Foreign Affairs and International Trade Canada
international.gc.ca
Common menu bar links
Bilateral Agencies
Bilateral development agencies finance projects that contribute to the economic and social development of recipient countries. Unlike multilateral development banks, bilateral agencies are responsible to a single government and are often part of a government ministry.
These agencies may use either program-based approaches (PBAs) or project-based approaches, or a combination of the two. PBAs, as the name suggests, concentrate on providing program-wide, coordinated support for a locally owned development program, using a single budget and harmonized donor procedures. The project-based approach tends to target its assistance in more specific and detailed ways and generally involves a higher level of donor-country control.
The development aid provided by these agencies may also be tied or untied. With untied aid, there are no restrictions on where the recipient country can buy the goods and services it needs for a project. With tied aid, by contrast, the recipient country must purchase the required goods and services from the country providing the aid. USAID, for example, provides tied aid; this means that a Canadian company, if it wants to work on a USAID-funded project, can do so only as a subcontractor to the US firm that secured the contract. With some exceptions, nearly all the agencies appearing below have partially or completely untied their aid.
Donors from OECD countries have agreed to publish procurement notices for untied aid projects in a central location, although individual donor agencies remain the most complete source for procurement information.
- Agence Française de Développement (AFD)
- Danish International Development Agency (DANIDA)
- Department for International Development (DFID)
- EuropeAid
- Department for Development Policy (Finland)
- German Development Bank (KfW)
- Japan International Cooperation Agency (JICA)
- Kuwait Fund for Arab Economic Development (KFAED)
- Lux-Development
- Millennium Challenge Account (MCA)
- Netherlands Ministry for Development Cooperation (NMDC)
- Norwegian Agency for Development Cooperation (Norad)
- Saudi Fund for Development (SFD)
- Swiss Agency for Development and Cooperation (SDC)
- Swedish International Development Cooperation Agency (Sida)
- United States Agency for International Development (USAID)
AFD is France's principal agency for overseas development assistance and is the main operator for the French Official Development Assistance system in more than 60 countries.
Website: www.afd.fr
Sector focus: AFD funds projects for infrastructure and urban development, rural development and environment, health, education, modernizing local financial sectors and supporting the private sector.
Geographic focus: Central and East Africa, the Indian Ocean area, Asia, the Mediterranean and the Middle East. Major recipients have been Morocco, Algeria, Tunisia, Vietnam, Kenya , Turkey, Madagascar, China, Ghana and South Africa.
Implementation: Projects are implemented by the recipient country's contracting authority and the local AFD office.
Procurement: The executing agency for each project looks after drafting tender documents and selecting principle suppliers and contractors, although AFD must assess and approve the final awarding of all contracts.
Tied/untied aid: Aid is untied.
DANIDA delivers aid through a variety of approaches, most of which are managed by the Agency's in-country program offices.
Website: www.um.dk
Sector focus: DANIDA supports projects related to social and economic development; human rights and good governance; stability and security; humanitarian assistance; and the environment.
Geographic focus: Tanzania, Uganda, Mozambique, Ghana, Bangladesh, Vietnam, Benin, Burkina Faso, Zambia, Egypt, Nepal, Nicaragua, Bolivia, Kenya and Bhutan. Some other countries, particularly in Africa and the Balkans, continue to receive Danish aid.
Implementation: Denmark decentralized the administration of its development assistance in 2003. This function has since been transferred from to the missions in the program countries.
Procurement: Procurement services are outsourced to procurement agents appointed by DANIDA under Program Country Enabling Agreements for each recipient country.
Tied/untied aid: Aid is partially tied. Service contracts for projects that DANIDA implements directly are open to citizens and firms within the European Union only. However, service contracts for projects that the recipient country implements are awarded according to the procurement rules of that country and are generally open to international firms.
The UK government's DFID promotes sustainable development in some of the world's poorest countries. It operates through several methods including budget support, sector-wide approaches and project assistance.
