the ifc and the norway/ifc technical assistance trust funds (tatf) program presentation to norwegian...
TRANSCRIPT
The IFC and the Norway/IFC Technical Assistance Trust Funds (TATF) Program
Presentation to Norwegian Dialogue
May 13, 2004
The IFC and the Norway/IFC Technical Assistance Trust Funds (TATF) Program
Presentation to Norwegian Dialogue
May 13, 2004
International Finance Corporation
Agenda
1.1. What does IFC do and Why IFC does What does IFC do and Why IFC does TATA
2.2. The IFC Technical Assistance Trust The IFC Technical Assistance Trust Funds Program (TATF)Funds Program (TATF)
3.3. Donor (Country) Trust FundsDonor (Country) Trust Funds
4.4. Examples of TA Activities Examples of TA Activities UndertakenUndertaken
5.5. Opportunities for (Donor Country) Opportunities for (Donor Country) ConsultantsConsultants
6.6. Working with the IFC Trust Funds Working with the IFC Trust Funds Program Program
International Bank for Reconstruction and Development, 1945
International Finance Corporation, 1956
International Development Association, 1960
Multilateral Investment Guarantee Agency, 1988
IFC: Part of theWorld Bank Group
IFC: Part of theWorld Bank Group
IFC is owned by its 176 member countries, which collectively determine policies.
IFC MissionIFC Mission
Promote sustainable private sector Promote sustainable private sector investment in developing investment in developing
countries, helping to reduce countries, helping to reduce poverty and improve people’s livespoverty and improve people’s lives
• Provide loans and equity for viable Provide loans and equity for viable projectsprojects
• Mobilize capital from other sourcesMobilize capital from other sources
• Provide advisory servicesProvide advisory services
Services OfferedServices OfferedServices OfferedServices Offered
• Financial productsFinancial products:: loans, equity, loans, equity, quasi-equity, guarantees, and risk quasi-equity, guarantees, and risk management facilitiesmanagement facilities
• Resource mobilizationResource mobilization:: loan loan participations and securities participations and securities offeringsofferings
• Advisory servicesAdvisory services:: country, country, industry, financial, and technicalindustry, financial, and technical
Investments by SectorInvestments by Sector
FY03 Total Commitments: $5.03 billion
Gross investments, including loan syndications and financing for IFC’s own account. Also includes guarantees and risk management products, which are off-
balance-sheet.
SectorSector $ $ millionsmillions
FinancialFinancial 2,5292,529
Transportation, Transportation, Warehousing, & UtilitiesWarehousing, & Utilities
562562
Oil, Gas, Mining, & Oil, Gas, Mining, & ChemicalsChemicals
383383
Food & BeveragesFood & Beverages 378378
Industrial & Consumer Industrial & Consumer ProductsProducts
246246
Nonmetallic Mineral Product Nonmetallic Mineral Product ManufacturingManufacturing
194194
InformationInformation 182182
Accommodation & Tourism Accommodation & Tourism ServicesServices
9898
SectorSector $ $ millionsmillions
Wholesale & Retail Wholesale & Retail TradeTrade
9393
Textiles, Apparel, & Textiles, Apparel, & LeatherLeather
9191
Agriculture & ForestryAgriculture & Forestry 6666
Construction & Real Construction & Real EstateEstate
5050
Primary MetalsPrimary Metals 5050
Plastics & RubberPlastics & Rubber 4747
Health Care & Health Care & Education Education
3737
Pulp & PaperPulp & Paper 2323
Professional, Scientific, Professional, Scientific, & Technical Services& Technical Services
77
Why IFC does TA
• IFC’s main business: to make IFC’s main business: to make profitable private sector investments profitable private sector investments in developing countries.in developing countries.
• Constraints:Constraints:• Regulatory and legislative framework not Regulatory and legislative framework not
conduciveconducive• Project sponsor has limited knowledge of the Project sponsor has limited knowledge of the
industryindustry• New and unfamiliar technology, skills or New and unfamiliar technology, skills or
management may be requiredmanagement may be required• Audited financial statements may not be prepared Audited financial statements may not be prepared
according to international standardsaccording to international standards
2. What is TATF?
IFC’s TATF program secures funding for TA IFC’s TATF program secures funding for TA projects to help projects to help strengthen the business strengthen the business environmentenvironment and promote private sector and promote private sector growth in developing economiesgrowth in developing economies
• FundingFunding: governments, development : governments, development institutions, & the World Bank Groupinstitutions, & the World Bank Group
• Eligible countriesEligible countries: IFC’s developing : IFC’s developing member countriesmember countries
• ManagementManagement: IFC, under its own operating : IFC, under its own operating procedures & agreements with donorsprocedures & agreements with donors
TATF Program Scope
Since establishment of TATF program in Since establishment of TATF program in 1988:1988:
• 46 trust funds with 23 donor agencies46 trust funds with 23 donor agencies• More than 1000 assignments approvedMore than 1000 assignments approved• In FY2003: 132 TA assignments totaling In FY2003: 132 TA assignments totaling
US$17 million approvedUS$17 million approved• Almost all our funds are tiedAlmost all our funds are tied• Size of assignments: $30~800,000.Size of assignments: $30~800,000.
