WASHINGTON, D.C., Oct. 11 -- The International Finance Corporation (IFC) and the Government of Japan have established a fund that will finance technical assistance activities and programs to support the private sector of developing countries and countries in transition. The US$6 million Comprehensive Japan Trust Fund is being financed by the Japanese Government through the Ministry of Finance and will be managed by IFC through its Technical Assistance Trust Funds Program. The agreement establishing the trust fund was signed October 5, 1995 by Mr. Atsuo Nishihara, Executive Director for Japan, and by Mr. Jannik Lindbaek, Executive Vice President of IFC. The Comprehensive Japan Trust Fund supersedes an existing trust fund which was established in December 1989, with an initial contribution of US$600,000 from the Ministry of Finance. This fund was created to support technical assistance projects in IFC member countries in Asia and the South Pacific. The new fund will finance a broad range of private sector devel
opment activities, including pre-feasibility and feasibility studies, the establishment of pilot projects, training, technology transfers, technical assistance in the rehabilitation of projects experiencing difficulties, and technical advisory services in areas such as privatization and capital markets development. The fund is referred to as "comprehensive" because it can be used in any geographical region covered by IFC and for a wide variety of technical assistance projects. "The needs of the developing world are not solely for investment capital but also for technical advice and guidance. In this respect, this agreement with the Government of Japan -- which has always been a firm supporter of IFC -- marks a major step forward in our important and rapidly growing technical assistance work," said Mr. Lindbaek at the agreement signing ceremony. Mr. Nishihara added, "The Government of Japan is pleased to participate in this collaboration with IFC in order to aid its rapidly expanding technical assistance progr
am and thus enhance the Corporation's developmental impact." 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 companies prepare projects and design proposals that meet criteria of prospective investors. Since its inception, the program has supported more than 250 technical assistance projects in a broad range of sectors. It also supports some of IFC's privatization advisory services and capital markets activities aimed at strengthening private sector institutions. IFC is a member of the World Bank Group and the largest multilateral source of equity and loan financing for private sector projects in developing countries.
