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

Agenda 1.What does IFC do and Why IFC does TA 2.The IFC Technical Assistance Trust Funds Program (TATF) 3.Donor (Country) Trust Funds 4.Examples of TA Activities Undertaken 5.Opportunities for (Donor Country) Consultants 6.Working with the IFC Trust Funds Program

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

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 projectsProvide loans and equity for viable projects Mobilize capital from other sourcesMobilize capital from other sources Provide advisory servicesProvide advisory services

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

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. Sector $ millions Financial2,529 Transportation, Warehousing, & Utilities 562 Oil, Gas, Mining, & Chemicals 383 Food & Beverages 378 Industrial & Consumer Products 246 Nonmetallic Mineral Product Manufacturing 194 Information182 Accommodation & Tourism Services 98Sector $ millions Wholesale & Retail Trade 93 Textiles, Apparel, & Leather 91 Agriculture & Forestry 66 Construction & Real Estate 50 Primary Metals 50 Plastics & Rubber 47 Health Care & Education 37 Pulp & Paper 23 Professional, Scientific, & Technical Services 7

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

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 Funding: governments, development institutions, & the World Bank Group Eligible countries: IFC’s developing member countries Eligible countries: IFC’s developing member countries Management: IFC, under its own operating procedures & agreements with donors Management: IFC, under its own operating procedures & agreements with donors

TATF Program Scope Since establishment of TATF program in 1988: 46 trust funds with 23 donor agencies46 trust funds with 23 donor agencies More than 1000 assignments approvedMore than 1000 assignments approved In FY2003: 132 TA assignments totaling US$17 million approvedIn FY2003: 132 TA assignments totaling US$17 million approved Almost all our funds are tiedAlmost all our funds are tied Size of assignments: $30~800,000.Size of assignments: $30~800,000.

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

Types Of TA Assignments FY03 # of TA Assignments # of TA Assignments Related to specific investment58 SME Support56 Sector reviews/identification39 Enabling environment33 Training and capacity building31 Privatization/corporate advisory30 Post-privatization support 3 Others 8

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

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

4. Examples of recently funded TA projects under Norwegian TATFs Mozambique – Advisory Services Mandate for Privatization of PetromocMozambique – Advisory Services Mandate for Privatization of Petromoc Comparative Study of the Development of the IT Industry in China and India- Manufacturing or ServicesComparative 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 MozambiqueMozambique - 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 ManagementChina – Minsheng Shipping Company: Assistance in Market Study/Business Planning and Capacity Building in Financial Management

5. Opportunities for Consultants Industry and Sector SpecialistsIndustry and Sector Specialists Accounting/FinanceAccounting/Finance Financial MarketsFinancial Markets SMEsSMEs Health Care and EducationHealth Care and Education Environmental and Social SustainabilityEnvironmental and Social Sustainability OthersOthers

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

Consultant Opportunities IFC DatabasesIFC Databases Meet with IFC task managers in Washington or in the field (field office locations available on external web)Meet with IFC task managers in Washington or in the field (field office locations available on external web) Executive Director’s OfficeExecutive Director’s Office Innovation NorwayInnovation Norway 6. Working with TATF

Working with TATF Contact information : Fred Wright, Principal Project Officer Fred Wright, Principal Project Officer Trust Funds Department Trust Funds Department International Finance Corporation Washington DC Telephone: Fax: