Re: What benefits do LDCs get

Anonymous — Fri, 13 Jun 2008 13:41:22 GMT

The purpose of FMO's LDC Infrastructure Fund (the Fund) is to contribute towards the construction and improvement of social and economic infrastructure in Least Developed Countries by providing financing through loans, equity, grants and credit guarantees which meet Official Development Aid (ODA) criteria. Financing is intended to facilitate commercially managed, private-public infrastructure investments which are both sustainable and socially responsible. Investments should serve as a catalyst to other sources of financing.

Amount:
Total Fund capital €208 million.

Starting principles:
• The focus is on infrastructure investments:
- Energy production and distribution
- Telecommunications
- Water supply and distribution
- Fixed infrastructure (ports, airports, railways, roads)
- Mobile infrastructure (ships, trucks, wharfs)
- Environmental infrastructure (waste processing, water purification, dumpsites)
- Social infrastructure (health care and education)
• The Fund is only applicable to LDC’s published annually in the OECD’s DAC-I list;
• Investments must fit in with the infrastructure policy plans of the countries concerned;
• Investments must contribute positively to combating poverty (employment opportunities, development and involvement of local business community);
• Investments can be either equity, subordinated/senior loans, grants, guarantees and combinations of these;
• The risk/return profile of the financial instrument must be on market terms;
• Grants may be used to finance non-commercial aspects which have significant development relevance in projects which are otherwise profitable (post-grant);
• The Fund can invest in profitable international/multilateral funds which promote infrastructure financing in the targeted sector(s), in the target markets relevant to the Fund;

Minimum conditions for LDC Fund financing:

Equity Participations:
• Maximum €21 million per transaction (10% of Fund capital) in the case of project finance.
• Maximum €10 million per transaction (5% of Fund capital) in the case of companies.
• All equity participations must incorporate exit agreements.

Subordinated and Senior loans:
• Maximum €21 million per transaction (10% of Fund capital).
• Term up to 20 years, repayment-free (grace) period possible up to 10 years.
• Currency USD, EUR or local currency.

Grants:
• Intended for non-commercial elements of infrastructure investments.

Re: Cape Verde - transition from LDC category

Anonymous — Fri, 23 May 2008 02:43:15 GMT

...... and Cape Verde is one of the Luxembourg Development Cooperation's 10 privileged partner countries. Austria is also among the most important bilateral donors for Cape Verde.

Germany has been an important donor country. But, since Cape Verde no longer belongs to the group of LDCs, development cooperation has been phased out.
The EU cooperation strategy for Cape Verde (for the years 2008-2013) will be centered on support to combat poverty through general budgetary support operations and support for the special EU/Cape Verde development partnership. 51 million EURO has been set aside for the period 2008-2013.

Re: Cape Verde - transition from LDC category

Anonymous — Thu, 22 May 2008 19:26:28 GMT

You can add US (Millennium Challenge Corporation) and French assistance to the above list.

CDP Blog - Responses

Re: What benefits do LDCs get

Re: Cape Verde - transition from LDC category

Re: Cape Verde - transition from LDC category