Website: www.dfid.gov.uk
Sector focus: DFID supports long-term programs that tackle the underlying causes of poverty. On the project side, it funds aid related to economic growth, education, healthcare, agriculture, water, sanitation and the environment.
Geographic focus: Africa, Asia, Eastern Europe, Latin America and the Caribbean. Major recipients have been India, Bangladesh, Tanzania, Afghanistan, Ghana, Ethiopia, Malawi, Uganda, Mozambique and Nigeria.
Implementation: Most funding is channelled through multilateral agencies, direct budget support and larger-scale programs. Support for smaller initiatives is provided through a variety of other funds.
Procurement: The DFID uses three procurement agents: Crown Agents, Charles Kendall and Partners, and the International Procurement Agency.
Tied/untied aid: Aid is untied, with some exceptions for emergency assistance and legal projects.
EuropeAid manages the European Commission's external aid, which is dispersed either as contracts for goods and services for beneficiary countries, or as grants for projects proposed by non-profit organisations.
Website: ec.europa.eu/europeaid
Sector focus: The EC funds projects and programs related to government and civil society, health, transportation, education, agriculture, forestry, fisheries, industry, mining, construction, water, sanitation, financial services and energy.
Geographic focus: Africa, the Caribbean and Latin America, the Pacific, Asia, the Gulf region, and the EU's southern and eastern neighbours are areas of operation. Major recipients have been Serbia and Montenegro, Nigeria, Afghanistan, the Russian Federation, Ethiopia, Egypt, Morocco, Kenya and Madagascar.
Implementation: The EuropeAid Cooperation office looks after all phases of the project cycle, including implementation.
Procurement: Services, supplies and works contracts are awarded after a tendering process managed by the EuropeAid office.
Tied/untied aid: Partially tied. Only firms established as legal entities in EU member states, or working in partnership with an institution of the recipient country, are eligible to bid on EuropeAid projects.
Planning and implementing Finnish aid is the responsibility of the Department for Development Policy, in cooperation with the Departments of Geographical Regions within the Ministry for Foreign Affairs.
Website: formin.finland.fi/public/Default.aspx
Sector focus: Finnish aid concentrates on project assistance and focuses on global security, the reduction of poverty, human rights and democracy, the environment and economic growth.
Geographic focus: Finland assists partner countries in Africa, Asia and the Americas. Major recipients have been Mozambique, Tanzania, Vietnam, South Africa, Serbia & Montenegro, Afghanistan, Nicaragua, Iraq, Ethiopia and Namibia.
Implementation: Finnish aid is implemented though country- and region-specific cooperation and multilateral cooperation. Portions of the multilateral funds may be channelled through the European Union.
Procurement: The Finnish Foreign Service handles procurement.
Tied/untied aid: Aid is untied.
KfW finances investments and consulting services in developing countries on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
Website: www.kfw.de
Sector focus: KfW funds projects related to social and economic infrastructure, financial systems, resource protection, education and health care, sewage and waste disposal, power supply, transportation, telecommunications and agriculture.
Geographic focus: KFW works in Asia, Europe, Latin America, North Africa, the Middle East and sub-Saharan Africa. Major recipients have been India, China, Morocco, Indonesia, Serbia and Montenegro, Pakistan, Albania, Armenia, Brazil and Tunisia.
Implementation: KfW has expanded its presence in developing countries and now performs more of its tasks on site.
Procurement: The project executing agency or local partner prepares and implements the project with the assistance of KfW. The executing agency officially puts the contracts for goods and works out to public tender but KfW must review and approve the award of any contract.
Tied/untied aid: Some restrictions apply. Bidding may be limited to businesses in the Federal Republic of Germany if competition is satisfactory. The tender may also be limited to the developing country because of the nature of the goods, or for technical reasons.