Technical Assistance Trust Funds
Funds are used to support a wide range of Funds are used to support a wide range of activitiesactivities• Pre-investment feasibility or market Pre-investment feasibility or market
studies linked to potential IFC investmentsstudies linked to potential IFC investments• Support for SMEsSupport for SMEs• Sector Reviews and project identificationSector Reviews and project identification• Enabling environment including Enabling environment including
regulatory reformregulatory reform• Training and capacity strengtheningTraining and capacity strengthening• Privatization and advisory workPrivatization and advisory work
Types Of TA Assignments FY03
# of TA # of TA AssignmentsAssignments
Related to specific investmentRelated to specific investment 5858
SME SupportSME Support 5656
Sector reviews/identificationSector reviews/identification 3939
Enabling environmentEnabling environment 3333
Training and capacity buildingTraining and capacity building 3131
Privatization/corporate advisoryPrivatization/corporate advisory 3030
Post-privatization supportPost-privatization support 3 3
OthersOthers 8 8
• Eastern Europe and CISEastern Europe and CIS – Created in – Created in 1993 by the Eastern Europe Section of the Royal 1993 by the Eastern Europe Section of the Royal Ministry of Foreign AffairsMinistry of Foreign Affairs
• GeneralGeneral – Created in 1990 by NORAD – Created in 1990 by NORAD
3. Norwegian TA Trust Funds
3. Norwegian TA Trust Funds
TA Proposals—Processing Cycle
Promotion & Identification(IFC Investment Department identifies TA requirements)
Selection2. (Proposal brought to TF Program to select appropriate Trust Fund)
Detailed Review3. (Review and modify TA contents)
Consultation & Approval4. (Consultation with and approval from specific Trust Fund donor)
Implementation5. (Select and contract with consultants)
Follow-up & Reporting6. (Follow-up TA assignments and donor reporting)
1.
4. Examples of recently funded TA projects under
Norwegian TATFs• Mozambique – Advisory Services Mandate for Mozambique – Advisory Services Mandate for
Privatization of PetromocPrivatization of Petromoc• Comparative Study of the Development of the Comparative Study of the Development of the
IT Industry in China and India- Manufacturing IT Industry in China and India- Manufacturing or Servicesor Services
• Mozambique - Study into the Potential for Mozambique - Study into the Potential for Carbon Finance to Support the Introduction of Carbon Finance to Support the Introduction of Natural Gas into MozambiqueNatural Gas into Mozambique
• China – Minsheng Shipping Company: China – Minsheng Shipping Company: Assistance in Market Study/Business Planning Assistance in Market Study/Business Planning and Capacity Building in Financial Managementand Capacity Building in Financial Management
5. Opportunities for Consultants
• Industry and Sector SpecialistsIndustry and Sector Specialists• Accounting/FinanceAccounting/Finance• Financial MarketsFinancial Markets• SMEsSMEs• Health Care and Education Health Care and Education • Environmental and Social Environmental and Social
SustainabilitySustainability• OthersOthers
IFC’s other donor-supported TA programs
In addition to the Technical Assistance In addition to the Technical Assistance Trust Funds Program (TATF):Trust Funds Program (TATF):
• Sustainable Business Assistance Sustainable Business Assistance Program (CCF, SFMF, EOF)Program (CCF, SFMF, EOF)
• Foreign Investment Advisory Services Foreign Investment Advisory Services (FIAS)(FIAS)
• Private Enterprise Partnership (PEP)Private Enterprise Partnership (PEP)• SME FacilitiesSME Facilities• Norway/Bank Group TF for Private Norway/Bank Group TF for Private
Sector and InfrastructureSector and Infrastructure
Consultant Opportunities
• IFC DatabasesIFC Databaseshttp://www.ifc.org/tatf
• Meet with IFC task managers in Washington or Meet with IFC task managers in Washington or in the field (field office locations available on in the field (field office locations available on external web)external web)
• Executive Director’s OfficeExecutive Director’s Office• Innovation Norway Innovation Norway
6. Working with TATF6. Working with TATF
Working with TATF
Contact information :Contact information :
Fred Wright, Principal Project OfficerFred Wright, Principal Project Officer
Trust Funds DepartmentTrust Funds Department
International Finance CorporationInternational Finance Corporation
Washington DC 20433Washington DC 20433
Telephone: Telephone: 202-473-6076202-473-6076
Fax: Fax: 202-974-4344202-974-4344
E-mail:E-mail: [email protected]@ifc.org