IFC - International Finance CorporationIFC - International Finance Corporation -- » Creating Opportunity...
 

Top Lessons by Subject

Technology

1. Sponsors: In projects using new technology or in technology-intensive industries, IFC should ensure that the sponsors:

  • are experienced and have deep pockets;
  • provide a completion guarantee;
  • provide detailed reports on previous tests of the process; and
  • provide training.
     
    2. New technology: IFC should be extra cautious when an investment involves new technology. Where this is the case, IFC should:
  • review IFC/Bank experience;
  • commission an independent assessment; and
  • factor in a longer implementation schedule and a larger contingency allowance.
     
    3. New technology and suppliers: When new technology is being used, suppliers of knowledge and equipment should be bound by tight contractual arrangements with heavy penalties for non-performance.
     
    4. Technological changes: In appraising a project subject to rapid technological changes, IFC should carefully analyze recent trends and safeguard against the possibility of obsolescence. This is best done by ensuring that the technical partner is a leader in the field and that the equipment or processes can be modified to permit the venture to remain competitive.


    The above lessons are based on 45 lessons from past IFC investments.
    Last updated December 1998    .

    • Site Tools