WASHINGTON, D.C., July 8—The International Finance Corporation (IFC) today announced commencement of operations of a new agreement, recently signed with the government of Canada, to finance technical assistance activities in countries with developing and transitional economies . The Agreement -- the third such collaborative arrangement between IFC and Canada -- provides CDN$3 million in funding to support technical assistance and services required to promote private sector development in IFC member countries.
The new trust fund will finance -- through the Canadian Industrial Development Agency (CIDA) -- a broad range of activities, including pre-feasibility and feasibility studies, training and technology transfer, establishment of pilot projects and advisory services focused on strengthening financial infrastructure and institutional capacity building. Sectors designated for particular emphasis under the new agreement include oil, gas and mining, infrastructure services, environment, and capital markets development.
Previous Canada/IFC Trust Funds have supported technical assistance for projects in such developmentally critical areas as modernization of textiles and fisheries operations, telecommunications and capital markets development -- for example, equipment leasing, stock exchange modernization and advisory services on assets securitization -- and on promoting environmentally sound business practices in mining, hydropower and metallurgy projects.
Mrs. Birgitta Kantola, IFC's Vice President for Finance and Planning who signed on behalf of IFC, said of the new Trust Fund "Canada and IFC have established a record of success in promoting mutual objectives and it is gratifying to be able to build on this collaboration. Access to Canadian expertise -- that complements IFC's unique role in private sector development -- is a very useful tool for providing the know-how required to develop and strengthen business ventures and to promote the growth of favorable investment environments."
IFC initiated the Technical Assistance Trust Funds Program in 1988 in an effort to identify, at an early stage, viable business projects in developing countries. The program provides technical assistance and funding to help entrepreneurs prepare projects and design proposals that meet the criteria of prospective investors, including IFC. It also supports some of IFC's privatization advisory services and capital markets activities aimed at strengthening private sector institutions. Since its inception, the program has supported over 380 technical assistance projects in a broad range of sectors.
IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
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