|Cofinancing refers to any arrangement under which Bank funds or guarantees are associated with funds provided by third parties for a particular project or program. Official cofinancing, either through donor government agencies or multilateral financial institutions, constitutes the largest source of cofinancing for Bank-assisted operations.
The Bank’s objectives in encouraging cofinancing are to:
- Mobilize resources to fill a financing gap in a specific project or program.
- Establish closer coordination with official donors on country programs, policies, and investment priorities.
- Provide donors with a cost-effective way of extending assistance by using the Bank’s country experience and capacity to manage projects and programs.
Under its cofinancing activities, the Bank provides the following services:
Cofinancing Consultations: these consultations provide a forum for both bilateral donor agencies and multilateral institutions to review projects with cofinancing potential and trust fund opportunities.
Framework Agreements: the negotiated agreements establish the procedures for processing cofinancing, trust funds and other collaborative modalities.
Export Credit Cofinancing Services: we assist the Bank's six regional vice presidencies and export credit agencies in identifying appropriate opportunities for cofinancing in Bank projects and in structuring particular export credit arrangements.
Other services: we also assist operational Bank staff, as necessary, in identifying official cofinancing sources and firming up cofinancing commitments.