDB (2011), Norway (2012, 2013, 2018 and 2019), Canada (2014), MasterCard (2014), Italy (2017) and Sweden (2017), totaling more than US$25 million.  The Fund supports institutional and regulatory reforms to improve transparency and integrity through three closely related approaches (i) alignment with international regulations and standards, (ii) targeted transparency, and (iii) the use of innovation and technology.  The AAF represents a strategic tool to align with the Bank's Update of the Institutional Strategy and promote a sectoral approach.

Overview

Since its inception, the Transparency Fund has supported more than 60 technical assistance projects worth more than US$20.6 million, covering all 26 IDB borrowing countries. These projects, in turn, have facilitated numerous lending operations focused on transparency, integrity and anti-corruption for more than $1.8 billion.

Examples of the Fund's results are: support to Brazil in the detection of thousands of cases of fraud in public subsidies; the digitalization of administrative procedures in Uruguay; support to more than 10 countries to comply with the standards of the Financial Action Task Force (more information on the Review of the Results of the Transparency Fund)

Areas of Strategic Support

 

  • Control Systems: support countries in strengthening regulatory frameworks; design and implement innovative control and audit tools; develop systems for sharing information among control entities; and generate opportunities for South-South dialogue and cooperation.
  • Financial Integrity: contribute to the prevention and control of money laundering and to the strengthening of fiscal transparency; increase institutional capacity to assess and improve relevant legislation and implement strategies to strengthen financial integrity.
  • Open Government: conduct evaluations, design and follow-up to open government policies, strategies and action plans; help countries create or strengthen their capacities through the implementation of innovative open government solutions; promote the Bank's strategic and regional policy dialogue through the generation and dissemination of knowledge and good practices.
  • Governance of Natural Resources: support countries in conducting assessments and preparing action plans to implement transparency standards, including the guidelines of the Extractive Industries Transparency Initiative (EITI); design systems to facilitate access to information; provide technical advice on the review of laws and regulations; support knowledge production and applied research.
Beneficiary Countries

All 26 borrowing member countries of the Bank are eligible to apply for AAF financing.

Eligible Activities
  • Initiatives to promote the design and implementation of transparency, integrity and anti-corruption policies, mechanisms and tools.
  • Support to the preparation, execution and/or evaluation of loan operations or technical assistance aimed at promoting transparency and financed by other IDB resources.
Eligible Entities

Public or private sector agencies (e.g. governments, civil society organizations, private foundations) of any of the IDB's borrowing member countries are eligible to apply for AAF financing. Proposed initiatives may be at regional, national or sub-national scale (more information in the Operational Guidelines). Applicants must have legal status to receive non-reimbursable technical assistance resources.

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.