Evaluatierapport (PDF, 6.47 MB) - Buitenlandse Zaken - Belgium

FINEXPO EVALUATION
programmes or to e.g. parallel financing with other bilateral or
multilateral donors.
Works financed under Danish tied mixed credits shall be tendered
and contracted as one contract with a Danish contractor/supplier
or joint venture. The contractor shall be chosen through
competitive tendering among Danish contractors. Prequalification
is used to select and invite prospective tenderers
among those eligible and qualified.
Spain: Fondo de
Ayuda
al
Desarrollo
Spain : CARI
Netherlands:
ORET
An export credit guarantee required and is issued by the Export
Credit Fund (EKF).
Each recipient country should indicate –and be responsible for- its
own agent (bank, financial intermediary) responsible for the
financial handling in the recipient country. ICO should approve
this agent. All specific requirements are being detailed in the
Credit Agreement, which does not only refer to all financial
management aspects, but also to aspects like the respect for
international agreements on i.e. labour, environment and others.
See FAD
All applications for ORET were (pre-) appraised against three
main conditions:
The project should be development-relevant;
assessed on the basis of national development
plans, sector plans and/or poverty reduction
strategy paper
The transaction should be beneficial to the Dutch
economy; assessed on standardised criteria of
produce from Dutch origin (usually minimum of
50-60 %); and employment generation
The project should not be commercially viable,
assessed by means of three standard
calculations: the Financial Internal Rate of
Return, the Economic Internal Rate of Return and
the Commercial Internal Rate of Return. The
Ministry had developed standard calculation sheets to
that end. The non-commercial viability of the
transaction (and broader project) is determined by
either a low Commercial Internal Rate of Return or the
fact that no commercial financing (on market terms)
can be obtained 96 .
Country “ceilings” has to be respected; that implies
that no single country could receive more than 20% of
the annual budget allocation (apart from China).
In principle and additionality requirement, implying
that the ORET grant had the function of ‘resources of
last resort’ and could only be used if no other funding
arrangement against comparable conditions could be
see
96 A project is regarded as non-financial viable if within 10 years it fails to generate sufficient income (cash flow) under free
market conditions to recover the initial capital investment and to cover both operating and financing costs. This cash flow
analysis should be calculated for the entire project, not just for the transaction. If a project is financially viable but could not
obtain financing on commercial terms it is also deemed to be non-commercially viable.
Final report – Appendix 8 – page 160