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 tied aid, the recipient country must purchase the required goods and services from the country providing the aid. With untied aid, there are no restrictions on where the recipient country can buy the goods and services it needs for a project. Most of the agencies listed below use untied aid, and Canadian companies would be eligible to bid on any of the tenders offered by these organizations. If an agency uses tied aid and its eligibility rules might restrict a Canadian company's ability to bid, this has been noted.

Donors from OECD countries have agreed to publish procurement notices for untied aid projects in a central location, the Untied Official Development Assistance website, although individual donor agencies remain the most complete source for procurement information.

Agence Française de Développement (AFD)

AFD is the main implementing agency for France's official development assistance to developing countries and its overseas territories. It finances projects and programs by means of grants, loans, guaranteed funds and debt-reduction development contracts.

Website: www.afd.fr/lang/en/home

Sector focus: AFD funds projects related to agriculture, water and sanitation, infrastructure and energy, the environment, health, education, and business and finance.

Geographic focus: AFD operates in more than 70 countries worldwide, principally in Latin America and the Caribbean, the Mediterranean and Middle East, sub-Saharan Africa and Asia.

Implementation: Projects are implemented by the recipient country's contracting authority and the local AFD office.

Procurement: AFD procurement covers two types of business opportunities: contracts awarded by the beneficiaries of its financing in its different intervention countries, and AFD's procurement for its own account. Details are available in the Business Opportunities section of the AFD website.

Tied/untied aid: Aid is untied.

Danish International Development Agency (DANIDA)

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/en/danida-en/

Sector focus: DANIDA supports projects related to social and economic development, human rights, governance, stability, security, humanitarian assistance and the environment.

Geographic focus: Africa, Asia, Latin America, the Middle East, Central Asia and the EU's eastern neighbours.

Implementation: As a general rule, Danish bilateral development cooperation is decentralized. The relevant embassies have the primary responsibility for development cooperation within a country, except in the case of the EU's eastern neighbours. In these latter countries, development assistance is carried out through the Neighbourhood Programme of the Ministry of Foreign Affairs.

Procurement: Refer to the Business Cooperation section of the website for detailed information about procurement, particularly the Business Contracts and Guidelines subsections.

Tied/untied aid: Aid may be tied or untied; the latter is restricted to DANIDA Programme Countries and South Africa. This may affect the eligibility of Canadian companies wishing to bid on a contract. For more information, refer to the Guidelines subsection of the website.

Department for International Development (DFID)

DFID is a department of the British government. It leads Britain's fight against global poverty by delivering UK aid around the world.

Website: www.dfid.gov.uk

Sector focus: DFID supports long-term programs that tackle the underlying causes of poverty. It focuses on education, health, economic growth, governance, climate and the environment, water and sanitation, food and nutrition, and humanitarian emergencies.

Geographic focus: DFID works in 28 countries across Africa, Asia and the Middle East.

Implementation: Most aid from DFID goes to developing countries either directly or through an international body, whichever is judged to achieve the best results.

Procurement: For details on becoming a DFID supplier, refer to the DFID Supplier Portal. For information about contracts and procurement, refer to the Procurement section of the DFID website. Note that DFID does not procure goods and associated services directly, but instead uses procurement agents. These are Crown Agents, Charles Kendall and Partners and the International Procurement Agency.

Tied/untied aid: Aid is untied.

EuropeAid Development and Cooperation

EuropeAid is a Directorate-General of the European Commission (EC). It is responsible for designing EU development policies and delivering aid throughout the world. Its goal is to reduce world poverty, ensure sustainable development and promote democracy, peace and security. EuropeAid coordinates the aid activities of the EU institutions, the EU Member States and other EU bodies.

Website: ec.europa.eu/europeaid/index_en.htm

Sector focus: EuropeAid funds projects and programs related to human rights, democracy, security, migration, hunger, sustainable development, environment, water, energy, agriculture, rural development, gender equality, children and youth, health, culture and infrastructure.

Geographic focus: The major focus is on projects in sub-Saharan Africa, the Caribbean, the Pacific, Latin America, Asia and Central Asia, the Gulf region and the EU Neighbourhood (North Africa, Eastern Europe, and Russia).

Implementation: Four geographical directorates oversee the implementation of EuropeAid projects. These are Directorate E (sub-Saharan Africa), Directorate F (the EU Neighbourhood), Directorate G (Latin America and the Caribbean) and Directorate H (Asia, Central Asia, the Middle East, the Gulf and the Pacific).

Procurement: Services, supplies and works contracts are awarded after a tendering process. For detailed information, refer to the Work with Us section of the website, and in particular to the Practical Guide subsection.

Tied/untied aid: Aid is partially tied, which may affect the eligibility of Canadian companies wishing to bid on a contract. For the most part, 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. For details, refer to the Rules on nationality and origin section of the Practical Guide.

Finland Department for Development Policy

Planning and implementing Finnish aid is the responsibility of the Department for Development Policy of the Ministry for Foreign Affairs.

Website: formin.finland.fi/public/Default.aspx?culture=en-US&contentlan=2

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's development cooperation centres primarily on its long-term partner countries, which are Ethiopia, Kenya, Mozambique, Nepal, Tanzania and Zambia.

Implementation: Finnish aid is implemented though country- and region-specific cooperation and multilateral cooperation. Portions of the multilateral funds may be channelled through the EU.

Procurement: For detailed information, refer to the Procurement Guidelines subsection of the Development Policy page of the Ministry website.

Tied/untied aid: Aid is untied.

German Development Bank (KfW)

On behalf of the German Federal Government, KfW and its partner, the German Investment Corporation (DEG), promote and support development projects in more than 100 developing countries worldwide.

Website: www.kfw.de/kfw.de-2.html

Sector focus: KfW funds projects related to poverty reduction and economic development, good governance, education and health care, and protection of the climate and the environment.

Geographic focus: KFW works in Africa, Asia, South and Central America, the Middle East and the Caucasus.

Implementation: Agreements reached between the government of a partner country and the German government serve as the basis for bilateral cooperation. Partner countries propose projects and programmes within the framework of these agreements and are responsible for their preparation and implementation.

Procurement: Partners in the developing country are responsible for procuring consultancy, construction works, supplies and services. KfW ensures that tendering and contract awards proceed according to international rules. For more information, refer to the Procurement section of the KfW website.

Tied/untied aid: Aid is untied.

Japan International Cooperation Agency (JICA)

JICA supports projects that further the socioeconomic development, recovery and economic stability of developing regions.

Website: www.jica.go.jp/english/index.html

Sector focus: JICA supports projects in 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 (ODA) loans, private sector investment finance and grant aid.

Procurement: Recipients of ODA loans are responsible for procurement under international competitive bidding rules. For details, refer to JICA's Handbook for Procurement Under Japanese ODA Loans.

Tied/untied aid: Aid financed under ODA loans is untied.

Kuwait Fund for Arab Economic Development (KFAED)

KFAED provides concessionary loans for development projects in Arab and other developing countries. The Fund also provides technical assistance to finance project feasibility studies and the training of nationals of the borrowing nations.

Website: www.kuwait-fund.org

Sector focus: The Fund concentrates on projects related to infrastructure, agriculture, irrigation, transport, communications, energy, water supply, sewage treatment, education and health.

Geographic focus: The Fund supports projects in the Arab nations; in Central, South and East Africa; in Latin America and the Caribbean; and in the Pacific.

Implementation: The executing agency within the recipient country is responsible for all aspects of project implementation, including procurement. KFAED, however, must approve each step in the implementation of the project.

Procurement: Procurement is carried out 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, although some bidding may be restricted to local and Kuwaiti suppliers of goods and services.

Luxembourg Agency for Development Cooperation (LuxDev)

LuxDev delivers most of Luxembourg's bilateral development assistance. The corporation is a private entity with a majority state ownership.

Website: http://luxdev.lu/en

Sector focus: LuxDev focuses on three key sectors: health; education, including vocational training and job integration; and integrated local development, including water and sanitation, decentralization and microfinance.

Geographic focus: LuxDev manages projects in Africa, Latin America, Asia and Southeast Europe. It maintains regional offices in Nicaragua, Senegal, Cape Verde, Burkina Faso, Kosovo and Vietnam.

Implementation: Projects are managed in cooperation with a national implementing agency of the partner country. This agency is designated in the project protocol established bilaterally by the governments of Luxembourg and the partner country.

Procurement: Procurement may be handled either by the implementing agency of the partner country or by LuxDev itself. For more information, refer to the Procurement section of the LuxDev website. For tender notices, refer to the Tenders section.

Tied/untied aid: Aid is untied.

Millennium Challenge Corporation (MCC)

The United States established the Millennium Challenge Corporation (MCC) in 2004 as a development partnership between the U.S. and developing countries. Funds are managed through individual Millennium Challenge Accounts (MCAs) established for recipient countries.

Website: www.mcc.gov

Sector focus: The MCC concentrates on projects related to economic growth, such as infrastructure, health, agriculture, food security, water, sanitation and the environment.

Geographic focus: Operational regions are Eastern Europe, Asia, the Pacific, the Middle East and Latin America.

Implementation: Recipient countries establish their own local MCA-accountable entities to manage and oversee all aspects of implementation, with funds monitored by the MCC.

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. For detailed information, refer to the Business and Procurement section of the MCC website.

Tied/untied aid: Aid is untied.

Read the MCC market document compiled by the Trade Commissioner Service.

Netherlands Directorate-General for International Cooperation

The Directorate-General for International Cooperation, a department of the Netherlands Ministry of Foreign Affairs, is responsible for providing development assistance to selected countries. Within the Directorate, this portfolio is handled by the Minister for Foreign Trade and Development Cooperation.

