International Finance Corporation

1. International Finance Corporation The IFC and the Norway/IFC Technical Assistance Trust Funds (TATF) ProgramPresentation to Norwegian Dialogue May 13, 2004

2. Agenda • What does IFC do and Why IFC does TA • The IFC Technical Assistance Trust Funds Program (TATF) • Donor (Country) Trust Funds • Examples of TA Activities Undertaken • Opportunities for (Donor Country) Consultants • Working with the IFC Trust Funds Program

3. IFC: Part of theWorld Bank Group IFC is owned by its 176 member countries, which collectively determine policies. International Finance Corporation, 1956 Multilateral Investment Guarantee Agency, 1988 International Bank for Reconstruction and Development, 1945 International Development Association, 1960

4. IFC Mission Promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives • Provide loans and equity for viable projects • Mobilize capital from other sources • Provide advisory services

5. Services Offered • Financial products:loans, equity, quasi-equity, guarantees, and risk management facilities • Resource mobilization:loan participations and securities offerings • Advisory services:country, industry, financial, and technical

6. Investments by Sector FY03 Total Commitments: $5.03 billion Gross investments, including loan syndications and financing for IFC’s own account. Also includes guarantees and risk management products, which are off-balance-sheet.

7. Why IFC does TA • IFC’s main business: to make profitable private sector investments in developing countries. • Constraints: • Regulatory and legislative framework not conducive • Project sponsor has limited knowledge of the industry • New and unfamiliar technology, skills or management may be required • Audited financial statements may not be prepared according to international standards

8. 2. What is TATF? IFC’s TATF program secures funding for TA projects to help strengthen the business environment and promote private sector growth in developing economies • Funding: governments, development institutions, & the World Bank Group • Eligible countries: IFC’s developing member countries • Management: IFC, under its own operating procedures & agreements with donors

9. TATF Program Scope Since establishment of TATF program in 1988: • 46 trust funds with 23 donor agencies • More than 1000 assignments approved • In FY2003: 132 TA assignments totaling US$17 million approved • Almost all our funds are tied • Size of assignments: $30~800,000.

10. Technical Assistance Trust Funds Funds are used to support a wide range of activities • Pre-investment feasibility or market studies linked to potential IFC investments • Support for SMEs • Sector Reviews and project identification • Enabling environment including regulatory reform • Training and capacity strengthening • Privatization and advisory work

11. Types Of TA Assignments FY03 # of TA Assignments Related to specific investment 58 SME Support 56 Sector reviews/identification 39 Enabling environment 33 Training and capacity building 31 Privatization/corporate advisory 30 Post-privatization support 3 Others 8

12. 3. Norwegian TA Trust Funds • Eastern Europe and CIS – Created in 1993 by the Eastern Europe Section of the Royal Ministry of Foreign Affairs • General – Created in 1990 by NORAD

13. TA Proposals—Processing Cycle 1. (IFC Investment Department identifies TA requirements) Promotion & Identification (Proposal brought to TF Program to select appropriate Trust Fund) 2. Selection 3. Detailed Review (Review and modify TA contents) 4. Consultation & Approval (Consultation with and approval from specific Trust Fund donor) 5. Implementation (Select and contract with consultants) 6. Follow-up & Reporting (Follow-up TA assignments and donor reporting)

14. 4. Examples of recently funded TA projects under Norwegian TATFs • Mozambique – Advisory Services Mandate for Privatization of Petromoc • Comparative Study of the Development of the IT Industry in China and India- Manufacturing or Services • Mozambique - Study into the Potential for Carbon Finance to Support the Introduction of Natural Gas into Mozambique • China – Minsheng Shipping Company: Assistance in Market Study/Business Planning and Capacity Building in Financial Management

15. 5. Opportunities for Consultants • Industry and Sector Specialists • Accounting/Finance • Financial Markets • SMEs • Health Care and Education • Environmental and Social Sustainability • Others

16. IFC’s other donor-supported TA programs In addition to the Technical Assistance Trust Funds Program (TATF): • Sustainable Business Assistance Program (CCF, SFMF, EOF) • Foreign Investment Advisory Services (FIAS) • Private Enterprise Partnership (PEP) • SME Facilities • Norway/Bank Group TF for Private Sector and Infrastructure

17. 6. Working with TATF • Consultant Opportunities • IFC Databases • http://www.ifc.org/tatf • Meet with IFC task managers in Washington or in the field (field office locations available on external web) • Executive Director’s Office • Innovation Norway

18. Working with TATF Contact information : Fred Wright, Principal Project Officer Trust Funds Department International Finance Corporation Washington DC 20433 Telephone: 202-473-6076 Fax: 202-974-4344 E-mail: fwright@ifc.org