Other MDBs & Institutions

The following multilateral development institutions play a smaller part in development funding than do the six main MDBs. They are very important sources of loans and grants for many countries, however, and can provide attractive procurement opportunities for Canadian businesses.

• Arab Fund for Economic and Social Development (AFESD)
• European Investment Bank (EIB)
• Global Environment Facility (GEF)
• International Fund for Agricultural Development (IFAD)
• Islamic Development Bank (IsDB)
• North American Development Bank (NADB)

Located in Kuwait, the AFESD is a Pan-Arab development finance institution that provides project loans and technical assistance grants to member governments.

Website: www.arabfund.org

Sector focus: The AFESD finances projects in many sectors including transport infrastructure, power generation and transmission, water supply, irrigation, education and social housing.

Geographic focus: Most projects are in the Arab states of the Middle East.

Implementation: Projects are implemented by the recipient's executing agency under the oversight of the AFESD.

Procurement: AFESD-funded projects use International Competitive Bidding for procurement. Executing agencies evaluate the bids, although AFESD oversees the project during implementation.

Tied/untied aid: Aid is untied.

Based in Luxembourg, the EIB is the European Union's lending institution.

Website: www.eib.org

Sector focus: The EIB supports projects in construction and transport infrastructure, energy and alternative energy, industrial and manufacturing projects, telecommunications, environment and water. It also invests in human development in areas such as schools and hospitals.

Geographic focus: About 85 percent of EIB lending occurs within EU borders; projects tend to occur in the EU's less-developed regions. However, the Bank also finances projects in countries around the world.

Implementation: Implementation is the responsibility of the recipient country.

Procurement: The Bank verifies that a fair process of international tendering takes place, according to procedures set out in the EIB Guide to Procurement.

Tied/untied aid: Aid is untied.

GEF is an independent financial organization that provides grants to developing countries for projects that benefit the global environment and promote sustainable livelihoods in local communities.

Website: www.gefweb.org

Sector focus: GEF projects address six focal areas: biodiversity, climate change, international waters, land degradation, ozone layer depletion and persistent organic pollutants.

Geographic focus: Global.

Implementation: Only public-sector entities can propose and implement large-scale projects. Medium-sized projects can be proposed by public, private, or non-governmental organizations and be implemented by them.

Procurement: Procurement for GEF-funded projects follows the guidelines and advertising practices of the implementing agency.

Tied/untied aid: Aid is untied.

IFAD is an agency of the United Nations. It funds projects in developing member states to help the rural poor gain access to financial services, markets, technology, land and other natural resources.

Website: www.ifad.org

Sector focus: IFAD provides loans and grants for projects in agricultural development, financial services, rural infrastructure, livestock and fisheries, institution-building, food processing and marketing, research and training, and small- and medium-scale enterprise development.

Geographic focus: Global.

Implementation: Projects are implemented by an executing agency under the supervision of a cooperating institution, usually the United Nations Office for Project Services (UNOPS) or a multilateral or regional development bank.

Procurement: The executing agency looks after procuring goods, civil works and consulting services, following IFAD's procurement guidelines.

Tied/untied aid: Aid is untied.

The IsDB provides financing for public and private projects that support the social and economic development of member countries, as well as that of Muslim communities in non-member countries. It operates in accordance with the principles of Shari'ah.

Website: www.isdb.org

Sector focus: Funding concentrates on agricultural development and food security, infrastructure development, human development, trade among member countries and private-sector development.

Geographic focus: Projects have been carried out in the Middle East, Africa, Europe, Asia and Latin America.

Implementation: The recipient is responsible for preparing and implementing IsDB-financed projects.

Procurement: Procurement is undertaken by the recipient in accordance with the Bank's Guidelines for Procurement of Goods and Works or the Guidelines for the Use of Consultants.

Tied/untied aid: In general, procurement is limited to firms based in Bank member countries. Firms from non-member countries can only participate as prime bidders when sufficient capacity is unavailable within member countries.

NADB is capitalized in equal parts by the United States and Mexico, and finances environmental infrastructure projects.

Website: www.nadb.org

Sector focus: Projects must be related to potable water supply, wastewater treatment, municipal solid waste management, air quality, public transportation, hazardous waste and renewable energy.

Geographic focus: Projects must be within 100 kilometres north or south of the U.S.-Mexico border.

Implementation: All NADB-financed environmental projects must be certified by the Border Environment Cooperation Commission (BECC). Implementation is the responsibility of the project sponsor.

Procurement: Procuring goods and services is the responsibility of the project sponsor, subject to compliance with NADB policies. NADB monitors the procurement process.

Tied/untied aid: Aid is untied.