Website: www.government.nl/ministries/bz

Sector focus: Funding concentrates on gender, HIV/AIDS, education, sustainable economic development and the environment.

Geographic focus: The agency supports development in Afghanistan, Bangladesh, Benin, Burundi, Ethiopia, Ghana, Indonesia, Kenya, Mali, Mozambique, the Palestinian Territories, Rwanda, Sudan, Uganda and Yemen.

Implementation: The Netherlands channels a large share of its development budget through Dutch embassies abroad, multilateral channels such as the United Nations, and civil society organizations such as Oxfam and other NGOs.

Procurement: Procurement is carried out through the Ministry of Foreign Affairs. For more information, refer to the Doing business with the Ministry section of the website.

Tied/untied aid: Aid is untied.

Norwegian Agency for Development Cooperation (Norad)

A Directorate of the Norwegian Ministry of Foreign Affairs, Norad channels Norwegian development funds to numerous partner countries.

Website: www.norad.no/en/front-page

Sector focus: Norad focuses on the environment, climate change, energy, macroeconomics, public administration, global health and education.

Geographic focus: Norad provides bilateral aid to approximately 30 countries in Africa, Asia, Oceania, the Middle East, Eastern Europe and Latin America.

Implementation: Norad works with Norwegian companies, Norwegian government agencies and embassies, and a number of development assistance and cultural institutions to implement aid projects.

Procurement: The recipient country handles the preparation of the tender documents, contract negotiations and procurement, which must conform to Norwegian regulations.

Tied/untied aid: Aid is untied.

Saudi Fund for Development (SFD)

The SFD lends development funds to national governments only, not to entities such as aid agencies and NGOs. 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: Aid recipients include Uganda, Sierra Leon, Morocco, Sri Lanka, Ivory Coast, Tunisia, the Maldives, Gambia, Cape Verde, Ethiopia, Benin, Syria, China, Indonesia, Jordan, Burma, Mali, Mauretania, Tajikistan, Bahrain, Yemen and Cuba.

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.

Swiss Agency for Development and Cooperation (SDC)

The SDC is Switzerland's international cooperation agency. It is responsible for the overall coordination of the development activities and aid delivered by the Swiss Confederation.

Website: www.sdc.admin.ch/en/Home

Sector focus: Priorities include rural development, food security, climate change, the environment, water, health, education, governance, and emergency aid and reconstruction.

Geographic focus: SDC aid focuses on Africa, South America and the Caribbean, the western Balkans, the Middle East and Asia.

Implementation: The SDC awards contracts ("mandates") to competent entities to implement development projects. These entities include specialized non-governmental organizations, specialized institutions and private companies.

Procurement: For detailed procurement information, refer to the Invitations to tender section of the SDC website.

Tied/untied aid: Aid is untied.

Swedish International Development Cooperation Agency (Sida)

Sida is part of the Swedish Ministry for Foreign Affairs. It administers approximately half of Sweden's total development aid budget, with the balance being channelled through the Ministry.

Website: www.sida.se/English/

Sector focus: Sida funds projects related to democracy, equality, human rights, economic development, health, social development, sustainable development and human security.

Geographic focus: Sida carries out development cooperation with 33 countries in Africa, Asia, Europe and Latin America.

Implementation: In most cases, the recipient country proposes, designs and implements the project.

Procurement: The recipient country usually carries out procurement except in cases where capacity is limited; Sida then becomes directly responsible for procurement. For more information, refer to the Procurement section of the Sida website.

Tied/untied aid: Aid is untied.

United States Agency for International Development (USAID)

USAID is the principal U.S. international aid and development agency. It delivers humanitarian and economic assistance to more than 100 countries.

Website: www.usaid.gov

Sector focus: USAID funds projects related to agriculture, democracy, governance, economic growth, trade, conflict prevention, the environment, water, education, health and a wide variety of other sectors.

Geographic focus: Worldwide.

Implementation: Programs are implemented, managed and maintained by the recipient country in cooperation with USAID.

Procurement: For detailed information about procurement, refer to the Get an Award section of the USAID website, particularly the Grant and Contract Process information. For tendering information, refer to the Partnership Opportunities section. Advance information on USAID contract opportunities is available through USAID's Business Forecast, which includes a listing of anticipated procurement opportunities. Additional aid and development contract opportunities, including those external to USAID contracts, may also be found on the US Government's FedBizOpps site.

Tied/untied aid: Until 2012, the majority of contracts related to USAID's development assistance were tied. In early 2012, however, the rules were amended to allow USAID funding to be used to procure commodities and services from non-U.S. firms. The rules governing such procurement are in the document Rules on Source, Origin and Nationality for Commodities and Services Financed by USAID (PDF*, 442 Kb).

Under these rules, a three-digit code identifies geographic locations that comply with USAID source, origin or nationality rules. As such, solicitations that include "Code 935" as the "authorized USAID Principal Geographic Code for procurement of commodities and services" means the solicitation is open to Canadian firms.

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