1. IFC Donor Funded Operations Presentation to Norwegian Dialogue May 13, 2004 International Finance Corporation

2. IFC’s Donor Funded Operations (DFOs) In addition to the Technical Assistance Trust Funds Program (TATF) IFC programs supported by Donors include: Regional SME FacilitiesRegional SME Facilities Sustainable Business Assistance ProgramSustainable Business Assistance Program Advisory Services including:Advisory Services including: Foreign Investment Advisory Services (FIAS)Foreign Investment Advisory Services (FIAS) Private Sector Advisory Services (PSAS)Private Sector Advisory Services (PSAS) Private Enterprise Partnership (PEP) in FSU/MongoliaPrivate Enterprise Partnership (PEP) in FSU/Mongolia Financing Facilities – Iraq SBFF and Balkans InfrastructureFinancing Facilities – Iraq SBFF and Balkans Infrastructure Norway/Bank Group TF for Private Sector and InfrastructureNorway/Bank Group TF for Private Sector and Infrastructure

3. IFC-Managed SME Facilities Program has more than doubled in last 3 years (new one in the Middle East – PEP-ME covering Yemen, Iraq, Afghanistan and West Bank/Gaza)Program has more than doubled in last 3 years (new one in the Middle East – PEP-ME covering Yemen, Iraq, Afghanistan and West Bank/Gaza) $31 million annual operating budget (IFC funds matched 4:1)$31 million annual operating budget (IFC funds matched 4:1) 90% of countries served are IDA eligible90% of countries served are IDA eligible

4. SME Capacity Building Facility Supports pilots and partnershipsSupports pilots and partnerships Incubator role broadens WBG’s SME productsIncubator role broadens WBG’s SME products $7.1 m annually from IFC net income (Approx 70 active projects)$7.1 m annually from IFC net income (Approx 70 active projects) Tool for building relationships with outside partners, leveraging them to benefit WBG operations (ACCION, FUNDES, SWISSCONTACT, SEWA, etc)Tool for building relationships with outside partners, leveraging them to benefit WBG operations (ACCION, FUNDES, SWISSCONTACT, SEWA, etc)

5. IFC’s Sustainable Business Assistance Program Objective – Expand IFC’s support for environmental and social sustainabilityObjective – Expand IFC’s support for environmental and social sustainability Address 3 core areas of IFC’s work:Address 3 core areas of IFC’s work: Consistent with key Johannesburg commitments to improve the quality of people’s lives:Consistent with key Johannesburg commitments to improve the quality of people’s lives: Cross-cutting issues: “actively promote corporate responsibility and accountability”Cross-cutting issues: “actively promote corporate responsibility and accountability” Pollution, water and sanitation, biodiversity, clean energyPollution, water and sanitation, biodiversity, clean energy Total funding needed of $55 m over 5 years of which IFC will contribute $10 mTotal funding needed of $55 m over 5 years of which IFC will contribute $10 m Mainstream project-related work Corporate Citizenship Facility (CCF) Capacity building in financial markets Sustainable Financial Markets Facility (SFMF) Environmental projects Environmental Opportunities Facility (EOF)

6. Corporate Citizenship Facility (CCF) Support IFC clients and wider private sector where there is a demand for assistance in three areas:Support IFC clients and wider private sector where there is a demand for assistance in three areas: Engaging with stakeholdersEngaging with stakeholders Community development, consultation and engagement, distribution of benefits, local economic growthCommunity development, consultation and engagement, distribution of benefits, local economic growth Employees and employmentEmployees and employment Employment practices, HIV / AIDS, employee ownershipEmployment practices, HIV / AIDS, employee ownership Environmental stewardshipEnvironmental stewardship Footprint, externalities, global impactsFootprint, externalities, global impacts

7. Sustainable Financial Markets Facility (SFMF) Enhance the environmental and social development impact of IFC’s investments in and via financial intermediaries Help the financial sector to use sustainability as a tool to build better businesses and increase long-term competitiveness Increase the quality and amount of environmentally and socially responsible investment in developing countries Improve the capacity of IFC’s financial intermediaries to operate in an environmentally and socially sustainable manner Strategically support and influence the sustainability agenda in the broader financial community Core Objectives

8. Environmental Opportunities Facility (EOF) Focus on innovative projects that generate primarily local environmental benefitsFocus on innovative projects that generate primarily local environmental benefits Overcome uncertainty associated with new markets, new business models, and new technologiesOvercome uncertainty associated with new markets, new business models, and new technologies Two types of support:Two types of support: Project Preparation -- Grant funding for preparation of business plans, market assessments, etc.Project Preparation -- Grant funding for preparation of business plans, market assessments, etc. Investment Funding – Flexible financing products:Investment Funding – Flexible financing products: Market-rate funding for risky, small venturesMarket-rate funding for risky, small ventures Concessional financing tailored to innovative projectsConcessional financing tailored to innovative projects Seed capital for post R&D technologies and project developersSeed capital for post R&D technologies and project developers Emphasis on partnerships with financial intermediaries, local institutions, multilaterals, bilateralsEmphasis on partnerships with financial intermediaries, local institutions, multilaterals, bilaterals

