Washington DC, June 6, 2005—
The International Finance Corporation, the private sector arm of the World Bank Group, has approved a grant contribution of $150,000 (Sri Lankan Rupees 15 million) to support the Fisherman's Relief Trust Fund established by the Sri Lanka-based National Development Bank Group.
A long-standing IFC client, the company is currently a partner in NDB Housing Ltd. and Maldives Finance Leasing Co. Ltd.
The aim of the NDB Fisherman’s Relief Trust Fund (http://relief.ndbbank.com/frtf/frtf.jsp) is to repair or replace damaged fishing boats and equipment. It will focus on smaller day-boats used by poor fishermen. Affected fishermen will be identified through NDB’s branches as well as other reliable organizations.
The target is to raise a total fund of $1.5 million (Rs.150 million) which will enable the repair of an estimated 1,800 boats and 650 engines and the replacement of a further 450 boats, 60 engines, and 125 sets of fishing nets. 40 percent of the financing will be used in the north and east, 40 percent in the south, and the remaining 20 percent in the west. NDB has made an initial contribution of $100,000 (Rs.10 million) and will bear all administrative costs as well as provide all personnel required to manage and implement the project, expected to be operational for a six- month period.
Sri Lanka’s fisheries sector—although it contributes only about 2.7 percent of GDP—plays an important role in the country’s economy. It is significant in terms of employment as well as providing inexpensive nutrition to lower-income groups. Direct and indirect employment is around 250,000 and a total of 1.2 million people depend on the fishing industry.
“The fishing community is the hardest hit by the tsunami in terms of loss of shelter and livelihood and quick action is needed to get people back to work from both the economic and psychological points of view,” said Mr. Iyad Malas, IFC’s director for South Asia. He added, “IFC recognizes this and is delighted to join NDB’s efforts."
The NDB Fisherman's Relief Trust Fund is separate from and additional to IFC’s matching grant program for tsunami relief. The latter program, set up in January 2005, is already enabling companies to step up their participation in the relief effort; it is helping to alleviate infrastructure and distribution bottlenecks and is providing emergency health services and clean water.
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