In October 2008, the Japan International Cooperation Agency (JICA) merged its operations with those of the Overseas Economic Cooperation Operations division of the Japan Bank for International Cooperation (JBIC). This amalgamation positions JICA as the primary Japanese government development agency.
Website: www.jica.go.jp
Sector focus: JICA intends to support projects in many sectors including education, health, water, transportation, telecommunications, energy, agriculture, environment, fisheries, poverty reduction and private-sector development.
Geographic focus: Worldwide
Implementation: JICA uses an array of development assistance schemes including technical cooperation projects, official development assistance loans, private-sector investment finance and grant aid.
Procurement: Contact JICA directly.
Tied/untied aid: Aid is generally tied in some fashion.
KFAED provides low-interest loans and technical assistance grants for projects proposed by governments in developing and transition economies.
Website: www.kuwait-fund.org
Sector focus: The fund concentrates on agriculture, transportation, communications, energy, water, sanitation, industrial development, education and health.
Geographic focus: Major recipients have been Egypt, Morocco, China, Bahrain, Lebanon, Sudan, Oman, Turkey, Bangladesh, Jordan, Syria.
Implementation: The executing agency within the recipient country is responsible for all aspects of project implementation, including procurement. KFAED must approve the selection of consultants and suppliers.
Procurement: Procurement is done by the implementing agency in the recipient country, or by consultants hired for that purpose. KFAED must approve the evaluation of offers.
Tied/untied aid: Aid is mostly untied. Margins of preference can be given to local and Kuwaiti contractors and suppliers for goods, works and consulting services.
Lux-Development (Luxembourg Agency for Development Cooperation) delivers most of Luxembourg's bilateral development assistance. The corporation is a private entity with a majority state ownership.
Website: www.lux-development.lu
Sector focus: Lux focuses on projects related to the health and social sectors, education, water, sanitation, agriculture, rural development and private-sector development.
Geographic focus: Lux maintains regional offices in Nicaragua, Cape Verde, Burkina Faso, Namibia and Vietnam.
Implementation: Projects are implemented by the executing agency in cooperation with the Lux Development project offices at each of its project sites.
Procurement: Procurement is handled by the Lux Development office with support from the Works and Equipment Section or the Project Monitoring Section.
Tied/untied aid: Aid is untied.
The United States established the Millennium Challenge Account (MCA) in 2003 as a development partnership between the U.S. and developing countries. Funds are managed by the Millennium Challenge Corporation (MCC).
Website: www.mcc.gov
Sector focus: The MCA concentrates on projects related to economic growth, such as infrastructure, health, agriculture, food security, water, sanitation and environment.
Geographic focus: Operational regions are Asia, Africa, Eastern Europe, Middle East, Latin America.
Implementation: Programs are implemented, managed and maintained by the recipient country.
Procurement: Recipient countries solicit, award and administer procurement for the funded programs via an "accountable entity" (also known as an "MCA Entity") established by the country.
Tied/untied aid: Funding is untied.
NMDC, part of the Ministry of Foreign Affairs, provides development assistance to numerous countries around the world.
Website: www.minbuza.nl
Sector focus: Funding concentrates on government and civil society, education, agriculture, forestry, fisheries, health, water, sanitation and economic infrastructure.
Geographic focus: The agency supports development in 36 countries, with major recipients being Bangladesh, Bolivia, Sudan, Afghanistan, Suriname, Indonesia, Tanzania, Yemen, Ethiopia and Vietnam.
Implementation: Implementation is the responsibility of the recipient, in concert with local Dutch embassies and various departments of the Ministry of Foreign Affairs.
Procurement: Procurement is done through the NMDC.
Tied/untied aid: Dutch development assistance is untied, although theme-based co-financing is reserved for organizations with a support base in the Netherlands.
Norad, part of the Norwegian Ministry of Foreign Affairs, channels Norwegian development funds to numerous partner countries.
Website: www.norad.no
Sector focus: Norad focuses on education, health, water supply and sanitation, government and civil society, transport and communications, energy, financial and business services, agriculture, fisheries, forestry, industry, mining and environment.
Geographic focus: Major aid recipients have been Ethiopia, Uganda, Mali, China, Zambia, Sudan, Malawi, Sri Lanka, Nicaragua, the West Bank and Gaza.
Implementation: Local Norwegian embassies play an important role in administering development assistance.
Procurement: The borrowing country handles the preparation of the tender documents, contract negotiations and procurement, which must conform to Norwegian regulations.
Tied/untied aid: Aid is untied.
The SFD lends development funds to states only and limits its involvement to 50 percent of a project's cost. It focuses on low-income countries although there are no geographical limits on lending.
Website: www.sfd.gov.sa
Sector focus: The Fund's priorities are transport infrastructure, power generation and supply, water and sanitation, and education and health.
Geographic focus: Major aid recipients have been Yemen, Sudan, Algeria, China, Lebanon, Morocco, Jordan, Turkey and Egypt.
Implementation: The recipient government is fully responsible for project implementation.
Procurement: The recipient government is fully responsible for project procurement.
Tied/untied aid: Aid is untied.
The SDC is Switzerland's bilateral development agency. It focuses on 17 priority countries and four special programs in Africa, Asia and Latin America.
Website: www.sdc.admin.ch
Sector focus: Priorities are agriculture, education, water, infrastructure, transport, environment, health, the financial and private sectors, and public sector management.
Geographic focus: Sub-Saharan Africa, South Asia, Latin America and the Caribbean, Europe and Central Asia, East Asia and the Pacific, the Middle East and North Africa. Major recipients have been India, Tanzania, Mozambique, Nepal, Bolivia, Vietnam, Burkina Faso, Bangladesh, Pakistan and Chad.
Implementation: Depending on the availability of the necessary expertise, projects are implemented either by the SDC itself or by Swiss and international organizations, local aid groups, consultants and authorized companies.
Procurement: The SDC Procurement Service coordinates and monitors the acquisition of services, particularly during bidding for contracts. Procurement of goods is currently of minimal importance for SDC.
Tied/untied aid: Aid is untied.
Sida is the arm of the Swedish government responsible for development cooperation. The agency works in approximately 120 countries and most sectors.
Website: www.sida.se
Sector focus: Sida funds projects in infrastructure, energy, transportation, telecommunications, urban development, education, health, natural resources and the environment.
Geographic focus: Worldwide. Recent major recipients have been Tanzania, Mozambique, Afghanistan, Ethiopia, the Russian Federation, Uganda, Nicaragua, West Bank & Gaza, Bosnia and Herzegovina, and Kenya.
Implementation: In most cases, the recipient country proposes, designs and implements the project.
Procurement: The recipient country usually does the procurement except in cases where capacity is limited; Sida then becomes directly responsible for procurement.
Tied/untied aid: Firms from any country are eligible for most, but not all, Sida-financed contracts. Some tenders are restricted to Swedish companies.
USAID is the principal U.S. agency assisting countries recovering from disaster, trying to escape poverty and engaging in democratic reforms.
Website: www.usaid.gov
Sector focus: USAID funds projects related to agriculture, democracy and governance, economic growth, the environment, water, education, health and a variety of other sectors.
Geographic focus: Worldwide. Major recipients have been Afghanistan, Uganda, Kenya, South Africa, Serbia and Montenegro, Ethiopia, the Russian Federation, Zambia, Sudan and Georgia.
Implementation: Programs are implemented, managed and maintained by the recipient country in cooperation with USAID.
Procurement: The Washington Office of Procurement negotiates and issues about half the contract and grant awards made by USAID. The other half is administered by contracting and grant staff at USAID Missions or by host country agencies.
Tied/untied aid: Most USAID development assistance is tied to US-sourced equipment and services.