9. IFC Advisory Services Foreign Investment Advisory Service (FIAS)Foreign Investment Advisory Service (FIAS) Founded in 1985Founded in 1985 Works only at request of client governmentWorks only at request of client government IFC and World Bank contribute 35-40% of fundingIFC and World Bank contribute 35-40% of funding Private Sector Advisory Services (PSAS)Private Sector Advisory Services (PSAS) Advisory and Transaction specialistsAdvisory and Transaction specialists Lawyers, Technical, Environmental, Social, Marketing, AuditingLawyers, Technical, Environmental, Social, Marketing, Auditing

10. Private Enterprise Partnership (PEP) in the FSU IFC TA in the FSU region began with the creation of the private sector through privatization and land reform in 1991IFC TA in the FSU region began with the creation of the private sector through privatization and land reform in 1991 In May 2000 IFC’s Board approved the creation of PEP to expand IFC’s TA in the FSU work on:In May 2000 IFC’s Board approved the creation of PEP to expand IFC’s TA in the FSU work on: Promoting private sector investment with emphasis on foreign direct investment (FDI).Promoting private sector investment with emphasis on foreign direct investment (FDI). Supporting the growth of SMEs, particularly through building viable financial intermediaries.Supporting the growth of SMEs, particularly through building viable financial intermediaries. Improving the business enabling environment, with emphasis on corporate governanceImproving the business enabling environment, with emphasis on corporate governance In October 2002 IFC’s Board reviewed the progress of PEP and extended it through 2006 In October 2002 IFC’s Board reviewed the progress of PEP and extended it through 2006

11. Norwegian TF for Private Sector and Infrastructure NTF-PSI covers Bank GroupNTF-PSI covers Bank Group Established August 2002Established August 2002 Designed to:Designed to: Align Norwegian priorities with Bank Group Private Sector Development Strategy (PSD)Align Norwegian priorities with Bank Group Private Sector Development Strategy (PSD) Improve dialogue between Norway and the Bank Group on PSDImprove dialogue between Norway and the Bank Group on PSD Improve coordination between Bank and IFC on PSD initiativesImprove coordination between Bank and IFC on PSD initiatives Efficiently and transparently allocate Norwegian support of PSD activities in the Bank Group including global/regional PSD programsEfficiently and transparently allocate Norwegian support of PSD activities in the Bank Group including global/regional PSD programs

12. Norwegian TF for Private Sector and Infrastructure Initial funding of $7.1 MillionInitial funding of $7.1 Million Second year funding of $8.0 mSecond year funding of $8.0 m Third Year….Third Year…. Call for Proposals targeting:Call for Proposals targeting: Investment Climate and GovernanceInvestment Climate and Governance Infrastructure Service Delivery to the PoorInfrastructure Service Delivery to the Poor Existing global/regional programsExisting global/regional programs Screening Criteria:Screening Criteria: 50% of the funds for Sub-Saharan Africa50% of the funds for Sub-Saharan Africa Poor Countries – Bottom three categories of ODA DAC listPoor Countries – Bottom three categories of ODA DAC list Fit with Norwegian priorities and PSD StrategyFit with Norwegian priorities and PSD Strategy

13. Contact and Reference Links IFC TFs - Fred Wright, Principal Project Officer, CTATF IFC TFs - Fred Wright, Principal Project Officer, CTATF Telephone: 202-473-6076 E-mail:fwright@ifc.org fwright@ifc.org NTF-PSIMarianne Bergstrom, Operations Officer, INFCS Telephone: 202-473-O630 E-Mail:mbergstrom@worldbank.org mbergstrom@worldbank.org External web sites: www.ifc.org and www.worldbank.org www.ifc.orgwww.worldbank.orgwww.ifc.orgwww.worldbank.org IFC Annual report on DFOs www.ifc.org/tatf www.ifc.org/tatf SME Facilities www.ifc.org/sme www.ifc.org/sme Environmental and Social Facilities www.ifc.org/enviro www.ifc.org/enviro Private Enterprise Partnership www.ifc.org/pep www.ifc.org/pep FIAS www.ifc.org/fias www.ifc.org/fias NTF-PSI – http://wbln0018.worldbank.org/infrastructure/ntfpsi.nsf http://wbln0018.worldbank.org/infrastructure/ntfpsi.nsf