WASHINGTON, D.C., July 15 -- The International Finance Corporation (IFC) and the Government of New Zealand have established a fund that will finance the provision of technical assistance by New Zealand experts to private businesses in developing countries. The NZ$400,000 (US$275,000 equivalent) Technical Cooperation Trust Fund will be financed by the Government of New Zealand and managed by IFC, with the aim of accelerating economic transformation in developing countries.
The agreement was signed for the Ministry of Foreign Affairs and Trade of the Government of New Zealand by Ambassador John Wood of the Embassy of New Zealand in Washington , D.C., and for IFC by Mrs. Birgitta Kantola, Vice President, Finance and Planning.
The fund will finance pre-feasibility and feasibility studies, the establishment of pilot projects, training and related services, technology transfer, technical assistance in the rehabilitation of projects experiencing difficulties, and technical advisory services in areas such as privatization and capital markets developments.
Ambassador Wood said, "Over the last decade, New Zealand has carried through a comprehensive program of economic reforms. We believe that our experience may offer some useful pointers for other countries making a similar transition. We look forward to developing a fruitful relationship with the IFC as the trust fund is implemented, and to working closely together to optimize the use of this important facility."
Mrs. Kantola said, "IFC is very pleased to be associated with this fund, which will have a strong developmental focus. We also appreciate the participation of the Government of New Zealand and look at the establishment of this fund as a logical follow-up to the business promotion visit by an IFC delegation to New Zealand in December 1995. New Zealand and IFC can play a vital role in promoting the growth of private sector enterprise in developing countries".
IFC initiated the Technical Assistance Trust Funds Program in 1988 in an effort to identify viable business projects in developing countries at an early stage. The program provides technical assistance and funding to help sponsors prepare projects and design proposals that meet the criteria of prospective investors. Since its inception, the program has supported more than 325 technical assistance projects in a broad range of sectors. It also supports some of IFC's privatization and advisory services and capital markets activities aimed at strengthening private sector institutions.
IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
