Bilateral development agencies finance projects that contribute to the economic and social development of recipient countries. Unlike international financial institutions, 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.
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)
- Danish International Development Agency (Danida)
- Department for International Development (DFID)
- EuropeAid DG DEVCO
- German Development Bank (KfW)
- Japan International Cooperation Agency (JICA)
- Millennium Challenge Corporation (MCC)
- Netherlands Development Cooperation
- Norwegian Agency for Development Cooperation (Norad)
- Swiss Agency for Development and Cooperation (SDC)
- Swedish International Development Cooperation Agency (Sida)
- United States Agency for International Development (USAID)
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. Details are available in the Business Opportunities section of the AFD website.
Danida delivers aid through a variety of approaches, most of which are managed by the Agency's in-country offices. Refer to the Danida Business section of the website for information about procurement.
DFID is the department of the British government that leads Britain's fight against global poverty by delivering UK aid around the world. Refer to the DFID website for details on Procurement at DFID and becoming a DFID supplier via the DFID supplier portal.
The Commission's Directorate-General for Internatioal Cooperation and Development (DG DEVCO) is responsible for designing European international cooperation and development policy and delivering aid throughout the world. Services, supplies and works contracts are awarded after a tendering process. For more information, visit the How to apply for contracts section of their website.
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. Learn more about KfW's commercial activities abroad.
JICA supports projects that further the socioeconomic development, recovery and economic stability of developing regions. Recipients of ODA loans are responsible for procurement under international competitive bidding rules. For details visit JICA's Types of Assistance page on their website.
The Millennium Challenge Corporation (MCC) is a bilateral United States foreign aid agency established by the U.S. Congress in 2004, applying a new philosophy toward foreign aid. It is an independent agency separate from the State Department and USAID. 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. Visit the Work with Us section of the MCC website.
Read the MCC market document compiled by the Trade Commissioner Service.
The Directorate-General for Development and Cooperation of the Ministry of Foreign Affairs is responsible for providing development assistance to selected countries. Procurement is carried out through the Ministry of Foreign Affairs.
Norad, a directorate under the Norwegian Ministry of Foreign Affairs, is the Norwegian Agency for Development Cooperation. The recipient country handles the preparation of the tender documents, contract negotiations and procurement, which must conform to Norwegian regulations.
The Swiss Agency for Development and Cooperation (SDC) is an office-level agency in the federal administration of Switzerland. SDC is responsible for overall coordination of Swiss international development activities and cooperation with Eastern Europe, as well as humanitarian aid.
The Swedish International Development Cooperation Agency (Sida), a government agency of the Swedish Ministry for Foreign Affairs, is responsible for the bulk of Sweden's official development assistance to developing countries.
USAID is the principal U.S. international aid and development agency. It delivers humanitarian and economic assistance to more than 100 countries. For detailed information about procurement, refer to the USAID website, particularly the Grant and Contract Process information. The rules governing procurement are in the document Source and Nationality Requirements for Procurement of Commodities and Services Financed by USAID (PDF*, 515 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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