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Co-financing of the multilateral development banks

Co-financing is an important instrument of the multilateral development banks. It allows to mobilise additional financing in cooperation with third parties, including Switzerland, and to optimise the cost-effectiveness of programmes and projects.

The multilateral development banks are also supported in the financing of their projects and programmes by the financial participation of third parties (co-financing). These co-financiers include official bilateral partner institutions, export credit agencies and the private sector.

Co-financing operations are in the interests of both parties. On the one hand, they enable the World Bank and regional development banks to mobilise supplementary financing for project components. On the other hand, they allow for closer cooperation with official donors in relation to the country-specific programmes or the preparation of concrete projects. For donors, it is a cost-efficient way to optimise their programmes and projects by drawing on the experience and capacities of the development banks and by contributing own expertise inputs to the banks.

Switzerland provides co-financing mainly in the form of non-refundable grants and guarantees for infrastructure projects, trade and SME promotion programmes as well as projects of benefit to the environment in partner countries. Switzerland has close ties in particular with the World Bank, the IFC and the EBRD. This is expressed in the number of co-financing projects as well as in knowledge transfer and participation in project planning.

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