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DevCo is an untied multi-donor facility established by IFC and the United Kingdom's Department for International Development (DFID) to support IFC's privatization advisory work in infrastructure. As part of its involvement with Private Infrastructure Development Group (PIDG)--a group of like minded donors seeking to increase private sector investment in the infrastructure of developing countries—the Dutch Ministry of Foreign Affairs, the Austrian Development Agency and Sweden's International Development Agency have also contributed funds to the facility. DevCo supports transactions in the poorest nations (DAC List Columns I-III) to increase private sector involvement in the provision of infrastructure structure services. The additional funds help defray the costs of expert consultants who work with teams lead by IFC's Advisory Services to prepare infrastructure projects for private sector investment. DevCo funds also help defray IFC's project development costs associated with identifying projects for DevCo to support. This mandate extends beyond the narrowest definition of infrastructure to include water and sanitation, electricity, telecommunications and ICT, transportation, housing, solid-waste and other physical infrastructure services. DevCo-supported transactions that have successfully led to the introduction of private participation include Moatize (the first public and competitive bidding for mineral exploration rights in Mozambique and the larger region), Polynesian Blue (creation of an award-winning joint venture for Samoa's national airlines), and the largest privatization of Kenya's 10-year program, Telkom Kenya. Successfully closed advisory mandates as of end-2007 are expected to generate US$1.87 billion in new private investment in infrastructure, and over US$1.7 billion in fiscal benefits to the government's involved. DevCo is currently supporting 16 advisory mandates:
To learn more about DEVCO projects, please refer to our Transaction List (PDF format). |
