Examples of Cofinancing

Trust Fund Highlights

World Bank Cofinancing

Cofinancing* describes funds committed by official bilateral partners, multilateral partners, export credit agencies, or private sources to specific Bank-funded projects. Partners include regional development banks, multilateral partners such as those associated with environmental agreements, and special program mechanisms, as well as private sector actors that provide project financing. The Bank’s cofinancing figures reflect the combining of Bank resources with those of other donors in specific regions and sectors to support client country activities. The wider the participation in the cofinancing effort, the greater the consensus on the activities and policies supported.

Cofinancing in fiscal 2001 amounted to $5.47 billion. Multilateral and bilateral partners contributed 85 percent of this amount. Major partners included the Inter-American Development Bank (IADB–$1.9 billion); the Japan Bank for International Cooperation ($0.53 billion); and Kreditanstalt für Wiederaufbau (KfW–$0.3 billion). This year’s cofinancing was below the previous year’s level ($9.3 billion), reflecting unusually large volumes of cofinancing in fiscal 2000 for the Chad-Cameroon Pipeline Project ($3.4 billion) and in China ($0.4 billion).

The Latin America and the Caribbean Region accounted for the largest share of cofinancing in fiscal 2001 ($3.4 billion), followed by Africa ($1.12 billion) and Europe and Central Asia ($0.46 billion). The major sectors attracting cofinancing were public sector management ($1.2 billion), finance ($1 billion), and oil and gas ($0.9 billion).

In addition to cofinancing of $5.47 billion, $2 billion was committed in fiscal 2001 under the Strategic Partnership with Africa framework. The commitment, which reflected close donor coordination on policies in the context of Poverty Reduction Strategy Papers (in Benin and Uganda, for example), was above the amount committed in fiscal 2000 ($0.51 billion).

Examples of Cofinancing in Fiscal 2001

Total projects cofinanced by the Bank and its partners numbered 131 in fiscal 2001. Examples of projects with significant cofinancing include:

• The Bolivia Programmatic Structural Adjustment Credit for Decentralization leveraged $20 million in funds from three partners: Department for International Development, United Kingdom; Sweden; and the Netherlands. Parallel cofinancing of $127 million came from KfW, the German Technical Assistance Corporation, Denmark, the U.S. Agency for International Development, the Andean Development Corporation, and the IADB.
• The Mali Education Sector Expenditure Project leveraged $154 million from 15 donors: the African Development Bank, the Agence Française de Développement, the Canadian International Development Agency, Sweden, the United States, the Islamic Development Bank, KfW, France, Belgium, the Netherlands, Norway, the Organization of Petroleum Exporting Countries Fund, the United Nations Children’s Fund, the United Nations Development Programme, and the World Food Program.
• The India Power Grid II Project received $175 million of cofinancing from KfW.
• The West Bank and Gaza lending program is financed through the Bank-established Trust Fund for Gaza and the West Bank. The fund has been allocated $380 million from the Bank’s net income and since September 1994 has financed 20 projects for a total of $307 million. Over $540 million has been provided in joint and parallel cofinancing by numerous donor governments.