IFC’s efforts in technical assistance and advisory services have grown rapidly over the past few years. Funded by donor countries and by IFC’s own resources, these activities have become an integral part of the Corporation’s mainstream business. They complement our commercial investments, improve development impact, and differentiate us from other financiers.
The Trust Funds Unit, Partnerships and Advisory Services Operations Department. This unit provides key support to the Corporation’s technical assistance and advisory work. In addition to managing donor trust funds, the unit coordinates overall donor relations, manages the Corporation’s own funding mechanism for technical assistance and advisory services, and supports IFC’s donor-funded operations in various areas, including financial management and procurement.
Technical Assistance Trust Funds Program. Established in 1988, the program incorporates a number of donor trust funds, which provide funding for short-term, one-time technical assistance projects carried out by external consultants. These trust funds allow IFC to offer integrated solutions that combine commercial investments and donor-supported technical assistance. In addition, they catalyze innovative business approaches and facilitate pilot projects, which often develop into long-term technical assistance. The program is currently sponsored by 23 donor countries that collectively contribute $15-20 million a year to support 100-150 new projects. While some of the trust funds are tied to the hiring of experts from the respective donor country, the majority allow limited engagement of local consultants. An increasing number of trust funds have no hiring restrictions.
Funding Mechanism for Technical Assistance and Advisory Services. Since FY04, IFC has designated a certain percentage of its net income to help fund the Corporation’s technical assistance and advisory services. A total of $350 million from our profits in FY04 and FY05 has been made available for this purpose. Through the mechanism, IFC will spend about $65 million per year on technical assistance and hopes to leverage this amount two to three times with additional funding from donors.
